In September, the pipe was found to be leaking treated wastewater about 70m from Whirinaki Beach Rd rather than the usual 2.4km.
Repair attempts have so far been unsuccessful.
The public were advised to avoid swimming and collecting shellfish within 150m of the pipeline. Pan Pac was not prosecuted for the leak as the discharge caused minor effects on the surrounding marine environment.
Pan Pac representative Martin Williams appeared before Judge BP Dwyer along with Environment Commissioner Jim Hodges in Napier on Monday morning.
During the hearing Williams said they had been "dealing with the discolouration issue".
Representatives from the Hawke's Bay Regional Council James Winchester and Conor Pope-Moody.
Also in attendance was Emma Crayton-Brown from the Maungaharuru-Tangitu Trust, who also opposed the consent application.
In a letter sent to residents, managing director Doug Ducker said Pan Pac was planning to proceed with the fibreglass patch solution pitched in February.
Ducker said it was also exploring a repair solution that uses Swiss technology to insert a linear inside the pipe from above the water line out to the existing polyethylene pipe.
"This is a reliable method for isolating contact with the original steel pipe and reducing the risk of subsequent failures."