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Under a state law, oil and gas rights can pass by will or through intestate succession. Some oil and gas rights in the state have been divided into very small interests after several generations of passing by intestate succession. It therefore is difficult to enter into extraction contracts in the state because of the need to include large numbers of heirs for any given tract of land. To remedy this problem, the state has enacted a law that provides that, at the death of an owner of less than 1% of the oil and gas interests in a tract of land, that owner's oil and gas rights are extinguished and his or her interests are transferred pro rata to the remaining owners.
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B is incorrect. This answer reaches the correct conclusion based on an incorrect legal analysis. The law does not violate the negative implications of the commerce clause because it does not discriminate in favor of in-state interests at the expense of out-of-state interests, and because any burden on interstate commerce would not clearly outweigh the state's legitimate interest in facilitating the production of oil and gas.
C is incorrect. It is true that property inheritance is a privilege created by state law, but that does not permit a state to use inheritance law to effect takings of an individual's property. All state laws are subject to the Takings Clause of the Fifth Amendment.
D is incorrect. This answer states the elements of the rational basis test, which does not apply here. The state law is subject to the Takings Clause, which requires the state to pay just compensation when it takes an individual's property, even if the state had a legitimate interest for the taking.