Gullies are common features throughout the southwestern United States including Army training facilities such as the Pinon Canyon Maneuver Site. These gullies have depths up to several meters, which can restrict the mobility of troops and vehicles during training exercises. They also have the potential to grow in size, which can degrade training lands. At the upstream end, gullies usually begin with an abrupt headwall, and in the downstream direction, gullies also tend to terminate abruptly. In this paper, we hypothesize that the small extent of convective storms and significant transmission losses in channels promote the downstream disappearance of gullies. The role of these factors is tested by applying a geomorphic model in which storms occur within circular portions of the simulation domain and channel flow is lost to seepage up to a specified infiltration or seepage capacity in each grid cell. The net effect of these processes is to reduce the sediment transport capacity in the downstream direction relative to the case with an infinite storm size and no channel losses. The reduced sediment capacity alters the relationship between slope and drainage area for topographies at equilibrium. In addition, limited storm sizes can also produce disconnected areas of incision within generally depositional portions of the landscape.