Water Infrastructure and Borehole Drilling MOU

What a good one includes

• Clear terms outlining how financial responsibility is split if drilling hits dry holes, hard granite, or requires deeper boring than anticipated.
• Designation of which party is responsible for securing environmental impact assessments, water abstraction permits, and local drilling licenses.
• Explicit, registrable rights of access for heavy drilling machinery and ongoing maintenance crews across all involved land parcels.
• A detailed formula for sharing the ongoing electricity or fuel costs required to run the pumps, filtration systems, and distribution networks.
• A defined distribution plan specifying how many gallons or liters per day each party is entitled to, including priority tiers during drought periods.
• Agreed-upon protocols for independent laboratory testing of flow rate and water potability before the infrastructure is commissioned.
• Agreement to establish a joint escrow or reserve account to fund future pump replacements, pipe repairs, and borehole flushing.

Common mistakes to avoid

• Partners often fail to agree on who bears the drilling costs if the borehole yields no water, leading to abandoned projects and bitter legal stalemates.
• Many MOUs detail the initial setup costs but neglect to define who pays for emergency pump replacements or routine electrical maintenance years down the line.
• Forgetting to formally record access easements means a change in land ownership can suddenly cut off a partner's physical access to the borehole.
• Partners frequently overlook who will provide and pay for the high-voltage electrical hookup or solar array needed to power the submersible pump.

Frequently asked questions