The company pleaded guilty to three breaches of the Environmental Protection Act 1994 in the Brisbane Magistrates Court.

In May and June 2010, the company detected benzene and toluene in two of its groundwater monitoring wells.

Cougar asserts that it pleaded guilty despite there being “no environmental harm arising from the offences”

The first charge related to the failure by the company to supervise contractors cementing a production well to comply with environmental procedures onsite.

The second charge said the company was late in releasing results that showed levels of toluene and benzene in the well.

The final charge related to the release of air containing toluene and benzene to the company’s dedicated groundwater monitoring bores.

Cougar will pay the charge as well as $40,000 for legal and investigation costs incurred by the Department of Environment and Heritage Protection.

The company said the results would not have an impact on the projects at the Mackenzie and Wandoan tenements in Queensland.

The DEHP acknowledged that Cougar’s groundwater monitoring bores had provided an early warning detection system and that no harm resulted from the incident.

No conviction was recorded against Cougar.

Queensland Environment and Heritage Protection Minister Andrew Powell said the sentence was serious as it dealt with the rupture of a production well in the early stages of the company’s pilot trial.

“The issue of water contamination is very serious and this fine reflects the importance of meeting strict environmental conditions,” he said.

“Cougar failed to properly install the production well to a standard necessary to ensure compliance with its environmental authority.

“As a result, Cougar released the UCG contaminants of benzene and toluene to groundwater and failed to notify the department of the contamination within a reasonable timeframe.

“Mining companies have an obligation to notify the state government of an incident as soon as possible.”