N.Y. EPT Law § 11-A-4.11

§ 11-A-4.11 Minerals, water, and other natural resources\n (a) To the extent that a trustee accounts for receipts from an\ninterest in minerals or other natural resources pursuant to this\nsection, the trustee shall allocate them as follows:\n (1) If received as a bonus, delay rental or annual rent on a lease, a\nreceipt of less than one thousand dollars must be allocated to income\nand a receipt of one thousand dollars or more must be allocated fifteen\npercent to principal and eighty-five percent to income;\n (2) If received from a production payment, a receipt must be allocated\nto income if and to the extent that the agreement creating the\nproduction payment provides a factor for interest or its equivalent. The\nbalance must be allocated to principal;\n (3) If received as a royalty, shut-in-well payment, or take-or-pay\npayment, a receipt must be allocated fifteen percent to principal and\neighty-five percent to income;\n (4) If an amount is received from a working interest or any other\ninterest not provided for in subparagraph (a)(1), (2), or (3), a receipt\nmust be allocated fifteen percent to principal and eighty-five percent\nto income.\n (b) An amount received on account of an interest in water that is\nrenewable must be allocated to income. If the water is not renewable,\nninety percent of the amount must be allocated to principal and the\nbalance to income.\n (c) This article applies whether or not a decedent or donor was\nextracting minerals, water, or other natural resources before the\ninterest became subject to the trust.\n (d) If a trust exists on the effective date of this section, the\ntrustee may allocate receipts from an interest in minerals, water, or\nother natural resources as provided in this section or in the manner\nused by the trustee before the effective date of this section. For every\ntrust created after the effective date of this section, the trustee\nshall allocate receipts from an interest in minerals, water, or other\nnatural resources as provided in this section. If and to the extent that\nthe terms of a trust expressly provide for a different allocation of\nreceipts or grants the trustee discretionary authority to determine the\namount of the allocation, this section shall not apply to those\nreceipts.\n