Oil and gas leases may violate mortgage and homeowner's insurance policies

An article in The New York Times reports that several provisions in oil and gas leases are "expressly forbidden" in many mortgage and homeowner's  insurance contracts. There is mounting concern among regulators and lawmakers that a landowner may inadvertently invalidate his or her mortgage and /or  home owner's  insurance policy by signing leases with oil and gas companies. "In Ohio, bank regulators sent a letter in September to state lawmakers warning that if borrowers did not get their lenders' consent before signing a drilling lease, they would be violating the terms of their mortgage," the article said. For more, read the full story here.

National, Ohio