Santos has won $9 million in court costs from environmental lawyers who challenged a planned pipeline.

The Federal Court of Australia has ordered the Environmental Defenders Office (EDO) to pay Santos $9,042,093.05 in legal costs following the dismissal of a challenge by Tiwi Islanders.

The court case was aimed at halting the construction of a 262-kilometre gas pipeline in the Timor Sea.

The EDO, acting on behalf of three Tiwi Islanders, launched proceedings against Santos NA Barossa Pty Ltd to block the installation of the Barossa Gas Export Pipeline, citing potential cultural and environmental harm. 

The pipeline project connects the Barossa gas field to existing infrastructure near Darwin and forms part of a broader $2.5 billion initiative.

The Applicants argued the pipeline would disturb the travels of the Ampiji rainbow serpent and Crocodile Man, both significant to Tiwi Islanders’ cultural heritage. 

The case also raised concerns about potential evidence of ancient human occupation on the seabed, a remnant from when sea levels were lower.

The challenge relied on a cultural mapping exercise and expert testimony. 

However, Justice Natalie Charlesworth found the evidence “lacking in integrity” and dismissed the claims, stating the cultural mapping exercise had been manipulated. 

Dr Mick O’Leary, a geoscientist who collaborated on the mapping, was criticised for his lack of independence, with the Court ruling his reports were “so lacking in integrity that no weight could be placed on them”.

Justice Charlesworth’s ruling dismissed the challenge in January 2024, allowing pipeline construction to proceed. 

Subsequently, Santos pursued the EDO for its legal costs, citing the organisation's active participation in the “Stop Barossa Gas” campaign. 

The EDO voluntarily agreed to pay the indemnity costs, which cover Santos’ full legal expenses.

Santos has welcomed the outcome, saying it shows the need for accountability in legal challenges aimed at delaying critical projects. 

Northern Territory Environment Minister Joshua Burgoyne also supports the decision, describing such legal actions as “environmental lawfare”. 

The Barossa Gas Project and the associated Darwin LNG Life Extension project are anticipated to secure around 600 construction jobs and 350 operational jobs for 20 years. 

The NT Government has projected significant economic benefits from these projects, including wages and contracts for local workers.

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