Montana § 72-34-443 Receipts From Mineral Interests And Other Natural Resources -- Allocation

Montana Statutes

§ 72-34-443 — Receipts From Mineral Interests And Other Natural Resources -- Allocation

Montana § 72-34-443

Title 72ESTATES, TRUSTS, AND FIDUCIARY RELATIONSHIPS

Ch. 34PRINCIPAL AND INCOME

Part 4Montana Uniform Principal and Income Act

This text of Montana § 72-34-443 (Receipts From Mineral Interests And Other Natural Resources -- Allocation) is published on Counsel Stack Legal Research, covering Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Mont. Code Ann. § 72-34-443 (2026).

Text

72-34-443 . Receipts from mineral interests and other natural resources -- allocation.

(1)To the extent that a trustee accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the trustee shall allocate them as follows:

(a)if received as a nominal bonus, nominal delay rental, or nominal annual rent on a lease, a receipt must be allocated to income;

(b)if received from a production payment, a receipt must be allocated to income if and to the extent that the agreement creating the production payment provides a factor for interest or its equivalent. The balance must be allocated to principal.

(c)if an amount received as a royalty, shut-in-well payment, take-or-pay payment, bonus, or delay rental is more than nominal, 15% must be allocated to

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72-34-443 . Receipts from mineral interests and other natural resources -- allocation. (1) To the extent that a trustee accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the trustee shall allocate them as follows:
(a) if received as a nominal bonus, nominal delay rental, or nominal annual rent on a lease, a receipt must be allocated to income;
(b) if received from a production payment, a receipt must be allocated to income if and to the extent that the agreement creating the production payment provides a factor for interest or its equivalent. The balance must be allocated to principal.
(c) if an amount received as a royalty, shut-in-well payment, take-or-pay payment, bonus, or delay rental is more than nominal, 15% must be allocated to principal and the balance to income; and
(d) if an amount is received from a working interest or any other interest in mineral or other natural resources not described in subsection (1)(a), (1)(b), or (1)(c), 15% of the net amount received must be allocated to principal and the balance to income.
(2) An amount received on account of an interest in water that is renewable must be allocated to income. If the water is not renewable, 15% of the amount must be allocated to principal and the balance to income.
(3) This part applies whether or not a decedent or donor was extracting minerals, water, or other natural resources before the interest became subject to the trust.