A coal seam gas drilling licence at a controversial site in northern NSW has been suspended - but it is far from permanent.
NSW Energy and Resources Minister Anthony Roberts said the suspension of Metgasco's licence at Bentley, near Lismore, was a win for transparency and process.
But he couldn't guarantee the site would never be drilled.
"That's not for me to say whether anything moves ahead there," he told reporters on Thursday.
"There are processes that are open and transparent.
"My department at arm's length has made the decision and my department at arm's length would make the decision as to whether they are compliant or not into the future."
The licence was suspended after an Office of Coal Seam Gas (OCSG) audit found Metgasco had not fulfilled conditions of its exploration licence, namely to undertake proper consultation with the community.
The widely applauded suspension comes days before thousands of protesters were expected to bolster a blockade across from the drill site at Bentley, near Lismore.
Activists said they were expecting up to 800 police officers to surround the drill site early next week while drilling equipment was moved in.
Mr Roberts said the suspension would be in place until Metgasco could prove it has met the conditions.
OCSG is undertaking an audit of all petroleum exploration licences in NSW but it had been "progressed" in regards to the Bentley operation "due to the fact that things were moving very quickly there", Mr Roberts said.
Metgasco has also been referred to the Independent Commission Against Corruption after Mr Roberts received information on Wednesday about shareholdings and interests.
He would not elaborate on the matters referred to the corruption watchdog.
About 500 people are camped at the Bentley blockade, which has been in place since February.
"My message to all those people who believe they can remain outside the law with respect to protest is that now it's time for you to return to your peaceful, rightful and lawful places of business and your homes," he said.
Asked whether the suspension was a win for people power, Mr Roberts said it was a win for process and transparency.
NSW Police has confirmed an operation planned for the Bentley mine site has been cancelled.
Lismore City councillors say a poll undertaken at the last local government election showed 87 per cent of voters opposed coal seam gas.
However, Lismore MP Thomas George says there were a lot of people for it as well.
Mr George's son, Stuart George, works for Metgasco.
Mr George said he spoke to his son on Thursday morning after the news broke.
"I am very proud of the way I have represented my community and if anyone has any concerns about that they have appropriate authorities to take those concerns to," he told reporters.
Metgasco shares halted amid mine outcry
Shares in Metgasco have been put in a trading halt after the NSW government suspended the coal miner's licence for a controversial coal seam gas site at Bentley.
The government says Metgasco has not fulfilled a condition of its exploration licence for the site, near Lismore on NSW's north coast.
And it has referred Metgasco to the Independent Commission Against Corruption (ICAC) after receiving information about shareholdings and interests.
In a brief statement to the Australian Stock Exchange on Thursday, Metgasco said it was seeking clarification about its licence from the government.
The Bentley mine project has attracted fierce opposition from locals.
Resources and Energy Minister Anthony Roberts said Metgasco had not fulfilled a condition of its exploration licence, namely to undertake genuine and effective consultation with the community as required.
He said the suspension would be in place until Metgasco proved it had met the conditions.
Metgasco shares last traded at 8.8 cents.
Share
