Commenting on the Friday judgement, Santos made it clear that the environmental failures at the Bibblewindi water treatment plant in the Pilliga Forest occurred when ESG was operating it.

“The incidents occurred when the operations were conducted by different management and Santos recognises the importance of ensuring that industry complies with the high environmental standards expected by the community,” Santos NSW environment and water manager Alan Feely said.

“Santos has acted transparently throughout the process, releasing a report on the operational issues uncovered in the Pilliga and bringing them to the attention of the regulator.”

Santos first shut down the operations in the two relevant licences near Narrabri, including the water treatment plant, in December 2011 – weeks after acquiring ESG.

At that stage Santos found evidence of the unreported release of salty water from the facility as well as other reporting failures and then notified the regulator.

“The practices by the former owner of ESG were not up to the standard by which Santos operates,” Feely said.

“We carried out a thorough review of operations and work practices when we acquired ESG.

“Since then, we have spent around $17 million on rehabilitation in the Pilliga.

“Santos is well advanced in rehabilitating the impacted area under the supervision of the government regulator and in accordance with environmental best practice.”

Despite Santos’ efforts, the Nature Conservation Council quickly labelled the small fine as a disgrace.

"With a gross income of $3.2 billion from product sales in 2012 it will take Santos less than 10 minutes to recover the cost of the fine," NCC CEO Pepe Clarke said, according to the ABC.

"Santos will make its money back in the time that it takes for their lawyers to walk from the courthouse to the nearest coffee shop.”

Santos pleaded guilty to four offences, with the maximum penalty possible reportedly being $110,000 per offence.