In addition, the Scouts will start an education program to prevent future fires, Michael Johnson, an assistant state attorney general, said.
"We think it's favorable for all the parties because it reimburses the taxpayers and will strengthen the Scout program on fire prevention," Johnson said.
The agreement, announced Tuesday, ends the litigation over the state costs to fight the 2002 East Fork Fire, which blackened nearly 14,000 acres. The state had alleged that a group of overnight campers from Troop 149 started the blaze.
A separate lawsuit against the Boy Scouts of America (BSA) by the federal government that seeks its firefighting expenses of more than $13 million is still pending.
The Utah Attorney General's Office and the BSA Great Salt Lake Council also praised the agreement in a joint release.
"This settlement is a win-win situation for taxpayers and Boy Scouts. The state recovers money to put out fires, and the Scouts will help restore the damaged forest and learn valuable lessons to prevent future fires," Attorney General Mark Shurtleff said.
The seedling project is designed for both reforestation and education about the damages associated with wildfires. In addition, the training program will educate Scouts and their leaders about fire safety, prevention and restrictions, said Kay Godfrey, spokesman for the Great Salt Lake Council.
"We are pleased to have settled this issue and are looking forward to partnering with the state on these important matters," Godfrey said in the press release.
The state lawsuit, filed in 3rd District Court, had asked for $606,424. The federal suit seeks $13.3 million for firefighting costs and rehabilitation to damaged land.
The lawsuits alleged that the wildfire that erupted near the East Fork of the Bear River Scout Reservation on June 28, 2002, was caused by boys ages 12 to 14 who were working to earn the wilderness survival merit badge. This group of 17 Scouts was being supervised by two 15-year-olds.
Briefs filed in the federal case allege that during the overnight stay, the younger boys started numerous fires, including one built atop a highly combustible layer of "duff," or dead and decaying woody debris. That fire smoldered overnight, then sparked the East Fork Fire, the suit claims.
Lawyers for the Scouts argue that the campers doused their campfire with liquid and smothered it with dirt. The Scouts slept with their heads right next to the spot and felt no heat, which shows that the fire was out, BSA attorneys say.
The U.S. Attorney's Office and the Boy Scouts have been in discussions for a possible settlement in the federal suit. A trial was scheduled to begin this week in U.S. District Court but was postponed and no new date has been set.

