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Exempt Wells Non Exempt Wells

Most wells in Arizona are “exempt” wells. This means they are exempt from regulation and permitting requirements reserved for “non-exempt” wells. Most residential wells are exempt wells.

Water wells play a crucial role in meeting the water demands of Arizona, a state known for its arid climate and limited water resources. In Arizona, water wells are classified into two categories: non-exempt and exempt wells. This paper aims to explore and analyze the differences between non-exempt and exempt water wells, including their legal requirements, regulations, usage limitations, and impacts on water management. By understanding these distinctions, policymakers and stakeholders can make informed decisions regarding water resource management and ensure the sustainability of water supplies in Arizona.

Water scarcity is a significant concern in Arizona, prompting the need for efficient water resource management. Water wells, which tap into underground aquifers, provide an essential water source for various purposes, including domestic, agricultural, and industrial use. In Arizona, the state government has established regulations to differentiate between non-exempt and exempt water wells. Understanding these distinctions is crucial for effective water management and the responsible use of water resources.

1. Non-Exempt Water Wells:

1.1 Legal Definition and Requirements:
Non-exempt water wells are subject to more stringent regulations and oversight by the Arizona Department of Water Resources (ADWR). They are defined as wells that require a permit to extract a specified volume of groundwater. To obtain a non-exempt well permit, applicants must provide detailed information regarding the intended water use, the well’s construction specifications, and potential impacts on the local aquifer.

1.2. Water Usage Limitations:
Non-exempt water wells have specific usage limitations to ensure sustainable water management. The ADWR may impose restrictions on the amount of water that can be extracted from a non-exempt well, based on factors such as the well’s location, the aquifer’s hydrogeology, and the water demands in the area. These restrictions are designed to prevent overexploitation of water resources and maintain the long-term viability of the aquifer.

1.3. Monitoring and Reporting:
Non-exempt wells require regular monitoring and reporting of water usage. Well owners must measure and record the volume of water extracted and submit these reports to the ADWR. This monitoring enables the ADWR to track water usage trends, assess aquifer sustainability, and enforce compliance with regulations.

Non-exempt well regulations ensure a more robust framework for monitoring and managing water usage, promoting sustainable practices, and preventing overexploitation of water resources. By contrast, exempt wells, although subject to limitations, may be more challenging to track and regulate due to the lack of mandatory reporting.

2. Exempt Water Wells:

2.1. Legal Definition and Requirements:
Most residential wells in Arizona are exempt wells. As such, they are exempt from most of the strict compliance regulations imposed on the non-exempt wells. However, it is essential to note that exempt wells still fall under certain regulations to protect water resources

2.2. Usage Limitations:
Although exempt wells do not have specific volume restrictions, they are subject to limitations to ensure responsible water use. The ADWR regulates exempt wells to prevent excessive water consumption and potential adverse impacts on the surrounding aquifer. These limitations typically include guidelines on irrigation practices, water conservation, and restrictions on commercial or industrial use.

2.3. Self-Monitoring and Reporting:
Unlike non-exempt wells, exempt well owners are responsible for self-monitoring and reporting their water usage. Although not required to submit regular reports to the ADWR, well owners must keep records of their water consumption and be prepared to provide this information upon request. This self-monitoring helps promote accountability and awareness of water usage.

Impacts on Water Management: The differences between non-exempt and exempt water wells have significant implications for water management in Arizona.

Non-exempt wells are subject to regulation and permitting requirements, and are closely regulated by the Arizona Department of Water Resources (ADWR).

A non-exempt water well is typically defined as a well that:

Drilled or constructed for the purpose of withdrawing groundwater.
Has a diameter of 10 inches or more or is capable of withdrawing a total of more than 35 gallons per minute (gpm) for any period of time.
Is not specifically exempted by state statutes or regulations.

It’s important to note that the regulations regarding non-exempt wells can be complex, and there may be additional criteria or exceptions depending on the specific circumstances. Therefore, if you have a specific well-related question or need accurate information regarding a particular well, contact the Dunaway Law Group by phone at 480-702-1608 or message us HERE to consult with with a qualified attorney in the field of water rights and well drilling in Arizona.

The Dunaway Law Group provides this information as a service to clients and other friends for educational purposes only. It should not be construed or relied on as legal advice or to create a lawyer-client relationship. Readers should not act upon this information without seeking advice from professional advisers. The Firm limits its practice to the states of Arizona and New York.

Community Water Systems in AZ

The term Community Water System refers to any water system that serves 15 or more service connections (a.k.a. “hook-ups”) or that serves 25 or more residents. They are subject to water quality standards and more stringent reporting requirements. (See A.R.S. §§ 45-341 to 343). Community water systems are also regulated by the Arizona Department of Environmental Quality whereas a typical residential well is not.

two categories of community water systems

In Arizona, Community Water Systems are divided into two distinct categories: large and small water systems. A small Community Water System serves 15 to 1,849 residents and a large water system is defined as one that serves more than 1,850 residents.

annual use water reports

In Arizona, the users of a Community Water Systems are required to prepare and submit annual water-use reports and system water plans. These reports and plans are intended to reduce Community Water Systems’ vulnerability to drought and ensure that residents are prepared to respond to drought or water shortages.

The information submitted to the Arizona Department of Water Resources also allows the State to provide regional assistance for drought planning, mitigation and response. That information submitted to the ADWR includes:

Information on water pumped or diverted, water received, water delivered to customers, and effluent used or received.

community system water plan

The system water plan, which should be updated and submitted every five years and should consist of three sub-plans:

Water Supply Plan– This plan describes the service area, transmission facilities, monthly system production data, historical demand for the past five years, and projected demands for the next five, 10 and 20 years.

Drought Preparedness Plan– This plan includes drought and emergency response strategies, a plan of action to respond to water shortage conditions, and provisions to educate and inform the public.

Water Conservation Plan– This plan addresses measures to control lost and unaccounted for water, considers water rate structures that encourage efficient use of water, and plans for public information and education programs on water conservation.

non-compliance with the annual reports

Under Arizona statutes, the Arizona Department of Water Resources is required to provide notification of Community Water System non-compliance to local governing bodies within the service area of the systems.

“Non-compliance” means that these water systems are not in compliance with the system water plan, and/or the annual water use reporting requirements. The county boards of supervisors and city officials have a list of all Community Water Systems that are not in compliance with these requirements.

For assistance with your shared water well then contact the Dunaway Law Group at 480-702-1608 or message us HERE.

* The information provided is informational only, does not constitute legal advice, and will not create an attorney-client or attorney-prospective client relationship. Additionally, the Dunaway Law Group, PLC limits its practice to the states of Arizona and New York.

Benefits of Shared Well Agreements

The benefits of an accurate and professionally written shared well agreement are endless. A well written (pun intended), well share agreement decreases the odds of disputes and give you peace of mind. It provides certain assurances that their interests will be protected.

Over the years I have spoken to literally hundreds of Arizonians with some type of dispute regarding a shared well. A common variable in this situation is a poorly written shared well agreement or none at all.

Every situation is different, every property is different, every well is different, and this is why we create custom agreements for each client. In addition to providing advice on the general issues we also provide advice on more nuanced issues. For instance;

What about swimming pools? Will they be allowed?
Must each property owner install an individual water flow meter to track their usage?
Will a joint bank account be established to pay the well utilities and save for major repairs?
Should vacant land-owners still pay for costs and repairs even when not drawing water from the well?
What about someone who no longer wants to draw water from the well? Must they continue paying for repairs?

benefits to the well owner- “grantor”

A well share agreement gives the well owner an enforceable rights against the Grantees that they pay their portion of the maintenance, repairs, water and electricity. Grantors have an enforceable contract that requires the Grantees to pay their equal share of well maintenance, repairs, water and electricity.

benefits to the recipients- “grantees”

Shared well agreements provide Grantees–those receiving the water–with a legal right to draw water from the well. Without a written shared well agreement, a well owner could deny access to a Grantee. The Agreement is the only assurance Grantees have with a legal right provided in the agreement.

A Grantee might think, “I do not need a formal or accurate shared well share agreement because I’m friendly with my neighbors and we all get along.” But what if those friendly neighbors move? Will you still have a legal right to the water? Remember, without a shared well agreement, the well owner has no legal obligation to share the well water with you.

process of drafting a well share agreement

Verify Well and Parcel Information

The first step in creating an excellent well share agreement is to verify the accuracy of all the relevant information. I’m amazed at how many errors we find when amending or re-drafting an Agreement. If the information in an Agreement is incorrect, then it can create real headaches for everyone involved.

Verify the Assessor’s Parcel Number (APN)

An Assessor’s Parcel Number, abbreviated as APN, is a unique descriptor used by each county to identify assessed real property. The APN includes information about the ownership, characteristics, and valuation of each piece of land that is reordered and tracked by parcel number.

While a property can only have one APN at a time, APNs change on a fairly regular basis as parcels are merged, split, or subdivided. We make sure that the correct APNs are used.

Verify the Legal Descriptions.

Occasionally we find errors in the legal descriptions used to have create a former/current shared well agreement. We verify that the legal descriptions are correct.

The Agreement is Reviewed and Recorded

Once the Agreement has been approved and signed by all Parties, it is recorded with the county. Recording the Agreement reduces the odds of someone later challenging the veracity or accuracy of the Agreement. We then take a copy of the recorded agreement and provide it to the ADWR to save in the Well’s permanent file.

If you need help from an experienced shared well attorney, then contact the Dunaway Law Group at 480-702-1608 or message us HERE.

How To Cancel Well Share Agreement

Is it Possible to Cancel a Shared Well Agreement?

We are frequently asked how to cancel a shared well agreement. In order to understand how to cancel a well share agreement, it’s best to understand how they are created.

A shared well agreement is a contract regarding the drilling, maintenance, and use of a water well between multiple users. The agreement identifies Parties, properties, well location and water distribution system, maintenance liabilities, and easements.

Parties are identified by their full legal names. The properties, well, and easement locations subject to the agreement must be identified using valid legal descriptions and a diagram showing the locations of the well and distribution system attached as exhibits. Failure to properly the terms of use and maintenance liabilities can lead to future misunderstandings and disputes. Additionally, a shared well agreement should be both notarized and recorded with the county recorder’s office.

Shared well agreements are simply contracts entered into by people sharing water from the same well. Like most contracts, these well share agreements can be modified, amended, or terminated once corresponding rules are met.

A professionally drafted shared well agreement will explain the process of amending or cancelling an existing agreement. They will often say something like, “This agreement can only be modified in writing and with the approval of a majority of the parties.” Or, the contract might require unanimous consent by all of the Parties.

shared well agreements “run with the land”

“Running with the land” refers to the rights and obligations in real estate that remain with the property regardless of who owns it. These rights and obligations are tied to the property and not to the owner and so they stay in place as the land is transferred from one owner to another and so a property owner cannot simply say, “I’m going to cancel the agreement”.

The importance of this means that an Arizona property owner who purchases a home with a shared well is obligated to abide by the well share agreement even if they did not sign it!

Lastly, remember that the Arizona Department of Water Resources does not regulate shared well agreements. Therefore, it will not become involved in interpreting or enforcing the agreements. So make sure that your shared well agreement is professionally written because if there are errors, if some topics are vague or ignored, it can create a lot of problems in the future.

The Dunaway Law Group drafts and amends shared well agreements. If you are looking to draft a new agreement or make modifications to an existing shared well agreement then contact us at 480-702-1608 or [email protected]

* These blog posts are not intended, nor shall they be deemed to render legal advice. Reading these blog post does not create an attorney-client relationship, nor shall it impose an obligation on the part of the law firm to respond to further inquiry. The Dunaway Law Group limits its practice to the State of Arizona.