Property Ownership

In North Dakota, an oil and gas company that damages a farmer's crops and surface land during drilling operations may be liable for:

ANothing if they have a valid oil and gas lease
BSurface damages as required by the North Dakota Oil and Gas Production Damage Compensation Act✓ Correct
COnly damages if the farmer did not sign the lease
DOnly damage to structures, not crops

Explanation

North Dakota's Oil and Gas Production Damage Compensation Act (NDCC § 38-11.1) requires oil companies to compensate surface owners and their lessees for damages to the surface, crops, and other impacts from oil and gas operations.

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