ND Bar Practice Questions - North Dakota Bar Examination Exam

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A North Dakota mineral lessee drills a well that drains oil from beneath an adjacent tract. The adjacent owner sues, claiming the oil was 'his.' Under the rule of capture as applied in North Dakota oil-and-gas law, the result is most likely:

The driller is generally not liable for oil lawfully produced from a well on its own tract that drains from adjacent land, subject to correlative-rights and regulatory limits (e.g., spacing and pooling) The driller is strictly liable for converting the neighbor's oil The neighbor automatically owns half of all oil produced Oil cannot be owned until it is refined

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