Speaking to media after his last-minute presentation at the APPEA 2012 conference in Adelaide this morning, he said the government was concerned about gas prices given it had long-standing gas contracts running out in coming years.

He said while the simplest way to reduce gas prices for end users, especially industry, would be to simply use NSW’s reserves, the government was considering a number of ways to help ease the gas squeeze.

“There’s a number of ways [we can support low pricing],” he said.

“There’s the Western Australian model of reservation where there’s a 15 per cent reservation, you can adjust royalties in relation to a supply/demand environment.

“Those are the sorts of areas where you can work on.

“We know Queensland has decided not to go down the reservation route, instead appointing a gas commissioner.

“All of those we will be working through and all the options are on the table.”

He acknowledged the industry would be firmly against any move to a domestic gas reservation policy.

Still, the government was not exactly winning a lot of friends within the gas industry lately anyway.

Earlier this month a parliamentary enquiry on CSG concluded CSG exploration should continue in NSW but the government should have a “comprehensive, effective and transparent” regulatory regime in place before any further production licences were issued.

This regulatory regime would include abolishing the five-year royalty holiday for CSG production, establishing a domestic gas reservation policy and reviewing the Petroleum Onshore Act 1991 to strengthen landholder rights.

APPEA moved quickly after the inquiry’s findings were published, saying such an approach would make NSW the cellar dwellers of the national economy.

“It aims to do little more than stifle the state’s extraordinary opportunity to diversify energy suppliers and revitalise rural and regional communities,” APPEA eastern Australia chief operating officer Rick Wilkinson said.

He went on to say the report was inconsistent.

“One hand wants to constrain gas production, yet the other argues for higher royalty payments from the very industry it is seeking to stall,” he said.

“They want to argue about how to divide a pie that they won’t let anyone bake.”

Earlier in the day, Hartcher backed up National Farmers’ Federation vice-president Duncan Fraser’s assertion that a lot of community discord had stemmed from “cowboy operators” in the early days of CSG exploration.

“Farmers now recognise that the conduct of some companies [has] been better than others,” Fraser said.

“Farmers’ social licence is hard won and is often subject to the whims of interest groups such as animal welfare and tobacco.”

Fraser said CSG in NSW faced a unique challenge, as it was not in remote locations and therefore under more scrutiny – a point also made by Hartcher.

“No longer are these resources in remote areas but instead are close to communities and farms,” Hartcher said.

“That’s why it’s important to develop a policy of coexistence.

“The failure of the industry has been to address adequately the development of community trust but we believe we can achieve that but it’s a work in progress.”

Hartcher also called Marrickville Council’s decision to ban Dart Energy from exploration within its jurisdiction a failure on social engagement and had a few choice words for the council’s behaviour.

“Marrickville Council has a past heritage … as we all know,” he said.

“We all know about the absolutely disgraceful attempt to institute an Israel boycott.

“In fact, ‘disgraceful’ is weak in any attempt to make a comment on the Marrickville council.”

Hartcher said the government was seeking legal advice on whether the attempted ban by the council was legal.

This article first appeard in ILN's sister publication EnergyNewsBulletin.net.