Santos to pay the price for CSG contamination COAL-SEAM gas giant Santos has pleaded guilty to a string of charges related to an unreported contamination spill in the Pilliga scrub in northwest NSW, in one of the first major prosecutions involving the industry. Santos faced nine charges relating to the spilling of large quantities of salty water in the Pilliga, operating a faulty water treatment plant and failing to report the incidents. The case, brought by the NSW government under the state's Petroleum Onshore Act, was heard in the Land and Environment Court yesterday by judge Rachel Pepper. The incidents occurred when the Pilliga operations were owned by Eastern Star Gas, which had been chaired by former deputy prime minister John Anderson. Santos took over Eastern Star in late 2011. "Santos accepts it will be held responsible for the reporting failures, despite the fact they occurred when the operating company had different ownership and management, and has thus pleaded guilty," said spokesman Sam Crafter. Santos has fully co-operated throughout the process, including releasing a report on the operational issues uncovered in the Pilliga and bringing them to the attention of the regulator. Since Santos took over Eastern Star, four "minor spills" had occurred at the project, but all were reported to authorities. Following community pressure, the NSW government is moving to introduce legislation banning CSG exploration and production within 2km of existing "and future" residential areas. In the Pilliga, which is not affected by those bans, Santos plans to drill about 400 gas wells, spending more than $2 billion. The group said it had spent about $17 million on rehabilitation work following the spills. Justice Pepper said Santos would face a penalty for the breaches at a future sentencing hearing.