Download Shared Well Agreement Template

The Shared Well Agreement is a legal document that outlines the terms and conditions under which two or more parties can share a well water system. This agreement is crucial for ensuring that all parties involved have access to a reliable water supply while also detailing their respective rights and responsibilities. By establishing clear guidelines, the Shared Well Agreement helps prevent disputes and fosters cooperation among neighbors.

To begin the process of creating your Shared Well Agreement, please fill out the form by clicking the button below.

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Misconceptions

Misconceptions about the Shared Well Agreement form can lead to misunderstandings among parties involved. Here are five common misconceptions:

Misconception 1: The agreement is only for new constructions.

This is not true. The Shared Well Agreement can apply to both existing and new properties that share a well system.

Misconception 2: All parties must pay the same amount for water usage.

In reality, each party's payment is based on their proportionate share of expenses, which may vary depending on usage and maintenance costs.

Misconception 3: The supplying party has complete control over the well.

The agreement grants rights to all parties involved, ensuring that decisions about the well are made collectively.

Misconception 4: The agreement automatically terminates if one party moves.

This is incorrect. The agreement remains in effect until a formal termination process is followed, regardless of changes in ownership or occupancy.

Misconception 5: There are no consequences for unpaid bills.

Unpaid bills can lead to serious repercussions, including the termination of water supply until all dues are cleared.

File Details

Fact Name	Description
Purpose	The Shared Well Agreement outlines the rights and obligations of parties sharing a well for water supply between two parcels of property.
Parties Involved	The agreement is made between a "supplying party," who owns the well, and a "supplied party," who receives water from the well.
Water Quality	The water must be analyzed and deemed safe for human consumption by the relevant state health authority.
Cost Sharing	Both parties share the costs of maintenance, operation, and energy for the water distribution system, typically split equally.
Termination Conditions	The agreement can be terminated if the well becomes contaminated or if an alternative water source becomes available.
Governing Law	The laws governing this agreement vary by state. It is essential to consult state-specific regulations regarding shared well agreements.

Key takeaways

The Shared Well Agreement is a legally binding document that outlines the rights and responsibilities of parties sharing a well system for water supply.
Each party involved must provide accurate information regarding their property, including full addresses and legal descriptions. This ensures clarity about the parcels connected to the well.
Annual fees for the use of the well and water distribution system must be paid by the supplied party. This fee is due by January 15th each year, with a prorated amount payable upon signing the agreement.
Shared expenses for maintenance and operation of the water system are to be equally divided between the supplying and supplied parties. This includes costs for electricity and repairs.
In the case of any necessary site improvements or repairs, the costs will typically fall on the owner of the affected parcel, with specific exceptions for shared boundary structures.
All parties must agree on expenditures related to system maintenance or improvements, except in emergencies where immediate action is required.
It is essential to define emergency situations clearly. This includes instances where the system fails to deliver water, allowing access to the pertinent parcel for repairs.
Termination of the agreement requires a written statement filed with the appropriate county office. Once terminated, parties must disconnect from the well system and will not be liable for future maintenance costs.

Dos and Don'ts

When filling out the Shared Well Agreement form, it's important to approach the task carefully. Here are some key things to do and avoid:

Do read the entire agreement thoroughly before starting. Understanding the terms will help you fill it out accurately.
Do provide complete and accurate information for all parties involved, including names and addresses.
Do ensure that the legal descriptions of the properties are clear and precise.
Do discuss the agreement with all parties to ensure everyone is on the same page regarding costs and responsibilities.
Don't leave any sections blank. If a section does not apply, write "N/A" instead of skipping it.
Don't rush through the process. Taking your time can help prevent mistakes that could lead to misunderstandings later.

Common mistakes

Incomplete Information: Failing to fill in all required fields, such as names, addresses, and dates, can render the agreement invalid. Each section must be completed to ensure clarity and enforceability.
Incorrect Legal Descriptions: Providing inaccurate or vague legal descriptions of the properties involved can lead to disputes. It is crucial to use precise language and details.
Ignoring Annual Fees: Not specifying the correct annual fee or failing to mention any exceptions for the first year can create confusion regarding payment obligations.
Neglecting Shared Expenses: Overlooking the need to outline how shared expenses will be calculated and paid can lead to misunderstandings about financial responsibilities.
Missing Emergency Provisions: Not including clear definitions of what constitutes an emergency situation may lead to delays in addressing urgent issues.
Omitting Easement Descriptions: Failing to describe easements properly can hinder access for maintenance and repairs, which is essential for the well's operation.
Forgetting Signatures: Not obtaining signatures from all parties involved can invalidate the agreement. Every party must sign to demonstrate their consent.
Neglecting Termination Procedures: Not clearly stating how parties can terminate their participation in the agreement can create complications in the future. Clear procedures are necessary for smooth transitions.

What You Should Know About This Form

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. It ensures that all parties have access to water for domestic use while detailing how costs and maintenance responsibilities are shared. This agreement helps prevent disputes and provides a clear framework for cooperation between the involved parties.
Who is responsible for maintenance costs?
Both the supplying party and the supplied party are responsible for maintenance costs. They will share expenses equally, meaning each party pays half of the total costs for repairs and maintenance of the well and water distribution system. It's important that all parties agree on any expenditures for maintenance before they are incurred, except in emergencies.
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 with the appropriate county office. After termination, that party will no longer have the right to use the well and must disconnect their water supply. They will also not be responsible for any future maintenance costs related to the well.
Can the water from the well be used for any purpose?
No, the water from the shared well is strictly for domestic use. This means it can be used for drinking, cooking, and other household needs. However, it cannot be used to fill swimming pools or for any commercial purposes. This restriction helps ensure that the well can adequately supply all parties involved.

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 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)

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