ENERGY company Metgasco has succeeded in having suspension of a major gas drilling project at Bentley on the NSW north coast overturned in the Supreme Court, paving the way for a compensation claim against the state government.
In May last year, NSW Resources Minister Anthony Roberts announced the suspension of Metgasco's licence at Bentley due to a lack of public consultation and concerns "about the way in which Metgasco has characterised its activities".
The decision came days before police were due to be sent in to break up a long-running protest blockade and was challenged by Metgasco in the court.
NSW Energy Minister Anthony Roberts halted Metgasco’s North Coast exploration plans and said the licence to drill a test well at the Rosella drill site had been suspended due to concerns over inadequate community consultation.
“On 13 May 2014 the director of NSW Office of Coal Seam Gas and the NSW Land and Water Commissioner held a meeting with local landholders, at which matters of consultation between the community and Metgasco were raised,” Mr Roberts said.
“The director of the Office has now suspended the approval to construct the Rosella E01 gas exploration well.”
CSG Free Northern Rivers spokesperson Dean Draper said the community would remain opposed to gas development on the North Coast, as demonstrated in March at the ballot box.
“It is an inappropriate industry for our region,” he said.
“In the recent NSW election there was a swing away from the National Party and I hope that sends a message to the government, and taught them a lesson.
“They should do what needs to be done to regain our votes and cancel the drilling licence.”
Metgasco chairman Len Gill had previously flagged seeking compensation from the NSW government and a four-year extension of the company's drilling licence.
On Friday morning he said the company was "always confident" of victory.
"The key now is to go through the judge's decision in some detail and obviously we need to sit down with the government".
Mr Gill said Metgasco would issue a full statement later on Friday.
Comment is being sought from Mr Roberts.