The Leppington Pastoral Company has been fined for 'unlicensed water take' over the operation of a small farm in Oran Park throughout several decades.
The company, part of the Perich Group, entered into a $425,000 'enforceable undertaking' with the Natural Resources Access Regulator (NRAR) after learning the agency was investigating its water usage.
Under section 60A of the Water Management Act 2000, it is an offence to take water without, or otherwise than authorised by, an access licence, and section 91B makes it an offence to construct or use water supply work without an approval.
A representative of Leppington Pastoral Company said they worked co-operatively and collaboratively with the NRAR to reach the agreement after learning of their breach.
"Leppington Pastoral Company (LPC) is pleased to have reached agreement with the NSW Natural Resources Access Regulator (NRAR) regarding the storage and use of water on one of its western Sydney properties, which is used for grazing of dairy cattle and associated cropping," their statement read.
"LPC has fully cooperated with the NRAR review and accepts that it has breached the Water Management Act through the use of dams on the property that were constructed in the 1970s and 1980s and pre-date the Act.
"LPC will meet all of its obligations under the enforceable undertakings, including the planned rehabilitation of a 700 metre section of South Creek, and has since secured all necessary water licences and entitlements to ensure it can continue its farming operations."
The undertaking includes $300,000 for unlicensed water take, $100,000 for the water regulator's legal and investigation costs, and a $25,000 donation to Landcare for work on South Creek.
The South Creek work includes removing a large dam and returning 990 megalitres of water to the community, associated with the current subdivision development of the area.
NRAR's director of water regulation, Gregory Abood, said dams and pumps on site had not been approved.
"Three large dams on the property were constructed in the 1980s and have capacity to hold around 1680 megalitres of water used to grow dairy feed," he said.
"Best estimates of the water use vary between 1000 and 2000 megalitres annually which could fill between 400 to 800 Olympic-sized swimming pools each year."
After being informed by the NRAR that they were in breach of the Water Act, Leppington Pastoral Company got the required works approvals and water access licence.
"The enforceable undertaking is a positive outcome for all parties and is considered both a sensible and preferred option over prosecution as the amount is likely to be at least as high as a court penality," Mr Abood said.
"The undertaking is also a great result for the people of NSW because it avoids NRAR incurring significant legal costs and delivers a regulatory outcome much sooner than a prosecution in the Land and Environment Court."
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