Located about 110km north of Moomba on the Cooper Creek floodplain in South Australia's far northeast, the system includes about 1500sq.km of wetlands on the floodplain, with a 300sq.km national park where mining and grazing will be banned. Mining also will be prohibited in a special area surrounding the park.

The catalyst for the decision was an agreement between Santos, which previously held the exploration rights to the Coongie Lakes area, and the South Australian conservation movement, representing 50 environmental groups.

In 2001, Santos initiated negotiations for a Memorandum of Understanding (MoU) with the South Australian Conservation Council and the Wilderness Society. The MoU recommended that the Government protect the Coongie Lakes and adjacent areas not covered by petroleum licenses.

The MoU called on the SA Government to make the Coongie Lakes Control Zone (CLCZ) a "no-go" area for resource activities and to increase the size of the CLCZ to include important wetlands nearby.

The Lakes are part of an important freshwater wetland system in arid Australia. In recognition of their significance, they were declared wetlands of international importance under the Ramsar Convention in 1987.

"The Coongie Lakes are a series of unique freshwater wetlands and lakes in arid Australia. Santos therefore decided it needed to bring the parties together on this important environmental site," said Santos' managing director, John Ellice-Flint.