AGL Energy should lose its license for a northern NSW gas project after the detection of dangerous chemicals in a water storage tank, anti fracking advocates say.
Testing work at the Waukivory project near Gloucester has been suspended after benzene, toluene, ethylbenzene and xylene (BTEX) were detected in flowback water from four drilling wells and in a water storage tank.
"Not only should the license be suspended, it should be revoked," Ground Swell Gloucester chairwoman Julie Lyford told AAP.
"This is not an area that should ever have been used for coal seam gas exploration.
"AGL have admitted BTEX is in their flow water. It's a bridge too far."
Ms Lyford called on NSW premier Mike Baird and opposition leader Luke Foley to support a shutdown.
The chemicals found in the flowback water can have harmful effects on the central nervous system, and Benzene is a known carcinogen.
AGL has suspended operations at the Waukivory pilot project until a full review of the sample results have been completed.
None of the fracking fluids used by AGL at Waukivory contained any of the chemicals detected, and they are likely to be naturally occurring in the coal seams about 600 metres below ground level, AGL said.
Five samples were taken in three locations, and one sample found a BTEX concentration of 555 parts per billion, well above the 30 to 60 parts per billion detected before work at the project began.
There was no evidence of changes in the quality of groundwater and surface water at the site, AGL said.
The water test results have been reported to the Environment Protection Authority, the Office of Coal Seam Gas and the NSW Office of Water.
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