Owners have decided that a popular paddle-wheel boat that carried Lake Tahoe sightseers for more than three decades will be scrapped due to damage from a fire last August.

The U.S. Coast Guard says firefighters protected Lake Tahoe's famously clear water as they quickly snuffed out flames shooting out of a docked tourist cruise boat. 

The U.S. Coast Guard has grounded operations of a popular Lake Tahoe cruise boat. 

Channel 2 News needs to make a correction to a story we first brought you early Thursday morning in regards to an incident involving the Lake Tahoe Queen, one of two tour boats that cruises Lake Tahoe.

The U.S Coast Guard has confirmed with Channel 2 News that the Tahoe Queen ran aground during a New Year's Cruise early Thursday morning.  

The Tahoe Queen is back on a dock after getting stuck on a sandbar earlier this week.