Minerals Insurance and ALTA Coverage
Minerals Insurance and ALTA Coverage
Regardless of the jurisdiction in which you’re working and whether it’s a solar or wind project minerals insurance and ALTA coverage is essential for lenders and investors. And so one of the ways in which we have been very strategic is to work with our clients and assist them in identifying and then negotiating the severance of the minerals where there is an interest has been assigned a way to another party.
We worked on a large solar project in Kern County where the mineral interests had been assigned away many years earlier to three different charitable organizations. One in Monterey one in San Francisco and one in the Bay Area.
And so what we had to do was to approach each one of these charitable organizations which was run by a fiduciary board. Help them understand mineral severance and energy projects and solar projects and then be able to work with them to formulate a fair resolution and price for the acquisition of their minerals so that they could meet the fiduciary requirements as a board but also not inhibit the the financial requirements for the project.
Complicated Negotiations
So these were difficult and complicated negotiations and they involve consulting with local firms to understand the costs the nature of the minerals coal and some of the other minerals in Kern County. We were successful in doing that and working with these boards and getting them to understand and actually were able to negotiate very low purchase prices for those minerals in order to preserve the value and the monetization of the solar project.
Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land.
Power Output
120 MW
Negotiating
Minerals
Location
Kern County
