House approves $2.995 million appropriation to settle Deep Creek case

The Utah House approved measures to settle a long-running lawsuit tied to a failed land-exchange contract known as the Deep Creek case. On July 17 the House passed Senate Bill 1,001, which appropriates $2,995,000 from the rainy-day fund to resolve the claim, and SJR 101, the joint resolution approving the settlement agreement; both measures will be returned to the Senate for signature.

Representative Mel Brown, the House sponsor, recounted the history dating to 1997 when the state negotiated to acquire roughly 780 acres near Deep Creek Mountain in exchange for surplus heavy equipment valued in contract at $850,000. Federal involvement through the National Guard and surplus-property rules complicated execution of the exchange; the dispute reached the Utah Supreme Court and later negotiations resulted in the settlement now before the Legislature.

Brown said parties agreed to settle for $2,995,000, which the bill would appropriate from the rainy-day fund; if surplus revenue at fiscal year end is sufficient, that amount could be replaced in the rainy-day fund from excess general-fund receipts. Members questioned historical legal costs and the fair-market value of the land; Brown and others said on-the-spot totals were not available.

After limited floor discussion, the House voted to pass Senate Bill 1,001 (71–1) and SJR 101 (vote recorded as one no). Sponsors said settling now avoids further litigation expenses and closes a 15-year dispute.

What happens next: Both measures will be returned to the Senate for signatures and, once enrolled, appropriate funds will be paid according to the settlement terms.