MIDDLESBORO — Don't be fooled by the shore-to-shore ice. Fern Lake is hot.

        Real estate brokers say the pristine lake next to the Cumberland Gap National Historical Park has been the most-talked-about piece of property in the region since it went on the market late last year.

        The lake, a silvery landmark visible from the park, is surrounded by towering mountains, giving it a solitude broken only by ducks or the occasional fisherman.

        Many people have expressed interest, but no one has yet forked over the $5 million a Middlesboro coal company is asking for the 150-acre lake and 700 acres of land surrounding it on the Kentucky-Tennessee border.

        “It's such a beautiful spot,” said Martha Burke, the broker handling the sale for Appolo Fuels Inc.

        The company had wanted to mine coal on the property, but under pressure from residents, environmentalists and the National Park Service, the company could not get regulatory approval.

        The Park Service may now be one of the top contenders for the property. But officials in Middlesboro worry that red tape may allow private interests to purchase Fern Lake for commercial development before the federal government can make an offer.

        Middlesboro Mayor Ben Hickman worries each time he hears a new rumor of offers being made.

        “We've got one of the best water supplies in the United States,” Mr. Hickman said. “We want to protect it.”

        Ms. Burke declined to identify any potential buyers, though she described one as a lake development company. She said the property will be sold to the first buyer who meets the price set by Appolo Fuels.

        Congress would have to make a budget appropriation for the Park Service to purchase the land, and Washington officials have only recently begun talking about that, said Howard Miller, a representative of the Land Resource Division of the Park Service.

        “I'm not sure of the status now,” he said Friday.

        U.S. Rep. Hal Rogers, R-Somerset, has discussed the issue with the Park Service.

        “At this point, it really looks like a promising proposal with strong support from the community,” said Dan DuBray, a spokesman for Mr. Rogers.

        Mary Collier, assistant park superintendent at Cumberland Gap, said the lake would allow the park, which has 1.5 million visitors a year, to offer water recreation.

        “It's something we believe would be a plus,” she said.

        The U.S. Office of Surface Mining declared the mountains on the Tennessee side of Fern Lake off-limits to strip mining in 1996 because of potential damage to the water. The Park Service had opposed the mining because the scarred land would be visible from the Cumberland Gap's popular Pinnacle Overlook.

        Two years later, Kentucky officials entered an agreement order with Appolo Fuels to stop mining on the Kentucky side.

        Since the 1800s, Fern Lake has supplied water for Middlesboro. City Councilman Jimmy Pursifull said the water is so clear that fishermen can see their prey 10 feet below the surface.

        “Once we get it in the park's hands, it's going to be safe for future generations,” he said. “We really want the park to get it.”

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