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Contents

The Shared Well Agreement is a crucial document designed to outline the rights and responsibilities of parties involved in a shared well water system. This agreement typically involves two property owners, known as the supplying party and the supplied party, who seek to mutually benefit from a well and accompanying water distribution system located on one of the properties. The document includes descriptions of both parcels of land and emphasizes the importance of delivering a safe and reliable water supply for domestic use. Key elements such as annual fees, shared maintenance costs, and the necessity of maintaining proper water quality are clearly delineated. Furthermore, the agreement sets forth provisions for emergency access, expenses for repairs, and easements necessary for the well's operation. It also addresses potential contamination issues and the composite rights and obligations that remain effective as long as both parties are connected to the well. In case of disputes, binding arbitration is mandated for resolution, ensuring a structured process for addressing any disagreements that may arise. Overall, this agreement aims to foster a collaborative and respectful relationship between the parties while ensuring the efficient use of shared resources for everyone's benefit.

Sample - Shared Well Agreement Form

Shared Well Water Agreement

This Agreement, made and entered into this ____day of __________ by and between

_____________________________, who resides at _____________________________

_____________________________ (street address, city, county, state, zip code), hereinafter

referred to as the "supplying party," and _____________________________, who resides at

__________________________________________________________ (street address, city,

county, state, zip code), hereafter referred to as the "supplied party:”

WHEREAS, the supplying party is the owner of property located at

__________________________________________________________ (street address, city,

county, state, zip code), which property is hereafter referred to as “Parcel 1” and is more fully described as follows:

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

(Put Legal Description of Property Here)

WHEREAS, the supplied party is the owner of property located at

__________________________________________________________ (street address, city,

county, state, zip code), which property is hereafter referred to as “Parcel 2” and is more fully described as follows:

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

(Put Legal Description of Property Here)

WHEREAS, the undersigned parties deem it necessary to provide a well system to service the parcels described herein, and an Agreement has been reached relative to supplying water from the well and sharing the cost of supplying said water; and

WHEREAS, there is located a well upon the above described property of supplying party; together with water distribution facilities, hereinafter referred to as "water distribution system", for the purpose of supplying water to all properties connected to the said water distribution system; and

WHEREAS, it is the intention and purpose of the undersigned parties that the well and water distribution system shall be used and operated to provide an adequate supply of water for each of the properties connected thereto, for the domestic consumption of the occupants of said properties, and to assure the continuous and satisfactory operation and maintenance of the well and water

distribution system for the benefit of the present and future owners, their heirs, successors and assigns of the properties connected thereto; and

WHEREAS, the said well is deemed by the parties hereto to be of adequate capacity to supply a single family dwelling on each of the parcels described herein with water from the well for all domestic uses of a single family residing therein; and

WHEREAS, the water from the well has undergone a water quality analysis from the State of

___________ health authority and has been determined by the authority to supply safe for human

consumption; and

WHEREAS, the parties hereto desire to enter this Agreement for the purpose of reducing to writing their respective rights and obligations pertaining to said well and water distribution system.

NOW THEREFORE, in consideration of the promises and covenants herein contained, it is agreed that the well and water distribution system situated on Parcel 1 shall be used by the parties to this Agreement, as well as by all future owners and occupants of said Parcels 1 and 2, upon the following terms and conditions:

1.That until this Agreement is terminated, as hereinafter provided, the parties hereto (and their heirs, successors and assigns, for the exclusive benefit of the respective parcels of said real estate, and for the exclusive use of the households residing thereon), are hereby granted the right in common with the other parties to this Agreement, to draw water from the well located on Parcel 1 for domestic use excluding the right to draw water to fill swimming pools of any type.

2.That the owners or residents of the dwellings located on Parcels 2, as of the date of this Agreement shall:

a.Pay or cause to be paid to the supplying party, an annual fee for this use of the well and water distribution system in the amount of $_____________ on or before the 15th of January each year, with the exception of this year whereby the amount shall be $____________ and paid on the execution of this Agreement.

b.Pay or cause to be paid promptly, a proportionate share of all expenses for the operation and maintenance of the well and water distribution system that may become necessary. Each respective share shall be determined by dividing the amount of each expense by two, it being understood that the supplying party and the supplied party shall pay an amount equal to one half of the total of such necessary repair or replacement. Shared expenses include the cost of electricity for pumping, repairs and maintenance on said well and water distribution system.

3.That the cost of any removal or replacement of pre-existing site improvements on an individual

parcel necessary for system operation, maintenance, replacement, improvements, inspection or testing, damaged as a result of repair of the well or water distribution system maintenance will be borne by the owner of the affected parcel, except that costs to remove and replace common boundary fencing or walls damaged as a result of repair shall be shared equally between or among parties so damaged.

4.That each of the parties hereby agrees that they will promptly repair, maintain and replace all water pipes or mains serving their respective dwellings.

5.That the consent of all parties to pay a proportionate share of costs shall be obtained prior to embarking upon expenditures for system maintenance, replacement or improvement, except in emergency situations.

6.That the supplied party shall pay to the supplying party his proportionate share for the cost of energy for the operation of the pumping equipment. This cost shall be determined by a separate meter upon each dwelling and for each parcel.

7.That it is the agreement of the parties hereto that the payment for energy cost shall be made not later than the _________day of each succeeding month during the term of this Agreement. In the event that any such payment remains unpaid for a period of ____days, the supplying party may terminate the supply of water to the supplied party until all arrearages in payment are received by the supplying party.

8.That each of the parties to this Agreement does hereby grant to the other, his heirs, successors and assigns, such easements over, across and through the respective parcels as shall be reasonably necessary for the construction of the well, maintenance of water pipes, pumping equipment, mains, electrical wiring and conduit consistent with the purposes of this Agreement. These easements are described below, to wit:

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

(Describe easements, if any)

10.That no party may install landscaping or improvements that will impair the use of said easements.

11.That each party shall have the right to act to correct an emergency situation and shall have access to the pertinent parcel in the absence of the other. An emergency situation shall be defined as

the failure of any shared portion of the system to deliver water upon demand.

12.That only those parcels of real estate hereinabove described and the dwellings located thereon shall be permitted to receive water from said well and pumping equipment; and each of the parties hereto does hereby covenant and agree that he/she will not allow or permit other persons, other than household guests, to take, draw, use or receive water from the well, nor permit other persons to connect to the pipes or mains serving his/her respective parcel.

13.That in the event the referenced well shall become contaminated and shall no longer supply

water suitable for domestic consumption, or shall no longer supply water adequate for the needs of all relevant parties, or in the event that another source of water shall become available to the respective parcels, then the rights and obligations of the parties created by this Agreement shall cease and terminate in accordance with the terms and conditions hereinafter described.

14.That upon the availability of such other source of water, it is contemplated that a reasonable time shall be allowed to effectuate the necessary connections to the new source.

15.That the respective rights and obligations of the parties shall continue until the parties who wish to terminate their participation in the Well Agreement have executed and filed a written statement of termination at the _____________________________ (office where deeds in your state are recorded) of the County of ____________ and the state of ____________________. Upon termination of participation in this Agreement, the owner and occupant of each residence which is terminated from the Agreement shall have no further right to the use of the well. The terminated parties shall disconnect their respective lateral connection from said well system and shall have no further obligation to pay or collect for maintenance and related expenses incurred thereafter. The costs of disconnection from the well and water system shall be borne by the owner of the pertinent parcel.

19.That the term of this Agreement shall be perpetual, except as herein limited.

20.That the benefits and burdens of this Agreement shall constitute a covenant running with the parcels of land herein described and shall be binding upon the heirs, successors in title and assigns of the parties hereto.

21. Any dispute under this Agreement shall be required to be resolved by binding arbitration

of

the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one

 

arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall

 

arbitrate said dispute. The arbitration shall be governed by the rules of the American

 

Arbitration Association then in force and effect.

 

Witness our signatures this the ____ day of __________, 20____.

 

__________________________________________________

(Acknowledgment before a notary public, the form of which will vary by state)

Form Information

Fact Description
Purpose The Shared Well Agreement outlines how two or more parties share a water well, including rights and obligations between them.
Legal Obligation This agreement ensures that all parties understand their responsibilities regarding maintenance and associated costs of the well.
Water Quality Compliance Water from the well must meet safety standards as determined by the health authority of the respective state.
Emergency Access In emergencies, any party can access the well to make necessary repairs or troubleshooting, ensuring continuity of water supply.
Termination Conditions The agreement can be terminated if the well becomes contaminated or if alternative water sources become available.
Dispute Resolution Disagreements will be resolved through binding arbitration, requiring the selection of arbitrators by both parties.
State-Specific Laws Shared Well Agreements in states like California must comply with local water rights laws and health regulations.

Detailed Guide for Filling Out Shared Well Agreement

To complete the Shared Well Agreement form, gather the necessary details about the properties and parties involved. This agreement lays out the responsibilities and rights associated with the shared well system supplying water to both parcels. Make sure to fill out each section accurately and clearly to ensure all parties understand their obligations.

  1. Start by filling in the date of the agreement on the first line.
  2. Enter the names of the parties involved in the agreement. The first part is for the supplying party, followed by their complete address.
  3. For the supplied party, repeat the process by writing their name and full address in the designated space.
  4. Identify and describe the supplying party's property (“Parcel 1”) by providing the street address and legal description.
  5. Do the same for the supplied party’s property (“Parcel 2”) by entering the address and legal description as required.
  6. Fill in the annual fee amount for the supplied party’s use of the well, both for the current year and the subsequent years.
  7. Detail any expenses for the operation and maintenance of the well and water distribution system that may arise.
  8. Provide a description of any easements that may be necessary for construction and maintenance related to the well and piping.
  9. Indicate the specific day of each month for the energy cost payment as stated in the agreement.
  10. Specify the number of days after which the supplying party can terminate water supply if payments are not received.
  11. Sign and date the agreement at the bottom, along with any needed acknowledgments for notary public verification.

Obtain Answers on Shared Well Agreement

  1. What is a Shared Well Agreement?

    A Shared Well Agreement is a legal document that outlines the rights and responsibilities of parties who share a water well. It defines how water will be accessed, how costs will be divided, and the obligations of each party regarding maintenance and repairs.

  2. Who are the parties involved in the Agreement?

    The Agreement includes two main parties: the "supplying party," who owns the well, and the "supplied party," who uses water from that well. Each party also represents the future owners of their respective parcels of land.

  3. What are the rights granted to each party?

    Each party has the right to access water from the well for domestic use. However, drawing water to fill swimming pools is specifically excluded. Both parties must work together to maintain sufficient water supply for their households.

  4. How are maintenance and operational costs shared?

    Both parties share the costs of maintaining and operating the well and distribution system equally. This includes expenses like electricity, repairs, and any other necessary maintenance costs. Each party is responsible for paying their share in a timely manner.

  5. What happens if one party does not pay their share?

    If a party does not pay their proportion of costs within the agreed timeframe, water supply may be terminated until all overdue payments are made. Consistent payment is essential to maintain access to water.

  6. Can I make changes to the property that would affect the well or water system?

    No structural changes or landscaping that could impair the use of the easements for the well and water distribution system are allowed. Any modifications impacting the well operations require the consent of all parties involved.

  7. What constitutes an emergency regarding the well?

    An emergency is defined as any situation where the water supply fails to deliver water upon demand. In such cases, any party can take immediate action to resolve the issue and access the affected parcel without prior notice.

  8. What happens if the well becomes contaminated?

    If the well becomes contaminated or cannot adequately serve the parties' needs, the rights and obligations under the Agreement will cease. Options available for finding a new water source will be explored, allowing a reasonable timeframe for implementation.

  9. How can one party terminate their participation in the Agreement?

    A party wishing to terminate their participation must file a written statement of termination at the local deeds office. Upon termination, that party must disconnect their water service and will not be responsible for future maintenance costs.

  10. What if there are disputes between the parties?

    Any disputes arising under the Agreement must be resolved through binding arbitration. Each party selects one arbitrator, and those arbitrators will choose a third to resolve the issue, following the rules of the American Arbitration Association.

Common mistakes

Filling out the Shared Well Agreement form can be challenging. Common mistakes can lead to complications later on. Understanding these pitfalls can help ensure a smoother process.

One common mistake people make is failing to provide complete addresses for all parties involved. Each party's address must include street, city, county, state, and zip code. Inaccurate or incomplete address information can cause significant delays in processing the agreement.

Another issue arises when individuals neglect to include a proper legal description of the property. This information is crucial for clearly identifying the parcels involved in the agreement. Without accurate legal descriptions, disputes may arise regarding property boundaries and the rights of the parties using the well.

Some people overlook the importance of specifying the annual fee. It is essential to fill in the exact dollar amount that the supplied party agrees to pay each year. Any ambiguity in this section can lead to disagreements about payment expectations in the future.

In addition, parties often forget to outline the easements necessary for maintenance and repair. This section helps define the access rights each party has over the other’s property. Failing to describe these easements can lead to arguments when maintenance issues arise.

The agreement also requires parties to pay a share of operational costs, but many fail to understand the proportionate allocation of expenses. This oversight can create friction between parties if expenses are not shared as intended. It’s important to make sure everyone is aware of their financial responsibilities.

Another error involves not addressing what happens in case of contamination. Including specific terms regarding water quality issues is vital to protect all parties' rights if the shared well becomes unsafe. Without this clause, there might be uncertainty regarding responsibilities for sourcing alternative water.

Finally, some individuals do not follow through with the necessary recording of termination statements if they decide to exit the agreement. If a participant wishes to leave the agreement but does not file the appropriate paperwork, it could lead to ongoing obligations and financial liabilities. Properly documenting any decision to withdraw is crucial for protecting one’s interests.

Documents used along the form

The Shared Well Agreement is a vital document that outlines the terms and conditions under which parties can share the use of a well and its water distribution system. In conjunction with this agreement, several other forms and documents may be utilized to ensure clarity and legal protection regarding responsibilities and commitments. Below is a summary of commonly used related documents.

  • Property Deed: This legal document conveys ownership of the parcel of land and is crucial for establishing the boundaries and rights associated with the property where the well exists.
  • Easement Agreement: This document grants rights to one party to use a portion of another party's land, typically for utility access. It outlines the specifics of how and where rights can be exercised.
  • Water Quality Testing Report: This report provides evidence that the water from the well meets safety standards for human consumption. It is essential for establishing trust among parties regarding the health implications of shared water use.
  • Maintenance Agreement: This document outlines the roles and responsibilities of each party regarding upkeep and repair of the well and the water distribution system, ensuring that all parties are on the same page about maintenance obligations.
  • Termination Notice: This form is necessary when one or more parties wish to exit the Shared Well Agreement. It must be properly completed and filed to terminate their rights and obligations associated with the well.

Collectively, these documents enhance the legal framework of the shared well arrangement. Proper execution and understanding of each document can prevent disputes and ensure the effective use of shared resources.

Similar forms

  • Shared Access Agreement: Similar to the Shared Well Agreement, this document outlines the rights and responsibilities of parties regarding the shared use of a property or resource, focusing on access and maintenance.
  • Ownership Agreement: This document typically details the division of rights and responsibilities among owners of jointly owned property, similar to how the Shared Well Agreement details the rights of the supplying and supplied parties.
  • Maintenance Agreement: This agreement sets forth the obligations of parties concerning maintenance responsibilities, paralleling the Shared Well Agreement’s provisions for maintenance of the well system.
  • Water Use Agreement: Like the Shared Well Agreement, this document regulates shared water resources, specifying usage rights and shared costs among the users.
  • Easement Agreement: This agreement establishes the rights of one party to use land owned by another. It is similar to the easements described in the Shared Well Agreement concerning access for maintenance.
  • Utilities Sharing Agreement: Similar to a Shared Well Agreement but broader in scope, this document outlines shared costs and responsibilities related to various utilities among owners or residents.
  • Lease Agreement: This document addresses the terms under which one party may use property owned by another, akin to the rights established in the Shared Well Agreement for using the well.
  • Service Agreement: This outlines the terms under which one party provides a service to another. It is similar to the agreement where water service is provided by the supplying party to the supplied party.
  • Partnership Agreement: This outlines the relationship between parties who collaborate on a business or shared interest, reflecting the cooperative nature of the parties in the Shared Well Agreement.
  • Transfer Agreement: This document governs the transfer of rights and obligations relating to shared resources, paralleling terms in the Shared Well Agreement regarding rights upon termination.

Dos and Don'ts

When filling out the Shared Well Agreement form, consider the following dos and don'ts:

  • Do ensure all personal information, such as names and addresses, is accurate and complete.
  • Do double-check the legal descriptions for both Parcel 1 and Parcel 2 to avoid any potential disputes.
  • Do specify payment amounts and deadlines clearly to prevent misunderstandings.
  • Do keep a copy of the completed agreement for your records.
  • Don't skip any sections of the form, as incomplete information may lead to issues later.
  • Don't overlook obtaining the necessary signatures from all involved parties before submitting.
  • Don't forget to have the agreement notarized to ensure its validity.
  • Don't hesitate to clarify any term or condition that seems unclear before signing.

Misconceptions

Misconceptions about the Shared Well Agreement can lead to misunderstandings among parties involved in the arrangement. Here are five common misconceptions, along with explanations to clarify them:

  • Misconception 1: The agreement is only about sharing the well.
  • While the primary purpose is to facilitate the sharing of well water, the agreement also outlines responsibilities for maintenance, costs, and other essential terms to ensure that both parties have a clear understanding of their rights and obligations.

  • Misconception 2: All costs are equally shared without consideration.
  • The agreement specifies that each party is responsible for half of the maintenance expenses. However, different situations might necessitate varying contributions based on specific circumstances, thus requiring careful attention to shared expenses.

  • Misconception 3: The agreement terminates automatically if the well becomes contaminated.
  • Contamination or inadequacy of water supply does not automatically dissolve the agreement. The parties need to follow specific protocols outlined in the document regarding termination rights and procedures if such issues arise.

  • Misconception 4: Future homeowners or occupants are not bound by the agreement.
  • The Shared Well Agreement is designed to run with the land. This means that future owners or occupants inherit the rights and obligations under the agreement, ensuring continuity of responsibilities related to the shared well.

  • Misconception 5: The agreement can be disregarded once signed.
  • The agreement is legally binding upon execution. The parties involved must adhere to its terms throughout its duration, and any attempts to ignore these terms can lead to disputes or legal consequences.

Key takeaways

  • Clearly identify the parties involved. Fill in all necessary information, including full names and addresses of both the supplying party and the supplied party.

  • Provide accurate legal descriptions of the properties associated with the well and water distribution system. This ensures clarity and prevents future disputes over boundaries.

  • Outline the terms for water usage. Emphasize that water is for domestic use only and cannot be used for filling swimming pools.

  • The supplied party must pay an annual fee and share operational costs. Specify these amounts and deadlines to avoid misunderstandings.

  • Remind all parties of their responsibility for maintenance. Quick action is crucial for any repairs or maintenance related to the water distribution system.

  • Establish easements clearly. Describe the easements necessary for the construction and maintenance of relevant infrastructure to avoid restrictions on future improvements.

  • Anticipate termination of the Agreement. Make provisions clear about what happens if the well becomes contaminated or a new water source is found.