Catchment Hill, whose zoning Parliament ordered reviewed six months ago.

"How it will be zoned is still under review at this point,'' Environment Minister the Hon. Gerald Simons said. "So I can't say very much about it at this time.'' Mr. Simons and Planning Director Mr. Brian Rowlinson denied reports that a compromise decision had been made, allowing development on only the water catchment part of the wooded hill as well as a neighbouring Government quarry.

It has been learned that extensive tree-cutting has taken place recently on the Tucker's Town land, owned by Bermuda Properties Ltd., exposing an old walkway that separated the hotel from the staff quarters. Bermuda Properties wants to build luxury condos on the land.

Bermuda Properties head Mr. Peter Parker was off the Island and could not be reached for comment.

National Trust environmental committee chairman Mr. Tim Marshall said he had not yet heard what the fate of the land would be, but the Trust remained opposed to any development on it.

Controversy erupted over the open parcel of wooded land when the Bermuda Plan appeals tribunal rezoned the area for development despite Trust protests.

Catchment Hill is a 38-acre site near Harrington Sound Post Office, of which 14 acres is a concrete water catchment surrounded by wooded hillside and a quarry.

Mr. Rowlinson said at the time the tribunal looking into the Plan wrestled with a recommendation for zoning it. In the end more than half of the 38-acre site was zoned for residential development.

The House of Assembly passed the 1992 Bermuda Plan last year, but a promised review of the plan's proposed zoning of Catchment Hill was key to its passage.

Results of Planning Department questionnaires showed "strong support for protecting the site as open space '' Mr. Rowlinson said, with about 87 percent of 500-odd questionnaires returned favoured an open space zoning.

A 4,000-name petition opposing Catchment Hill development was also presented to Mr. Simons.

If Government zones the land for open space, the question of compensation for the owners could arise.