Gas company Metgasco has won its case against the state government to reinstate its drilling licence at Bentley after it was suspended last year.
However, Justice Richard Button said that while the suspension process undertaken by the government was not lawful, the judgement did not reflect the merits or otherwise of the suspension itself.
Metgasco鈥檚 licence was suspended in May last year after a large community campaign against its plans to drill for unconventional gas at Rosella, about 15 kilometres from Lismore.
Metgasco had wanted to test for gas in conventional and tight gas rocks. Residents opposed to the project organised a months-long protest camp at Bentley and blockaded the entrance to the site, preventing drilling equipment from entering.
NSW energy minister Anthony Roberts suspended Metgasco鈥檚 licence for failing to 鈥渦ndertake genuine and effective consultation with the community鈥 just days before 900 NSW police had been ordered to break up the camp and escort a drill rig onto private property.
Roberts also asked the Independent Commission Against Corruption to investigate whether the licence, first granted in 1996, was granted 鈥渆ntirely properly and without any undue interest or influence鈥.
Powerful industry body the Australian Petroleum Production and Exploration Association backed Metgasco鈥檚 appeal, saying at the time that the government鈥檚 decision was a 鈥渟ignificant concern鈥 and had set a 鈥渄amaging precedent鈥.
Gasfield Free Northern Rivers regional coordinator on April 24 that if Metgasco is successful in its demand for compensation 鈥渕ore public money is going to be thrown at a dangerous and unpopular industry鈥.
鈥淭his mess is a result of the NSW government鈥檚 failure to act decisively to create a watertight legislative means to cancel the Northern Rivers unconventional gas licence.
鈥淭here is now an urgent need for new legislation to enable the government to cancel mining titles on public interest grounds, without compensation, and to make the Northern Rivers permanently gasfield free, as the community wants.鈥
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