Book- Shared Well Management Archives Page 2 of 4

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.

Buying a House with a Shared Well

When buying an Arizona home with a shared water well, there are certain considerations to keep in mind. Many homebuyers have questions and concerns about shared wells when they’ve never lived in a house that shares a water well. By definition, a shared well is a water well that services two or more homes for residential purposes.

If you are consider buying a home that has a shared well, there are a few important things to keep in mind:

Is there an existing shared well agreement? Is it up to date? Accurate?
What are the monthly operating costs?
Are there any built-in contingencies for remediation, repairs, maintenance, and quality testing?
Are there any restrictions placed on your system? For instance, does the shared well agreement prohibit the use of swimming pools?
Are there records of periodic inspections and repairs?

inspect the well prior to the purchase

A well inspection is not a legal requirement to purchase a home but

It is important to note, that Arizona home inspectors do not conduct inspections of water wells. They inspect every square inch of the home but not the well. Therefore, the well could have serious problems and you would never know!

It is imperative that a shared well is functionig properly, otherwise dozens of people may be without water!

Here are a couple of things you should find in your shared well agreement:

Specification of the cost involved to share your pump in regards to power, repairing, testing and inspecting.
Requirement for corrective courses of action if testing reveals a deficiency.
Prohibit the use of the well water by any party for any reasons other than for bona fide domestic usage.
No additional residences may connect and use of the water.

disclosure forms provided by AZ realtors

The Arizona Association of Realtors as a trade association has enacted standards for the management of all exempt wells in the state of Arizona during sales and transfer of real estate. This fantastic idea is being done by the Realtors association without authorization by the Arizona Legislature or ADWR.

The Arizona Realtors group has authorized and put into place two forms that all Realtors must use to inform buyers of real estate served by private water wells. They must be used for each transaction involving private or shared water wells. They are the Domestic Water Well Addendum and the Domestic Water Well Water Use Addendum Seller’s Property Disclosure Statement. They promulgated these forms because it is essential information necessary for the protection of the health, safety, and welfare of home buyers relying on exempt wells.

The first, the addendum, must be signed by both the seller and the buyer. This informs the buyer that the Arizona home is supplied with water from a residential water well. The second form, the disclosure statement, provides the buyer with the best detailed information about the well that the seller can provide. Most well owners are not familiar with the information requested on the form. The “best information that the seller can provide” is what a buyer gets from this form.

prepare early to avoid delays in closing

A proper shared well agreement requires the signatures from the owners of each property that will be receiving water from the well. Hammering out the details of the agreement can be an incredible hassle. Sometimes a homeowner will dig in their heels over a certain provision. The back and forth can cause the sale to be delayed if the parties do not plan accordingly.

the importance of maintaining proper shared well records

Shared well agreements and their records can often become more and more innacurate. New owners will began accessing the well without written record or the parcel size / shape is changed because it has been split.

If you are looking to draft a shared well agreement or make amendments to an existing shared well agreement, then contact us at 480-702-1608 or message us HERE.