Section 15-1.2-411 - Minerals, water, and other natural resources(1) To the extent a fiduciary does not account for a receipt from an interest in minerals, water, or other natural resources as a business under section 15-1.2-403, the fiduciary shall allocate the receipt:(a) To income, to the extent received:(I) As delay rental or annual rent on a lease;(II) As a factor for interest or the equivalent of interest under an agreement creating a production payment; or(III) On account of an interest in renewable water;(b) To principal, if received from a production payment, to the extent subsection (1)(a)(II) of this section does not apply; or(c) Between income and principal equitably, to the extent received: (I) On account of an interest in non-renewable water;(II) As a royalty, shut-in-well payment, take-or-pay payment, or bonus; or(III) From a working interest or any other interest not provided for in subsection (1)(a), (1)(b), (1)(c)(I), or (1)(c)(II) of this section.(2) This section applies to an interest owned or held by a fiduciary whether or not a settlor was extracting minerals, water, or other natural resources before the fiduciary owned or held the interest.(3) An allocation of a receipt under subsection (1)(c) of this section is presumed to be equitable if the amount allocated to principal is equal to the amount allowed by sections 611 through 614 of the "Internal Revenue Code of 1986", 26 U.S.C. secs. 611 through 614, as amended, as a deduction for depletion of the interest.(4) If a fiduciary owns or holds an interest in minerals, water, or other natural resources before January 1, 2022, the fiduciary may allocate receipts from the interest as provided in this section or in the manner used by the fiduciary before January 1, 2022. If the fiduciary acquires an interest in minerals, water, or other natural resources on or after January 1, 2022, the fiduciary shall allocate receipts from the interest as provided in this section.Added by 2021 Ch. 143, § 1, eff. 1/1/2022.