The phosphate strip-mining company Mosaic has agreed to donate a 4,400-acre tract known as Peaceful Horse Ranch in DeSoto County for a state park, as part of the settlement of a lawsuit with Sierra Club and two other organizations, officials announced Tuesday.

In exchange, Sierra Club, Protecting the Peace River and Manasota-88 agree to drop their federal suit, filed in July 2010. The suit challenges a U.S. Army Corps of Engineers permit authorizing Mosaic to disturb some 535 acres of wetlands and 10 miles of streams on the 10,856-acre South Fort Meade Extension mine, located along the Peace River in northern Hardee County.