SANTOS admitted yesterday a NSW gas company it recently bought failed basic reporting practices for weekly water testing, in another blow to the environmental credentials of the fast-growing coal seam gas industry.
The energy giant said it had identified "improper reporting practices" within Eastern Star Gas. It bought the company three months ago for $730 million to bolster its gas reserves, The Australian Financial Review reports.
The company has pledged to spend $20 million upgrading Eastern Star's site, equipment and processes in the protected Pilliga East State Conservation Area after it found the "reporting culture and many of its operational practices fell short of the standards the NSW government and community should be able to expect".
Santos has previously disclosed three contaminated water spills from operations formerly owned by Eastern Star.
However, it said there were "no risks" of adverse health effects as a result of leakages or spills of water and it was not to blame despite previously holding a stake in the gas venture. "Santos did not know and could not have known about these issues either in its capacity as a minority joint venture participant or shareholder," Santos said yesterday.
"The resulting environmental impact is localised, can be remediated and there is already evidence of some natural re-growth occurring."
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