The Essentials of a Simple Shared Well Agreement Form

Defining a Shared Well Agreement

A shared well agreement is a legal document entered between two or more parties regarding the upkeep of and access to a communal source of water. While cities and home owners’ associations often maintain their own pumps and treatment facilities, many rural communities build new homes and apartments in close proximity to each other and have to share a common well. Homes can be built near an existing water source, or groups of new tenants can be lulled into using a community pump without realizing that it is the only source of water for their unit. Shared well agreements are essential when multiple parties pool resources to create a common source of water .
Property owners who fear that their well may run dry should agree to a plan before their property becomes unusable. The agreement will designate how much water each party can draw at one time, who owns the well pump, how damages and maintenance costs will be divided, and whether there will be certain set times that parties must limit potable water usage. Although most shared well agreements will be entered into between neighbors or tenants on one piece of land and will cover water usage on that land, it’s possible for a person or group of people to enter into a shared well agreement with several non-adjacent pieces of land and have them share water pumps and pipelines.

Essentials of a Simple Shared Well Agreement Form

Parties: A basic shared well agreement form should include the names of the parties involved in the agreement. This usually consists of the real property owners who are going to be sharing the well.
Water Usage: Both parties should have clear specifications on how much water they will utilize from the well. It is not uncommon for parties to pump more water than is necessary.
Maintenance: The shared well agreement form should detail which party is responsible for the costs of maintaining the well, cleaning, fixing water lines and providing power to the well.
Disputes: Since sharing a well can lead to disputes over issues such as access, water usage, damage to the well by another party and how to fix problems with the well, both parties should have a way to settle their differences, whether it is through binding arbitration or mediate solutions outside of the court system.

Legal Aspects and Considerations

In the realm of private well ownership and water rights, understanding the law governing shared wells is essential. Shared well agreements, which lay out the terms and conditions for the use of a well by multiple parties, have legal implications that can affect water usage, ownership rights, maintenance obligations, and even liability for well failure or contamination. While the concept may appear straightforward, the legal aspects can be complicated by state-specific regulations, county ordinances, and even local rules.
Each state has different laws regarding water rights, including appropriative or riparian rights, and how they relate to a shared well. Some states follow a "reasonable use" approach, while others may have a "correlative rights" system. Furthermore, some states require legal documents, such as easements, covenants, or license agreements, to be recorded with the county as part of the real property title.
In addition to state law requirements, there may be federal laws or guidelines that come into play, particularly if the well might be subject to certain federal regulations such as the Safe Drinking Water Act. In addition, some states may allow for local municipalities to regulate the installation, use, and monitoring of wells, which may impose additional restrictions on well sharing.
It is critical to consult with an attorney who specializes in property or natural resources law where the well is located, to see if any particular provisions should be included in the agreement or if a more formal legal document may be necessary.

Benefits of a Shared Well Agreement

When a shared well can be established in a simple manner, such as in the case where adjacent property owners decide to regularly share the water from their well, there is often little reason for concern about higher courts of law. A simple shared well agreement form can make the process of working out the details and signing a contract together a much more peaceful affair. However, when critters intrude upon the contracts, and water is coming up short, it can mean bad news for those who are involved. A clear and formal shared well agreement can prevent a number of challenges. For example, it can prevent disputes with those who have differing views on how the water from the well should be used. This is an especially important part of any shared well agreement, because the law often holds that water rights can be bought, sold, or inherited – the same as any other asset. Accusations can fly in both directions, from people thinking they should get more water than others, and from those who feel that their water is being bought or sold without their consent. In addition to dispute prevention, a shared well agreement can allow landowners and water owners to understand their rights and responsibilities precisely so there are no surprises. When landowners have to determine the cost and maintenance of their well amongst themselves, the possibility of conflict can multiply quickly. A contract helps everyone involved know exactly what they are getting, and what they need to do, so there are no problems down the line.

Common Issues and Solutions

Even with a well-written shared well agreement form, owners may encounter common issues that can cause disputes and lead to environmental liability. You may want to consider the following when entering into a shared well agreement and preparing your well: Disputes over Maintenance , Disputes over Water Rights, Failure to Properly Decommissioning a Well, Potential Environmental Implications.

Creating a Simple Shared Well Agreement

A buyer and seller wanting to allocate well costs, duties and benefits in connection with a well located on one party’s property need a shared well agreement. Preparing one is relatively simple. Simply follow these steps:

• Describe the well. A simple description of the well can suffice: "a water well on the Perry Property at NNW 10th St and Cherry St. in Brewster County, Texas, also known as the Adair #1 Well."
• Provide for well operation and maintenance. A simple shared well agreement will need to provide that one party will operate the well and invoice the other for the well costs. For a better arrangement appoint an operator.
• Allocate well costs, duties and benefits. Different approaches work in different scenarios. A. Proportional sharing. A common approach to allocating well costs is to share the expenses by use of a fraction. B. Shared operation and maintenance. A simpler way to provide for sharing well expenses, duties and benefits is for one party to handle the operation and maintenance and then bill the other party some allocated share of the well costs. To be fair, the party who is billed should be provided access to the operator’s books and records.
• Address transfer of rights. Many agreements contain a provision allowing a party to sell or assign its rights and obligations to another. That’s wise. Where this is not feasible as with an oil and gas lease, then you might use provisions like those in paragraph 4 of the sample shared well agreement form below.

Frequently Asked Questions

What is a shared well agreement?
A shared well agreement defines the relationship between the water well owner and those who will use the water from it. While well owners have the right to directly communicate with their well driller, all other parties are restricted from doing so.
Do I need a shared well agreement?
Without a shared well agreement, you have no recourse if the well has problems. If you’re going to be relying on a well, it’s important to protect your interests with a shared well agreement.
What happens if a shared well agreement doesn’t cover a specific circumstance?
A simple, straightforward Agreement is ideal. Of course, you can always include additional terms, but these terms should not be included in the basic form agreement. Instead , you should create a separate agreement or document.
Why do I need multiple signatures on an agreement?
If you do not include joint signatures, the other parties can claim that he/she did not agree to the terms of the contract or make unilateral decisions that do not include you. Having all parties sign the same document avoids this problem. A joint signature requirement establishes the fact that everyone agreed to the same set of terms.
Why do I need to share with a neighbor?
Water rights are based on "prior appropriation" laws. These laws reflect the fact that, when considering the number of people who own water rights, there simply isn’t enough water to go around. So, everybody has to share.