ND HB1221

Changes the allocation percentage for royalties, shut-in-well payments, take-or-pay payments, bonuses, and delay rentals from 90% to 95% allocated to principal, with the balance to income.

Changes the allocation percentage for working interests and other interests from 90% to 95% allocated to principal, with the balance to income.

Establishes August 1, 2015 as the new cutoff date for determining allocation rules, replacing August 1, 1999, for trusts that have not previously received mineral, water, or natural resource receipts.

Allows trustees to petition the court to permanently modify allocation methods, with the court considering nine specific factors including settlor intent, beneficiary circumstances, asset composition, and economic conditions.

Maintains grandfathering provisions allowing trusts that acquired interests before August 1, 1999 to continue using allocation methods in effect on that date, and requires law-in-effect-on-August-1-1999 allocations for interests acquired between August 1, 1999 and August 1, 2015.