Oklahoma § 60-175.411

§ 60-175.411.

Minerals, water, and other natural resources.

MINERALS, WATER, AND OTHER NATURAL RESOURCES

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 a bonus, delay rental or annual rent on a

lease, a receipt of less than One Thousand Dollars ($1,000.00) must

be allocated to income and a receipt of One Thousand Dollars

($1,000.00) or more must be allocated fifteen percent (15%) to

principal and eighty-five percent (85%) to income;

2. 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;

Oklahoma Statutes - Title 60. Property

3. If received as a royalty, shut-in-well payment, or take-orpay payment, a receipt must be allocated fifteen percent (15%) to

principal and eighty-five percent (85%) 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 receipt must be allocated fifteen percent (15%) to

principal and eighty-five percent (85%) to income.

B. An amount received on account of an interest in water that

is renewable must be allocated to income. If the water is not

renewable, ninety percent (90%) of the amount must 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 exists on the effective date of this act, the

trustee may allocate receipts from an interest in minerals, water,

or other natural resources as provided in this act or in the manner

used by the trustee before the effective date of this act. For

every trust created after the effective date of this act, the

trustee shall allocate receipts from an interest in minerals, water,

or other natural resources as provided in this act. If and to the

extent that the terms of a trust expressly provide for a different

allocation of receipts or grants the trustee discretionary authority

to determine the amount of the allocation, this act shall not apply

to those receipts.

Added by Laws 1998, c. 115, § 20, eff. Nov. 1, 1998. Amended by

Laws 1999, c. 419, § 2, emerg. eff. June 10, 1999.