FOR IMMEDIATE RELEASE

Wednesday, November 28, 2007

Jessica Robinson, 573‑751‑0290

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Gov. Blunt Announces $180 Million Settlement Between State and Ameren for Taum Sauk Reservoir Disaster

JEFFERSON CITY‑ Gov. Matt Blunt today announced that the state of Missouri has reached a long overdue settlement with Ameren over the collapse of the St. Louis utility companys Taum Sauk Reservoir.

"The Ameren Taum Sauk disaster was the worst man‑made disaster in the history of Missouri," Gov. Blunt said. "The settlement we reached compensates the people of Reynolds County and the state of Missouri for the loss of natural resources and recreation associated with the Ameren Taum Sauk disaster. I am pleased that in addition to providing direct assistance to the citizens of Reynolds County, we have an agreement that includes rebuilding Johnsons Shut‑Ins State Park and completing the Katy Trail from St. Louis to Kansas City which have been priorities for me."

The governor said he was glad he and other state officials have reached this settlement, but expressed frustration that the settlement process has been constantly delayed. Attorney General Jay Nixon insisted that the Department of Natural Resources give up their right to appeal if a Circuit Court does not approve the terms of the settlement, an action that could jeopardize the settlement.

"I share the Departments concern regarding Nixons demand that the department give up its right to appeal. However, we have had enough delays and need to move forward," Gov. Blunt said.

On December 14, 2005, the breach sent 1.3 billion gallons of water through the main use area of Johnsons Shut‑Ins State Park, injuring the Park Superintendent and his family, destroying the park, and impacting the East Fork of the Black River and the lower Taum Sauk Reservoir.

The agreement, signed by representatives from the Missouri Department of Natural Resources (DNR), the Missouri Department of Conservation, the Missouri Attorney Generals Office and Ameren will be entered as a Consent Judgment in the Circuit Court of Reynolds County and represents a total package of over $179,750,000. This amount includes $51 million Ameren has already spent cleaning up the park and river consistent with the numerous orders and directives from DNR, and over $2 million in oversight costs already paid by Ameren to DNR for the time spent by department staff in responding to the event.

Listed below are some of the key components of the agreement:

1) Ameren is required to restore and rebuild the area in and around Johnsons Shut‑Ins State Park at an estimated value of $52 million. The park will be rebuilt according to a master plan that had public review before being approved.

2) For natural resource damages which include damages to aquatic, biological and terrestrial resources in the area of the breach, and lost recreational use opportunities for all citizens of the State who own and enjoy Johnsons Shut‑Ins State Park, Ameren will:

Pay $11.8 million to DNRs State Parks Earnings Fund for recreational use loss to create new and additional recreational opportunities for the citizens of the state, in part, through a new state park on the Current River;

Pay $4.2 million to DNRs Natural Resources Protection Fund for natural resource damages and to fund over $1.2 million to safety equipment including state‑of‑the‑art emergency response vehicles to respond to environmental emergencies or disasters in every region of the state;

Pay $6 million to the Missouri Conservation Commission Fund for natural resource damages;

Pay $2 million to DNRs Natural Resources Protection Fund for monitoring water quality on the Black River;

Give to DNR, in order to create new and additional recreational opportunities for the citizens of the state, a perpetual license to locate a biking and hiking trail on a section of the Rock Island Railroad from Windsor to Pleasant Hill adjacent to the railroad bed which will link Katy Trail State Park at Windsor to the Kansas City area; pay $18 million to DNRs State Parks Earnings Fund for construction of the trail; right of first refusal for Church Mountain; and give DNR a right of first refusal to purchase the Rock Island Railroad corridor should it ever be sold. Ameren estimates the value of the license and both rights of first refusal to be $15 million.

3) Among other provisions of the settlement, Ameren is required to:

Pay $7 million for the establishment of a local Tourism and Economic Development Trust Fund to promote tourism in the area and evaluate the need for a wastewater treatment facility for the town of Lesterville;

Pay $2 million to the Reynolds County School Fund;

Pay $3 million for the establishment of a Reynolds County Educational Enrichment Fund;

Pay $2 million to DNRs State Parks Earnings Fund for lost Johnsons Shut‑Ins revenue and the value of the timber destroyed in the park;

Rebuild the Upper Reservoir, and do so in an environmentally sound and publicly safe manner;

Pay a minimum of $2.4 million in Reynolds County property taxes through 2010 or until the Upper Reservoir rebuild is complete;

Create fish habitat and recreational opportunities in the Lower Reservoir and develop a more natural flow schedule for the East Fork of the Black River;

Guarantee that no costs associated with the breach will be passed on to Ameren rate paying customers;

"We hope that with this settlement Ameren and others will truly understand the lessons learned and recognize that if they are going to do business in Missouri they have a responsibility to create and maintain a safe environment," Gov. Blunt said. "We are very lucky that no one was killed in the Ameren Taum Sauk disaster and that park superintendent Jerry Toops, his wife and three children who were injured in the disaster are with us today. While some of Missouris treasures were lost forever in the Ameren Taum Sauk disaster, this settlement will help our state move forward with new natural resources and recreational opportunities for Missourians to enjoy for generations to come."