Well supply line leak? Help Please!!!

Hi All,
I have a question. Yesterday I noticed that around my well there was a lot of water on the ground. My first thought was that the pipe either cracked or has a leak. I started to dig to see if I could find the culprit. Here in CT the zoning states that the pipe should be around 48 inches deep. I dug to that amount, but still didn’t hit the pipe so I need to go deeper. When I run the water in the house, I can see a small fountain not far from the well casing. The weird thing is when I turn off the water the fountain stops. I left it for a few hours and all of the water was gone. (Seeped into the soil because the ground is not frozen) I then turned the water on inside and the hole started to fill up again. I was told if there was a crack or hole in the pipe that the water would constantly flow. I was told that the feed line going to the house is always charged. I also do not have any water flow drop or air coming from the faucets when I turn them on. I was told that you would have these issues if there was a cracked pipe. I called to plumbers and was told that it would be around 1200.00 to fix this. I am a handy person and can fix just about anything. Does anyone have any suggestions? If it just a cracked or broken pipe I could fix this.

Thank you.,
Bill