Okay, just tested:
Do you see the vertical line to the very left of the map? I didn't actually check in game, but if ME "sees" it, there is an high chance that the game engine will see it too.
That should end all our doubts: that's a little mistake by Ref.
Yes, probably SHIV modders could tell us more on that, though I think that propbeanie's experience is relative to the latter game and he knows as much as us on the topic.
On a side note: why the GWX name for the Terrain Extractor-Importer, since it is a tool eminently done for SHIV?