Page 128 - ALTA Endorsements Guide

A L T A E N D O R S E M E N T

1-06 to 9.6.1-06 9.7-06 to 17.1-06 17.2-06 to 28.3-06 29-06 to 36.6-06 36.7-06 to 46-06

ALTA ENDORSEMENT 36.6-06

ENERGY PROJECT – ENCROACHMENTS

Adopted (4-2-12)

1. The insurance provided by this endorsement is subject to the exclusions in Section 4 of this
endorsement; and the Exclusions from Coverage, the Exceptions from Coverage contained in
Schedule B, and the Conditions in the policy.
2. For purposes of this endorsement only:

a. “Electricity Facility” means an electricity generating facility that may include one or more of the
following: a substation; a transmission, distribution or collector line; an interconnection, inverter,
transformer, generator, turbine, array, solar panel, or module; a circuit breaker, footing, tower,
pole, cross-arm, guy line, anchor, wire, control system, communications or radio relay system,
safety protection facility, road, and other building, structure, fixture, machinery, equipment,
appliance and item associated with or incidental to the generation, conversion, storage, switching,
metering, step-up, step-down, inversion, transmission, conducting, wheeling, sale or other use or
conveyance of electricity, on the Land at Date of Policy or to be built or constructed on the Land
in the locations according to the Plans, that by law constitutes real property.
b. “Plans” means the survey, site and elevation plans or other depictions or drawings prepared by
(insert name of architect or engineer) dated ____, last revised ________, designated as (insert
name of project or project number) consisting of ___sheets.

c. “Severable Improvement” means property affixed to the Land at Date of Policy or to be affixed to
the Land in the locations according to the Plans, that would constitute an Electricity Facility but for
its characterization as personal property, and that by law does not constitute real property
because (a) of its character and manner of attachment to the Land and (b) the property can be
severed from the Land without causing material damage to the property or to the Land.
3. The Company insures against loss or damage sustained by the Insured by reason of:

a. An encroachment of any Electricity Facility or Severable Improvement located on the Land onto
adjoining land or onto that portion of the Land subject to an easement, unless an exception in
Schedule B of the policy identifies the encroachment;
b. An encroachment of an improvement located on adjoining land onto the Land at Date of Policy,
unless an exception in Schedule B of the policy identifies the encroachment;

c. Enforced removal of any Electricity Facility or Severable Improvement, as a result of an
encroachment by the Electricity Facility or Severable Improvement onto any portion of the Land
subject to any easement, in the event that the owners of the easement shall, for the purpose of
exercising the right of use or maintenance of the easement, compel removal or relocation of the
encroaching Electricity Facility or Severable Improvement; [or]
d. Damage to any Electricity Facility or Severable Improvement that is located on or encroaches onto
that portion of the Land subject to an easement excepted in Schedule B, which damage results
from the exercise of the right to maintain the easement for the purpose for which it was granted or
reserved [; or]

[e. The coverage of Sections 3.c. and 3.d. shall not apply to the encroachments listed in Exception(s)
______________ of Schedule B].

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