At least one of the two groups with eyes on Wollongong for coal seam gas exploration will walk away empty handed.
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The NSW Aboriginal Land Council and Apex Energy have lodged competing applications covering suburban Wollongong and vast stretches of the coastline and escarpment.
The area, extending from Clifton in the north to Dapto in the south, previously fell under a petroleum exploration licence held by Apex.
However, the company submitted a new application in March after allowing its old title to expire, NSW Trade and Investment confirmed yesterday.
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One week ahead of Apex, the NSW Aboriginal Land Council lodged a different type of application, known as a Petroleum Special Prospecting Authority, covering the same area.
"As these applications overlap, it is not possible for both to be approved," a NSW Trade and Investment spokeswoman said.
"These applications are currently under assessment by the Division of Resources and Energy."
Apex has also sought to renew the title it holds with joint-venture partner Ormil Energy for the area around Helensburgh, Darkes Forest and Stanwell Park.
The company has approval to drill 16 exploratory wells across the two title areas.
But environmental campaigners have questioned whether the expiry of Apex's southern licence meant its controversial drilling plans would still be permitted.
Northern Illawarra Sustainability Alliance spokesman Peter Turner said approval should be revoked. "Of the 15 bores approved in 2009, nine are in the area covered by the lost PEL," he said.
"The Government should now act in the public interest and withdraw the 2009 approval for the drilling project."
Stop CSG Illawarra's Jess Moore said getting information about the project had been difficult.
"Where's the transparent process that we were promised?" she said.
"We've contacted various government departments, local members, we've have questions put in Parliament and no-one has told us whether or not drilling can happen at this stage."
Apex received approval in 2009 to drill 15 exploratory wells. A 16th was added late last year.
The original approval said drilling could take place within three years or until the expiry of one of the two relevant licences, unless otherwise agreed by the director-general of the planning department.
Ormil managing director Tom Fontaine yesterday described NSW permitting as a "thick bottomless quagmire".
Drilling would not be allowed under the NSW Aboriginal Land Council application.
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