Bedale Town Council has escaped prosecution over controversial dredging of Bedale Beck but has been given strong official advice on how the radical results should be managed.

A meeting with the council on Monday was requested by the Environment Agency to establish whether proper procedures were followed during the work, which saw silt dumped on the northern bank of the beck and seeded.

The timing and extent of the major improvement project costing about £5,000 was criticised earlier this year by people concerned about the possible effect on wildlife above and below the water. One critic claimed so much vegetation had been removed that the area resembled a moonscape.

The work, between Bedale Bridge and the weir, was defended by the council, which said it was almost 30 years overdue and pointed out that a wildlife survey had been conducted beforehand by a private landowner. It was hoped the work would reduce flood risks to beckside properties and vegetation removal was necessary to help establish the condition of a bank which needed piling for public safety.

Mike Riby, Environment Agency team leader for the area, said the meeting had been positive. The council realised it had made some mistakes and both parties were looking forward to what improvements could be made.

He added: "The council now realises that the Works in Rivers permit process was its opportunity to get opinions on its plans from every relevant department within the Environment Agency, including flood risk management, biodiversity and pollution prevention.

"While we have received reports of harm to local wildlife both on the site where work has been carried out and from silt washed downstream, it is difficult to verify this.

"We have therefore decided on a positive approach and have offered advice on how best to manage the riverside area that has been covered with dredged silt so that it will benefit wildlife.

"There may also be an opportunity to manage this area as an overflow washland to help protect properties downstream that are vulnerable to flooding.

"Bearing this in mind, we are satisfied that enforcement action is not appropriate in this case. We have agreed with the council that it will send us some proposals for enhancements it could make to the area, which will hopefully put it at least back to the habitat it once was.

"This is a lesson in proper planning of work that affects the environment. I would advise people that if they have any doubts they should call us for advice well in advance of doing any work."

Coun Ellen Dunning, the mayor, said: "We had a very sensible discussion and decided to work with the agency in the future and we came to an amicable agreement. That is the only comment I wish to make."