Static File from Variable Resolution grid

[F-Colby-UML]

I've been trying to create a static file from the 60-15km variable resolution grid. I have had no problems doing this for quai-uniform grids, following the tutorial examples and for my own limited area grids. For this one, however, I am getting this error message:
WARNING: Variable bdyMaskCell not in input file.
WARNING: Variable bdyMaskEdge not in input file.
WARNING: Variable bdyMaskVertex not in input file.
WARNING: File Ian-Var.grid.nc does not contain a seekable xtime variable. Forcing a read of the first time record.
real-data GFS test case
ERROR: ********************************************************************************
ERROR: Error opening file with terrain field, FILE:2022-09-25_00
ERROR: ********************************************************************************
ERROR: *************************************************************
ERROR: Blending of terrain along domain boundaries would fail, and
ERROR: config_blend_bdy_terrain = true in the namelist.init_atmosphere file.
CRITICAL ERROR: *************************************************************

I am attaching the error, namelist and streams files (all with .txt added to allow uploading). And am running v 8.2.2.

Any ideas what I am doing wrong?

Thanks,
Frank