The NSW Greens are calling for coal seam gas (CSG) mining to be banned across the state despite the NSW chief scientist backing the controversial industry.
After more than 18 months of investigating the industry, Professor Mary O'Kane handed down her eagerly awaited report on Tuesday, which Premier Mike Baird said would be the "line in the sand" for the industry.
The report comes after the NSW government last week extended its freeze on new CSG exploration licences for another year.
While Prof O'Kane's report acknowledged CSG mining posed risks to the environment, she said those risks could be "managed" by tighter regulation, closer monitoring of the industry and more training for CSG companies.
She said the industry should be allowed to proceed under stricter laws and safeguards. Prof O'Kane has also recommended a single independent regulator to be established to oversee the CSG projects.
Acting Resources and Energy Minister Kevin Humphries said the government would consider the report's 16 recommendations and officially respond "in due course".
"We are committed to a safe and sustainable gas industry, while protecting the environment and the state's other critical industries," he said in a statement.
Carmel Flint, spokeswoman for anti-CSG group Lock the Gate, urged the government to halt Narrabri and Gloucester CSG projects until Prof O'Kane's recommendations are implemented.
NSW Greens MP Jeremy Buckingham went a step further and called for a "complete ban" on CSG mining.
"This report highlights the risks associated with coal seam gas, risks that the Greens have been highlighting for many years and that communities across NSW have been campaigning against," he told reporters.
"Many of the risks highlighted in the report cannot be mitigated."
Opposition Leader John Robertson said the report backed Labor's call to suspend CSG exploration and extraction across the state until more work is done to investigate its risks.
NSW Farmers president Fiona Simson rejected claims the report gave the industry a "green light" to operate in NSW.
"There has been a strong message sent to government and industry here," Ms Simson said in a statement.
"If they cannot operate in a world's best practice manner and guarantee the protection of agricultural land and water, then they will continue to have difficulty in their quest to operate in this state."
Cotton Australia chief Adam Kay, says the report had the potential to be "game-changing" for agriculture in the state if fully implemented.
"If implemented, all of these recommendations would provide the state's cotton growers with greater protection and certainty when interacting with the CSG process and resources companies," he said.
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