NCF – Extended list of Neutral creatures.

That's right, that's the essence of this ability.

Well, you know, there's some logic to it if it's a melee unit, but a ranged unit being scared across the entire battlefield is a bit much. If diplomacy succeeds and you get such a creature in your army, all mind-sensitive neutral creatures will be easily cleared without losses.
I'm experimenting with the editor, and when I find such a creature, I'll record a short video of a battle with it.