By the way, Level3 started DNS hijacking unresolved domains a few months ago.

You can blacklist the bogus entries in dnsmasq via:

      bogus-nxdomain=198.105.254.11
      bogus-nxdomain=198.105.244.11

Or Deadwood (MaraDNS) has

      blacklist_ip="198.105.254.11,198.105.244.11"

I noticed Level3 has other IPs 209.244.0.3 and 209.244.0.4 but I don't know if they resolve to the same servers.

I've seen some recommendations for http://dns.watch lately but not enough is known about them despite their claims.

There is also https://www.opennicproject.org/