Virginia § 64.2-1058 - Minerals, water, and other natural resources
Full text of Virginia Code of Virginia § 64.2-1058 — Minerals, water, and other natural resources, with citation guidance and answers to common questions.
§ 64.2-1058. Minerals, water, and other natural resources
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.
2022, c. 354.
Source: official Virginia text · Last verified 2026-08-27
Frequently Asked Questions About Virginia § 64.2-1058
What does Code of Virginia § 64.2-1058 cover?
Section 64.2-1058 ("Minerals, water, and other natural resources") is part of the Code of Virginia, the codified statutory law of Virginia. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Virginia § 64.2-1058?
A common citation format is "Code of Virginia § 64.2-1058" (Virginia). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Virginia law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Virginia official source linked on this page or consult a licensed Virginia attorney.
How does Virginia § 64.2-1058 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Virginia can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Virginia.