SANTOS representatives were the first to make submissions to the Natural Resources Committee Fracking Inquiry on Friday, and said they were confident the inquiry would conclude that the natural gas industry was safe.
Vice-president eastern Australia James Baulderstone said the inquiry was an "unnecessary political distraction which could pose a threat to investor confidence in our state".
Family First MLC Robert Brokenshire told Mr Baulderstone that as a member of the committee, he was offended by the statement.
"We have a responsibility to ensure that democratic processes and checks-and-balances occur and we have a sustainable future with agriculture," he said.
"So I place on the record my concern, frustration and disappointment that Santos would show that sort of arrogance to a Parliamentary committee."
Mr Baulderstone said if there was a moratorium on unconventional gas extraction in SA, Santos would close down immediately.
Santos does not have any direct operations in the South East, but is concerned the inquiry may have implications on its gas production in the Cooper Basin, the future of which is dependent on hydraulic fracturing technology.
Mr Baulderstone said Santos had worked with farming communities since its inception and decades-long partnerships with pastoralists had been mutually beneficial.
He said SA had the best set of regulations to balance industry, environment and community concerns and this gave a competitive advantage to attracting future investment.
Halliburton Australia production enhancement country manager David Guglielmo told the committee SA could expect significant benefits from shale gas development.
He said Halliburton was not an operating company and did not hold permits or licences, but provided services to the oil and gas industry.
The company was the largest provider of hydraulic fracturing services in Australia and there had not been a single case where drinking water aquifers had been demonstrated to be contaminated.
Agriculture advocate Anne Daw, Kingston, outlined instances of non-compliance in the Cooper Basin including non-aqueous phase and dissolved phase hydrocarbons being detected in ground water.
"It only takes a small quantity of dissolved petroleum hydrocarbons (dissolved gas) to contaminate a significant amount of groundwater," she said.
Mrs Daw said other incidents included corrosion leaks, cracks in pipes, inappropriate disposal of waste water, uncontrolled flows of water to the surface, and drilling through an unidentified aquifer.
In their presentation, Environmental Defenders Office (SA) Inc coordinator andprincipal solicitor Melissa Ballantyne and management committee member Karen Bubna-Litic, considered whether current regulations in SA protected the community and environment.
Ms Ballantyne said the petroleum and mining sectors had never been subject to normal statutory planning and environmental controls which applied to most other industries.
She said the risk-based regulatory scheme had 'inherent deficiencies' and the preparation of documentation by the proponent of a mine was a fundamental flaw.
She said the EDO wanted to see an independent body established for assessment and regulation.