In my latest game I witnessed Resoln founding a city on a tile with no grain/material/mana.

Pioneers skulking outside my territory.

Ceresa you cheating bitch.
Save game which should reproduce the problem after one turn: http://dl.dropbox.com/u/55435420/Resoln%20Pioneers%20About%20to%20Settle.EleSav
I hope this helps Stardock resolve this issue. I'm absolutely loving the game, but seeing the AI ignore the rules like this kinda kills the fun.