Just before the suit would have been filed, a representative for the U.S. Department of Justice - the agency representing the BLM - announced that the derby would no longer be allowed on public land.
Conservationists argued that the derby, which would allow 500 hunters to participate, undermined aggressive recovery programs that have brought gray wolves back from the brink of extinction over the past two decades. Wolves have seen an impressive recovery, but advocates say the work is not done - and that trophy hunts would reverse that trend.
"BLM's first-ever approval of a wolf hunting derby on public lands undercuts wolf recovery efforts, so it's good they canceled this permit," said Laird Lucas, director of litigation at Advocates for the West, which represents Defenders of Wildlife.
The public seems strongly in favor of canceling the hunt - during a comment period, the BLM received just 10 comments in support of the competition and some 56,000 comments against it.