SALT LAKE CITY - Utah's Attorney General is demanding a settlement to the ongoing legal feud over the Fundamentalist Church of Jesus Christ of Latter-day Saints' land-holdings arm. In a letter obtained by Fox 13 News, Mark Shurtleff puts a 30-day deadline on any settlement negotiations.

"It appears to me there is no reason why a settlement cannot be achieved along the lines of this proposal," Shurtleff wrote to lawyers representing the FLDS Church. "Some items may need to be tweaked, and others may need to be massaged a little further, but on the whole it appears to me that if the parties are to achieve a settlement the best chance for that is to work from this proposal. If your client has trouble with the fact that the proposal comes from the Special Fiduciary, then let's call it my proposal."

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The United Effort Plan (UEP) Trust controls homes and property in the polygamous border towns of Hildale, Utah, and Colorado City, Ariz. It was taken over by the Utah state courts in 2005 over allegations that FLDS leader Warren Jeffs and others mismanaged it. A court-appointed special fiduciary was installed to manage it. The FLDS have recently challenged the management of the trust and the planned sale of land in their communities.

Settlement talks last year failed, but Shurtleff's letter adds incentive to reach a resolution, assistant Utah Attorney General Tim Bodily told Fox 13 News on Wednesday.

If no resolution is reached, Shurtleff's letter suggests they will throw support behind recommendations by the Arizona Attorney General and the special fiduciary, which would likely include the sale of land collectively held by the trust.

Beyond the settlement, Shurtleff also made another threat: "we are prepared to seek a disincorporation of the city of Hildale with the Legislature if necessary."

FLDS attorney Rod Parker told Fox 13 News they continue to negotiate in good faith and that Shurtleff's letter was inconsistent with the spirit of the ongoing talks.

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