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The Yellowstone Club and state officials agreed to drop a dispute over whether the club illegally stored liquor at a site in Belgrade, after club officials said the inventory is likely spoiled.

In November, attorney Shane Reely, who represents the Yellowstone Mountain Club, sent a letter to the Montana Department of Revenue’s office of dispute resolution to vacate a hearing date set for this week. The club allowed the revenue department to dispose of the alcohol, Reely said, because “a significant amount of the inventory in the above-described matter is spoiled.”

“We have concluded that the cost of preparing for and attending the scheduled January, 2021 hearing with ODR will greatly exceed the value of any unspoiled inventory,” Reely wrote in the letter.

A Yellowstone Club spokesperson said the club won’t petition to regain the alcohol.

A few days after Reely sent the letter, the revenue department issued an order dismissing the matter.

The revenue department through its office of dispute resolution, which handles liquor license issues, declared the alcohol contraband and handed over the products to the state.

The order ends an almost two years worth of proceedings that started in June 2019 when the Montana Department of Justice confiscated more than 800 bottles and cans of booze it said belonged to the club, revenue documents say.

The revenue department confiscated 429 bottles of liquor, 70 bottles of wine and 319 bottles or cans of beer at 456 Wings Way, according to a revenue department notice of seizure and intent to forfeit. That address is connected to the Yellowstone Jetcenter.

It’s illegal for bars and restaurants to keep alcohol off-site.

Justice department officials found the booze after an informant told investigators that some Yellowstone Club restaurants used a warehouse in Bozeman to receive alcohol deliveries, revenue department documents say.

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Freddy Monares can be reached at fmonares@dailychronicle.com or at 406-582-2630.

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