Spooky Gulch, Escalante Canyons, Utah. This section of Spooky Gulch is so narrow that it’s necessary to turn sideways to squeeze through. Located near the headwaters of Coyote Gulch in the Escalante Canyons of Grand Staircase Escalante National Monument, Spooky Gulch is not for the claustrophobic. Close attention should be paid to the weather forecast before venturing into this flash-flood prone canyon along the Hole-in-the-Rock Road south of the town of Escalante, Utah. Amid vociferous local opposition, Grand Staircase Escalante was established in 1994 by President Clinton.