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The Shared Well Agreement form serves as a crucial document for property owners who wish to collaboratively utilize a well system for their water supply. This agreement outlines the responsibilities and rights of both the supplying party and the supplied party, ensuring that both parties have a clear understanding of their obligations. It begins by identifying the properties involved, referred to as Parcel 1 and Parcel 2, along with their respective owners. The agreement emphasizes the importance of maintaining an adequate water supply for domestic use while detailing the cost-sharing arrangements for the operation and maintenance of the well and water distribution system. Key provisions include the establishment of annual fees, the division of maintenance costs, and the responsibilities of each party regarding repairs and emergency situations. Additionally, the agreement addresses the consequences of water contamination and the process for termination of participation, ensuring that all parties are protected and informed. With this comprehensive framework, the Shared Well Agreement not only facilitates cooperation between neighbors but also promotes the sustainable use of shared water resources.

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Dos and Don'ts

When filling out the Shared Well Agreement form, it is crucial to adhere to certain guidelines to ensure accuracy and clarity. Below is a list of recommended actions and pitfalls to avoid.

  • Do provide complete and accurate addresses for all parties involved, including street address, city, county, state, and zip code.
  • Do include a detailed legal description of both Parcel 1 and Parcel 2 to avoid any confusion regarding property boundaries.
  • Do ensure that all parties involved understand their rights and obligations as outlined in the agreement.
  • Do review the terms regarding maintenance and repair costs to ensure fair distribution among parties.
  • Do sign and date the agreement in the presence of a notary public to validate the document.
  • Don't leave any sections of the form blank, as this may lead to misunderstandings or disputes later on.
  • Don't ignore the requirement for emergency access; clarify what constitutes an emergency in the agreement.
  • Don't permit unauthorized individuals to access the well or water distribution system, as this could lead to liability issues.
  • Don't overlook the importance of obtaining consent for shared expenses before undertaking any maintenance or improvements.
  • Don't forget to file a written statement of termination at the appropriate office if any party wishes to withdraw from the agreement.

Shared Well Agreement Sample

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)

Listed Questions and Answers

  1. What is a Shared Well Agreement?

    A Shared Well Agreement is a legal document that outlines the rights and responsibilities of two or more parties who share a well and its water distribution system. This agreement ensures that each party has access to water for domestic use while also addressing the costs associated with maintenance and operation of the well. It protects the interests of all parties involved and establishes clear guidelines for usage and expenses.

  2. Who are the parties involved in a Shared Well Agreement?

    The parties involved are typically referred to as the "supplying party" and the "supplied party." The supplying party owns the property where the well is located, while the supplied party owns a neighboring property that will benefit from the shared water supply. Both parties must agree to the terms of the agreement to ensure fair usage and cost-sharing.

  3. What are the financial obligations outlined in the agreement?

    The supplied party is required to pay an annual fee to the supplying party for the use of the well and water distribution system. This fee is due by January 15 each year. Additionally, both parties must share the costs of maintenance, repairs, and operation of the well. These expenses are typically divided equally, ensuring that both parties contribute fairly to the upkeep of the shared system.

  4. What happens if the well becomes contaminated?

    If the well becomes contaminated or is no longer able to supply adequate water, the rights and obligations of the parties under the agreement will cease. In such cases, the parties may need to seek an alternative water source. The agreement allows for a reasonable time to connect to this new source, ensuring that both parties can continue to access safe water.

  5. How can a party terminate their participation in the agreement?

    A party wishing to terminate their participation must execute and file a written statement of termination at the appropriate county office. Once this termination is filed, the owner and occupant of the residence will no longer have the right to use the well. They must also disconnect their lateral connection from the system, and the costs associated with this disconnection will be the responsibility of the terminating party.

Form Overview

Fact Name Description
Parties Involved The agreement involves a "supplying party" and a "supplied party," each owning a separate parcel of land.
Parcel Identification Each party's property is identified as "Parcel 1" and "Parcel 2," with specific addresses provided.
Water Supply Purpose The agreement establishes a shared well system intended for domestic water use for both parcels.
Annual Fees The supplied party must pay an annual fee for water usage, with specific payment deadlines outlined.
Maintenance Responsibilities Both parties share the costs of maintenance and repairs for the well and water distribution system.
Emergency Access In emergencies, parties can access each other's properties to address water system failures.
Termination Conditions The agreement can be terminated if the well becomes contaminated or if another water source becomes available.
Easements Granted Parties grant easements for necessary construction and maintenance of the water system across their parcels.
Governing Law The agreement is subject to the laws of the state where the properties are located, which should be specified in the form.