Jim Blue died in a gunfight with Lou Stuart in which both men were shot several times, but Lou Stuart survived. The gunfight took place in the Fruita Reserve portion of Pinon Mesa in the early 1900’s. According to oral history interviewee George "Vern" Wood, Jim Blue was a moonshiner who sold booze into a sheep ranching camp run by Fred Burford. Burford requested that Stuart, his camp mover, keep Blue away, so that his ranch hands would not get drunk. Stuart asked Blue to stay away. Blue, a “wild old man,” refused to leave. Blue shot Stuart. Stuart shot back with his Luger and killed Blue.
In the version of the story told by oral history interviewee James "Buzz" Brouse, the sheep herd belonged to Stuart. When Blue came up to sell to herders employed by Stewart, Stewart tried to run him off. The men began shooting at one another. Blue carried a .22 pistol and managed to hit Stuart two or three times. Stuart survived and killed Blue.
According to Joe Carns, in a version of the story related to him by older rancher Ray Morris, the rivalry between Blue and Stuart had to do with Blue’s wife, who was evidently quite attractive. Blue was confronted and shot in the doorway of his cabin by Stuart. Blue returned fire. Blue died and Stuart lived.