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August 25, 2014 I Volume 8 I Issue 16 Zoning Bulletin <br />RST appealed. The district court affirmed the Board's order. <br />RST again appealed. On appeal, RST and the County disputed whether <br />Wyo. Stat. Ann. § 18-5-207 prohibited or granted the County authority to <br />regulate the expansion of a grandfathered nonconforming land use, such as <br />RST's gravel operation. <br />Section 18-5-207 provides as follows: <br />A zoning resolution enacted under the provisions of W.S. 18-5-201 through 18-5- <br />206 shall not prohibit the continuance of the use of any land, building or structure <br />for the purpose for which the land, building or structure is used at the time the res- <br />olution is adopted and it is not necessary to secure any certificate permitting such <br />continuance. However the alteration or addition to any existing building or <br />structure for the purpose of effecting any change in use may be regulated or <br />prohibited by zoning resolution. If a nonconforming use is discontinued any future <br />use of such land, building or structure shall be in conformity with the provisions <br />of the resolution regulating uses in the area in which the land, building or structure <br />is located. <br />RST and the County agreed that the first sentence of § 18-5-207 permitted <br />the continuance of preexisting land uses that predate the adoption of a legal <br />zoning resolution —known as a grandfather exception. However, they dis- <br />agreed on whether the second sentence of § 18-5-207 gave counties zoning <br />authority over certain nonconforming changes in the use of land, and thus, in <br />this case, whether the County could regulate expansion of RST's grandfathered <br />gravel operations. <br />DECISION: Judgment of district court reversed, and matter <br />remanded. <br />The Supreme Court of Wyoming held that while § 18-5-207 gave counties <br />zoning authority to regulate certain nonconforming uses (e.g., buildings and <br />structures) by creating a permissive exception to the grandfather exception, it <br />was ambiguous as to the extent of its protection of nonconforming land uses. <br />To resolve that ambiguity, the court adopted, as a matter of first impression <br />(i.e., the first time addressing the issue), a three -prong test of the doctrine of <br />diminishing assets. <br />The court explained that a gravel operation utilizes the natural resources <br />that comprise the land itself, and that therefore, in such a case, the land is a <br />diminishing asset. The court further explained that diminishing -asset <br />enterprises (e.g., those that involve the removal of natural products from the <br />earth, including gravel operations) "use" all of the land contained in a particu- <br />lar asset, and "as a practical matter, such use must begin at one spot and <br />continue from there to the boundary of the land." Accordingly, application of <br />the general rule that a nonconforming use may not be extended to land not so <br />used prior to enactment of a restrictive zoning ordinance may work a hardship <br />where the use involves removal of natural products from the earth, said the <br />court. Therefore, the court held that a land owner would be allowed to extend <br />his or her nonconforming use of the land involving a diminishing asset under <br />§ 18-5-207, if the land owner could prove each prong of the following three - <br />prong test: <br />First, [the land owner] must prove that excavation activities were actively being <br />pursued when the [Ordinance] became effective; second, [the land owner] must <br />prove that the area that he desires to excavate was clearly intended to be excavated, <br />10 ©2014 Thomson Reuters <br />