Riverina irrigator Dean Troy Salvestro has been convicted and fined $156,250 for water offences relating to the over-extraction of water.
The market value of the water extracted unlawfully was "substantial", with the regulator estimating it to be more than $1.1 million.
The NSW Land and Environment Court found there was no motivation of financial gain in committing the offences and accepted the water was paid for.
Mr Salvestro, who owns Warrawidgee Station near Griffith and grows crops including grapes, cotton, wheat, canola, barley and corn, pleaded guilty to five charges, which were brought by the Natural Resources Access Regulator (NRAR).
Four of the charges were in relation to breached bore extraction limits and one involved taking water not in accordance with an access licence allocation.
In addition to his fine, Mr Salvestro was also ordered to pay $60,000 in legal costs, and to pay for a notice to be published in The Land and The Irrigator newspapers notifying the community of the conviction and offences.
Mr Salvestro's legal representation told the ABC he did not intend to appeal the decision and highlighted the court's finding that Mr Salvestro was not motivated by financial gain, that he had paid for the water and was unlikely to reoffend.
NRAR wants irrigators to heed warning
NRAR investigation and enforcement director Lisa Stockley said the agency took the matter to court for the purpose of deterring others and to improve public confidence in water compliance.
"It's for the purpose of stopping the actual individuals involved from continuing in that behaviour," Ms Stockley said.
"It's also for general deterrence so other water users in the regulated [irrigation] community are aware of the laws and are aware of what might happen if they don't comply with their requirements."
Ms Stockley said it also reinforced the existence of NRAR to ensure fairness for all water users and to make sure they all abided by requirements.
"It's also that water users in the community in general have confidence in the appropriate regulation of this finite resource."
Mr Salvestro is a third-generation farmer who manages 12,000 hectares of land in the Murrumbidgee Irrigation Area.
The crops on Warrawidgee Station were irrigated using a combination of surface water obtained from Murrumbidgee Irrigation and groundwater extracted from the Lower Murrumbidgee Deep Groundwater Source by way of groundwater bores.
'Risk of environmental harm'
In court, Mr Salvestro relied upon affidavits from his sister Kate Beltrame, former Griffith mayor John Broi and agronomist Mark Zanatta (Mr Salvestro assisted in establishing Mr Zannata's business).
Mr Broi and Mr Zanatta spoke of Mr Salvestro's good character, including his contribution to various community events and donations he has made to a private hospital.
In his affidavit, Mr Salvestro also said he was involved in five other agricultural business including as deputy chair of cotton ginning facility RivCott.
In handing down her decision, Justice Rachel Pepper said the offending posed a "real risk of environmental harm" and that it was up to water users to know their licence or approval conditions and follow them.
Mr Salvestro told the court he was "saddened" by the suggestion made by the regulator that he had caused environmental harm "as a result of my production of our food".
Brother-in-law also guilty and fined
In related proceedings, another Riverina irrigator, Robert Beltrame, who is Mr Salvestro's brother-in-law, was ordered to pay a fine of $26,250 for breaching a bore extraction limit.
The court ordered Mr Beltrame to pay $20,000 in costs.
Mr Beltrame operates a farming business in Warrawidgee, near Griffith, growing popcorn and other crops.
The irrigator pleaded guilty to a single charge of breaching the conditions of a licence approval to over-extract 97.5 megalitres of water from a bore during drought in 2019 to 2020.
The prosecution was brought by NRAR in the NSW Land and Environment Court.
Editor's note (April 13, 2023): This story has been changed to better reflect the judgement, including removing the characterisation of the offence as theft or stealing.
