Nationals' MP Chris Gulaptis says Metgasco should not rely on police to help it operate on the north coast.

Mr Gulaptis has urged the gas company to return to the negotiating table, after it announced it was preparing to sue the government over the suspension of its drilling license in Bentley.

The licence was suspended just days before work was due to start of a test well, and amid reports up to 800 police would be sent to the site to ensure protesters did not hinder workers.

Metgasco has now said it plans to resume drilling at the site, and expects the government to provide police protection.

The member for Clarence said that was no way to do business.

"I think that that's just fraught with danger to go down that path," he said.

"I think we saw what happened before, and I certainly don't see that as a way that you could carry out a business in Australia.

"You shouldn't have to put a line item in your business plan that you are going to expect police protection to carry out an activity, and a lawful activity I agree."

Meanwhile, the New South Wales Premier said discussions with Metgasco over a damages claim must be in the best interests of the state.

Mike Baird said the government remained open to discussions in good faith.

"Obviously it's on the basis of taxpayer value and in good faith, and that's the way we are presenting and negotiating," he said.

"So I mean in their statements yesterday they said that they remain open to continue those discussions, and that's our intent."