The national gas regulator failed to recognise Tiwi Islander traditional owners as interested parties who needed to be consulted on a massive off-shore gas project, a barrister claims.
Tiwi Islander Dennis Tipakalippa from the Munupi clan is fighting the regulator's decision to allow Santos to drill eight wells in the Barossa gas field, 265 kilometres northwest of Darwin.
The regulator had material to show the Munupi people were relevant and interest parties who needed to be consulted on the project, Mr Tipakalippa's barrister Claire Harris QC told the Federal Court sitting in Darwin.
The National Offshore Petroleum Safety and Environmental Management Authority also had information to show Santos did not consult directly with the traditional owners, Ms Harris said on Wednesday.
The law requires companies to identify a project's interested parties and consult with the groups on how it would manage any risks to the environment.
It was clear the Munupi people were relevant stakeholders in the Barossa project, Ms Harris said.
"Their relationship to the land and sea readily falls within the concept of an interest," the barrister said.
"Those kinds of interests are well known to the courts."
Santos should have given the Munupi people and other Tiwi Islander traditional owners all of the relevant information so they could provide appropriate feedback, Ms Harris said.
The barrister claims the groups were only given a map of the project area that did not detail its proximity to the Tiwi Islands.
Santos, which is Australia's second-largest independent gas producer, has said it would "vigorously defend" the Barossa project, and that it had all necessary approvals following consultation with stakeholders.
The $US3.6 billion ($A5.2 billion) offshore natural gas development is expected to create up to 600 jobs and pipe gas 280km to the Darwin LNG facility, with first production expected in 2025.
The company says the project, which it purchased from ConocoPhillips in 2020, is 43 per cent complete and on schedule. The drilling that is the subject of the court case started in July.
Ms Harris will continue her closing arguments on Wednesday afternoon.
