Steps to reproduce:

1. Create a scene with a terrain
2. Add a height map to the terrain (Optional)
3. Add a Decal projector to the scene centralize to the terrain. Resize it to cover the terrain.
4. Create a Decal material with a Base Map and assign it the the decal projector in the scene.
5. Use the Base Map Dist. (Terrain settings/Basic Terrain) to show the issue.

Actual results: 

The decal projector doesn't affect the cells behind the Base Map Distance, using a lower resolution composite image.

Expected results: 

The decal projector should affect the terrain at any LOD.
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Reproducible with versions:* 6.3

Not reproducible with versions: NA

Can’t test with versions: 

Tested on (OS): Windows

Notes: