Virginia § 64.2-1058 Minerals, water, and other natural resources

Virginia Statutes

§ 64.2-1058 — Minerals, water, and other natural resources

Virginia § 64.2-1058

JurisdictionVirginia

Title 64.2Wills, Trusts, and Fiduciaries

Subtitle IIITrusts

Ch. 10.1Uniform Fiduciary Income And Principal Act

Art. 6Allocation of Receipts: Receipts Normally Apportioned

This text of Virginia § 64.2-1058 (Minerals, water, and other natural resources) is published on Counsel Stack Legal Research, covering Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Va. Code Ann. § 64.2-1058 (2026).

Text

A.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 § 64.2-1050, the fiduciary shall allocate the receipt:

1.To income, to the extent received:

a.As delay rental or annual rent on a lease;

b.As a factor for interest or the equivalent of interest under an agreement creating a production payment; or

c.On account of an interest in renewable water;

2.To principal, if received from a production payment, to the extent subdivision 1 b does not apply; or

3.Between income and principal equitably, to the extent received:

a.On account of an interest in nonrenewable water;

b.As a royalty, shut-in-well payment, take-or-pay payment, or bonus; or

c.From a working interest or any other interest no

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A. 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 § 64.2-1050, the fiduciary shall allocate the receipt:

1. To income, to the extent received:

a. As delay rental or annual rent on a lease;

b. As a factor for interest or the equivalent of interest under an agreement creating a production payment; or

c. On account of an interest in renewable water;

2. To principal, if received from a production payment, to the extent subdivision 1 b does not apply; or

3. Between income and principal equitably, to the extent received:

a. On account of an interest in nonrenewable water;

b. As a royalty, shut-in-well payment, take-or-pay payment, or bonus; or

c. From a working interest or any other interest not provided for in subdivision 1 or 2 or subdivision a or b.

B. 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.

C. An allocation of a receipt under subdivision A 3 is presumed to be equitable if the amount allocated to principal is equal to the amount allowed by the Internal Revenue Code of 1986, as amended, as a deduction for depletion of the interest.

D. If a fiduciary owns or holds an interest in minerals, water, or other natural resources before July 1, 2022, the fiduciary may allocate receipts from the interest as provided in this section or in the manner used by the fiduciary before July 1, 2022. If the fiduciary acquires an interest in minerals, water, or other natural resources on or after July 1, 2022, the fiduciary shall allocate receipts from the interest as provided in this section.