The former US Naval Air Station Bermuda Annex was located on Morgan's Point, a peninsula that had been created by the United States Navy between 1941 and 1943 by infilling between Morgan's Island, Tucker's Island, and the Main Island to create what was originally known as the Naval Operating Base Bermuda. This was a joint surface vessel and seaplane base that ultimately became an annex to the Naval Air Station Bermuda between 1970 (after seaplanes fell out of use) and the closure of all US bases in Bermuda in 1995. It was returned to Bermuda in 1995 with the premature termination of the US Navy's 99 year lease. The base had functioned as a way station for ships and seaplanes for over 50 years but the end of the Cold War saw cutbacks in troop deployment throughout the world and the base was no longer needed
The military base, being a self-contained municipality and obeying the laws of its home county, had been very detached from the rest of the island. Without feeling a strong connection to the nation, and knowing that their presence was only temporary, the full costs of disposing of sewage and waste fuel on the base was likely never calculated. A confidential 2002 report by the Department of Environmental Protection of the Ministry of the Environment estimated that 520,000 gallons of oil and several tons of raw sewage had been pumped into Bassett’s Cave on the former NAS Annex, and a further 55,000 gallons of jet fuel pumped underground 200 ft (61 m) away. In the decade since the pollution was discovered it has been left almost totally undisturbed. The base is very rarely opened to the public, and all talk of developing the lands has been stonewalled by the Government. The cave formation has kept the oil somewhat contained and the now abandoned base has not been opened to development for fear that the pollution may spread and have catastrophic costs.
Often described as a "biodiversity hotspot", the isolation of these caves for thousands of years has led to the formation of 75 endemic stygobitic species (including 6 species of shrimp), 25 of which are considered critically endangered. Beyond their value as unique organisms, their total isolation provides an exceptional biological microcosm fit for study which could yield "unfathomed benefits", particularly in regards to the formation and evolution of moderately complex organisms. Bassett's Cave is now so heavily polluted that nothing lives in its water, but some people fear that unless the pollution is cleaned up it may spread further into the island's cave system and damage currently pristine habitats.