Following the closure, the Queensland Department of Mines and Energy issued a notice preventing operation of the pipeline until detailed engineering analysis proved its integrity.

Santos says it continues to work closely with the Environmental Protection Agency and Brisbane City Council on the cleanup in Algester, and this work is now well advanced.

"Santos continues to extend full support to the Algester community and has paid for all the clean-up efforts," the company said in a statement.

Santos says extensive work and testing would be required to prove the suitability of the pipeline for a return to operation.

"Given the expense and difficulty of this work, Santos will not seek to reopen the pipeline," the company said.

Since the closure of the pipeline, Santos has made alternative arrangements for the trucking of crude oil production from Moonie to Brisbane. The requirement to truck oil to Brisbane will be reduced upon the completion of the new Jackson to Moomba pipeline later this year.

The remaining book value of the pipeline was fully written off in Santos' 2007 accounts. Provision was also made for the costs of decommissioning, remediation and rehabilitation.

Santos says it will shortly be writing to all landholders adjacent to the pipeline easement and other interested stakeholders informing them of the planned closure and advising them of next steps.

"As part of this process, Santos will work closely with the Queensland Government and engage the community to ensure that the strategy for decommissioning the pipeline meets both industry best-practice and is fully understood by all relevant stakeholders," the company said.

Further information about the decommissioning can be obtained via Santos' dedicated Moonie to Brisbane pipeline website (www.mooniebrisbanepipeline.com.au), or by calling the company's community contact hotline on 1800 882 185.