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- Alaska Statutes.
- Title 13. Decedents' Estates, Guardianships, Transfers, and Trusts.
- Chapter 38. Principal and Income of Trusts
- Section 710. Minerals, Water, and Other Natural Resources.
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. Liquidating Asset.
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AS 13.38.710. 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 under this
section, the trustee shall allocate them as follows:
- (1) if received as nominal delay rent 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
- (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 shall be allocated to income;
- (4) if an amount is received from a working interest or any other interest not provided for in (1) - (3) of this
subsection, 90 percent of the net amount received shall be allocated to principal, and the balance shall be allocated
- (b) An amount received on account of an interest in renewable water shall be allocated to income. An amount received on
account of an interest in nonrenewable water shall be allocated as follows:
- (1) 90 percent of the amount shall be allocated to principal; and
- (2) the balance shall be allocated to income.
- (c) This chapter applies whether or not a decedent or donor was extracting minerals, water, or other natural resources
before the interest became subject to the trust.
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