Content Overview
Guide to Writing Shared Well Agreement
Filling out the Shared Well Agreement form is an essential step for parties involved in sharing a well system. This process ensures that all parties understand their rights and obligations regarding the use of the well and associated water distribution system. Below are the steps to complete the form accurately.
- Enter the date of the agreement in the first blank line.
- In the next section, fill in the name and address of the supplying party, including street address, city, county, state, and zip code.
- Provide the name and address of the supplied party in the following section, also including street address, city, county, state, and zip code.
- Describe the property owned by the supplying party (Parcel 1) in the designated area, including the legal description.
- Next, describe the property owned by the supplied party (Parcel 2) in the corresponding area, including the legal description.
- Complete the section regarding the well system, confirming that it is adequate for domestic use by single-family dwellings.
- Fill in the name of the state where the water quality analysis was performed, indicating it is safe for human consumption.
- Specify the annual fee for the use of the well and water distribution system, noting any initial payment due upon execution of the agreement.
- Detail the shared expenses for operation and maintenance of the well and water distribution system.
- Outline any costs associated with the removal or replacement of site improvements necessary for system operation.
- Agree to maintain and repair all water pipes or mains serving the respective dwellings.
- Indicate how consent will be obtained for any expenditures related to system maintenance, replacement, or improvement.
- Specify how the cost of energy for the operation of the pumping equipment will be calculated and paid.
- Fill in the due date for energy cost payments and the grace period for unpaid amounts.
- Describe any easements necessary for the construction and maintenance of the well and water distribution system.
- State that no landscaping or improvements may impair the use of easements.
- Include provisions for emergency access to the pertinent parcel.
- Clarify that only the designated parcels may receive water from the well.
- Detail the conditions under which the agreement may terminate, including contamination of the well or availability of another water source.
- Indicate the process for terminating participation in the agreement, including the necessary filings.
- Note that the term of the agreement is perpetual unless otherwise specified.
- Include a statement regarding the binding nature of the agreement on heirs and successors.
- Specify that any disputes will be resolved through binding arbitration, detailing the selection process for arbitrators.
- Finally, provide space for signatures and acknowledgment before a notary public.
Document Breakdown
| Fact Name | Description |
|---|---|
| Purpose | The Shared Well Agreement outlines the rights and responsibilities of parties sharing a well for water supply. |
| Parties Involved | The agreement involves a "supplying party" and a "supplied party," each owning a parcel of land. |
| Parcel Identification | Each party's property is designated as "Parcel 1" and "Parcel 2," with specific addresses provided. |
| Water Quality | The well water must pass a quality analysis by the state health authority to ensure it is safe for consumption. |
| Cost Sharing | Parties agree to share costs related to the operation and maintenance of the well and water distribution system. |
| Emergency Access | In emergencies, parties can access each other's parcels to address water system failures. |
| Termination Conditions | The agreement can be terminated if the well becomes contaminated or if an alternative water source becomes available. |
| Arbitration Clause | Disputes under the agreement must be resolved through binding arbitration, following American Arbitration Association rules. |
| Perpetual Term | The agreement is intended to be perpetual unless terminated under specific conditions outlined in the document. |
| State-Specific Law | Shared Well Agreements are governed by state-specific laws, which may vary regarding property and water rights. |
FAQ
What is a Shared Well Agreement?
A Shared Well Agreement is a legal document that outlines the rights and responsibilities of two or more property owners who share a well and water distribution system. This agreement ensures that all parties have access to water while clearly defining how costs and maintenance responsibilities will be shared. It serves to protect the interests of both the supplying party, who owns the well, and the supplied party, who benefits from the water supply.
Why is a Shared Well Agreement important?
This agreement is crucial for several reasons:
- It establishes clear guidelines for water usage and maintenance responsibilities.
- It helps prevent disputes between parties regarding costs and access to water.
- It ensures that all parties are aware of their rights and obligations, promoting cooperation.
- It protects the investment in the well and water distribution system for current and future owners.
What should be included in a Shared Well Agreement?
A comprehensive Shared Well Agreement should include the following key components:
- Identification of the supplying and supplied parties, along with their property descriptions.
- Details about the well and water distribution system, including its capacity and safety status.
- Terms regarding the sharing of costs for maintenance and operation.
- Provisions for emergency access and repairs.
- Conditions under which the agreement can be terminated.
How are costs shared under the agreement?
Costs associated with the well and water distribution system are typically shared equally between the parties. This includes:
- An annual fee for the use of the well.
- Proportionate shares of maintenance and operational expenses.
- Costs for energy used to operate the pumping equipment, measured separately for each property.
By clearly defining these financial responsibilities, the agreement helps prevent misunderstandings and disputes.
What happens if one party wants to terminate the agreement?
If a party wishes to terminate their participation in the Shared Well Agreement, they must file a written statement of termination at the appropriate county office. Once the termination is filed, the party will no longer have the right to use the well and must disconnect their water supply line. It’s important to note that the costs associated with this disconnection will be the responsibility of the terminating party.
What are the consequences of non-payment?
Failure to pay the agreed-upon fees or shared costs can lead to serious consequences. If a payment remains unpaid for a specified number of days, the supplying party has the right to suspend water service until all arrears are settled. This provision emphasizes the importance of timely payments to ensure continued access to water.
Can disputes be resolved without going to court?
Yes, the Shared Well Agreement typically includes a clause that requires disputes to be resolved through binding arbitration rather than litigation. This process involves both parties selecting arbitrators who will work together to resolve the issue. This approach can save time and legal expenses, making it a practical solution for conflict resolution.
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Shared Well Agreement Example
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
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 |
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arbitrate said dispute. The arbitration shall be governed by the rules of the American |
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Arbitration Association then in force and effect. |
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Witness our signatures this the ____ day of __________, 20____. |
|
__________________________________________________
(Acknowledgment before a notary public, the form of which will vary by state)