The policy, which was released yesterday by minister for planning Brad Hazzard, includes 27 new measures designed to provide greater protections for farmers and to balance competing land uses.

“Since last year’s election, we have been working hard to strike the right balance to protect agricultural land, water and the environment, and believe this policy achieves that balance,” Hazzard said.

The policy establishes the identification of strategic agricultural land so that proposed projects must go through the new “gateway” process, an independent, scientific and upfront assessment of the impacts of mining and CSG production proposals.

A new land and water commissioner is to be appointed to restore community confidence in the processes governing exploration activities in NSW and to oversee land access agreements between landholders and miners, Hazzard said.

An aquifer interference policy will use science to assess and protect water resources.

An agricultural impact statement will now be required as part of the assessment of exploration proposals and an extra 40 positions will be created to ensure the tough new standards are met.

NSW Minerals Council chief executive Stephen Galilee said while the mining sector in NSW accepted the need for strategic regional land use plans, the industry remained concerned about the impact of more bureaucratic duplication and delays in an already rigorous assessment process.

“This added layer of assessment has the potential to cause delays in project development, making it more difficult for NSW to attract investment. The flow-on effect could impact the state economy including through lost jobs and royalties,” Galilee said.

“It should also be noted that the area of land classified as ‘strategic’ has been increased threefold since the draft mapping was first released in March, so much more land will be covered by the new ‘gateway’ assessment process.

“This new layer of project assessment comes at a time when commodity prices are falling and production and other input costs in Australia are rising.

“Governments at all levels need to understand mining in NSW doesn’t operate in a vacuum. Our local mining industry competes for investment with other states and with other potential investment locations in other countries in our region and also around the globe.”

Hazzard said changes to the policy had been made following an extensive period of consultation during which over 2,000 submissions were received and over 1,100 people attended public forums and information sessions.

Key changes made following the release of the draft strategic regional land use policy and consultation with farmers, the resources industry, councils, environmental groups and local communities also include increasing the amount of strategic agricultural land mapped for protection in the Upper Hunter and New England North West regions by 670,000 hectares to over two million ha.

In the Upper Hunter, the Viticulture Critical Industry Cluster has increased from 53,292ha to 107,135ha, and the Equine Critical Industry Cluster has increased from 183,452 ha to 233,286 ha.

In response to submissions, the Viticulture Critical Industry Cluster now includes grape growing areas around Denman and the criteria for the Equine Critical Industry Cluster now includes land up to 18 degrees in slope.

“Recognising that mining operations require investment certainty, the Gateway process will focus on proposals which extend beyond the boundaries of an existing mining lease or where a new lease is required,” Hazzard said.

“All mining proposals, whether subject to the Gateway or not, will still go through a full merit assessment process – including community consultation – when they lodge a development application.”

Over two million hectares of strategic agricultural land has already been identified across the Upper Hunter and New England North West regions, with mapping of the Central West and Southern Highlands underway and other areas of the state, including the North Coast, also to be mapped.

Minister for resources and energy Chris Hartcher said: “We have spent the last 16 months introducing stringent new controls to regulate the industry and have considered feedback from the consultation process before any coal seam gas exploration licences are renewed.”

NSW deputy premier Andrew Stoner said the creation of a new land and water commissioner to oversee the regulation of exploration activity right across the State, the creation of regional community funds and the removal of the royalty holiday for CSG producers would restore community confidence in the processes governing CSG exploration and production activities.

“The commissioner will provide independent advice to the community regarding exploration activities and will facilitate greater consultation between government, the community and industry,” Stoner said.