A Sydney council's surprise decision to block coal seam gas (CSG) mining may have implications for the future of the industry in Australia, campaigners say.
Marrickville Council has used local planning rules to stymie Dart Energy's plan to extract CSG in St Peters, a residential suburb in the city's inner west. Dart holds exploration licences across Sydney and last year confirmed it was eyeing a site off Holland Street operated by recycling firm Dial-a-Dump.
Marrickville Council has renewed Dial-a-Dump's permission to use the site - but inserted a clause in its development application (DA) banning mining.
Greens councillor Max Phillips said the clause was inserted because of environmental fears about CSG wells and because the Holland St site is zoned for industrial use, prohibiting mining. Under normal circumstances local councils have no power to block mining exploration, which is determined by the state government.
The legality of the ruling may now be tested in the NSW Land and Environment Court, Mr Phillips said.
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Jacinta Green, president of anti-CSG campaign group Stop CSG Sydney, said any challenge would be a major test of councils' rights to insert DA clauses blocking mining.
"If councils can't put conditions on development applications, then what's the point of having DAs?" she said. "And that would be across Australia."
Dial-a-Dump lawyer Christopher Biggs dismissed reports the company had already agreed to let Dart use its Holland St land.
"The company has no agreement with any mining company permitting exploration for, or the mining of, coal seam gas on the St Peters property," he said in a statement. "Such activities are not and have not been on the company's radar."
Dart did not immediately respond to a request for comment.
