Colorado § 15-1.2-411 Minerals, water, and other natural resources

Colorado Statutes

§ 15-1.2-411 — Minerals, water, and other natural resources

Colorado § 15-1.2-411

Title 15Probate,

Art.Uniform Fiduciary Income and Principal Act

This text of Colorado § 15-1.2-411 (Minerals, water, and other natural resources) is published on Counsel Stack Legal Research, covering Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Colo. Rev. Stat. § 15-1.2-411 (2026).

Text

(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 (II

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(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.