THE future of Santos' proposed Narrabri Gas Field Project is one step closer to being known with the NSW Government preparing to hand over it's investigation to the Independent Planning Commission (IPC).
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The formal notice to refer the project to the IPC was made by NSW Planning and Public Spaces Minister Rob Stokes and will spark a public hearing into the project.
The IPC will determine, through the public hearing, the project's development application under the Environmental Planning and Assessment Act, as well as establishing any recommended areas of consent.
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Minister Stokes' decision comes two weeks after a Parliamentary Inquiry into the project found only two of the chief scientist's 16 recommendations had been followed.
The move has prompted independent MP Justin Field to call on his fellow MPs to back legislation, which would establish a moratorium on coal seam gas.
"The government has had five years to fix this and they've failed," Mr Field said.
"It's time for the Parliament to act and I'll be pushing for the Coal Seam Gas Moratorium Bill to be debated in the March sitting of Parliament to press pause on this industry.
"I've got a Coal Seam Gas Moratorium Bill on the books, which can be debated and passed in the next two sitting weeks.
"The government's rushed referral of the project to the IPC, before they have even responded to the damning inquiry findings, shows they are putting the interests of Santos ahead of the community."
The push for a Coal Seam Gas Moratorium Bill comes a week after state environmental minister Matt Kean told a budget estimates hearing the project shouldn't go ahead until the chief scientist's recommendations had been met.
"My view is that the government should implement all those recommendations before granting the licence to allow any drilling for coal seam gas anywhere," Mr Kean said.
Mr Field said passing of the proposed bill would be "a demonstration that a broad cross-section of the community oppose this industry and will put immense pressure on the Nationals in the Lower House to back the bill."
"This is a real test for the Nationals and leader John Barilaro as NSW resources minister," he said.
Santos managing director and chief executive officer Kevin Gallagher welcomed the referral, saying a decision on whether or not Narrabri can proceed is vital for Santos to determine where it will invest in new natural gas developments to supply the east coast gas market over the coming decade.
"We have applied the best science to the environmental impact statement for Narrabri," Mr Gallagher said.
"We are confident that it will stand on its merits and that the project could be safely and sustainably developed to protect water resources and the environment.
"Santos will participate openly and transparently in the IPC process."
The decision has drawn condemnation from Lock the Gate Alliance spokesperson Georgina Woods, who said the IPC would be "stabbing in the dark when it tries to make a decision" regarding the proposed project.
"Major flaws in regulation and knowledge of coal seam gas were identified by a parliamentary committee two weeks ago, yet planning minister Rob Stokes has not listened and has referred this project anyway," Ms Woods said.
"The IPC must comply with the minister's direction to determine this application, but it will be doing so with inadequate data, unfinished regulation and the results of a groundwater impact model that is incapable of predicting impacts on landholders' bores at the local scale.
"We don't see how the IPC can approve the Narrabri coal seam gas project in this context."