Project enhances safety and strengthens connections for Navajo Nation communities
MONTEZUMA CREEK, Utah (Sept. 2, 2026) — The Utah Department of Transportation has completed work on a $152 million project along State Route 162 and State Route 262 in San Juan County.
Known locally as the Energy Corridor, the project represents a major infrastructure investment in southeastern Utah and reflects the importance of these routes to the residents, workers and visitors who depend on them every day.
The project improved 53 miles of SR-162 and SR-262 with new pavement, wider shoulders, upgraded drainage, a new roundabout and a replacement bridge over McElmo Creek.
“In this part of San Juan County, these roads are far more than rural highways,” UDOT Commissioner Carlos Braceras said. “They are local roads that represent daily commutes and essential connections to the rest of the state. By working with the Navajo Nation and local communities, we’ve made these everyday trips safer, smoother and more reliable.”
Crews installed more than six miles of guardrail, new fencing, over 50 cattle guards and two livestock crossings under SR-162. They also updated signs and lane markings and built a roundabout at the SR-162 and SR-262 intersection in Montezuma Creek. Together, these improvements give drivers more room to recover, increase visibility and help reduce conflicts with livestock and roadside hazards.
Crews also rebuilt more than eight miles of SR-162 between Montezuma Creek and Aneth, shifting the highway away from the river and closer to the mountainside. Blasting and large rock cuts improved curves and sight distance, while new embankments created wider shoulders and more recovery room along the road.
On SR-262, crews reshaped steep roadside slopes and moved earth from higher areas to lower areas to improve shoulders and recovery areas. They also added guardrail in key locations and relocated dozens of utility lines outside the highway right-of-way.
“With the completion of this project, drivers will see immediate safety improvements,” UDOT Project Manager Devin Squire said. “There’s more space, better visibility and more protection from roadside hazards. This corridor looks and feels very different than it did before.”
SR-162 and SR-262 provide the primary state highway access to communities within the Utah portion of the Navajo Nation. The highways connect residents with Bluff and US-191 to the west and Colorado to the east while also supporting commercial and regional travel.
The corridor also provides access to Bears Ears Visitors Center, Hovenweep National Monument and Four Corners Monument.
UDOT partnered with the Navajo Nation to secure a $48 million Nationally Significant Federal Lands and Tribal Projects grant to help fund the project.
