Well Disclosure Overview Process and Future Well Management

Well Disclosure Overview, Process, and Future Well Management Section Environmental Health Division www. health. state. mn. us/wells

Agenda Overview Process Future Problem of Not-in-Use Wells Seller, Filer, County, and Responsibilities Proposed Changes to Minnesota Statutes, Section 103 I. 235 Why Well Disclosure? Well Disclosure Process Well Disclosure Required with Every Property Transfer History of Well Disclosure Program e-Well Disclosure Certificate Statistics Safe at Home Program Online Well Disclosure Certificate Search Submittal and Mailing Items to the Minnesota Department of Health

Minnesota and Minnesota Department of Health Minnesota ▪ Leader and pioneer in public health. ▪ One of the first states to establish a state health agency. Minnesota Department of Health (MDH) ▪ Mission Statement: To protect, maintain, and improve the health of all Minnesotans. ▪ International reputation for high quality health care and good health of our people. ▪ Licensing well and boring contractors since 1973. ▪ First state well code 1974. ▪ Protects our states drinking water.

Problem of Not-in-Use Wells in Minnesota ▪ Recognized as challenge for protecting drinking water. ▪ Pathway for contamination to reach the groundwater. creating a potential threat to the quality of our drinking water. ▪ Two-thirds of Minnesota’s population served by groundwater supplies. ▪ Estimated 400, 000 to 1. 2 million not-in-use and unsealed wells. ▪ Safety hazard for adults, children, pets, and livestock.

Purpose for Well Disclosure in Minnesota ▪ Address the problem of not-in-use wells. ▪ Educate property owners. ▪ Significant threat to public health and the environment. ▪ Potential threat to quality of our drinking water. ▪ Protecting groundwater today helps assure families in the future will have clean and safe drinking water.

Not-in-Use Well Follow Up ▪ Follow up done on all not-in-use wells. ▪ Wells once “not in use” have been: ▪ Put back into service and are used on a daily or seasonal basis. ▪ Sealed by a licensed well contractor. ▪ Under an annual maintenance permit. ▪ Under a variance from well sealing. ▪ Not-in-use well follow up is an ongoing process.

Well Disclosure Success ▪ Property Owner Education. ▪ Well disclosure at property transfer. ▪ Importance of Well Maintenance. ▪ Annual Testing. ▪ Sealing of Unused Wells. ▪ Sealing of over 300, 000 wells since 1989. ▪ Protecting Groundwater for 30 Years Through Well Disclosure! ▪ Thank you County Recorders and Registrars of Titles!

Well Disclosure History ▪ Authorized by the 1989 Ground Water Protection Act. ▪ Minnesota Statutes, section 103 I. 235 -236. ▪ 103 I. 235 – Real Property Sale; Disclosure of Location of Wells. ▪ 103 I. 236 – Well Disclosure in Washington County. ▪ Well Disclosure is a Two-step Process. ▪ Well Disclosure Statement – signing purchase agreement – 7/1/1990. ▪ Well Disclosure Certificate – at closing accompanies deed – 11/1/1990. ▪ Optional electronic filing of Well Disclosure Certificates (WDC) began on July 1, 2009.

Well Disclosure Certificates Filed Media Paper Electronic Total Well Disclosures Filed Start Date 11/01/1990 07/01/2009 11/01/1990 – 01/24/2020 Number 507, 835 36, 164 543, 999 WDCs currently filed approximately 50 percent paper and 50 percent electronic. As of: 01/24/2020

e-Well Disclosure Certificates Filed – Counties over 1, 000 County Anoka Beltrami Cass Crow Wing Dakota Hennepin Total 2, 826 1, 259 1, 665 1, 973 1, 164 6, 823 County Itasca Ramsey Sherburne St. Louis Washington Total 1, 002 1, 787 1, 355 1, 854 1, 986 As of: 01/24/2020

Counties with Over 10, 000 Wells Disclosed County Anoka Beltrami Cass Chisago Crow Wing Dakota Hennepin Itasca Number of Wells 32, 902 10, 289 15, 447 11, 171 21, 832 10, 977 62, 512 12, 212 County Otter Tail Ramsey St. Louis Sherburne Stearns Washington Wright Number of Wells 17, 117 15, 670 19, 733 17, 202 21, 592 17, 071 16, 315

Property Owner Responsibility ▪ Legally responsible for all wells located on their property. ▪ Minnesota Statutes, section 103 I. 301 – well sealing and maintenance permit requirements for property owners. ▪ Not-in-use wells require an annual maintenance permit. Annual fee of $175. ▪ Maintenance permit not transferable. ▪ Well(s) properly maintained. ▪ In-use wells – used daily or seasonal. ▪ Wells must be sealed by a licensed well contractor.

Property Seller Responsibility At Time of Property Transfer. ▪ Regulated by Minnesota Statutes, section 103 I. 235. ▪ Provides written well disclosure. ▪ Statement of “No Wells” on the property. ▪ Liability for failure to disclose. ▪ Seller liable for six years.

Well Disclosure “Statement” Requires ▪ Legal description of property where well(s) are located. ▪ Sketch map showing the location of each and every well.

Well Disclosure “Statement” Requires (continued) ▪ Status of each well: ▪ In use – used daily or seasonal. ▪ Not in use. ▪ Sealed – must have been sealed by a licensed well contractor. ▪ Written disclosure from seller to buyer before signing purchase agreement. ▪ Foreclosed properties are not exempt from this requirement.

What is Well Disclosure? Well Disclosure is: ▪ Providing a WDC (paper or electronic) with deed, or ▪ Providing one of two statements on the deed. ▪ “The seller certifies that the seller does not know of any wells on the described real property. ” ▪ “I am familiar with the property described in this instrument, and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. ”

Condominium and Common Interest Community Associations ▪ Minnesota Statutes, chapter 515 or 515 B. ▪ Association submits Condominium and Common Interest Community Associations WDC directly to MDH. ▪ Discloses location and status of all wells in common area. ▪ Individual units not required to file WDC.

Well Disclosure Filer Responsibility ▪ Typical filers: title company, law firm, county, or property owner. ▪ Determine if Well Disclosure is required. ▪ Is the Certificate of Real Estate Value (e-CRV) required? ▪ Yes, then Well Disclosure is required. No, not required. ▪ Prepares WDC, if needed. ▪ Well Disclosure box on deed is checked and WDC number provided, when applicable.

Well Disclosure Certificate Required Information ▪ Legal description of property where well(s) are located. ▪ Total number of wells located on the property. ▪ Buyer’s name and complete mailing address after closing. ▪ Signature of buyer, seller, or representative of either. ▪ Status of Each Well (Only check one. ) ▪ In use – used daily or seasonal. ▪ Not in use. ▪ Sealed – sealed by a licensed well contractor. ▪ Sketch map showing the location of each and every well.

Well Disclosure Certificate Form

Well Disclosure Certificate – Attachments

No Well on Property ▪ A WDC is not required, but the following statement is required on the deed. ▪ “The seller certifies that the seller does not know of any wells on the described real property. ” ▪ Check appropriate preprinted box.

Well Disclosure Certificate Previously Filed – No Change ▪ No change in the number or status of the well(s). ▪ Following statement is required on the deed. ▪ “I am familiar with the property described in this instrument, and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. ” ▪ Check appropriate preprinted box.

County Recorder Responsibility ▪ Deeds requiring a certificate of real estate value must provide Well Disclosure. ▪ WDC accompanies deed or electronically filed. ▪ Seller certifies “no well. ” ▪ Seller certifies “no change. ” ▪ Note on deed WDC received, if applicable. Well Disclosure Boxes preprinted on deeds.

County Recorder Review Paper Well Disclosure Certificates Complete WDC Includes: ▪ Buyer’s name and mailing address. ▪ Signature of the seller, buyer, or representative of either. ▪ Legal description for each disclosed well. ▪ Only one status provided for each well. ▪ Disclosed wells must match the number of wells on the sketch map. ▪ Do not accept an incomplete WDC.

Electronic Well Disclosure Certificates Electronically filed WDCs must match deed information. ▪ Match WDC Number on deed. ▪ Legal description of property where well(s) are located. ▪ Buyer’s name and complete mailing address after closing.

e-Well Disclosure County Login ▪ Website URL: https: //edisclosures. web. health. state. mn. us/wells-disclosure-ssl/ ecountylogin. cfm ▪ County Recorder responsible for e-Well Disclosure County Profile. ▪ Each county has one username and password. ▪ Allows multiple users at one time. ▪ Password expire after one year.

e-WDC County Recorder Main Menu A County Recorder or Registrar of Titles may: ▪ Validate an e-WDC. ▪ View pending e-WDCs in their county. ▪ Generate an invoice for e-WDCs. ▪ Edit/Review user profile.

Menu Option Validate an e-Well Disclosure Certificate

County Recorder Review Electronic Well Disclosure Certificates Electronically filed WDCs must match deed information. ▪ Match WDC Number on deed. ▪ Legal description of property where well(s) are located. ▪ Buyer’s name and complete mailing address. ▪ Multiple legal descriptions on deed. ▪ Match one legal from WDC to deed.

Electronic Well Disclosure Certificates – Validate WDC Information Matches the Deed. ▪ Click the Validate button. ▪ Message appears. ▪ Recorded with MDH.

e-Well Disclosure Certificate Reject Button

Menu Option View a Pending e-Well Disclosure Certificate

Menu Option Generate Estimated Invoice

Menu Option Edit/Review User Profile New county recorders must contact MDH to update the County Recorder Profile.

Safe at Home Program – Participant ▪ Deed with WDC filed for Safe at Home participant. ▪ Notice to Government Entity attached to WDC. ▪ Electronic filing is not available at present time. ▪ WDCs must be filed as paper. ▪ Mail separately WDC and Safe at Home forms. Envelope marked confidential to: Kathy Dunaway - CONFIDENTIAL Minnesota Department of Health Well Management Section P. O. Box 64975 St. Paul, MN 55164 -0975

Submittal of Well Disclosure Certificates and Fee ▪ WDCs – Paper. ▪ By the tenth day of each month, mail WDCs to MDH. ▪ Safe at Home participants WDCs – Mailed separately marked Confidential. ▪ WDCs – Electronic. ▪ Click Validate button. ▪ WDC Fee – Both Paper and Electronic. ▪ Collect $50 fee for receipt of completed WDCs (paper and electronic). ▪ By the tenth day after each calendar quarter, transmit to MDH $42. 50 of the fee for each WDC received during the quarter.

Online Well Disclosure Certificate Search Options Previously filed WDCs are available online at: www. health. state. mn. us/wdclookup. Search Options ▪ Addition Name ▪ Address ▪ County, Section, Township, Range ▪ Disclosure Number ▪ Property Identification Number ▪ Property Owner

Search by Disclosure Number

Well Disclosure Certificate Information

Mailing Addresses for Well Management Section Fee Payments Minnesota Department of Health Well Management Section P. O. Box 64502 St. Paul, MN 55164 -0502 Correspondence – No Fee Payment Minnesota Department of Health Well Management Section P. O. Box 64975 St. Paul, MN 55164 -0975 Deliveries Minnesota Department of Health Well Management Section 625 North Robert Street St. Paul, MN 55155 -2538

Future of Well Disclosure ▪ MCRA Legislative Committee has been working with MDH on proposed changes to Minnesota Statutes, Section 103 I. 235. ▪ Ideas in the proposal include. ▪ Require electronic submission of WDCs. ▪ Require WDC submission with every property transaction requiring a certificate of real estate value. ▪ MDH to accept fee payments, rather than County. ▪ Require county verification of WDC Number and buyer name.

Points of Contact for Future Questions Well Disclosure Program Staff Norm Mofjeld at 651 -201 -4593 or norman. mofjeld@state. mn. us Kathy Dunaway at 651 -201 -4587 or kathy. dunaway@state. mn. us Generic Well Disclosure Email health. welldisclosures@state. mn. us Receptionist 651 -201 -4600 or 800 -383 -9808

Questions? Minnesota Department of Health Well Management Section P. O. Box 64975 St. Paul, Minnesota 55164 -0975 651 -201 -4600 or 800 -383 -9808 health. wells@state. mn. us www. health. state. mn. us/wells Prepared by: Norm Mofjeld and Kathy Dunaway, 02/13/2020