Standard drilling contract.

This agreement made and entered into this _________ day of _________, 19__, by and between _________ of _________(Drilling Contractor) and _________ of _________(Purchaser).


A. Terms of the Agreement

1. The Purchaser hereby engages and employs the Drilling Contractor who agrees for and in consideration of the terms, provisions, conditions and agreements herein contained, and for the price herein listed for the work specified, to attempt to drill a well (wells) on that certain land owned by or under the legal control of the Purchaser. The legal description of the property where the work will occur is: _________.

2. The said well shall be specifically located as follows: _________.

3. The minimum depth of the well shall be _________ feet as specified in Part B of this Agreement except as hereinafter set forth in this paragraph. This Agreement will be considered complete when:

a Sufficient water is obtained;

b Purchaser requests that drilling be stopped;

c The Drilling Contractor has drilled to a maximum depth of _________ feet;

d At the discretion of Drilling Contractor, if he feels that continuation of drilling operations would be impractical.

Upon reaching the well's maximum depth or at any time prior as set forth in a through d above. Drilling Contractor shall stop drilling and remove his casing materials and property and be entitled to $_____ as compensation.

4. The well will be terminated at or above the top of the ground in compliance with State regulations with casing of _________ size made of _________ material. The nominal diameter of the well shall be as follows: _________.

5. Purchaser hereby grants Drilling Contractor a security interest in the materials and equipment furnished by the Drilling Contractor, to secure payment of all money when due, and agrees that Drilling Contractor has all remedies provided by law in the event of the Purchaser's default on payment. Purchaser agrees that all pumps and equipment remain personal property and do not become fixtures.

6. The Drilling Contractor:

a. Is an independent contractor and not an employee or agent of Purchaser.

b. Shall determine the time, manner, means and method of doing the work.

c. Shall furnish all labor, tools and machinery necessary to carry out his part of this contract, and shall prosecute the work under this contract diligently and in good workmanlike manner.

d. Agrees that the Purchaser will not be responsible in case of any accident or injury to persons or employees in connection with the drilling operations, and further agrees to carry the necessary insurance to cover such situations.

e. Agrees to save the Purchaser harmless from any and all liens for material and labor supplied by the Drilling Contractor.

f. Agrees to keep an accurate record of the character of all strata passed through in the drilling, of water levels, of casing used, of perforations made (if any), and of the size and location of any and all other materials and equipment installed, and to furnish the Purchaser with a copy of same upon completion.

g. Warrants that the well (wells) shall be serviceably straight, round, all within generally accepted tolerances, and of full size, so as to allow the installation and operation of pumping equipment designed for a hole of that nominal diameter. The pump and other equipment installed by Drilling Contractor are covered by manufacturer's warranties which are supplied to Purchaser both before sale and at the time of installation and Drilling Contractor makes no warranties upon such equipment. Drilling Contractor makes no other representations or warranties other than as set forth in writing in this contract.

7. The Purchaser:

a. Here warrants that he has full right and authority to enter into this contract and to authorize the Drilling Contractor to drill upon the above described land.

b. Does hereby grant to the Drilling Contractor, his officers, agents and employees, full right to ingress and egress to and from said previously described land for the purpose of performing this contract and doing such acts incidental thereto as may reasonably be necessary in connection with such performance.

c. Will provide, at no charge to the Drilling Contractor, such space at the drill site and its proximity, as the Drilling Contractor may desire for pits, dumps, machinery, and the storage of material and equipment which may be required under this contract, and save the Drilling Contractor harmless in the event of accidental damage to crops, buildings, trees, fences, walks or any other property upon or adjacent to such site.

d. Hereby permits the Drilling Contractor to dump all drill cuttings, water and debris taken out of the hole during the progress of the work, around and about the drill site at such places and in such manner as the Drilling Contractor may choose and the Drilling Contractor shall not be called upon to remove the same until completion of the well.

e. Hereby takes full responsibility for selecting the exact size of the drilling. Should it occur that the earth conditions will not reasonably permit drilling of a hole in the spot picked by the owner or picked by the owner in conjunction with the Drilling Contractor, and the Drilling Contractor finds it necessary to make a move due to the earth conditions, the price shall be at the same rate as herein mentioned for the first hole, plus the full price for the new location and the hole. The move shall be treated as a new hole for all purposes. The Drilling Contractor shall make such suggestions as he deems pertinent to location from the viewpoint of sanitation concerns and to be in compliance with respect to State Health Department rules, regulations or recommendations. Any statements made by Drilling Contractor are recommendations and suggestions only and shall not be construed as representations as to where the hole should be drilled.

f. Hereby agrees that the Drilling Contractor shall, at any time after ten (10) days of Purchaser's default in payment as hereinabove provided, have the right and permission to go upon the premises without guilt of trespass and reclaim and recover any materials installed by the Drilling Contractor in the hole, including casing. It is specifically agreed that casing and all other materials installed in the hole by the Drilling Contractor shall be deemed personal property unattached to the realty until fully paid for as herein provided.

g. Other _________.

B. Work and Estimated Price

1. Well and pump permit


2. Test drilling—estimated depth _________ feet at $_____ per foot


3. Well drilling—estimated depth _________ feet as $_____ per foot


4. Well casing of _________ size, estimated length _________ feet at $_____ per foot


5. Well screen and installation


6. Well developing and surging


7. Well acidization


8. Well disinfection


9. Chemical and bacteriological laboratory tests


10. Pump and installation


11. Repairs


12. Labor (additional labor may be agreed upon between the parties at the hourly rate of $_____ per _________)


13. Other skilled trades


14. Trencher or backhoe work


15. Crane, truck or service rig


16. Mobilization and demobilization


17. Other water-supply equipment and installation


18. Area cleanup


19. Other


20. Estimated sales tax


21. Total estimated cash price (final price depends upon actual depth)


Down payment


Estimated balance due, on completion



Interest at the rate of _____% per annum is due upon all amounts not paid within 30 days after the invoice is rendered.


_________Drilling Contractor




8. It is understood and Agreed by Both Parties:

a. That neither can tell exactly what will be found underneath the surface of the earth and that the work of the Drilling Contractor hereunder is subject to those conditions which he may find underneath the surface; therefore:

i. The Drilling Contractor does not agree to find or develop water, nor does he represent, warrant or guarantee the quantity, quality, or kind of water, if any, which may be encountered. All operations are at the risk of the Purchaser and failure to strike water shall in no way release the Purchaser from payment of the full contract price.

ii. The Drilling Contractor shall drill the hole (holes) with the diameter and casing sizes as specified previously as long as such a program remains practicable considering the nature of the material being drilled. When, in the opinion of the Drilling Contractor, it becomes impractical to proceed as specified, he may proceed with the drilling using the smaller size hole diameter and casing size most practicable to be used. If the Purchaser deems it impractical for his purposes and orders the Drilling Contractor to discontinue all drilling operations or if the Drilling Contractor deems that it is impractical to continue, work shall cease and Drilling Contractor shall be paid for all work performed according to the terms of this Agreement. The drilling price shall remain the same as for the specified size, unless otherwise herein specifically provided.

iii. The Drilling Contractor shall not be liable for any damage arising out of any delay or failure due to the hazards of drilling, but in the event of unreasonable delay or failure, this contract may be terminated by the Purchaser, upon payment to the Drilling Contractor for all drilling done and materials installed.

b. That the starting date shall be _________. This date is an approximate date only, it being agreed that if the drilling equipment necessary for the work herein contemplated is, without fault of the Drilling Contractor, detained on other jobs, then the Drilling Contractor shall not be responsible or liable to the Purchaser for any damages of any nature occasioned by any delay in commencing performance hereunder. In the event the commencement of performance by the Drilling Contractor is so delayed for a period of thirty (30) days, the Purchaser may, at his option, terminate this contract by giving written notice to the Drilling Contractor on the day next succeeding the last day of the aforesaid period, and neither party shall in such event be liable to the other for any damages of any nature whatsoever.

c. That if the performance of any of the Drilling Contractor's obligations hereunder is materially hampered, interrupted, delayed, or interfered with by reason of fire, casualty, lockout, strike, labor conditions, unavoidable accident, riot, war (whether declared or undeclared), act of God or by the enactment of any Municipal, State or Federal Ordinance or Law, or by the issuance of any executive or judicial order or decree, whether Municipal, State or Federal, or by any other legally constituted public authority, or by any other cause beyond the reasonable control of the Drilling Contractor, then during the continuance of any such event, the Drilling Contractor, at his sole option, shall be relieved of the performance of his obligations hereunder.

d. That this Agreement shall inure to the benefit of and be binding upon the heirs, legal representatives, successors and assigns of the parties respectively.

e. That this instrument contains the entire agreement between the parties hereto and that no warranty, expressed or implied, representation, promise, statement or inducement made by either party hereto or by any agent or employee of either party, which is not contained in this written Agreement shall be binding or valid.

f. Notice to Purchaser: You are entitled to a copy of the contract you sign.



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