A proposed environmental covenant to resolve a dispute between the Department of Environmental Protection (DEP) and Maine Yankee could cost the taxpayers of Wiscasset, according to Attorney Peter Murray.

The environmental covenant is part of a proposed settlement concerning the cleanup of the former reactor site on Bailey Point.

This past April, Maine Yankee sent Wiscasset Town Manager Arthur Faucher a draft of a proposed agreement that would restrict the use of the site, and would have a serious negative effect on the value of the Bailey Point property for real estate and tax purposes.

"The effect of this restriction could cost the town real tax money," Murray said.

Maine Yankee has maintained that it would restore the Bailey Point site to its natural condition free of all contaminants that would pose any danger or affect the use of the property - what is referred to as a "greenfields" condition.

According to Murray, Maine Yankee has succeeded in reducing the level of radioactive material below the level which the Nuclear Regulatory Commissioners considers a problem, and has released the site from further oversight.

However, Maine Yankee has not satisfied the State Department of Environment Protection with the clean up of the area. Apparently there still exists the possibility of levels of contamination, and the DEP considers it significant enough to prevent it from signing off on the clean up.

The compromise between Maine Yankee and DEP is that Maine Yankee will not be required to do any further clean up of the site, provided Maine Yankee forever restricts the use of the land from any form of residential use, any form of school or child care use, and excavation or any construction below the ground water tables without the prior written permission of the DEP. These requirements would apply to the entire 172 acres of the Bailey Point site.

Murray told the selectmen the proposal raises two concerns for the town. The first is that terms of the agreement may label the site as a "brownfield," a post industrial site with limited economic use.

"Maine Yankee is likely to go away, and the town will be left with this brownfield site in the future," Murray said.

"I would not recommend the town sign on to this agreement," Murray said. "It would be wise to take up these concerns with Maine Yankee and the DEP," he said.

Questions Murray suggested the town ask include:

Do these restriction really have to apply to the whole Bailey Point land or merely a part?

What additional remediation measures would be required of Maine Yankee in order to restore the site to "greenfield" status?

Would it be possible for Maine Yankee to agree that the restrictions should be ignored when evaluating the land for real estate tax purposes?

After further discussion the selectmen voted to have Murray contact the DEP and Maine Yankee to have their concerns addressed.