The NSW government has cancelled a gas exploration licence for metropolitan Sydney as it extends by another week its buy-back period for the controversial licences.
Premier Mike Baird and Resources and Energy Minister Anthony Roberts have confirmed the cancellation of the licence - which covered 189,402 hectares from Gosford, to western Sydney and as far south as Bundeena - after a buy back from Dart Energy.
"The licence that was issued back in 2008 across the entire Sydney basin has been bought back - it is over, finished, done," Mr Baird told reporters on Friday.
Mr Baird said the coal seam gas (CSG) industry would only go ahead on his government's terms, and said the opposition's stance on coal seam gas could not be believed.
"It was a mess, but we are cleaning it up," he said.
"How this licence was ever issued, only (Labor) can answer that."
Standing in Sydney's Botanic Gardens, Mr Baird said it was incredible a licence had been okayed for the area.
Mr Roberts said licences costing $1000 covered about one million hectares.
"The people of NSW have a right to be angry and frustrated by Labor's legacy," he said.
Mr Roberts said the buy-back period would be extended another week as more companies were coming forward to sell back their licences.
Mr Baird declined to discuss how much the buy-back scheme was costing because discussions were continuing with some players, but he described the amount as relatively nominal.
NSW Greens mining spokesperson Jeremy Buckingham welcomed news of PEL 463's cancellation.
"It might be occurring now for cynical electoral reasons, but it is clear that fracking for coal seam gas has no future in NSW, with all sides of politics now competing to crack down on the toxic industry," Mr Buckingham said in a statement.
Opposition Leader Luke Foley said the government was playing catch-up on the CSG issue.
"Mike Baird and Troy Grant stood up three months ago to announce their pro-gas plan for NSW," he told reporters in the state's far north coast, where there is strong anti-CSG sentiment.
"And now, we're coming down the home straight to election day and they're finally starting to hear that the people aren't keen on their pro-coal seam gas policy."
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