[WSBARP] HOA Purchase of Well Easement

[Paul Neumiller]

Jamie, while I appreciate your concerns, I have been assured by the client that the client is meeting frequently with county and state water officials to address and meet its water needs and its water obligations to the lot owners (who are unable to build until the County and the State allow additional hook-ups).  I have been tasked with the sole job of preparing the documents and negotiations for a water well easement and transmission lines with whichever neighbor lets us in the door with our plate of cookies and hat in hand.  We are addressing creative ways of payment for the opportunity to drill a well on someone else’s property.

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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Jamie Morin
Sent: Monday, July 31, 2017 5:07 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] HOA Purchase of Well Easement

Paul:

>From a water rights perspective, I’m confused by the scenario you describe.  Does the HOA wants to expand its available water rights on an annual basis through the addition of the amount of water available under the 90.44.050 exemption through consolidation with the HOA’s existing water right?  Consolidation of exempt wells with an existing system requires that the exemption first be established through beneficial use.  That’s not the scenario you are describing.  To be proper, the “new houses” would first be set up to be served by the new well, then annexed into the system and consolidated accounting to the process provided in 90.44.105.  I think there’s a Campbell and Qwinn problem with scenario you describe if the system is drilling the well for additional annual capacity.  It may be that it needs the well to meet the peak capacity under water rights it already holds in lieu of building storage, in which case they would not be relying on the exemption, and I just misread the description.

Often, the costs of the appraisal are nearly the same as any diminution in value to the lot, and the water system doesn’t have funds for either the appraisal or the acquisition.  I frequently see deals where the system allows reduced water rights or capital costs to the burdened lot in lieu of easement purchase.


Jamie M. Morin | Attorney
MENTORLAWGROUP, PLLC
Phone (206) 838-7654 | Cell (206) 498-2381
morin at mentorlaw.com<mailto:morin at mentorlaw.com> | www.mentorlaw.com


From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Paul Neumiller
Sent: Friday, July 28, 2017 2:01 PM
To: wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] HOA Purchase of Well Easement

I am working with a large HOA (over 200 homes) that provides water to the residences.  It needs more water and wants to approach its neighbors and ask/buy for an easement to drill a new well.  The HOA asked me for “comps” for the purchase of an easement to drill the well and everything that goes with it (wellhead and related water transmission pipes, no storage tanks.  County requires a 100 foot set back. Most neighbors have 5 to 15 acre lots if not more).  The HOA has been able to grow only by five new homes a year (based on a wait-list; in-fill for vacant lots) as restricted by the availability of water.  It will need this water for future growth.

Now, I feel that every situation is different and that the purchase of an easement is a rare enough event so there is no such thing as comps for comparable easements but I thought I’d throw the question out to the collective hive.  What say you? Any “comps” out there?

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