Teppo Has the Fee Simple to a Piece of Land

question 29

Multiple Choice

Teppo has the fee simple to a piece of land called Blackacre. Laila has a mineral lease that allows her to extract oil from beneath Blackacre. Which of the following statements is TRUE?

• A) Since the courts no longer apply the "giant carrot theory," Laila did not really need a lease in order to legally extract oil from beneath Blackacre.
• B) A mineral lease cannot apply to oil, which is not a mineral.
• C) Laila probably acquired her lease from the Crown.
• D) Laila owns the oil in question even if she has not yet built an oil well.
• E) Teppo can prevent Laila from extracting oil from beneath Blackacre unless he already held the fee simple when she first acquired her lease.