Product Focus: Minerals Background
Challenge
Agricultural land had been secured by our insured who planned to develop it by constructing an anaerobic digestion facility.
A claim by a third party exercising mining / mineral rights contained within the relevant Feu Disposition.
The title to the property contained a historic minerals reservation reserved in a 1978 Feu Disposition in favour of a third party as follows:
Solution
“the whole ironstone, limestone and other fossils, mines, metals and minerals (other than those vested in the National Coal Board) with full power to search for, work, win and carry away the same and to carry on such operations as may be necessary for any or all of these purposes, but not to enter upon or use the surface, subject to paying compensation for future damage to the surface of the ground or any buildings erected thereon” Whilst the owner of the minerals did not have a right to enter the property to work the minerals, there was a risk that the construction of the scheme may have disturbed the minerals. The developer was therefore concerned that the existence of the reservation may prejudice the proposed development on the Land.
First Title were able to provide cover based upon the following conditions: •
Planning permission had been granted without any objections in relation to the minerals at the site.
•
The Coal Authority report did not disclose any material matters.
•
No approach had been made to or by any third party who may have the benefit of the mineral reservation.
•
Title to the minerals was not registered in the Land Register.
•
Only a proportion of the land was affected by the minerals reservation.
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Call: +44 (0)141 413 8800 Email: scotinfo@firsttitle.co.uk Visit: www.firsttitle.co.uk First Title Insurance plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. First Title Insurance plc is registered in England under company number 01112603. Registered office: First Title Insurance plc, ECA Court, 24-26 South Park, Sevenoaks, Kent TN13 1DU.
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