Oil extraction arrangements need to deal with common property issues:
A)due to heavy regulation in the natural resource industries.
B)due to the highly sensitive nature of oil reserves after the 9/11 events.
C)as a result of the rule of capture.
D)because oil belongs to the entire people.

Question

Quizplus · Accepted Answer

The rule of capture is the legal concept that allows a landowner to extract underground resources, such as oil, without liability for any drainage of resources from neighboring properties. This creates a common property issue as neighboring landowners may be affected by the oil extraction activities of one landowner. Therefore, oil extraction arrangements need to address this issue. The other options (A, B, and D) are not directly relevant to the common property issue.

Oil Extraction Arrangements Need to Deal with Common Property Issues