Updated
Residents of Fullerton Cove, north of Newcastle, are devastated their court bid for a more rigorous environmental assessment of coal seam gas exploration in the area has been dismissed.
The residents took the matter to the Land and Environment Court because they are concerned Dart Energy's CSG exploration project in the area will affect part of Newcastle's drinking water.
After a five-day hearing in October last year, the judgement was handed down this afternoon.
Residents spokesman Lindsay Clout says the case has been dismissed and the court injunction preventing two exploratory wells has been lifted.
"I'm disappointed We considered that the argument that we had was quite strong," he said.
"But, that's happened now, and we have to move on.
"There are a number of opportunities for us here now with the proposed legislation for the State Government and proposed changes from the Federal Government and we think that they will protect us very well."
Last month the O'Farrell Government last month approved plans for two-kilometre buffer zones around residential areas.
Mr Clout says there are 85 homes within a two-kilometre radius of the Fullerton Cove wells, with the nearest home just 400 metres away.
In August last year locals spent nine days blockading the drill site until the police riot squad was called in.
Topics: oil-and-gas, courts-and-trials, fullerton-cove-2318, newcastle-2300
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