C.R.S. 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.

Source: Section 15-1.2-411 — Minerals, water, and other natural resources, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-15.­pdf (accessed Oct. 20, 2023).

15‑1.2‑101
Short title 15‑1.2‑102
Definitions 15‑1.2‑103
Scope 15‑1.2‑104
Governing law 15‑1.2‑201
Fiduciary duties - general principles 15‑1.2‑202
Judicial review of exercise of discretionary power - definition 15‑1.2‑203
Fiduciary’s power to adjust 15‑1.2‑204
Notice of action - definitions 15‑1.2‑301
Definitions 15‑1.2‑302
Application - duties and remedies 15‑1.2‑303
Authority of fiduciary 15‑1.2‑304
Notice 15‑1.2‑305
Unitrust policy 15‑1.2‑306
Unitrust rate 15‑1.2‑307
Applicable value 15‑1.2‑308
Period 15‑1.2‑309
Special tax benefits - rules 15‑1.2‑401
Character of receipts from entity - definitions 15‑1.2‑402
Distribution from trust or estate 15‑1.2‑403
Business of other activity conducted by fiduciary 15‑1.2‑404
Principal receipts 15‑1.2‑405
Rental property 15‑1.2‑406
Receipt on obligation to be paid in money 15‑1.2‑407
Insurance policy or contract 15‑1.2‑408
Insubstantial allocation not required 15‑1.2‑409
Deferred compensation, annuity, or similar payment - definitions 15‑1.2‑410
Liquidating asset - definition 15‑1.2‑411
Minerals, water, and other natural resources 15‑1.2‑412
Timber 15‑1.2‑413
Marital deduction property not productive of income 15‑1.2‑414
Derivative or option - definition 15‑1.2‑415
Asset-backed security 15‑1.2‑416
Other financial instrument or arrangement 15‑1.2‑501
Disbursement from income 15‑1.2‑502
Disbursement from principal 15‑1.2‑503
Transfer from income to principal for depreciation - definition 15‑1.2‑504
Reimbursement of income from principal 15‑1.2‑505
Reimbursement of principal from income 15‑1.2‑506
Income taxes 15‑1.2‑507
Adjustment between income and principal because of taxes 15‑1.2‑601
Determination and distribution of net income 15‑1.2‑602
Distribution to successor beneficiary 15‑1.2‑701
When right to income begins and ends 15‑1.2‑702
Apportionment of receipts and disbursements when decedent dies or income interest begins 15‑1.2‑703
Apportionment when income interest ends - definition 15‑1.2‑801
Uniformity of application and construction 15‑1.2‑802
Relation to electronic signatures in global and national commerce act 15‑1.2‑803
Application to trust or estate 15‑1.2‑804
Severability
Green check means up to date. Up to date

Current through Fall 2024

§ 15-1.2-411’s source at colorado​.gov