The Environment Protection Authority is investigating a 500-litre wastewater spill from a coal-seam gas operation at the Pilliga forest in north-western NSW.
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The waste water was spilt during a transfer from an assessment well to a holding pond at the Santos gas field near Narrabri on Tuesday, the EPA said.
''Immediately following the release, the diversion drain was blocked to prevent the produced water leaving the site,'' it said.
''The produced water was captured and returned to the pond.''
An EPA spokeswoman said the spill involved Bibblewindi 2 pond, not the No.3 pond that is leaking wastewater into the aquifer layer beneath.
Fairfax Media revealed earlier this month that an investigation had found Santos had contaminated the aquifer, with uranium at levels 20 times higher than safe drinking water guidelines.
The Greens described the water spilt on Tuesday as ''toxic'' and said it contained high levels of salt, as well as dangerous heavy metals such as arsenic, lead and uranium. Greens MP Jeremy Buckingham called for Santos' operations to be halted.
''This latest spill of toxic coal-seam gas water is proof that this industry is unsafe no matter who runs it,'' Mr Buckingham said.
