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Grimley Farms Has Been Located on a 62-Acre Tract of Land

Question 93

Multiple Choice

Grimley Farms has been located on a 62-acre tract of land since, as near as the land documents reflect, the American Revolutionary War. In 1982, Marathon acquired three tracts of land surrounding Grimley Farms and began drilling for oil. Marathon hit a substantial oil find at an angle of drilling and began pumping. The pool of oil is located beneath Grimley Farms. The Grimley family has demanded the majority portion of the royalties from the sale of the oil captured by Marathon. Marathon claims it owns the oil. Which of the following statements is correct?


A) Grimley owns all of the rights to the oil.
B) In a nonownership state, Marathon owns all of the rights to the oil.
C) Marathon owns all of the rights to the oil in a Rule-of-Capture state.
D) Marathon needs a license or profit a prendre from Grimley to drill in a nonownership state.

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