Got it! (D) is saying (3) only applies to direct buried service conductors and the warning ribbon is one of the methods listed for protection.
To humor here are some different interpretations from a "celebrity" author and another official interpretation of the NEC.
Article 300
Wiring Methods
300.5 Underground Installations
Replace the word “service laterals” with “service conductors,” so that this section now reads:
(D) Protection from Damage.
(3) Service Conductors. Service conductors (in a raceway or cable, or exposed) that are not encased in concrete, but are buried 18 in. or more, must have their location identified by a warning ribbon placed at least 12 in. above the underground installation.
Intent: The intent of this editorial change, was to clarify that a warning ribbon is required for service conductors (exposed or in a raceway) buried more than 18 inches.
Author’s Comment: Often service lateral conductors are installed in nonmetallic conduit (which must have 18 in. of cover [Table 300.5]) by the electrical contractor; therefore, a warning ribbon must be placed at least 12 in. above the underground raceway.
