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Permalink Reply by Buck O'Korn on January 11, 2010 at 5:31am

Fair enough Ruby..:>

IF you bought a piece of property that you wish to lease for drilling purposes here a few thoughts:
1) If you don't live on the property and there are absolutely no man made structures, functional or not, on the property your current homeowners policy more then likely will offer you coverage with in the limits of your current liability amount. Please see your agent to let them know you have purchased a new piece of land. This may chage if or when pysical operations begin.

2) If the land has any type of man made structure on it...then the property is more then likely disqualified from an extension of your homeowners policy and would need to be written on a vacant land policy. I know that sounds odd..Vacant land policy if it has structures on it! Many insurance companies who specialize in vacant land policies will allow existing structures on the property if that info is disclosed on the application.

There are many other situations as well. What if you don't own the mineral rights but rather the land only--Does the energy company or land lease company share in any of the liability exposure???

I'm currently speaking with an attorney who I am sure will give me some insight on this matter as well as trying to get land lease contracts to see if any liability coverage is offered.

The more I find out the more I will post...

If you have any specific questions please call me 724-941-8200 Buck