Opponents of the $3 billion coal seam gas project last week failed to legislate a moratorium on the industry.

But despite the failure of a bill in the lower house of state parliament that would have required the government to more heavily regulate the industry, they vowed yesterday that the campaign would continue.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said the project is in a position to "ramp up activity" immediately if the project is approved by the Independent Planning Commission.

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"There are already 16 Santos people living and working in Narrabri, we're buying goods and services locally, and we're in a position to ramp up our activity and get back to drilling more appraisal wells shortly after approvals are in place," he said.

"At the peak of construction, we expect development of the project to support hundreds of jobs and, when it is in full operation, it will sustain 200 direct and indirect ongoing local jobs."

The company accused local Shooters, Fishers and Farmers MP Roy Butler of voting "against local jobs" last week by joining Labor, the Greens and independent members of the lower house.

But the Member for Barwon told the Leader that local residents were "windy" about the project, which he said threatens the region's groundwater.

He said he had promised the electorate to "make sure the highest level of protections are in place for groundwater where coal seam gas is involved.

"The last three-four years around Narrabri Wee-waa, Boggabri, the only place they've been able to get water from is out of the ground.

"Groundwater is our last defence when it comes to drought and we know we'll go back into drought one day."

Mr Gallagher said Santos has "relied on the best science" and said the project "can be developed safely and sustainably" without threat to water resources.

The Independent Planning Commissions is expected to hold an online public hearing then make an approval decision within months.

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