Community, environmental and business groups have responded with both joy and fury at the news on Wednesday morning that the $3.6 billion project was signed off by the Independent Planning Commission (IPC).

The IPC received over 10,000 public submissions, almost all against the project. Its three commissioners also heard dozens of hours of opposition to the scheme during a record seven-day public hearing.

The Commission granted staged conditional approval for the project on Wednesday. It imposed 134 conditions on gas development.

Proponent Santos said it accepts the conditions proposed by the IPC for development of its gas project.

The company said it will now work with the Commonwealth Government to win federal approval.

Managing Director and Chief Executive Officer Kevin Gallagher said Santos is "excited about the prospect of developing the Narrabri Gas Project".

"As the economy recovers from COVID-19, game-changing projects like the Narrabri Gas Project are critical to creating jobs, driving investment, turbo-charging regional development and delivering more competitive energy prices," he said.

Want more local news? Subscribe to the Leader to read it here firs

The company "relied on the best science" to ensure the resources project "can be developed safely and sustainably," he said.

The company will start planning for "workover" activities on existing wells immediately.

Once approvals are in place, Santos will spend 12 to 18 months conducting an appraisal drilling program and expand its water monitoring network.

Prominent local Native Title applicant auntie Polly Cutmore said she will do jail time to stop the gas project if she needs to.

The Independent Planning Commission will require Santos to establish an Aboriginal Cultural Heritage Advisory Group for the project, among other recommendations designed to protect Indigenous heritage.

Auntie Cutmore said she doesn't trust Santos and likely won't participate in the group.

Instead she said she will take direct action to stop the project, alongside many other local women.

"They are going to take direct action. The ladies, the Gomeroi women, are ready to take the fight because we are the keepers of the water and we are ready to fight," she said.

"We're all willing to go to jail so people can start saving the bond money now. We very much appreciate it"

NSW Farmers President James Jackson said the body is dismayed by the approval, over the objections of farmers.

Despite assurances from government and proponent Santos, landholders aren't convinced the project is safe, he said.

"This is a disappointing decision from the IPC," Mr Jackson said.

"Our members have indicated very clearly that they have no appetite for risk to their precious water sources."

Have your say, send a letter to the editor.

He said there isn't certainty farmers can insure themselves against public liability and environmental risk for CSG operations on their land.

"Our members do not believe that any conditions imposed on the approval of this project make it acceptable. Security of groundwater and other water sources and protection of important agricultural land is of paramount importance to farmers," Mr Jackson said.

Narrabri Shire Mayor Ron Campbell said the town's council is "pleased with and supports" the decision to approve the $3.6 billion Narrabri coal seam gas project.

Councillors unanimously voted to support the scheme last year.

"Now the decision has been made, it is time to focus on capitalising on the many opportunities available to the Narrabri Shire," Cr Campbell said.

"The Narrabri Gas Project will make Narrabri an energy and manufacturing powerhouse."

He said the gas project would create "multiplier effect" in conjunction with the Inland Rail project through the region. The council plans to use the two projects to create a major industrial precinct, the Northern Inland Port.

Severe and savage opposition will greet Santos workers as they begin work on a gas field near Narrabri, a Coonamble businessman has said.

Coonamble stock and station agent David Chadwick, who has been heavily involved in a campaign to stop the project, said the approval was unbelievably disappointing.

READ MORE:

"But it's not surprising the way the National and Liberal parties have been behaving," he said on Wednesday morning.

"This is a disgraceful blight on our generation and particularly our political leadership that we choose to ignore the environment for a sunset industry that is damaging that environment."

He was dismissive of the conditions for the project's approval, suggesting agencies such as the Environment Protection Agency were already under resourced and stood little chance of policing the conditions.

Opposition group Lock the Gate have vowed to continue to fight development of the gasfield.

Spokesperson Georgina Woods blamed the NSW government and Planning Minister Rob Stokes for "this disaster" after the project's approval on Wednesday. She said the commission had too little time to consider "a huge range of complex issues", thousands of submissions and hours of public testimony.

Support the local news that keeps you informed - subscribe today.

"Information about leaks and spills occurring right now in the Queensland coal seam gasfields were ignored by the commission and requests for independent expert advice about groundwater and greenhouse emissions were refused because of the impossible timeline imposed on the commission by Minister Stokes," she said.

"Experts warned the commission that this gasfield threatens underground water supplies, farmland, and the stressed koalas of the Pilliga, that it will create dangerous amounts of greenhouse pollution and fuel climate change, that Santos' modelling and assessment were flawed and superficial."

The state's peak business organisation says the Santos project "must be the first of many".

Business NSW Regional Manager Joe Townsend, who welcomed approval of the Narrabri Gas Project, said as many as 250,000 NSW jobs rely on resolving a looming gas shortage.

The gas project has been identified as a vital infrastructure project for the future gas market, he said.

"Today's decision by the IPC to give the green light to the Narrabri Gas Project will be cheered by every business in NSW that depends on gas to power their business and keep thousands of people in their jobs," Mr Townsend said.

"The Narrabri Gas Project must be the first of many to help our manufacturers not only survive the recession but thrive into the future."

The Labor Party, the Australian Workers' Union, the Australian Petroleum Production and Exploration Association, and Liberal and National politicians, among others welcomed the news.

The Country Women's Association, Greenpeace, Independent MLC Justin Field, Greens MLC Cate Faehrmann, the Climate Council, the Nature Conservation Council, and a number of local groups have condemned the approval.

MORE TO COME

Want more local news? Subscribe to the Leader to read it here first