C.R.S. § 15-1.2-411 Minerals, Water, and Other Natural Resources

• Library: Colorado Statutes
• Edition: 2023
• Currency: Current through 2023 Regular and 1st Extraordinary Session
• Year: 2023
• Citation: C.R.S. § 15-1.2-411

(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.