All funds paid into the state treasury pursuant to § 10.1-1152 shall be credited to the Department and maintained in the Reforestation Operations Fund to be expended annually, in the following order:
1. From the annual gross receipts, there shall be paid the costs of preparing and issuing the permits, including compensation to the Department of Wildlife Resources, which is authorized to sell state forest special use permits;
2. The remainder may be expended by the State Forester for operation and management in such state forests. All funds expended by the State Forester in the development, management, and protection of the game resources in state forests shall be in cooperation with the Department of Wildlife Resources.