Shamburger v. Duncan

In 1946, the Kentucky Legislature enacted a statute authorizing counties to acquire and maintain lands for a “permanent public forest.” Lands acquired under this statute were to be managed to perpetuate stands of trees, and any denuded land was to be reforested. The statute permitted recreational uses on public forest land, but only if they did not interfere with the primary use of such land for forest purposes (e.g., timber, preservation of water flows). The statute also noted that “all revenue derived from forest land by the sale of timber or otherwise shall accrue to the use of the county owning and holding such land.” In accordance with this statute, Jefferson County (the county) purchased a 2,000-acre parcel of forest land. This parcel included 168 acres of land that was formerly used as a clay pit or mine and was now denuded. Not long after the acquisition, the county discovered that these 168 acres contained shale valuable in manufacturing concrete blocks. The county decided to execute a mineral lease with the Ohio River Sand Company to extract the shale. Pursuant to the lease agreement, the county would receive $12,000 in annual royalties, which could be used to maintain the rest of the 2,000-acre forest parcel. A lawsuit was filed, and the lower court held that mining was not permitted on the 168-acre parcel under the 1946 statute. The lease proponents appealed, arguing that because the statute authorized the county to receive revenues derived from timber sales “or otherwise,” the lease was permissible so long as the county received its proceeds.