(1) Money from the fund shall be used by the department only for the following purposes:
  (a) The purchase of land for natural resources management if the land meets the needs outlined in the strategic plan most recently approved by the legislature under section 503.
  (b) The costs of advertising, appraisals, negotiations, surveys, and closings incurred by the department in the sale of surplus land.
  (c) The costs of environmental assessments, appraisals, negotiations, surveys, and closings incurred by the department in the purchase of land authorized by this subpart.
  (d) The costs of managing the natural resources for public recreation activities and public recreation development projects on department-managed land.
  (2) The report required by section 506 shall include a summary of all the disbursements of money from the fund for the purposes listed in subsection (1).