WA STG Endorsement (Energy Project - Leasehold Easement - Owner's)
ATTACHED TO POLICY NUMBER ______________________
STEWART TITLE GUARANTY COMPANY
Order Number: ____________
1. As used in this endorsement, the following terms shall mean:
a. “Evicted” or “Eviction”: (a) the lawful deprivation, in whole or in part, of the right of possession or use insured by this policy, contrary to the terms of any Lease or Easement or (b) the lawful prevention of the use of the Land or the Improvements for the purposes permitted by the Lease or the Easement, as applicable, in either case as a result of a matter covered by this policy.
b. “Easement”: each energy project easement agreement described in Exhibit A to Schedule
c. “Easement Interest”: the right of use granted in the Easement for the Easement Term.
d. “Easement Term”: the duration of the Easement Interest, as set forth in the Easement, including any renewal or extended term if a valid option to renew or extend is contained in the Easement.
e. “Improvements": Those Electricity Generation and Transmission Facilities required or permitted to be built on the Land by the Lease or the Easement, as applicable, that have been or in the future are built in the locations shown on the Survey at the Insured's expense or in which the Insured has an interest greater than the right to possession during the Lease Term or the right to use during the Easement Term, as applicable.
f. “Lease”: each energy project lease agreement described in Exhibit A to Schedule A.
g. “Leasehold Estate”: the right of possession granted in the Lease for the Lease Term.
h. “Lease Term”: the duration of the Leasehold Estate, as set forth in the Lease, including any renewal or extended term if a valid option to renew or extend is contained in the Lease.
i. “Personal Property”: property that, because of its character and manner of affixation to the Land, can be severed from the Land without causing appreciable damage to the property or to the Land to which the property is affixed, including any property now or in the future affixed to the Land that would constitute Electricity Generation and Transmission Facilities but for its characterization as personal property notwithstanding affixation to the Land.
j. “Remaining Easement Term”: the portion of the Easement Term remaining after the Insured has been Evicted as a result of a matter covered by this policy.
k. “Remaining Lease Term”: the portion of the Lease Term remaining after the Insured has been Evicted as a result of a matter covered by this policy.
2. Valuation of Estate or Interest Insured:
a. If, in computing loss or damage, it becomes necessary to value the Title as the result of a covered matter that results in an Eviction, then that value shall consist of the value of (i) the Leasehold Estate for the Remaining Lease Term or the Easement Interest for the Remaining Easement Term, as applicable, (ii) any Improvements existing on the date of the Eviction, and, if applicable, (iii) any reduction in value of other insured Leases or Easements as contemplated in paragraph 2(b) below.
b. The computation of loss or damage to any portion of the Land shall take into account its value as a Constituent Parcel of the single integrated whole.
c. The Insured Claimant shall have the right to have the Leasehold Estate and the Easement Interest, as applicable, and the Improvements valued either as a whole or separately. In either event, this determination of value shall take into account rent no longer required to be paid for the Remaining Lease Term and easement payments no longer required to be paid for the Remaining Easement Term, as applicable.
3. Additional items of loss covered by this endorsement:
If the Insured is Evicted, the following items of loss, if applicable and without duplication, shall be included in computing loss or damage incurred by the Insured, but not to the extent that the same are included in the valuation of the Title determined pursuant to paragraph 2 of this endorsement or Section 8(a)(ii) of the Conditions.
a. The reasonable cost of: (i) disassembling, removing, relocating and reassembling any Personal Property that the Insured has the right to remove and relocate, situated on the Land at the time of Eviction, to the extent necessary to restore and make functional the integrated project; (ii) transportation of that Personal Property for the initial one hundred miles incurred in connection with the restoration or relocation; (iii) repairing the Personal Property if damaged by reason of the disassembly, removal, relocation or reassembly thereof; (iv) repairing any damage to the Land resulting from the disassembly, removal and relocation of the Personal Property to the extent required of the Insured.
b. Rent, easement payments or damages for use and occupancy of the Land prior to the Eviction which the Insured as owner of the Leasehold Estate or the Easement Interest, as applicable, may be obligated to pay to any person having paramount title to that of the lessor in the Lease or the grantor in the Easement, as applicable.
c. The amount of rent, easement payments or damages that, by the terms of the Lease or the Easement, as applicable, the Insured must continue to pay to the lessor or grantor after Eviction with respect to the portion of the Leasehold Estate or Easement Interest, as applicable, and the Improvements from which the Insured has been Evicted.
d. The fair market value, at the time of the Eviction, of the estate or interest of the Insured in any lease or sublease or easement specifically permitted by the Lease or Easement, as applicable, and made by the Insured as lessor or grantor of all or part of the Leasehold Estate or Easement Interest, as applicable, or the Improvements.
e. Damages that the Insured is obligated to pay to lessees or sublessees or easement or subeasement grantees on account of the breach of any lease or sublease or easement or subeasement specifically permitted by the Lease or the Easement, as applicable, and made by the Insured as lessor or grantor of all or part of the Leasehold Estate or Easement Interest, as applicable, or the Improvements caused by the Eviction.
f. The reasonable cost to obtain land use, zoning, building and occupancy permits, architectural and engineering services and environmental testing and reviews for a replacement leasehold reasonably equivalent to the Leasehold Estate or a replacement easement reasonably equivalent to the Easement Interest, as applicable.
g. If the Improvements are not substantially completed at the time of Eviction, the actual cost incurred by the Insured, less the salvage value, for the Improvements up to the time of Eviction. Those costs include costs incurred to obtain land use, zoning, building and occupancy permits, architectural and engineering fees, construction management fees, costs of environmental testing and reviews, and landscaping costs.
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements.
Signed under seal for the Company, but this endorsement is to be valid only when it bears an authorized countersignature.
No guidelines are available for this form at this time.