The clarification from district Collector A Annadurai came even as shops in Kathiramangalam remained closed for the sixth day protesting the alleged leak in the ONGC pipeline.
The Collector said there was no crack in the ONGC pipeline and added that officials were checking if oil had leaked and got mixed with drinking water.
He also offered to hold talks with the locals over the issue.
Deputy Superintendent of Police Venkatesan rushed to the spot and held talks with them, following which the protest was withdrawn.
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In a related development, around 300 weavers from the village, undertook a protest fast, seeking release of those arrested in connection with the violence on June 30, police said.
They also demanded that ONGC stop exploration work in the the village and its workers leave the place.
About 50 college students also participated in the fast.