The Government says the Department of Conservation acted appropriately over the Lake Hayes wind farm project but must be more transparent about deals for resource consents.
Documents show Meridian Energy agreed to pay DoC $175,000 in return for it not opposing the Project Hayes windfarm near Ranfurly.
An urgent report ordered by Government from the department's director general Al Morrison says the money was not paid to silence the Department.
He says it was the amount agreed to mitigate the conservation impacts of the project, and and will be paid if the scheme goes ahead.
Acting Conservation Minister Smith is satisfied with the department's assurances over the deal.
He says its approach was "entirely appropriate" for a project of national importance.
Dr Smith says it makes no sense for the taxpayer to pay for lawyers representing different parts of the government in the Environment Court.
He is confident the department has learnt lessons from the public's reaction to the deal.
