What is the legal process for determining wellbore ownership rights?

Determining wellbore ownership rights in South Carolina is a legal process. This process involves obtaining a drilling permit and dividing the oil and gas rights. The first step of the process is to obtain a drilling permit from the South Carolina Department of Health and Environmental Control. This permit will provide the individual looking to drill for oil or gas with the necessary regulations they must follow in order to legally drill. Once a drilling permit is obtained, the individual must divide the oil and gas rights. This means the individual must decide who owns what portion of the wellbore. This can be done by creating a division order. This document details the rights of each party. It lists the date of division order, the parties involved, the location of the well, the well name and number, the depth the well will be drilled, and the party that will be paid royalties. The division of the oil and gas rights must be filed with the state in order to be legally binding. This filing can be done through the South Carolina State Board of Oil and Gas. Once the division order is filed, the rights and obligations of each party are legally binding. In South Carolina, determining wellbore ownership rights is a legal process that involves obtaining a drilling permit and dividing the oil and gas rights. By filing a division order with the South Carolina State Board of Oil and Gas, the rights and obligations of each party will be legally binding.

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What is the legal process for determining wellbore ownership rights?

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