The dispute was over whether Clous had cleared land along the Mitchell Creek Watershed in Grand Traverse County's East Bay Township, near Traverse City. The county had accused Clous of failing to obtain a soil erosion permit before clearing part of a 360-acre property in the watershed. Clous contended he didn't need a permit because he planned to farm the land, and the law granted an exemption for agriculture. Circuit Judge Thomas Phillips ruled last October the exemption didn't apply.

The settlement does not affect a separate civil action in which LaBelle is trying to use a section of the Michigan Environmental Protection Act to force Clous to repair environmental damage at the site. Also, Clous is negotiating with the Michigan Department of Environmental Quality over alleged wetland damage there.

Clous' company, Eastwood Custom Homes, will pay $25,000 to the county. Another of his businesses, Eastwood Excavation LLC, will provide $25,000 worth of services to the Civic Center South in Kingsley. Clous and his wife will donate $25,000 to a nature center.