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The Shared Well Agreement form is a crucial document for property owners who rely on a communal water supply system. It outlines the rights and responsibilities of both the supplying party, who owns the well, and the supplied party, who benefits from the water service. This agreement is essential for ensuring that both parties have access to a reliable source of water for domestic use while also addressing the financial aspects of maintaining the well and its distribution system. Key components include the description of the properties involved, the annual fees for water usage, and the shared costs for maintenance and repairs. Furthermore, the agreement establishes guidelines for emergencies, easements for access, and the process for terminating the agreement if necessary. By clearly defining these terms, the Shared Well Agreement promotes cooperation and accountability among property owners, ensuring a sustainable water supply for all parties involved.

Document 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)

Frequently Asked Questions

  1. What is a Shared Well Agreement?

    A Shared Well Agreement is a legal document that outlines the rights and responsibilities of parties who share a well and water distribution system. It ensures that all parties involved understand how the well will be used, how costs will be shared, and the terms for maintenance and operation.

  2. Who should consider entering into a Shared Well Agreement?

    Homeowners who share a well with one or more properties should consider this agreement. It is especially important for those who rely on a single well for their water supply, as it clarifies the obligations of each party and helps prevent disputes.

  3. What are the key components of a Shared Well Agreement?

    The agreement typically includes:

    • Definitions of the properties involved.
    • Terms for water usage and restrictions.
    • Cost-sharing arrangements for maintenance and utilities.
    • Procedures for repairs and emergencies.
    • Termination conditions and rights.
  4. How are costs shared under the agreement?

    Costs are generally shared equally between the parties. This includes annual fees for the use of the well, as well as any maintenance or repair expenses. Each party is responsible for their share, which is usually calculated as 50% of the total costs.

  5. What happens if one party wants to terminate their participation?

    If a party wishes to terminate their involvement in the Shared Well Agreement, they must file a written statement of termination at the appropriate county office. After termination, that party will no longer have the right to use the well and must disconnect their water supply from the system.

  6. What should be done in case of an emergency?

    In emergency situations, such as a failure of the water system, any party may take action to resolve the issue. They are allowed access to the necessary property to address the problem, even if the other party is not present.

  7. How is the quality of water ensured?

    Before entering into the agreement, the water from the well must undergo a quality analysis by the state's health authority. This analysis ensures that the water is safe for human consumption, providing peace of mind to all parties involved.

  8. What if the well becomes contaminated?

    If the well becomes contaminated or is no longer able to supply adequate water, the rights and obligations under the Shared Well Agreement will cease. The parties will then need to seek an alternative water source, and reasonable time will be allowed for necessary connections to be made.

Misconceptions

Here are some common misconceptions about the Shared Well Agreement form:

  • Misconception 1: The agreement is only necessary for new wells.
  • Many people believe that a Shared Well Agreement is only required when a new well is being established. In reality, it is essential for any shared well system, regardless of when it was created. This agreement helps clarify the responsibilities and rights of all parties involved.

  • Misconception 2: The supplying party is solely responsible for maintenance costs.
  • Some assume that only the supplying party will handle maintenance expenses. However, the agreement clearly states that both parties must share the costs for the operation and maintenance of the well and water distribution system. This ensures that everyone contributes fairly.

  • Misconception 3: The agreement can be ignored once signed.
  • It’s a common belief that once the agreement is signed, it can be disregarded. In fact, this agreement is a binding contract. All parties are expected to adhere to its terms throughout its duration, which is often perpetual unless terminated according to the outlined procedures.

  • Misconception 4: Anyone can use the well water.
  • Some individuals think that anyone can draw water from the shared well. This is not true. The agreement specifies that only the parties involved and their household guests may use the water. Unauthorized users are not permitted to access the well, ensuring that the resources are reserved for those who are part of the agreement.

Common mistakes

  1. Incomplete Information: Many people forget to fill in all required fields, such as the date, names, and addresses of both parties. This can lead to confusion and potential disputes later on.

  2. Incorrect Legal Descriptions: Failing to provide accurate legal descriptions for both parcels can create issues with property rights. It's crucial to ensure that these descriptions are precise and match official records.

  3. Neglecting to Specify Payment Details: Some individuals overlook the importance of detailing payment amounts and deadlines. Not specifying these can result in misunderstandings about financial obligations.

  4. Ignoring Emergency Procedures: A common mistake is not clearly outlining what constitutes an emergency and the steps to take. This can lead to delays in critical situations where immediate action is necessary.

Document Data

Fact Name Description
Purpose of Agreement The Shared Well Agreement establishes the rights and responsibilities of the supplying party and the supplied party regarding the use of a shared well and water distribution system.
Water Quality Assurance Water from the well must undergo a quality analysis by the state health authority, confirming it is safe for human consumption.
Cost Sharing Both parties agree to share the costs associated with the maintenance and operation of the well, with each party responsible for half of the expenses.
Emergency Access Each party has the right to access the other's property in case of an emergency, defined as a failure of the system to deliver water.
Termination of Agreement The agreement can be terminated if the well becomes contaminated or if another water source becomes available, following a formal written notice.

Similar forms

The Shared Well Agreement form shares similarities with a Shared Driveway Agreement. Both documents outline the rights and responsibilities of parties who share a common resource. In a Shared Driveway Agreement, property owners agree on the use, maintenance, and repair of a driveway that serves multiple properties. Just as the Shared Well Agreement specifies the terms for water usage and cost-sharing, the Shared Driveway Agreement details how maintenance costs will be split and the conditions under which the driveway can be used. Both agreements aim to prevent disputes by clearly defining the obligations of each party involved.

Understanding the financial implications of agreements like the Shared Well Agreement can be further expanded by analyzing the Profit And Loss form, which not only summarizes a company's revenues and expenses but also serves as a crucial tool for stakeholders to assess financial health. For insights on how to effectively utilize this financial document, you can visit OnlineLawDocs.com.

Another comparable document is the Easement Agreement. An Easement Agreement grants one party the right to use a portion of another party's property for a specific purpose, similar to how the Shared Well Agreement grants access to a well on one property for the benefit of multiple parties. Both documents outline the terms of use, responsibilities for maintenance, and conditions under which the easement can be revoked. The clarity provided by these agreements helps avoid misunderstandings and ensures that all parties are aware of their rights and obligations regarding the shared resource.

A Joint Use Agreement is also similar, as it governs the shared use of facilities or resources between two or more parties. In the context of the Shared Well Agreement, both documents establish the terms under which parties can utilize a shared resource—in this case, water. Joint Use Agreements often include provisions about maintenance responsibilities and cost-sharing, just as the Shared Well Agreement does. This ensures that all parties benefit from the shared resource while also maintaining it adequately.

The Water Supply Agreement is another relevant document. This type of agreement is designed to outline the terms under which water is supplied to multiple users, akin to the provisions in the Shared Well Agreement. Both documents specify the rights and responsibilities of the supplying party and the users, including payment terms and maintenance duties. They aim to ensure that all parties receive a reliable supply of water while clarifying how costs will be divided, thus preventing potential disputes.

A Utility Sharing Agreement also bears resemblance to the Shared Well Agreement. This type of agreement governs the sharing of utility services, such as electricity or water, among multiple parties. Just as the Shared Well Agreement addresses the distribution of water and the costs associated with it, a Utility Sharing Agreement outlines how utility expenses will be shared and the responsibilities of each party in maintaining the service. Both agreements emphasize the importance of cooperation and communication among the parties involved.

The Co-Ownership Agreement is another document that shares similarities with the Shared Well Agreement. This type of agreement is used when two or more parties jointly own a property or resource, specifying how the resource will be used and maintained. Like the Shared Well Agreement, a Co-Ownership Agreement defines each party's rights and responsibilities, including how costs will be shared and how decisions will be made regarding the shared resource. This helps to ensure that all co-owners are on the same page, reducing the likelihood of conflicts.

Finally, the Maintenance Agreement is relevant, as it outlines the responsibilities of parties regarding the upkeep of shared resources. Similar to the provisions found in the Shared Well Agreement, a Maintenance Agreement specifies who is responsible for repairs, maintenance, and costs associated with the upkeep of the shared resource. This ensures that all parties understand their obligations and helps to maintain the shared resource in good condition, fostering a cooperative relationship among the parties involved.