Shared Well Agreement Template Modify Form

Shared Well Agreement Template

The Shared Well Agreement is a legal document that outlines the terms under which two or more property owners can share a well and its water supply. This agreement ensures that all parties involved understand their rights and responsibilities regarding the well system, including costs and maintenance. If you need to fill out this important form, please click the button below.

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Structure

The Shared Well Agreement form serves as a crucial document for property owners who wish to establish a cooperative arrangement regarding water usage from a shared well. This agreement outlines the rights and responsibilities of both the supplying party, who owns the well, and the supplied party, who benefits from the well’s water. Key aspects include the legal descriptions of the properties involved, the stipulations for water distribution, and the costs associated with the maintenance and operation of the well system. Each party agrees to pay an annual fee and share expenses for repairs, ensuring that both properties can access clean, safe water. The agreement also specifies the conditions under which the water can be used, explicitly excluding uses such as filling swimming pools. Additionally, it addresses emergency situations, easements for maintenance, and the termination of rights should the well become contaminated or if another water source becomes available. By formalizing these terms, the Shared Well Agreement not only protects the interests of current owners but also lays a foundation for future occupants, ensuring a sustainable and equitable water supply for all involved.

Instructions on How to Fill Out Shared Well Agreement

Completing the Shared Well Agreement form is an important step for parties who wish to establish a clear understanding of their rights and responsibilities regarding a shared well and water distribution system. This document will help ensure that both parties are on the same page and can avoid potential disputes in the future.

  1. Begin by filling in the date at the top of the form where it states “this ____ day of __________.”
  2. In the first blank space, write the name of the supplying party, followed by their street address, city, county, state, and zip code.
  3. Next, enter the name of the supplied party in the second blank space, along with their complete address (street address, city, county, state, zip code).
  4. For the supplying party's property, provide the street address and legal description in the designated areas. This includes detailed information about Parcel 1.
  5. Repeat the previous step for the supplied party’s property, entering the street address and legal description for Parcel 2.
  6. State the annual fee amount that the supplied party will pay for the use of the well and water distribution system, ensuring to specify the amount due this year upon execution of the Agreement.
  7. Indicate the due date for the annual fee, which is the 15th of January each year.
  8. Specify the due date for the monthly energy cost payment and how many days late a payment can be before water supply is terminated.
  9. In the section for easements, describe any necessary easements for construction and maintenance of the well and water distribution system.
  10. Include any additional terms or conditions that may be relevant to the Agreement in the appropriate sections.
  11. Finally, both parties should sign and date the Agreement at the bottom, ensuring to acknowledge it before a notary public if required by state law.

Key takeaways

When filling out and using the Shared Well Agreement form, it’s essential to consider several key points to ensure a smooth process. Here are some important takeaways:

  • Identify Parties Clearly: Ensure that both the supplying party and the supplied party are clearly identified with full names and addresses. This helps establish who is involved in the agreement.
  • Legal Descriptions Matter: Provide accurate legal descriptions of both parcels. This information is crucial for defining the properties involved in the agreement.
  • Water Usage Rights: Understand that the agreement grants both parties the right to draw water for domestic use. However, filling swimming pools is explicitly excluded.
  • 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 an initial payment required upon signing the agreement.
  • Shared Expenses: Both parties are responsible for half of the operational and maintenance costs of the well and water distribution system. This includes electricity and repairs.
  • Emergency Repairs: In emergencies, one party can act to correct issues without prior consent. However, it’s essential to communicate afterward about the actions taken.
  • Access Rights: Each party grants easements for necessary construction and maintenance. Be mindful of these easements when planning any landscaping or improvements.
  • Termination Procedures: Understand the process for terminating participation in the agreement. A written statement must be filed with the appropriate county office.
  • Contingency Plans: If the well becomes contaminated or another water source becomes available, the rights and obligations under the agreement may cease.
  • Dispute Resolution: Any disputes must be resolved through binding arbitration, with each party selecting an arbitrator to ensure fairness.

By keeping these key points in mind, parties can navigate the Shared Well Agreement process more effectively and ensure that their rights and responsibilities are clearly defined and understood.

Documents used along the form

The Shared Well Agreement is a vital document that outlines the responsibilities and rights of parties sharing a well system. Alongside this agreement, several other forms and documents may be necessary to ensure clarity and legal compliance. Each of these documents serves a specific purpose and can help facilitate the smooth operation and maintenance of the shared water system.

  • Deed Restrictions: This document outlines specific limitations or obligations related to the use of the property. It can include conditions regarding water usage, landscaping, and maintenance responsibilities, ensuring that all parties adhere to agreed-upon standards.
  • Water Quality Testing Report: This report is essential to confirm that the water from the shared well meets safety standards for human consumption. It is typically issued by a certified laboratory and can provide peace of mind to all parties involved.
  • Easement Agreement: This document grants the necessary rights to access portions of the property for maintenance and repair of the well and water distribution system. It ensures that all parties can perform essential work without legal hindrance.
  • Maintenance Agreement: This agreement specifies the duties and responsibilities of each party regarding the upkeep of the well and water distribution system. It can outline how costs will be shared and what actions are required to maintain the system's functionality.
  • Termination Notice: Should any party wish to withdraw from the Shared Well Agreement, a formal termination notice is required. This document ensures that the process is conducted legally and that all parties are informed of the changes.
  • Insurance Policy: A shared insurance policy can protect all parties against potential liabilities associated with the well and water distribution system. This document outlines coverage details and responsibilities in the event of accidents or damages.

In summary, these additional forms and documents complement the Shared Well Agreement by addressing various aspects of water sharing and property rights. By having these documents in place, parties can foster a cooperative and legally sound environment for managing their shared resources.

Sample - 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)

Dos and Don'ts

When filling out the Shared Well Agreement form, it’s important to ensure accuracy and clarity. Here are four things to consider doing and avoiding:

  • Do: Carefully read the entire form before starting to fill it out. Understanding the requirements will help prevent mistakes.
  • Do: Provide complete and accurate information for all parties involved, including addresses and legal descriptions of the properties.
  • Do: Double-check all calculations related to fees and expenses to ensure fairness and clarity for all parties.
  • Do: Keep a copy of the completed agreement for your records and share it with all parties involved.
  • Don't: Rush through the form. Taking your time can help avoid errors that may lead to disputes later.
  • Don't: Leave any sections blank unless specifically instructed. Missing information can delay the agreement process.
  • Don't: Assume that verbal agreements are sufficient. All terms should be documented in the agreement to avoid misunderstandings.
  • Don't: Forget to have the agreement notarized if required, as this adds a layer of legal validity to the document.