Oil and gas producer Santos Limited
(ASX:STO) is in the firing line from environmental groups and the state opposition amid calls to halt a fast-tracking deal concerning one of its coal seam gas projects.
Controversy heated up after the energy company was fined $1,500 for contaminating an aquifer near a coal seam gas project it operates in north-western New South Wales.
The Environment Protection Authority issued the fine to Santos last month after the incident which occurred at the company's Narrabri Gas Field operations.
However, Labor environment spokesman Luke Foley says the company’s Memorandum of Understanding should be torn up in light of the contamination.
Greens NSW MP Jeremy Buckingham has described the contamination as totally unacceptable and asked for all of the state’s coal seam gas projects to immediately stop.
Responding to the criticism Santos released a statement over the weekend acknowledging the concerns but claiming the reported levels of uranium and other elements pose no risk to people or the environment.
Santos says the water treatment facilities at the site were shut down in December 2011, shortly after the company took over the operations from Eastern Star Gas.
Santos’ net profit dipped 1 per cent to $516 million in the 2013 calendar year.
