Happy family

Find a legal form in minutes

Browse US Legal Forms’ largest database of 85k state and industry-specific legal forms.

South Carolina Oil and Gas Laws

South Carolina oil and gas laws can be found in Chapter 43, Title 48 of South Carolina Code of Laws.  Pursuant to S.C. Code Ann. § 48-43-20, the waste of oil and gas and the pollution of the water, air, or land is prohibited.

Powers and Jurisdiction of the Department

Pursuant to S.C. Code Ann. § 48-43-30, the department is authorized to: prevent waste of oil and gas, to protect correlative rights and to prevent pollution of the water, air, and land by oil or gas, and otherwise to administer and enforce the statute.  It has jurisdiction over all persons and property necessary for that purpose. In the event of a conflict, the duty to prevent waste is paramount.

Pursuant to S.C. Code Ann. § 48-43-30(b), the department will have specific authority to require:

  • identification of ownership of oil or gas wells, producing leases, tanks, plants, structures, and facilities for the transportation or refining of oil and gas;
  • the drilling, casing, operation, and plugging of wells in such manner as to prevent (a) the escape of oil or gas out of one pool into another, (b) the detrimental intrusion of water into an oil or gas pool that is avoidable by efficient operations, (c) the pollution of fresh water supplies by oil, gas, or salt water, and (d) blowouts, cavings, seepages, and fire;
  • the taking of tests of oil or gas wells;
  • that the production from wells be separated into gaseous and liquid hydrocarbons, and that each be measured by means and upon standards that may be prescribed by the department;
  • that wells not be operated with inefficient gas-oil or water-oil ratios, to fix these ratios, and to limit production from wells with inefficient gas-oil or water-oil ratios;
  • certificates of clearance in connection with the transportation or delivery of oil, gas, or product;
  • the metering or other measuring of oil, gas, or product;
  • that every person who produces, sells, purchases, acquires, stores, transports, refines, or processes oil or gas in this State keep and maintain complete and accurate records of the quantities thereof, which records shall be available for examination by the department or its agents at all reasonable times;
  • permits for the onshore and offshore exploration of oil and gas both on public and private lands whether highlands, wetlands, or submerged land;
  • the placing of meters approved by the department which shall at all times be under the supervision and control of the department wherever the department may designate on all pipelines, gathering systems, barge terminals, loading racks, refineries, or other places deemed necessary to prevent the transportation of illegally produced oil and gas;
  • that all persons who desire to drill wells for oil or gas obtain a permit from the department prior to the commencement of any drilling operations.

Regulation

Pursuant to S.C. Code Ann. § 48-43-30, the department regulates:

  • The drilling, testing, completing, stimulating, producing, reworking and plugging of wells, and all other operations associated with the production of oil and gas;
  • The spacing or locating of wells;
  • Operations to increase ultimate recovery, such as cycling of gas, the maintenance of pressure, and the introduction of gas, water or other substances into a producing formation;
  • The disposal of salt water and oil-field wastes;
  • The exploration for oil or gas in the waters and on the lands that are within the jurisdictional limits of the State regardless of ownership;
  • The transportation of oil and gas from whatever source to gathering systems, refineries, and other storage and processing facilities which handle oil and gas;
  • The commingling of oil and gas produced from wells having different owners or producers and to adopt such rules and regulations applicable to such commingling as may be necessary to protect the rights of the owners, producers and royalty owners of the wells from which the commingling oil or gas is produced.
  • To limit the production of oil, gas, or condensate from any field, pool, area, lease, or well, and to allocate production.
  • To classify and reclassify pools as oil, gas and condensate pools and to classify and reclassify wells as oil, gas or condensate wells.
  • To regulate the exploration, drilling, production, and transportation of methane gas in and related to sanitary landfills. The department is authorized to exercise discretion in regulating such activities and may impose any requirement of this chapter as is necessary, in the opinion of the department, to prevent waste of oil and gas, to protect correlative rights and to prevent pollution of the water, air, and land by oil and gas.

Civil Actions

Pursuant to S.C. Code Ann. § 48-43-850, whenever it appears that any person is violating or threatening to violate any provision or any rule, regulation of the department or order of the department, the Attorney General may bring suit in the name of the department against such persons.  In any such suit, the court will have jurisdiction to grant without bond or other undertaking, such prohibitory or mandatory injunctions as the facts may warrant, including temporary restraining orders and preliminary injunctions.

Pursuant to S.C. Code Ann. § 48-43-820, penalties and liabilities are recoverable by civil suit filed by the Attorney General in the name and on behalf of the department in the court of common pleas of the county in which the defendant resides.  The payment of any such penalty will not operate to legalize any illegal oil, illegal gas, or illegal product involved in the violation for which the penalty is imposed or relieves a person on whom the penalty is imposed from liability to any other person for damages arising out of such violation.

Penalties

  • Pursuant to S.C. Code Ann. § 48-43-820, any person who violates any provision or any rule, regulation or order of the department, will be subject to a civil penalty of up to five thousand dollars for each act of violation and for each day that such violation continues.
  • Any person who negligently or willfully permits an oil or gas well to go wild or to get out of control, to cause pollution or waste, or to create other conditions that are detrimental to the property rights of others or the public will be liable to the department for the expense incurred in correcting the detrimental conditions and the civil penalties imposed by the statute[i].
  • In addition to any civil and criminal penalties imposed by the statute, any person who violates any provisions, or rules, regulations and orders of the department will be liable to all third parties who may incur damage or injury because of such violations.

 

[i] S.C. Code Ann. § 48-43-820.


Inside South Carolina Oil and Gas Laws