The conduct of the Environmental Defenders Office in a court case with Santos has been reviewed.

The EDO has been found not to have breached the conditions of its $8.2 million federal funding during its legal battle against gas giant Santos.

A review was commissioned by Environment Minister Tanya Plibersek after Justice Natalie Charlesworth criticised the EDO’s conduct in a January court case. 

The review found no evidence of misconduct or fraud by the EDO.

The case involved Tiwi Island traditional owners who argued that Santos had failed to properly assess submerged cultural heritage in the area where it planned to construct a pipeline for its Barossa offshore gas project. 

The traditional owners sought an injunction to halt the pipeline works until a new environmental plan was submitted and approved by the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA).

In dismissing the case, Justice Charlesworth found that an EDO lawyer and a cultural heritage consultant had engaged in “subtle coaching” of the Tiwi Island witnesses. She also described some of the expert witness evidence as “confection”. 

Following this judgement, opposition leader Peter Dutton pledged to defund the EDO if the Coalition won the next election. 

The EDO's funding, initially cut by former Prime Minister Tony Abbott in 2013, had been reinstated by the Albanese government.

Independent legal advice sought by Plibersek’s department concluded that the comments in the judgement did not substantiate any breach of the EDO’s business hubs grant agreement with the Department of Industry, Science and Resources.

David Morris, CEO of the EDO, welcomed the review's findings. 

“We are proud to deliver high-quality legal services under the terms of the federal government’s grant agreement and to represent those seeking to exercise their right and to protect nature and the climate,” Morris told reporters. 

“Without federal support, many Australians would be unable to access the legal system or participate fully in environmental decision making.”

Despite the clearance, the review recommended additional assurances and variations to the grant agreement to clarify the standards expected by the Commonwealth.

Separately, Santos has announced the layoff of about 200 staff members, predominantly based in Perth. 

The gas company has attributed the job cuts to slower project approvals and a shift in focus towards capital-intensive decommissioning activities.

Santos, headquartered in Adelaide, says that the decision followed a detailed review of its operations in Western Australia, Northern Territory, and Timor Leste. 

“New project approvals are taking longer, meaning work programs are more sequenced than in the past, and some growth activities have been delayed,” the company said.

The announcement follows the collapse of merger talks between Santos and Perth-based global energy giant Woodside, which could have created an $80 billion company. 

In February, Woodside announced that the merger discussions had ended without an agreement.