Under plans that have exacerbated the dispute over land use, the most controversial coal and coal seam gas mining projects could still go ahead, despite a negative assessment of their impact on the water table.
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The most recent version of the NSW Government's "aquifer interference policy" was presented to farmers, irrigators and mining and environment groups yesterday by Planning Minister Brad Hazzard.
The policy is being developed to alleviate fears about the impact of coal and coal seam gas mining on aquifers and provide certainty to mining companies.
But the document, obtained by the Sydney Morning Herald, confirms "state significant" mining projects on some of the state's most sensitive land will be exempt from having to abide by the policy.
The policy indicates this is because mining projects in areas designated by the Government as "strategic lands" due to their high agricultural or environmental value will pass through a strict "gateway" process and be subject to advice from Water Minister Katrina Hodgkinson.
However, government officials confirmed to stakeholders at the meeting that Ms Hodgkinson's advice will not be binding on the decision of the independent Planning and Assessment Commission.
The president of the NSW Farmers Association, Fiona Simson, said: "We have enormous concerns that the advice from the minister is not going to be binding in this process."