Coal seam gas (CSG) mining will be halted in northern New South Wales under a plan by Deputy Premier and Nationals leader Troy Grant.

Mr Grant stopped short of calling for a total ban on CSG and proposed the seven current Northern Rivers mining licences be reduced to zero through the Coalition's buyback scheme.

The Nationals lost the seat of Ballina to the Greens in the March election and only narrowly retained the seat of Lismore, and Mr Grant said he had listened to the will of the local people.

"I support the views of regional communities and it has been made very clear that the Northern Rivers community does not want CSG," Mr Grant said.

"Through the NSW Government's gas plan, CSG licenses in the region are being bought back or cancelled," he said.



Mr Troy's announcement on CSG preceded the National Party Conference in the Hunter Valley, which is another NSW region that has shown strong opposition to CSG mining.

A ban on CSG mining is expected to be debated at the conference.

The Greens said they would "fill the political void" if the Nationals decided against a ban on CSG at the conference.

"If the National Party caves into pressure from the Liberals on coal seam gas, the Greens are ready and willing to fill the political void and represent those communities concerned about coal seam gas," said Greens MP Jeremy Buckingham.

"This is a real test for the National Party.

"Do they have the strength to stand up to city Liberals and protect land, water and farmers, or do they cave in and side with the big mining companies?

"If the National Party fails the test and caves in to the Liberal Party, then they should formally merge with the Liberals or else leave the Coalition.

"The Greens have a bill before Parliament that prohibits coal seam gas and other unconventional gas extraction throughout NSW."

Deputy NSW Premier Troy Grant says he wants to cancel or buy back CSG licences in northern NSW.

Mr Grant's stance has the potential to cause a split with the Liberal-National Coalition Government because of a potential compensation bill of $140 million.

One of the companies that holds a CSG licence in northern NSW has indicated it would oppose any move to end its production plans.

Metgasco's managing director, Peter Henderson, said he was disappointed with the position being taken by the Nationals' leader.

"The concept that the New South Wales gas plan and the buyback scheme is a means to make the Northern Rivers gas free is simply not acceptable," Mr Henderson said.

"Offering companies like Metgasco $212,000 per licence area when we've worked in the area for more than 10 years and spent the equivalent of $140 million in 2015 dollars is simply not going to wash."

Mr Henderson said he doubted that shareholders would support a sale and said there were pockets of strong support for CSG.

"I think there are a lot of people in the Northern Rivers, and particularly the people around Casino, who don't share the same views.

"[These are people who] would like to look at the science, look at the facts, who would like to hear the Government say that the industry is important, that the industry is safe, and they would like to have the jobs in Casino."

CSG opponents have welcomed Mr Grant's plan.

"Of course we would like to see a complete ban right across the Northern Rivers, that's the only way that we're going to get our permanent protection," said Dean Grant from the community group Gasfield Free Northern Rivers.

"A buyback requires the gas companies to agree to the sale and there will also be a lot of negotiation about how much those licences are going to cost.

"But I think it's a good start."

Georgina Wood, from the Lock The Gate Alliance, also welcomed the development but said it did not go far enough.

"The farming communities of the Northern Rivers want to see their region permanently protected," Ms Wood said.