The Bermuda Land Development Company (BLDC) has already spent $6.5 million on cleaning up the former Baselands.

But a BLDC report obtained by highlights the company?s concerns about ?immediate? environmental dangers at Morgan?s Point in Southampton ? the former US Naval Annex.

A copy of BLDC?s Business Plan for the fiscal year ending March 31, 2005 said: ?To date, the Company has spent approximately $6.5 million for environmental remediation work, e.g. asbestos abatement, material, debris and tank removal and site cleaning.?

In 2002, the bill for cleaning up the former US Naval Annex was thought to be around $30 million.

One of the financial strategies stated in the report was ?using Government grants to find environmental remediation, infrastructure and community and revenue producing projects?.

?When BLDC took over responsibility for the former baselands, the vast majority of the facilities were structurally unsound, in a very poor state of repair, or not suitable for commercial use,? the report said. ?As a result, significant expenditures have been made and will continue to be required.?

BLDC said it was ?difficult to fully assess the total cost and time required to clean up all the properties?.

The company is especially concerned about the most immediate environmental dangers at Morgan?s Point.

These are Bassett?s cave, which has a residue of approximately 520,000 gallons of viscous oil and sludge, and an adjacent Jet Fuel Plume comprising of 55,000 gallons of fuel.

?Ongoing funding will be required for this purpose but is not provided for herein,? the report said.

?The Government of Bermuda has been made aware of the estimates of the likely costs involved.

?Even though enhanced monitoring may serve to reduce the risk of a sudden serious problem, this in itself will be expensive and in all likelihood will not materially diminish the eventual cost burden,? it said.

But BLDC said it was still waiting to hear from Government, which may be ?reassessing its position?.

?The company understands that the Government of Bermuda is reassessing its position in Morgan?s Point,? BLDC said.

?The company has submitted a report to the Government that reviews the environmental risks at Morgan?s Point and recommends a possible course of action.

?The company is awaiting a response from Government.?

But Government has remained tight-lipped about its response to the festering sore of Morgan?s Point for more than ten years, while attempts to find and attract developers have not been successful.

Environmental clean-up costs at the massive former Base are often cited as the reason for lack of interest in the property.