New Jersey § 3b:19b-19

§ 3b:19b-19.

a. 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: (1) if received as nominal delay rental or nominal annual rent on a lease, a receipt

shall be allocated to income; (2) if received from a production payment, a receipt shall 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 shall be allocated to principal; (3) if an amount received as a royalty, shut-in-well payment, take-or-pay payment,

bonus or delay rental is more than nominal, 90 percent shall be allocated to principal

and the balance to income; (4) if an amount is received from a working interest or any other interest not provided

for in paragraph (1), (2) or (3) of this subsection a., 90 percent of the net amount

received shall be allocated to principal and the balance to income. b. An amount received on account of an interest in water that is renewable shall be

allocated to income. If the water is not renewable, 90 percent of the amount shall be allocated to principal

and the balance to income. c. This act applies whether or not a decedent or donor was extracting minerals, water

or other natural resources before the interest became subject to the trust. d. If a trust owns an interest in minerals, water, or other natural resources on the

effective date of this act, the trustee may allocate receipts from the interest as

provided in this act or in the manner used by the trustee before the effective date

of this act. If the trust acquires an interest in minerals, water or other natural resources

after the effective date of this act, the trustee shall allocate receipts from the

interest as provided in this act.