Resources Minister Anthony Roberts this week cancelled Leichhardt's three petroleum exploration licences, which covered a 3173 square kilometre area from Shellharbour and Sussex Inlet, through Kangaroo Valley and into the Southern Highlands past Mittagong.

Mr Martin said as well as not engaging the community, Leichhardt was ill-equipped to be a legitimate explorer.

"Leichhardt didn't qualify," he said.

"It was a one-man band out of a Queensland office, no coal seam gas experience at all, no strong financial backing, there were a whole lot of fundamental reasons.

"They then joined venture with Planet Gas ... but it pulled out.

"They didn't fulfil their project requirements in their lease.

"I think it's the government attempting to significantly upgrade the quality of the licensees and hopefully this one will never be reissued.

"The licence should never have been issued - it was crazy."

Leichhardt Resources director Simon Tolhurst did not respond to a request for comment.

Mr Martin welcomed the government's moves in recent months to properly regulate the industry.

"Anthony Roberts is progressively going through these licences and clearing up the mess he was left by Chris Hartcher, quite frankly, by his former colleague.

"This shows the government under Mike Baird is much more committed to cleaning up their act, whether it's coal seam gas or coalmining."