Section 11-A-4.11. 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 must be  allocated  to  income
  and  a receipt of one thousand dollars or more must be allocated fifteen
  percent to principal and eighty-five percent 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;
    (3)  If  received  as  a royalty, shut-in-well payment, or take-or-pay
  payment, a receipt must be allocated fifteen percent  to  principal  and
  eighty-five percent to income;
    (4)  If  an  amount  is  received from a working interest or any other
  interest not provided for in subparagraph (a)(1), (2), or (3), a receipt
  must be allocated fifteen percent to principal and  eighty-five  percent
  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  of  the  amount  must be allocated to principal and the
  balance to income.
    (c) This article 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  section,  the
  trustee  may  allocate  receipts from an interest in minerals, water, or
  other natural resources as provided in this section  or  in  the  manner
  used by the trustee before the effective date of this section. For every
  trust  created  after  the  effective  date of this section, the trustee
  shall allocate receipts from an interest in minerals,  water,  or  other
  natural resources as provided in this section. 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  section  shall  not  apply  to those
  receipts.