Tests of Bermuda's water supply for a potentially dangerous fuel additive have given the Island an all-clear.

Government analysts gave the thumbs-up after an extensive testing programme for the additive Methyl Tertiary Butyl Ether (MTBE) at sites across the Island last week.

But Environment Minister Arthur Hodgson has confirmed that monitoring for the chemical, which has been potentially linked to cancer, will continue.

MTBE has been found in water in the US and the Ministry of the Environment responded to fears on the Island by instigating the testing scheme.

Yesterday, Government hydrogeologist Mark Rowe said that test samples taken from seven sites around the Island were all clear of MTBE at levels above the detection rate of four parts per billion.

Sites at St. George's, Pembroke and Smith's, Port Royal and Somerset were among the seven tested .

Mr. Hodgson said the concerns that the chemical might have seeped into ground water resources prompted the tests.

He said: "The area from where most of Bermuda's ground water is drawn is in Devonshire. Here, the blended water was tested at three different levels of treatment at the Government's St. Brendan's reverse osmosis plant.

"These levels were raw incoming water, rejected waste water and treated outgoing water. Even the rejected water, which is a concentrate of contaminants, did not contain detectable MTBE.'' The Minister said the tests showed that the situation in Bermuda was not comparable to certain areas in the US, where MTBE is commonly found in ground water.

At least one area in California registered a concentration of 20,000 parts per billion, causing the state to phase out the use of MTBE by the end of 2002.

Esso confirmed that its petrol contained small amounts of the chemical -- which makes gas burn more efficiently and reduces pollution.

But last week Shell Bermuda spokesman David Rose confirmed that its gasoline, which is sent to the Island from Curacao, Venuzuela, does not contain even trace levels of MTBE.

"The additive is not commonly used outside the US,'' Mr. Rose said. "I can confirm that our supply source does not dope our gasoline with MTBE period.'' Arthur Hodgson