Well pump help

We just moved into a new house and we know nothing about well pumps and the like. We were hoping that somebody here would know what this white PVC pipe is coming out of our system. We know that the pipe covered in insulation is the one that runs to the house. But this other smaller pipe goes right into the ground and leaks water when the pump kicks on and stops when it turns off. The ground is saturated around the area. Is this normal? Is it some kind of overflow, backwash relief?

There are three other houses that were all built to the same specs. We asked our neighbor about it since theirs is the same, and they have no idea what it does. The neighbor two houses down has their pipe cut off above the ground.

Thanks!

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Well pump help