Published 1:20 PM, 15 Nov 2011 Last update 12:42 PM, 15 Nov 2011 AAP
Land owners and farmers say they have won a three-week stand-off with mining giant Santos over coal seam gas exploration rights in northern NSW.
Up to 90 locals set up a blockade 20 days ago around a property near Spring Ridge, northwest of Quirindi, which had been earmarked for coal seam gas exploration.
The group was worried that the mining method, which involves injecting liquids into the ground to release gas, could contaminate water supplies.
The group announced the blockade had been lifted after Santos suspended all exploration on the half-acre Glasserton SEL1 site until the completion of a water study.
"What the community has achieved here is a very important victory but it is really no more than plain common sense should have demanded," said Timothy Duddy, a spokesman for the Caroona Coal Action Group.
"Mining and coal seam gas exploration should not be allowed to proceed in areas with significant underground water resources until we know what the potential risks are."
Agreement between the parties was reached late on Monday, the group said.
Under the terms, Santos will be allowed to complete grading and fencing work around the site but then must withdraw until the Namoi Water Study is completed, possibly by April.
The study is examining whether mining poses any risk to water supplies in the Namoi catchment and Liverpool Plains.
Acting NSW Premier Andrew Stoner welcomed the decision by Santos to suspend its exploration in northern NSW.
"That's a good step because this is a company that is prepared to take on board community issues and act accordingly," he told reporters in Sydney on Tuesday.
NSW Greens senator Lee Rhiannon said the company's decision was a win for the local community.
"Santos is facing a massive public backlash and the gutsy three-week farmers blockade must have been the last straw," she said in a statement.
"The National Party is in disarray on this issue, torn by its close relationship with the mining industry.
"MPs of all stripes in NSW will be under the spotlight to make their position clear on coal seam gas exploration before the Namoi water catchment study is completed in April."
But Australian Workers' Union secretary Paul Howes said CSG mining, particularly in northern NSW, would provide a boom for eastern states and help create thousands of jobs.
He also criticised NSW Labor leader John Robertson, who recently called for the suspension of CSG exploration licences and for current drilling projects while new regulations surrounding the industry were drafted.
"NSW Labor was right in government to allow for the exploration of coal seam gas in this state, it was a smart policy in government," Mr Howes told reporters in Sydney on Tuesday.
"And it should be a smart policy in opposition.
"... Labor in opposition shouldn't be attracted to shallow, populist stances on these types of issues."
