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The Shared Well Agreement form serves as a crucial document for property owners who rely on a common water source for their domestic needs. This agreement outlines the rights and responsibilities of two parties: the supplying party, who owns the well, and the supplied party, who benefits from the water provided. The form details the specific properties involved, referred to as Parcel 1 and Parcel 2, ensuring that both parties understand the boundaries of their agreement. It establishes the framework for sharing costs related to the operation and maintenance of the well and the water distribution system, which is essential for providing a reliable water supply. Additionally, the agreement specifies the terms for water usage, including restrictions on filling swimming pools and the necessity of obtaining consent for any significant expenditures. It also addresses emergency situations, easements for maintenance, and the protocol for terminating the agreement if the well becomes contaminated or if an alternative water source becomes available. By clearly delineating these aspects, the Shared Well Agreement helps foster cooperation between property owners while ensuring that both parties can access safe and adequate water for their households.

Preview - 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)

Document Specifics

Fact Name Description
Purpose The Shared Well Agreement establishes terms for sharing a well and water distribution system between property owners.
Parties Involved The agreement involves a "supplying party" and a "supplied party," each owning different parcels of land.
Water Quality The water must pass a quality analysis from the state health authority, ensuring it is safe for human consumption.
Annual Fees The supplied party must pay an annual fee for water usage, due by January 15 each year.
Shared Costs Both parties share the costs of maintenance and operation of the well and water distribution system equally.
Easements Each party grants easements for maintenance and construction related to the water system on their property.
Emergency Access In emergencies, parties can access each other's parcels to address system failures that affect water delivery.
Termination Conditions The agreement can be terminated if the well becomes contaminated or if another water source becomes available.
Perpetual Term The agreement is perpetual unless terminated by the parties involved, as specified in the document.
Governing Law This agreement is subject to state-specific laws, which vary by jurisdiction. Ensure to check local regulations.

Shared Well Agreement: Usage Instruction

Completing the Shared Well Agreement form is essential for establishing clear terms between the supplying party and the supplied party regarding the use of the well and water distribution system. Follow these steps to ensure accurate and complete submission of the form.

  1. Enter the date of the agreement in the first blank line.
  2. Fill in the names and addresses of both the supplying party and the supplied party in the designated spaces.
  3. Provide the legal description of Parcel 1, the property owned by the supplying party, in the appropriate section.
  4. Enter the legal description of Parcel 2, the property owned by the supplied party, in the specified area.
  5. Specify the annual fee amount in the blank provided, along with the amount due for the current year, if applicable.
  6. Detail any easements necessary for the construction and maintenance of the well and water distribution system in the designated section.
  7. Complete the payment due dates and any other specific terms as required in the form.
  8. Sign and date the agreement at the end of the document.
  9. Ensure the agreement is acknowledged before a notary public, following your state's requirements.

Learn More on Shared Well Agreement

What is a Shared Well Agreement?

A Shared Well Agreement is a legal document that outlines the terms and conditions under which two or more parties can share a well and its water distribution system. This agreement typically includes details about the properties involved, the rights and obligations of each party, and how costs related to the well's maintenance and operation will be divided. It is designed to ensure that all parties have access to water while also establishing a framework for addressing potential disputes or issues that may arise in the future.

Who are the parties involved in a Shared Well Agreement?

The parties involved in a Shared Well Agreement are typically referred to as the "supplying party" and the "supplied party." The supplying party is the owner of the property where the well is located, while the supplied party is the owner of another property that will receive water from the well. Each party has specific rights and responsibilities outlined in the agreement, including payment for water usage and maintenance costs.

What are the key responsibilities outlined in the agreement?

The Shared Well Agreement specifies several key responsibilities for both parties, including:

  1. Payment of an annual fee for the use of the well and water distribution system.
  2. Sharing the costs of maintenance and operation of the well.
  3. Promptly repairing and maintaining water pipes serving their respective dwellings.
  4. Obtaining consent from all parties before incurring expenses for system maintenance, except in emergencies.

These responsibilities help ensure the well operates effectively and that all parties benefit from the arrangement.

What happens if the well becomes contaminated or another water source becomes available?

If the well becomes contaminated and is no longer suitable for domestic consumption, or if another water source becomes available, the rights and obligations of the parties under the Shared Well Agreement will cease. The agreement allows for a reasonable time to transition to the new water source. Additionally, any party wishing to terminate their participation must file a written statement of termination, which will formally end their rights to use the well.

Common mistakes

When filling out the Shared Well Agreement form, individuals often overlook critical details that can lead to misunderstandings or disputes later on. One common mistake is failing to provide complete and accurate information for both parties involved. Each party must ensure that their name and address are clearly stated. Incomplete information can create confusion regarding responsibilities and rights.

Another frequent error is neglecting to include the legal description of the properties involved. This description is essential for identifying the exact locations of Parcel 1 and Parcel 2. Without it, the agreement lacks clarity, potentially leading to disputes over property boundaries or water usage rights.

People also often forget to specify the annual fee for using the well and water distribution system. Leaving this section blank can result in disagreements about payment expectations. It is crucial to clearly state the fee amount and the payment schedule to avoid future complications.

Additionally, some individuals fail to address the shared expenses for maintenance and operation of the water system. Not outlining how these costs will be divided can lead to confusion and resentment between parties. Each party should understand their financial obligations to ensure smooth operation of the shared system.

Another mistake is not detailing the easements necessary for maintenance and access. Without clear descriptions of these easements, parties may find themselves in conflict over access rights, which can hinder necessary repairs or maintenance.

Some individuals may also overlook the importance of including a termination clause. This clause outlines the process for ending participation in the agreement. Without it, parties may find themselves tied to the agreement longer than they intended, leading to frustration.

Moreover, failing to define what constitutes an emergency situation can create problems. The agreement should specify what events require immediate action and access to the properties. This clarity helps prevent disputes during critical situations.

Lastly, individuals sometimes neglect to sign and date the agreement properly. All parties must acknowledge their agreement by signing in the designated areas. Incomplete signatures can render the agreement invalid, leading to potential legal issues down the line.

Documents used along the form

The Shared Well Agreement is a crucial document for parties sharing a water well. However, several other forms and documents may accompany it to ensure clarity, compliance, and effective management of shared resources. Below is a list of related documents that are commonly used in conjunction with the Shared Well Agreement.

  • Water Quality Test Results: This document provides evidence that the water from the well meets safety standards for human consumption. It typically includes information about the testing agency and the parameters tested.
  • Easement Agreement: This document outlines the rights of parties to access each other's properties for maintenance and operation of the well and water distribution system. It details the specific areas where easements are granted.
  • Maintenance Agreement: This agreement specifies the responsibilities of each party regarding the upkeep of the well and water distribution system. It may include details about routine maintenance schedules and costs.
  • Financial Contribution Agreement: This document outlines how costs related to the well, such as repairs and utilities, will be shared among the parties. It may specify payment schedules and methods.
  • Termination Notice: This form is used to formally notify other parties of the intent to withdraw from the Shared Well Agreement. It details the process for disconnection and any remaining obligations.
  • Liability Waiver: This document releases parties from liability for certain risks associated with using the shared well. It typically outlines the specific risks and the extent of the waiver.
  • Property Deeds: These documents establish ownership of the properties involved in the agreement. They may be referenced to clarify the legal descriptions of the parcels connected to the well.
  • Dispute Resolution Agreement: This document outlines the process for resolving any disputes that arise under the Shared Well Agreement. It typically includes arbitration procedures and any relevant timelines.

Each of these documents serves a specific purpose in ensuring that all parties understand their rights and obligations. Proper documentation can help prevent misunderstandings and facilitate smoother interactions among those sharing a well.

Similar forms

The Shared Well Agreement is similar to a Joint Use Agreement, which outlines the terms under which two or more parties share a resource or property. In a Joint Use Agreement, parties agree on how to manage, maintain, and utilize shared facilities, similar to how the Shared Well Agreement specifies the rights and responsibilities of each party regarding the well and water distribution system. Both documents aim to ensure that all parties benefit from the shared resource while clearly defining their obligations to avoid disputes.

Another document that resembles the Shared Well Agreement is the Easement Agreement. This type of agreement grants one party the right to use a portion of another party's property for a specific purpose, such as accessing a well. Like the Shared Well Agreement, an Easement Agreement includes terms about maintenance and access, ensuring that both parties understand their rights to use the property while preserving the integrity of the shared resource.

A Water Supply Agreement also shares similarities with the Shared Well Agreement. This document typically governs the terms under which water is provided to one or more parties from a designated source. It includes provisions for payment, maintenance, and the quality of water supplied, mirroring the stipulations found in the Shared Well Agreement regarding payment for usage and the responsibilities for maintaining the water distribution system.

The Maintenance Agreement is another relevant document. This agreement focuses on the upkeep and repair of shared facilities or resources. In a Maintenance Agreement, parties outline their responsibilities for maintenance costs and procedures, much like the Shared Well Agreement, which specifies how costs for the operation and maintenance of the well are to be shared among the parties involved.

Lastly, a Partnership Agreement can be compared to the Shared Well Agreement, especially when two or more parties come together to manage a common interest. This document establishes the terms of collaboration, including financial contributions and decision-making processes. Similar to the Shared Well Agreement, a Partnership Agreement aims to prevent misunderstandings by clearly defining each party's roles and responsibilities, ensuring that all parties work together effectively to achieve a common goal.

Dos and Don'ts

When filling out the Shared Well Agreement form, attention to detail is crucial. Here’s a guide on what to do and what to avoid:

  • Do provide accurate and complete information for all parties involved, including full names and addresses.
  • Do clearly describe the properties involved, ensuring that the legal descriptions are precise and match official records.
  • Do specify the annual fee and payment deadlines to avoid confusion later.
  • Do discuss and agree on how shared expenses will be calculated and communicated among parties.
  • Do ensure that all parties sign the agreement in the presence of a notary public for it to be legally binding.
  • Don't leave any blank spaces in the form; incomplete information can lead to disputes.
  • Don't overlook the importance of defining emergency situations clearly to avoid misunderstandings.
  • Don't ignore the need for easements; failing to describe them can create access issues later.
  • Don't assume that verbal agreements will hold up; everything should be documented in writing.
  • Don't forget to keep a copy of the signed agreement for your records.

Misconceptions

Misunderstandings about the Shared Well Agreement form can lead to confusion and disputes among property owners. Here are ten common misconceptions:

  • 1. The agreement is optional. Many believe that a Shared Well Agreement is not necessary. However, it is crucial for outlining rights and responsibilities regarding the shared water source.
  • 2. All parties can use the well freely. Some think that once they sign the agreement, they can draw as much water as they want. In reality, usage is limited to domestic needs only.
  • 3. The supplying party bears all costs. There is a misconception that the supplying party is solely responsible for maintenance costs. In fact, all parties share these expenses equally.
  • 4. The agreement lasts forever without conditions. Some assume that the agreement is permanent without any possibility of termination. It can be terminated under specific conditions, such as contamination of the well.
  • 5. Landscaping can be done anywhere. Many believe they can landscape freely around the well. However, improvements that obstruct easements are not permitted.
  • 6. Emergency access is unrestricted. Some think they can access the well at any time. Access is only allowed in emergency situations, defined as failure to deliver water.
  • 7. New users can be added easily. There is a belief that new users can simply connect to the system. The agreement strictly prohibits this without the consent of all parties.
  • 8. Water quality is guaranteed. Some assume that the water will always meet safety standards. While initial tests may show safe quality, ongoing monitoring is essential.
  • 9. Payments can be delayed. Many think they can delay payments without consequences. Late payments can lead to termination of water supply until dues are cleared.
  • 10. The agreement is simple and straightforward. While the form may appear simple, the implications of the agreement are complex and require careful consideration.

Understanding these misconceptions can help property owners navigate their responsibilities and rights more effectively, ultimately fostering better relationships among neighbors sharing a well.

Key takeaways

Filling out and using the Shared Well Agreement form is essential for ensuring a smooth operation of shared water resources. Here are some key takeaways to consider:

  • Accurate Information: Ensure that all parties provide accurate names, addresses, and legal descriptions of their properties. This clarity helps avoid disputes later on.
  • Annual Fees: The supplied party must pay an annual fee for the use of the well. This fee is due by January 15 each year, with a specific amount due upon signing the agreement.
  • Shared Costs: All parties share the costs of maintenance and operation equally. This includes expenses like electricity and repairs, which should be calculated and agreed upon in advance.
  • Emergency Access: In case of an emergency, any party can access the well and related systems without prior consent from others. This ensures timely repairs and maintenance.
  • Termination Conditions: Understand the conditions under which the agreement can be terminated. If the well becomes contaminated or a new water source is found, the agreement may end.
  • Dispute Resolution: Any disagreements must be resolved through binding arbitration. This process requires each party to select an arbitrator, ensuring fairness in resolving disputes.