Gas exploration laws too late for some

New rules governing coal seam gas exploration in NSW have come too late for residents of inner-Sydney St Peters, where drilling has already been approved.

About 100 campaigners, including residents and farmers, rallied near the St Peters drilling site on Sunday to protest against the revised legislation which they claim fails to protect agricultural land and aquifers.

The action coincided with the NSW government's introduction of "more rigorous" community consultation and "tighter" environmental controls for new drilling applications.

"The reality is natural gas is an important part of cleaner and more sustainable energy sources into the future," Premier Kristina Keneally said in a statement issued on Sunday.

"However, it is important to get the balance right: managing our natural resources in an environmentally responsible way, with extensive community consultation, while moving the industry forward to a cleaner source of power."

The updated rules require that exploration proposals be considered by four state departments and that the government also examine banning the use of chemicals at sites where they could threaten groundwater purity.

Greens MP David Shoebridge, who joined Sunday's St Peters protest, said the changed laws don't go far enough.

"This package falls a long way short of giving the DECCW (Department of Environment, Climate Change and Water) the concurrent approval power that farmers and environmentalists have been calling for," Mr Shoebridge said.

Planning Minister Tony Kelly on Sunday praised the "tough new rules" for coal seam gas exploration but admitted they came too late for the St Peters drill.

"It is too late for the (site) at St Peters, it was granted in 2008," Mr Kelly said of the updated approval system.

The NSW opposition welcomed the changed laws but said its implementation has taken too long and that there is more needs to be done.