Several NSW National MPs are working to shift the Baird Government's policy on coal seam gas in support of a ban for the Northern Rivers region, after the election disaster in the seat of Ballina and near death experiences in the seats of Tweed and Lismore.
The MPs are considering a motion at next month's National party conference in the Hunter, calling on the party to formally adopt a change of policy.
"The community think it's inappropriate for the Northern Rivers and I support that," the newly elected upper house member, Ben Franklin, said.
Mr Franklin, who has moved to Ballina to keep the National brand alive in the region, said he has been overwhelmed by the depth of feeling in his community. While other communities such as Gloucester had some objections to CSG, Mr Franklin said the opposition in the Northern Rivers was universal, "We should be representing that view," he said.
In the nearby seat of Clarence, National MP Chris Gulaptis shares Franklin's view.
"It's the biggest issue of concern coming out of the election," he said. " It would be wrong to ignore it -- the community want a gas-field free Northern Rivers."
Gulaptis and Franklin are working behind the scenes for a change in policy and an offer of compensation to Metgasco, the major explorer in the region.
The company holds three exploration licences in the region and one production licence including the controversial Bentley licence, which was the scene of large protests prior to the election.
The Baird government suspended the Bentley licence but Metgasco was successful in its appeal that the move was invalid. On Monday the NSW government announced it would not appeal against that decision.
Metgasco has signalled it will be seeking compensation for the damage done by the suspension and said it was keen and ready to drill the Rosella gas exploration well, provided the government can guarantee law and order at the site.
But it has also left open the door to discussions of more generous compensation to effectively buy out its operations and close them. Chief executive Peter Henderson said shareholders would require $80 million to $120 million in compensation and it would need to go to a shareholder vote.
Such a shift in policy from the Nationals would be remarkable.
Its former leader, Andrew Stoner, used his valedictory speech in November to express his support for CSG and to castigate those who opposed the industry.
He said critics were running "the mother of all scare campaigns, driven and funded by individuals and groups ideologically opposed to the use of any fossil fuels" and they had created " widespread and often irrational fears, which have manifested in mass protests and blockades against safely accessing this low-emission energy resource."
In contrast Mr Franklin, used his maiden speech in May to argue for coal seam gas exploration and extraction to end.
Change of tune
In the past, the Nationals have taken substantial donations from the coal seam gas industry with Santos, the largest player, donating nearly $33,000 to the Federal Nationals in 2013-14, and AGL, the other big company in NSW, donating $5500 to the state party in the same year.
While Santos tends to donate to both Coalition and ALP at a federal level, it has favoured the state coalition parties over the last four years. Until it was taken over by Santos, Eastern Star Gas, chaired by the former National party leader John Anderson was also a regular donor to the state and federal Coalition parties, donating just over $50,000 to the Coalition in 2010-11, its last year before the takeover.
AGL has tended to channel its donations toward the coalition parties at state level - it gave the NSW Liberal party $22,500 in 2013-14 and has been a regular donor to the Millennium Forum, the Liberal's fundraising arm. When Labor was in power in NSW prior to 2011, AGL was a regular donor to the ALP.
