Santos, AGL 'lock the gate' in NSW

The companies have agreed not to enforce arbitration over land access for CSG operations.

It will be the first such commitment in Australia.

The move has been met with glowing enthusiasm from the farm lobby.

Coal miners and other companies are concerned this agreement will raise community expectations and inhibit their plans to grow.

“This is a great start. They agree with what we have been saying all along," said Lock the Gate national campaign director Phil Laird said.

“Now is the time for the NSW government to formalise the landholders’ right of veto in legislation.

“(There is) serious concern in the community and at this point the credibility of the companies is fairly low.

“Projects get sold on and management changes, and the commitment they are making today may change in the future - therefore the only way for landholders to have real confidence is for it to be cemented into legislation.”

NSW Farmers and Irrigators councils, Cotton Australia, NSW Resources and Energy Minister Anthony Roberts and the gas companies negotiated the historic agreement, which will be formally signed at NSW Parliament House today.

NSW Farmers resources spokesman Mitchell Clapham said “this is an historic agreement”.

“We give credit to the AGL and Santos for showing leadership on this issue (and) we would like to think other CSG companies would do the same,” Mr Clapham said.

However, he said access agreements for coal mining remained an issue.

“This agreement only involves two CSG companies. We will continue to lobby for landholders investment of time into the arbitration process to be acknowledged as a compensable loss in an access agreement.”

NSW Irrigators Council economic policy analyst Stefanie Schulte said: “We strongly encourage other CSG operators in NSW to show their commitment and sign up to this agreement”.

NSW Farmers president Fiona Simson said farming groups have always had consistent policy on this issue.

“We are not against the industry but landholder rights must be respected, and today is a big step in the right direction for the future of our farming families.”

Any Landholder must be allowed to freely express their views on the type of drilling operations that should or should not take place on their land without criticism, pressure, harassment or intimidation. Any Landholder is at liberty to say “yes” or “no” to the conduct of operation on their land

Gas companies confirm that they will respect the Landholder’s wishes and not enter onto a Landholder’s property to conduct drilling operations where that Landholder has clearly expressed the view that operations on their property would be unwelcome

The parties will uphold the Landholder’s decision to allow access for drilling operations and do not support attempts by third party groups to interfere with any agreed operations. The parties condemn bullying, harassment and intimidation of the landholder by third party groups and individuals.