Grey owns the surface rights for High Desert Ranch,which includes a house,a bunkhouse,and two barns.Industrial Mining Inc.owns the subsurface rights.When the company drills for and extracts the oil beneath the ranch,the surface subsides and the structures collapse.Most likely responsible for the damage is
A) Industrial Mining.
B) Grey.
C) Industrial Mining and Grey in proportion to the value of their rights.
D) no one-each owner is liable for their own costs.

Question

Quizplus · Accepted Answer

Industrial Mining Inc. is most likely responsible for the damage caused by the subsidence because they have the subsurface rights and are the ones drilling for and extracting the oil. This activity has caused damage to the surface structures, which is within their purview of control. Grey, who only owns the surface rights, would not be responsible for the damage caused by subsidence resulting from Industrial Mining's activities.

Grey Owns the Surface Rights for High Desert Ranch,which Includes