Moonie has been ordered to pay $496,136 in compensation over what is the state’s biggest oil spill, following proceedings brought by the Environmental Protection Agency (EPA).

EPA regional director, southern, Ron Anderson said the payout honours a commitment by the company to cover all costs associated with the spill, and ensures the Queensland Government is not out of pocket.

“The agency hopes this case will act as an incentive for others to have careful regard to their environmental obligations,” Anderson said.

“The company should be commended for the efforts taken following the spill and accepting responsibility for its actions.

“However, it is always better to take preventative steps to avoid such incidents rather than causing environmental harm, and being faced with the clean-up, court action, penalties and compensation.”

The court orders bind Moonie to pay $496,136 for the costs incurred by eight government agencies and the Port of Brisbane Corporation during the incident response and remediation of the site.

On March 17, 2003, a pipeline carrying oil from Moonie to Brisbane ruptured at Lytton, and an estimated 1.9 million litres of light crude oil leaked into 5ha of reclaimed riverside land, drainage channels and small creeks near the Port of Brisbane.

Moonie Pipelines, a subsidiary of Santos, was initially fined $300,000 with an additional $55,000 for associated court costs.

The company also faced up to $2 million in compensation payouts to cover the emergency response, initial clean-up and long-term rehabilitation of the affected area.

It is thought a fleet of "sucker" trucks vacuumed 1.6 million litres of the oil up, while 66% of the remaining oil was believed to have evaporated.