The State of Connecticut, the Nature Conservancy, and Aquarion Close on Acquisition of Largest Amount of Open Space in State History

The State of Connecticut, the Nature Conservancy, and Aquarion Close on Acquisition of Largest Amount of Open Space in State History

Closing is final step to secure 15,300 acres of BHC watershed land

BRIDGEPORT, CT, March 28, 2002 —The Connecticut Department of Environmental Protection (DEP), The Nature Conservancy (TNC), and the Kelda Group and its Aquarion and BHC Company subsidiaries, today closed on the acquisition of rights to 15,300 acres of BHC watershed land. The purchase price is $90 million. Partnering with the state, TNC has agreed to contribute $10 million with the state’s share being $80 million. The open space acreage in Fairfield, Litchfield, New Haven, and Hartford Counties will be protected for conservation purposes.

"Today’s closing finalizes the single largest land acquisition deal in Connecticut’s history which continues our commitment for the preservation of open space in the state," said Governor John G. Rowland. "The acquisition of more than 15,000 acres as open space is a remarkable achievement and clearly demonstrates what government and the private sector can accomplish when partnering together. This agreement ensures these pristine properties will remain available for the residents of Connecticut to experience and enjoy, both now and in the future."

Aquarion CEO and Kelda USA President Richard K. Schmidt said today’s closing represents a momentous event in Connecticut’s history that makes Aquarion extremely proud. "This land sale conserves thousands of acres of beautiful property for all of Connecticut’s citizens to enjoy, because it will remain as open space forever. Moreover, we will be able to continue to fulfill our primary mission to provide our customers with high-quality water at reasonable rates, said Schmidt."

Kelda Group Executive Chairman John A. Napier said, "Kelda is delighted to fulfill its pledge to the state of Connecticut and to demonstrate its commitment to the preservation of this land for the benefit of the community."

"In a difficult budget year, Governor Rowland and the General Assembly should be recognized for their commitment in seeing this through; they struck a bargain that we all can walk on, explore and enjoy for generations," said David Sutherland, Director of Government Relations for the Nature Conservancy. "The Nature Conservancy has almost $4 million left to raise privately for this purchase, so the end of this major chapter in our state’s environmental history will be written by the generosity of Connecticut citizens."

In February 2001, Governor Rowland announced a Memorandum of Understanding to preserve the land through an unprecedented, public-private partnership agreement that calls for the DEP and TNC to purchase the property for $90 million. The purchase price represents a price per acre of approximately $6,000.

"The significance of today’s purchase cannot be overstated. The acreage acquired today in one single acquisition is more than four times the state’s record year for open space purchases," said Department of Environmental Protection Commissioner Arthur J. Rocque, Jr. "Beyond the acreage, access to prime fishing and hiking locations in an under served area will be significantly enhanced."

The state will be acquiring conservation and public access easements to Class I lands (those properties directly adjacent to reservoirs and critical feeder streams), and the fee title to Class II land (property within 150 feet of a reservoir or water supplies), and Class III land (properties off of the watershed). The DEP will work with the water company, TNC, and area interests to determine the recreational activities that will be allowed on the lands, including hiking and fishing. Recreational activity will be consistent with the protection of watersheds and water supply reservoirs and subject to Department of Public Health approval.

Following the closing, the land will be managed in accordance with a Natural Resources Management Agreement approved by the DEP, BHC, and TNC. The Agreement establishes the strategic framework for the management of the natural resources present on the land and sets up policies that will guide future planning and decision making regarding use of the land and a framework of administrative cooperation among the parties. The Agreement was drafted by representatives DEP, BHC, and TNC and was made available for public comment during two public meetings held in December 2001.

BHC Company will make available mylar maps of the properties to the DEP and municipalities that contain land purchased by the state. The maps will be made available following the closing. Residents interested in knowing what property was acquired in their towns can view the maps at their town halls. DEP has on its website an electronic version of a statewide map showing the purchased land. The map is available at: http://www.dep.state.ct.us/whatshap/press/2002/dg0328.htm

The approximately 15,300 acres includes property in Fairfield, Litchfield, New Haven, and Hartford Counties that is heavily forested with miles of pristine streams, upland ridges, and reservoir shorefront. The property includes additions to the Housatonic State Forest in Canaan, Naugatuck State Forest in Oxford, and Indian Well State Park in Shelton. The acquisition includes increased frontage along the Saugatuck Reservoir (Redding, Easton and Weston), the Hemlock Reservoir in Easton and Fairfield, Trap Falls Reservoir in Shelton, Lake Wagnum in Canaan, the Laurel Reservoir in Stamford and New Canaan, and the Simsbury Reservoir in Simsbury. Portions of the property surround Trout Brook Valley, TNC’s Cathedral Pines Preserve, and the state’s Canaan Mountain Natural Area Preserve.

CONTACT: 
Michele Sullivan (DEP), (860) 424-4100
Larry Bingaman (BHC), (203) 336-7626
David Sutherland (TNC), (860) 344-0716 ext. 317
Chris Cooper, (Governor’s Office), 860-524-7313

Description of Agreement and BHC/Kelda Properties
March 28, 2002

The Connecticut Department of Environmental Protection (DEP), Kelda Group, its Aquarion and BHC Company subsidiaries and The Nature Conservancy (TNC) have formed a partnership to preserve more than 15,000 acres of Kelda’s water utility land as open space.

This is the largest single purchase of open space land in Connecticut’s history and covers acreage in four Connecticut counties: Fairfield, Hartford, Litchfield, and New Haven. Overall, the land is heavily forested with miles of pristine streams, upland ridges, and reservoir shorefront. The land includes a variety of habitats for wildlife species such as deer, beaver, turkey, muskrats and other animals, and is home to many bird species.

Agreement Summary

• Acreage acquired – 14,496 acres for public access;
• Restrictive Covenant – through a restrictive covenant, an additional 890 acres of the BHC/Kelda property will be retained by BHC as "improved properties" (e.g., dams, water tanks, wells, treatment plants, etc.). In the event BHC terminates the use of any of their "improve properties", BHC must donate that property to the state;
• Underwater land – the state has a 20-year option to acquire the lands beneath the water supply reservoirs. The acreage associated with that option totals approximately 3,000 acres;
• Purchase price - $90 million ($80 million from State of Connecticut; $10 million from The Nature Conservancy);
• Price per acre (approximate) - $6,000 for the 15,300 acres; and
• Land use and accessibility – DEP, TNC and BHC is finalizing a Natural Resource Management Agreement.

Lands encompass Class 1, 2 and 3, defined as follows:

Class 1: Directly adjacent to reservoirs and critical feeder streams – 9,025 acres
Class 2: Lands on the watershed – 4,477 acres
Class 3: Lands off the watershed – 994 acres

Fairfield County – 12,935 acres
Land in the following towns contain parcels along the Saugatuck Reservoir and tributaries; an addition to Collis P. Huntington State Park; land around the Saugatuck Reservoir, Aspetuck River, Hemlock Reservoir, Aspetuck Reservoir and Mill River. Also, lands encompass Lyons Swamp, surround Trout Brook Valley and include frontage on the Rippowam River, Laurel Reservoir and the West Branch of the Pequonnock River.

Towns	Acres
Bethel	20
Danbury	74
Easton	5,521
Fairfield	262
Monroe	1,517
New Canaan	124
Newtown	642
Redding	2,536
Ridgefield	5
Shelton	940
Stamford	381
Trumbull	336
Weston	576
Westport	1

Hartford County – 26 total acres
Property includes a reservoir

Towns	Acres
Simsbury	26

Litchfield County – 1,515 total acres
Lands include portions of Lake Wangum, Canaan Mountain, and addition to Housatonic State Forest, an addition to The Nature Conservancy’s Cathedral Pines Preserve and an area south of Mount Riga.

Towns	Acres
Canaan	1,099
North Canaan	4
Salisbury	412

New Haven County – 20 total acres
Land contains a section of Towantic Brook, a section of the Little River, and an addition to Naugatuck State Forest.

Towns	Acres
Oxford	20

CONTACT: Michele Sullivan (860) 424-4100

The major utility subsidiary of Aquarion Company, BHC serves 143,000 homes and businesses, or more than 500,000 people, through retail and wholesale operations in 29 cities and towns in four Connecticut counties. It is the largest investor-owned water company operating in New England and one of the ten largest in the U.S.