The Fullerton Cove Resident Action Group (FCRAG) in September won a temporary halt to drilling so it could argue for Dart Energy to seek new planning approval for the CSG project.
Counsel for the Fullerton Cove residents, Ian Hemmings, told the Land and Environment Court the NSW government had erred when initially granting Dart approval to drill in the area.
He said the Department of Trade and Investment had not properly considered environmental impact guidelines set down under the state's Environment Planning and Assessment Act in relation to the project.
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"They have not considered the guidelines at all," he told the court.
"There has been a manifest failure to consider it. It hasn't been considered at all. "There were matters that were simply not addressed that should have been
Outside court, FCRAG spokesman Jason Hamilton said the community wanted additional environmental tests.
"There has been no environmental testing through an environment impact statement to protect the two clear freshwater aquifers near where we live," he told AAP. "
This is to simply get an environmental test done that perhaps should have been done."
He was joined by about 20 other members of the group. The hearing continues before Justice Rachel Pepper.
