I can't believe they would agree to issue an RTW with no overwater segments on them-- I would never have the chutzpah to even ask them to!
Even in this case its not that bad for LH. They can put their fuel surcharges on everything and they get cash upfront and can work with this before they have to distribute it to other carriers. So even with no LH segment at all it shouldn't be too bad for LH to issue.