Allocation of interest in minerals or other naturalresources--interest in water, allocation of.
469.441. 1. To the extent that a trustee accounts for receipts from aninterest in minerals or other natural resources pursuant to this section, thetrustee shall allocate them as follows:
(1) If received as nominal delay rental or nominal annual rent on alease, a receipt shall be allocated to income;
(2) If received from a production payment, a receipt shall be allocatedto income if and to the extent that the agreement creating the productionpayment provides a factor for interest or its equivalent. The balance shallbe allocated to principal;
(3) If an amount received as a royalty, shut-in-well payment,take-or-pay payment, bonus or delay rental is more than nominal, ninetypercent shall be allocated to principal and the balance to income;
(4) If an amount is received from a working interest or any otherinterest not provided for in subdivision (1), (2) or (3) of this subsection,ninety percent of the net amount received shall be allocated to principal andthe balance to income.
2. An amount received on account of an interest in water that isrenewable shall be allocated to income. If the water is not renewable, ninetypercent of the amount shall be allocated to principal and the balance toincome.
3. Sections 469.401 to 469.467 apply whether or not a decedent or donorwas extracting minerals, water or other natural resources before the interestbecame subject to the trust.
4. If a trust owns an interest in minerals, water or other naturalresources on August 28, 2001, the trustee may allocate receipts from theinterest as provided in sections 469.401 to 469.467 or in the manner used bythe trustee before August 28, 2001. If the trust acquires an interest inminerals, water or other natural resources after August 28, 2001, the trusteeshall allocate receipts from the interest as provided in sections 469.401 to469.467.
Allocation of interest in minerals or other naturalresources--interest in water, allocation of.
469.441. 1. To the extent that a trustee accounts for receipts from aninterest in minerals or other natural resources pursuant to this section, thetrustee shall allocate them as follows:
(1) If received as nominal delay rental or nominal annual rent on alease, a receipt shall be allocated to income;
(2) If received from a production payment, a receipt shall be allocatedto income if and to the extent that the agreement creating the productionpayment provides a factor for interest or its equivalent. The balance shallbe allocated to principal;
(3) If an amount received as a royalty, shut-in-well payment,take-or-pay payment, bonus or delay rental is more than nominal, ninetypercent shall be allocated to principal and the balance to income;
(4) If an amount is received from a working interest or any otherinterest not provided for in subdivision (1), (2) or (3) of this subsection,ninety percent of the net amount received shall be allocated to principal andthe balance to income.
2. An amount received on account of an interest in water that isrenewable shall be allocated to income. If the water is not renewable, ninetypercent of the amount shall be allocated to principal and the balance toincome.
3. Sections 469.401 to 469.467 apply whether or not a decedent or donorwas extracting minerals, water or other natural resources before the interestbecame subject to the trust.
4. If a trust owns an interest in minerals, water or other naturalresources on August 28, 2001, the trustee may allocate receipts from theinterest as provided in sections 469.401 to 469.467 or in the manner used bythe trustee before August 28, 2001. If the trust acquires an interest inminerals, water or other natural resources after August 28, 2001, the trusteeshall allocate receipts from the interest as provided in sections 469.401 to469.467.
Allocation of interest in minerals or other naturalresources--interest in water, allocation of.
469.441. 1. To the extent that a trustee accounts for receipts from aninterest in minerals or other natural resources pursuant to this section, thetrustee shall allocate them as follows:
(1) If received as nominal delay rental or nominal annual rent on alease, a receipt shall be allocated to income;
(2) If received from a production payment, a receipt shall be allocatedto income if and to the extent that the agreement creating the productionpayment provides a factor for interest or its equivalent. The balance shallbe allocated to principal;
(3) If an amount received as a royalty, shut-in-well payment,take-or-pay payment, bonus or delay rental is more than nominal, ninetypercent shall be allocated to principal and the balance to income;
(4) If an amount is received from a working interest or any otherinterest not provided for in subdivision (1), (2) or (3) of this subsection,ninety percent of the net amount received shall be allocated to principal andthe balance to income.
2. An amount received on account of an interest in water that isrenewable shall be allocated to income. If the water is not renewable, ninetypercent of the amount shall be allocated to principal and the balance toincome.
3. Sections 469.401 to 469.467 apply whether or not a decedent or donorwas extracting minerals, water or other natural resources before the interestbecame subject to the trust.
4. If a trust owns an interest in minerals, water or other naturalresources on August 28, 2001, the trustee may allocate receipts from theinterest as provided in sections 469.401 to 469.467 or in the manner used bythe trustee before August 28, 2001. If the trust acquires an interest inminerals, water or other natural resources after August 28, 2001, the trusteeshall allocate receipts from the interest as provided in sections 469.401 to469.467.
