Hunter Valley Station - on the shores of Lakes Hawea and Wanaka - was sold to Matt Lauer in March 2017.

Taxpayers could be forced to pay millions of dollars in compensation to disgraced TV host Matt Lauer to guarantee public access to his high country station.

Lauer has partly opened up Hunter Valley Station to the public, complying with conditions set by the Overseas Investment Office when he bought the farm last year.

But the Department of Conservation and the Walking Access Commission are now pushing for unfettered access for trampers, hunters and tourists to a 40km unsealed, lakefront road that runs through the property.

That's likely to cost taxpayers – with Lauer threatening court action and refusing to waive compensation.​

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LUCAS JACKSON Officials are worried about "the optics" paying compensation to Matt Lauer: "a very wealthy American with a tarnished reputation."

The Walking Access Commission has applied to the Commissioner of Crown Lands for an easement (or right of way) over the track, which runs along Lake Hawea. The Commission is balking at paying big money to "a very wealthy American with a tarnished reputation", official documents say.

Lauer's company Orange Lakes Ltd owns the lease to the $13 million, 6500-hectare property – but the Crown still owns the land. It would mark a legal first if an easement was granted against the wishes of a lessee.

Lauer is legally entitled to be compensated for the easement – and Federated Farmers has swung its support behind him, fearful of the precedent if he were forced to grant access for free.

Officials guessed the compensation would be worth about $50,000. But Lauer's lawyer Graeme Todd says his client will demand more and that could stretch into "the millions."

He says Lauer wouldn't have bought the farm if he couldn't control access to the road, which runs right by the station homestead.

"Orange Lakes will understandably first exercise their rights to appeal the decision to the High Court and beyond," Todd said. "Even if such challenges failed, the pastoral lessee is entitled to compensation ... that is likely to be considerable – most likely running into, at a minimum, hundreds of thousands of dollars, if not more."

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The anchorman was fired by NBC in November after allegations of sexual misconduct. Emails released under the Official Information Act show official discomfort at being forced to pay him.

"The issue of compensation may be tricky; the 'optics' of taxpayer money being paid to a very wealthy American with a tarnished reputation are not clear," Walking Access Commission operations manager Ric Cullinane wrote in January.

The Conservation Department's operations manager Mike Tubbs wrote back: "I hope the compensation point is not too sticky."

Commission chief executive Eric Pyle says trampers, hunters and anglers have been unsuccessfully seeking access to the Hunter Valley, which stretches to the Southern Alps, for "decades."

"Hunter Valley is the only major river valley into the South Island High Country without any public access rights," he said. "Without access through Hunter Valley Station, the publicly owned Hawea Conservation Park is essentially made unusable for New Zealanders."

Grant Fyfe is chair of the Upper Clutha Track Trust. He believes the public would enter the property "at their own risk" and would not be the responsibility of the landowner.

"The idea that the taxpayer should have to pay huge compensation to a very wealthy foreigner is repugnant," he said.

The Hunter Valley is "quite special but hasn't had much in the way of exploring because of the limited access," he added.

Matt Lauer was fired from NBC's Today Show over allegations of sexual misconduct.

​Lauer was concerned about public safety in a prime tourist destination. Farming operations like top-dressing and burn-offs would be curtailed in case it put trampers at risk, Todd said.

"This track is narrow, impassable in many areas, requires a number of creeks and the Hunter River to be traversed and can be easily affected by the adverse weather often experienced. There's no cellphone coverage and is only appropriate for properly equipped vehicles and drivers experienced in such conditions," Todd said.

The row has got Federated Farmers worried. Otago president Simon Davies says it's "open slather" on farmers.

"There is no question this would set a precedent that would be exceeding worrying. All of a sudden [leaseholders] have liability for something they have absolutely no control over. High country stations can be dangerous places."

But Pyle says the fears are overstated. "There are numerous examples across the High Country and other parts of New Zealand where public access and farming operations co-exist without problem."

SUPPLIED Locals have long campaigned for access to Hawea Conservation Park in Central Otago, through the Hunter Valley Station.

Deputy chief executive of Crown Property Jerome Sheppard said the Commissioner was gathering information on which to make a decision.

"Compensation is normally paid for any financial impact. This is usually set by agreement between the parties or by the Land Valuation Tribunal. As part of the assessment of this particular application the Commissioner will obtain valuation advice on the financial impacts of the easement."

TIMELINE

April 2015 - Hunter Valley Station owners close Meads Rd on April 7, access by road to the Department of Conservation reserve at Kidds Bush. Locals protest.

April 2016 - After a holiday here, TV anchorman – and keen fisherman – Matt Lauer raves about "sensational" New Zealand in an interview with Jimmy Fallon.

August 2016 - The station is on the market and Lauer's representatives meet with the Department of Conservation and other local groups. He indicates he will improve access throughout the property but will not allow unrestricted access to Hunter Valley Station Road

February 2017 - Reese Witherspoon and Oprah Winfrey film Disney movie A Wrinkle in Time at the station

March 2017 - The Overseas Investment Office approves Lauer's purchase, but imposes four access conditions. This does not include unrestricted access to Hunter Valley Station Road

November 2017 - The OIO opens an investigation into Matt Lauer after he was fired as an NBC host over allegations of sexual misconduct. They want to know if he has breached a "good character test".

March 2018 - The Walking Access Commission lodges an application with the Commissioner of Crown Lands for an easement on Hunter Valley Station Road.

June 2018 - The Overseas Investment Office rules Lauer is fit to keep the station.