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Document Sample

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 Information

Fact Name Detail
Purpose The Shared Well Agreement outlines the rights and responsibilities of parties sharing a well for water supply.
Parties Involved The agreement is made between a supplying party (well owner) and a supplied party (water user).
Parcel Descriptions Each party must provide detailed descriptions of their respective properties, referred to as Parcel 1 and Parcel 2.
Water Quality Water from the well must meet safety standards as determined by the state health authority.
Annual Fees The supplied party agrees to pay an annual fee for water usage, with specific payment deadlines outlined.
Shared Expenses Both parties share costs related to maintenance and operation of the well and distribution system.
Easements Each party grants easements necessary for the construction and maintenance of the well and related systems.
Termination Conditions The agreement can be terminated if the well becomes contaminated or if another water source becomes available.
Arbitration Clause Disputes under the agreement must be resolved through binding arbitration, following specific procedures.
Governing Law The agreement is subject to the laws of the state where the properties are located, which may vary by state.

Shared Well Agreement - Usage Guidelines

Completing the Shared Well Agreement form is a straightforward process that requires attention to detail. This form outlines the rights and obligations of parties involved in a shared well system. Follow these steps carefully to ensure that all necessary information is accurately provided.

  1. Begin by entering the date at the top of the form where indicated: "____ day of __________".
  2. Fill in the names of the parties involved. In the first blank, write the name of the supplying party and in the second blank, the name of the supplied party.
  3. Complete the addresses for both parties. Include the street address, city, county, state, and zip code for each party.
  4. Identify the property owned by the supplying party. Fill in the street address, city, county, state, and zip code for Parcel 1, followed by a legal description of the property.
  5. Next, identify the property owned by the supplied party. Provide the street address, city, county, state, and zip code for Parcel 2, along with its legal description.
  6. Review the preamble section to ensure that all necessary details regarding the well and water distribution system are accurately reflected.
  7. For the annual fee, enter the amount to be paid by the supplied party in the designated space. Also, specify any initial payment amount due upon execution of the Agreement.
  8. Detail the shared expenses related to the operation and maintenance of the well and water distribution system, including how costs will be divided between parties.
  9. Specify the deadlines for payments related to energy costs and any conditions for termination of water supply due to unpaid dues.
  10. Describe any easements required for the construction and maintenance of the well and water distribution system in the provided section.
  11. Confirm that no landscaping or improvements will impair the use of the easements.
  12. Indicate the rights of each party to act in an emergency situation, as defined in the Agreement.
  13. Make sure to specify that only the designated parcels and their dwellings will receive water from the well.
  14. Outline the conditions under which the Agreement may terminate, including contamination of the well or availability of another water source.
  15. Finalize the document by having all parties sign and date the form, ensuring that it is acknowledged before a notary public as required.

Once the form is filled out, it should be reviewed for accuracy and completeness. After obtaining all necessary signatures and notarization, the completed Agreement can be filed with the appropriate county office, ensuring that all parties have a copy for their records.

Dos and Don'ts

When filling out the Shared Well Agreement form, it is important to adhere to certain guidelines to ensure clarity and accuracy. Below is a list of things you should and shouldn't do:

  • Do provide complete and accurate addresses for all parties involved. This includes street address, city, county, state, and zip code.
  • Don't leave any sections blank. Each part of the form should be filled out to avoid confusion later.
  • Do ensure that the legal descriptions of the properties are detailed and precise. This helps avoid disputes regarding property boundaries.
  • Don't use vague language. Be specific about the rights and obligations of each party to prevent misunderstandings.
  • Do review the entire agreement for accuracy before signing. This ensures that all terms are understood and agreed upon.
  • Don't rush through the process. Take your time to ensure all information is correct and reflects the intentions of both parties.

Common mistakes

  1. Incomplete Information: Failing to fill in all required fields, such as names, addresses, and legal descriptions of the properties, can lead to confusion and disputes later. Each section must be completed thoroughly to ensure clarity.

  2. Incorrect Legal Descriptions: Providing inaccurate or vague legal descriptions of the properties can complicate ownership rights and responsibilities. It is crucial to include precise details to avoid future misunderstandings.

  3. Missing Signatures: Not obtaining signatures from all parties involved can render the agreement invalid. Each party must sign to acknowledge their consent and understanding of the terms.

  4. Ignoring Payment Terms: Overlooking the specific payment amounts and deadlines can result in financial disputes. Parties should ensure they understand and agree to the payment structure outlined in the agreement.

  5. Neglecting Emergency Procedures: Failing to specify what constitutes an emergency or how to handle it can lead to delays in necessary repairs. Clear definitions and procedures should be included to facilitate prompt action.

  6. Not Addressing Easements: Omitting details about easements can create access issues for maintenance and repairs. It is important to clearly define any easements necessary for the operation of the well and water distribution system.

  7. Overlooking Termination Procedures: Not understanding the process for terminating the agreement can lead to complications if a party wishes to withdraw. Clear guidelines should be established regarding how to terminate participation.

  8. Failing to Review the Agreement: Not thoroughly reviewing the entire agreement before signing can result in misunderstandings about rights and obligations. All parties should take the time to read and understand the document fully.