Shared Well Agreement PDF Template

The Shared Well Agreement is a formal document that outlines the rights and responsibilities of parties who share a well system for water supply. This agreement is essential for ensuring that all parties involved understand their obligations regarding the maintenance and use of the well and water distribution system. To facilitate this important arrangement, it is recommended that interested parties complete the Shared Well Agreement form by clicking the button below.

Article Guide

The Shared Well Agreement form is an essential document for property owners who wish to establish a clear understanding regarding the use and maintenance of a shared well system. This agreement is created between two parties: the supplying party, who owns the well, and the supplied party, who benefits from the well’s water supply. It outlines key details such as the legal descriptions of the properties involved, the rights to draw water for domestic use, and the responsibilities for costs associated with the well and its distribution system. The agreement specifies the annual fees, maintenance expenses, and the sharing of operational costs, ensuring that both parties contribute fairly. It also addresses emergency situations, easements for necessary access, and the conditions under which the agreement can be terminated. Importantly, the form establishes that only designated properties may utilize the well, protecting the interests of both parties. By putting these terms in writing, the Shared Well Agreement helps prevent misunderstandings and fosters a cooperative relationship between neighbors who share a vital resource.

Shared Well Agreement Preview

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 15

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)

↓ Shared Well Agreement

File Properties

Fact Name	Details
Purpose of Agreement	The Shared Well Agreement outlines the rights and obligations of parties sharing a well system for water supply.
Parties Involved	The agreement is between a supplying party (well owner) and a supplied party (water user).
Parcel Descriptions	Each party must provide legal descriptions of their respective properties, referred to as Parcel 1 and Parcel 2.
Water Quality	The well water must pass a quality analysis by the state health authority, ensuring it is safe for human consumption.
Annual Fee	The supplied party is required to pay an annual fee for using the well, due by January 15 each year.
Maintenance Responsibilities	Both parties share the costs for the operation and maintenance of the well and water distribution system.
Termination Conditions	The agreement can be terminated if the well becomes contaminated or if an alternative water source is available.
Governing Law	The laws of the state where the properties are located govern the Shared Well Agreement.

Instructions on Utilizing Shared Well Agreement

Filling out the Shared Well Agreement form is an important step in establishing clear rights and responsibilities regarding the use of a shared well system. This process ensures that all parties involved understand their obligations and can enjoy a reliable water supply. Here’s how to complete the form:

Begin by entering the date at the top of the form where it says "this ____ day of __________."
In the first blank, write the name of the supplying party.
Fill in the supplying party’s complete address, including street, city, county, state, and zip code.
In the next blank, write the name of the supplied party.
Fill in the supplied party’s complete address in the same format as above.
Provide the address for the supplying party’s property (Parcel 1) in the specified section.
Write the legal description of Parcel 1 in the space provided.
Next, provide the address for the supplied party’s property (Parcel 2) in the specified section.
Write the legal description of Parcel 2 in the space provided.
In the section regarding the well, summarize the agreement terms regarding the use and maintenance of the well and water distribution system.
Specify the annual fee amount to be paid by the supplied party, as well as the fee for the current year if different.
Detail any shared expenses for operation and maintenance, noting that these will be split equally.
Outline the responsibilities of each party for repairs and maintenance of their respective water pipes.
Include the payment schedule for energy costs and note any terms for late payments.
Describe any easements required for construction and maintenance of the well and water distribution system.
Ensure that all parties sign and date the agreement at the bottom.
Finally, arrange for acknowledgment before a notary public as required by your state.

Important Facts about Shared Well Agreement

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 water distribution system. This agreement ensures that all parties understand how water will be supplied, how costs will be shared, and the maintenance obligations associated with the well. It is designed to protect the interests of all parties involved and to ensure a reliable water supply for domestic use.

Who are the parties involved in a Shared Well Agreement?

The parties involved in a Shared Well Agreement typically include a "supplying party," who owns the well and the property where it is located, and one or more "supplied parties," who own adjacent properties that will receive water from the well. Each party's rights and obligations are clearly defined in the agreement to prevent misunderstandings in the future.

What are the costs associated with the Shared Well Agreement?

Costs associated with a Shared Well Agreement can include an annual fee for the use of the well and water distribution system, as well as a proportionate share of expenses for maintenance and operation. The agreement specifies that the supplied party must pay an annual fee by a certain date each year, along with any additional costs for repairs, electricity, and other necessary expenses, which are typically shared equally between the parties.

What happens if one party does not pay their share of costs?

If a party fails to make their required payments, the supplying party may terminate the water supply until all outstanding amounts are settled. This ensures that all parties remain accountable for their financial obligations under the agreement. Timely payments are crucial for maintaining the well and water distribution system.

Can the Shared Well Agreement be terminated?

Yes, the Shared Well Agreement can be terminated. However, this requires a written statement of termination to be filed at the appropriate county office. Once a party terminates their participation, they lose the right to use the well and must disconnect their water supply line at their own expense. The agreement also specifies conditions under which it can automatically terminate, such as contamination of the well or availability of a new water source.

What are the maintenance responsibilities outlined in the agreement?

Each party is responsible for maintaining the water pipes or mains serving their respective properties. Additionally, all parties must agree on any necessary repairs or improvements to the well and distribution system before work begins, except in emergency situations. This collaborative approach helps ensure that the system remains functional and reliable for all users.

What should parties do in case of an emergency?

In the event of an emergency, such as a failure of the water system, any party may take immediate action to resolve the issue. They have the right to access the relevant property to make necessary repairs. This provision is vital for ensuring that water delivery is restored as quickly as possible for all parties involved.

How is a dispute resolved under the Shared Well Agreement?

Any disputes arising from the Shared Well Agreement must be resolved through binding arbitration. Each party selects an arbitrator, and those arbitrators then choose a third to mediate the dispute. This process is governed by the rules of the American Arbitration Association, providing a structured and fair method for resolving conflicts without resorting to litigation.

Common mistakes

Filling out the Shared Well Agreement form can be straightforward, but there are common mistakes that people often make. One significant error is failing to provide complete addresses for both parties. Each address must include the street, city, county, state, and zip code. Incomplete information can lead to confusion and delays in the agreement process.

Another frequent mistake is neglecting to include the legal description of the properties involved. This description is crucial for identifying the parcels accurately. Without it, there may be disputes about which properties are covered under the agreement. Ensuring this section is filled out correctly is essential for clarity.

People sometimes overlook the importance of specifying the annual fee for using the well. Leaving this blank or writing an unclear amount can lead to misunderstandings later. It's vital to agree on a specific dollar amount and ensure it is clearly stated in the form.

Additionally, parties often forget to outline the shared expenses for maintenance and operation of the well. This section should detail how costs will be divided. If this is vague or missing, disputes may arise over who is responsible for what expenses.

Another common error is failing to include the necessary easements for construction and maintenance. These easements must be clearly described to avoid issues later. Without proper easement descriptions, access to the well or pipes may be hindered.

Some people do not pay attention to the deadlines for payments. Missing a payment deadline can lead to termination of water supply, which can be inconvenient. It's essential to be aware of these deadlines and ensure that all parties understand their responsibilities.

Moreover, individuals sometimes forget to include a definition of what constitutes an emergency situation. This definition is important for ensuring that all parties know when immediate action can be taken without prior consent. Clear communication about emergencies can prevent confusion and potential delays.

Finally, not having a plan for termination of the agreement can lead to complications. Parties should clearly understand how to withdraw from the agreement if needed. This includes knowing how to file a written statement of termination and what the consequences will be. Proper planning can save time and prevent disputes in the future.

Documents used along the form

The Shared Well Agreement is a crucial document for parties sharing a well system. However, it often accompanies several other forms and documents that help clarify rights, responsibilities, and legal protections for all involved. Below is a list of commonly used documents that complement the Shared Well Agreement.

Well Easement Agreement: This document outlines the specific rights granted to each party regarding access to the well and any necessary easements for maintenance and repairs. It ensures that all parties understand their rights to use the land surrounding the well.
Water Quality Test Results: A report from a certified laboratory that verifies the water quality from the well. This document assures all parties that the water is safe for consumption and meets local health regulations.
Maintenance Agreement: This outlines the responsibilities of each party regarding the upkeep of the well and water distribution system. It specifies who is responsible for repairs, maintenance costs, and the frequency of inspections.
Cost-Sharing Agreement: A document that details how costs associated with the well, such as repairs and energy expenses, will be shared among the parties. This helps prevent disputes over financial responsibilities.
Termination Notice: A formal document that one party can use to notify the others of their intent to withdraw from the Shared Well Agreement. This notice must comply with the terms outlined in the agreement for proper execution.
Dispute Resolution Form: This document provides a structured approach for resolving conflicts that may arise between parties regarding the well agreement. It may include details on arbitration or mediation processes to be followed.

Understanding these additional documents can enhance clarity and cooperation among parties involved in a Shared Well Agreement. Each plays a vital role in ensuring that all rights and responsibilities are clearly defined and legally enforceable.

Similar forms

Water Supply Agreement: This document outlines the terms under which water is supplied from a well to multiple parties. Similar to the Shared Well Agreement, it specifies the rights and responsibilities of each party regarding water usage and maintenance costs.
Joint Use Agreement: This agreement allows two or more parties to share resources, such as a well. Like the Shared Well Agreement, it details how the shared resource will be maintained and how costs will be divided among the parties involved.
Easement Agreement: This document grants permission for one party to use another party’s property for specific purposes, such as accessing a well. The Shared Well Agreement also includes easements for maintenance and operation of the water system, ensuring all parties can access necessary areas.
Maintenance Agreement: This outlines the responsibilities for upkeep of shared facilities. Similar to the Shared Well Agreement, it specifies how maintenance costs are shared and the obligations of each party to ensure the system remains functional and safe.

Dos and Don'ts

When filling out the Shared Well Agreement form, it is essential to approach the process with care. Here are five things you should do and five things you should avoid:

Do provide accurate information. Ensure that all names, addresses, and legal descriptions of properties are correct to avoid future disputes.
Do clarify the terms. Understand the obligations regarding payment and maintenance before signing the agreement.
Do keep a copy. Retain a signed copy of the agreement for your records to reference in the future.
Do discuss with all parties. Communicate openly with the supplying party and other involved parties to ensure everyone is on the same page.
Do consult legal advice. If there are any uncertainties, seek legal counsel to ensure that your rights are protected.

Don't rush the process. Take your time to understand each section of the agreement before signing.
Don't ignore the details. Overlooking specific terms, such as payment schedules or maintenance responsibilities, can lead to misunderstandings.
Don't assume consent. Make sure that all parties agree to the terms and conditions outlined in the agreement.
Don't leave blanks. Fill in all required fields completely to prevent any ambiguity in the agreement.
Don't forget to notarize. Ensure the agreement is properly notarized if required, as this adds a layer of legitimacy.

Misconceptions

Misconceptions about the Shared Well Agreement form can lead to confusion and misunderstandings. Here are four common misconceptions explained:

It is only for new well systems. Many believe that the Shared Well Agreement is only necessary for newly constructed wells. In reality, it can also apply to existing wells when multiple parties agree to share the water supply.
All parties must pay equal shares. Some assume that costs must be split evenly among all parties. However, the agreement specifies that each party pays a proportionate share based on their usage or other agreed terms.
Termination of the agreement is simple. A common belief is that any party can easily withdraw from the agreement. In truth, termination requires a formal process, including filing a written statement at the appropriate county office.
Water quality is guaranteed. Many think that the Shared Well Agreement guarantees water quality. While the agreement mentions that water has been tested, it does not guarantee ongoing quality. Regular testing and maintenance are essential responsibilities of the parties involved.

Key takeaways

Filling out and using the Shared Well Agreement form is an important step for parties sharing a well system. Here are some key takeaways to consider:

Clearly Identify Parties: Ensure that all parties involved are accurately named, along with their respective addresses. This clarity helps prevent misunderstandings later on.
Understand Financial Responsibilities: Each party must be aware of their financial obligations, including annual fees and shared maintenance costs. Payments should be made promptly to avoid service interruptions.
Define Emergency Procedures: The agreement outlines procedures for emergency situations. Each party has the right to access the well system to address urgent issues, ensuring that water delivery is not interrupted.
Know Termination Conditions: Familiarize yourself with the conditions under which the agreement can be terminated. This includes scenarios like contamination of the well or availability of alternative water sources.