Maules Creek farmer Pat Murphy has criticised the NSW Government's decision to approve an open cut coal mine next door to his property without adequately protecting him.

Key points: Mr Murphy says living next to mine has been "a nightmare"

Mr Murphy says living next to mine has been "a nightmare" Would like to relocate, but only real option to sell to mine operator Whitehaven Coal

Would like to relocate, but only real option to sell to mine operator Whitehaven Coal Property excluded from enforceable noise, dust limits

Mr Murphy says his family's life has been turned upside down since construction began on the Maules Creek mine in 2014.

Speaking to Australian Story, he said: "Living next to a mine is a nightmare. It's absolutely gut wrenching to realise that I've been stuck in limbo for six years now, since the mine was first announced."

"My family has had to place its life on hold."

Mr Murphy would like to relocate, but said there was little interest in a property located next to a mine.

He said his only real option was to sell to the mine operator, Whitehaven Coal, but he had no bargaining power.

However, by staying on his property, Mr Murphy said he was exposing his family to health risks.

"At the beginning of construction the dust, whilst it was bad, it was nothing like later on as the mine advanced — the dust gradually got worse and worse."

His wife Renee Murphy said noise from the mine was an ongoing issue.

"You know you can't go to sleep at night because of the constant rumble, you can just hear it in the background."

Farmer Pat Murphy says his life has been turned upside down by the mine. ( ABC: Jennifer Feller )

Murphys have lack of legal remedies

Mr Murphy said the mine's project approval excluded his property in terms of enforceable noise and dust limits.

"I asked the NSW Department of Planning what they were going to do about the noise from the mine," he said.

"They told me they knew when the project was approved that the noise was going to be excessive and that's the reason they put no noise restrictions in place, instead they gave me voluntary acquisition rights, meaning the right to ask the mine to buy my property.

"Effectively, that was my only option."

Pat and Renee Murphy and their children. ( ABC: Jennifer Feller )

Sue Higginson, principal solicitor at the Environmental Defenders Office, is advising Mr Murphy.

She said, unlike his neighbours who had dust and noise limits attached to their properties, Mr Murphy's legal options were few.

"There is no specific actual measure that Pat can go to the courts and hold Whitehaven to account over. Pat has fallen through the cracks when it comes to enforceable limits," she said.

Ms Higginson said if the Government knew that Pat Murphy would be affected, it should have required that his property be purchased before the mine was approved.

"By not putting specific limits for noise and dust on Mr Murphy's property, the Government has authorised the interference with his rights to the quiet enjoyment of his land," she said.

Paul Flynn, CEO of Whitehaven Coal, told Australian Story there was confusion over the issue and said the mine was accountable to Mr Murphy.

"Pat Murphy's properties and all the surrounding properties in the area around the mine have noise and air quality limits applied," he said.

"The requirement for noise and dust as they apply to the mine apply to Pat Murphy's property. And so he gets the benefit as does the rest of the community."

Ms Higginson disagrees, maintaining that Mr Murphy is legally disadvantaged by not having enforceable noise and dust limits on his property.

EPA inspected Maules Creek after dust complaints

The former manager of the Environmental Protection Authority's (EPA) Armidale regional office, Simon Smith, inspected the Maules Creek mine last year after complaints about dust.

He was critical of its operations.

"They'd spent too much time trying to get the mine up and established rather than concentrating on the environmental controls and I thought they could do better," he said.

But Mr Flynn has defended the mine's record.

"I'm certainly happy to stand by the track record of the company in terms of compliance since the mine was constructed a short time ago," he said.

"Can we improve? Of course, we should always focus on continuous improvement."

Acquisition policy 'like blackmail': former EPA manager

Ms Higginson said the voluntary acquisition option the Government had given Mr Murphy in place of noise and dust limits was problematic.

"He doesn't have the confidence at this point to trigger the voluntary acquisition process, remembering the final arbiter of the voluntary acquisition process is the NSW Government, the very entity that put him in this position," she said.

The Maules Creek mine has been the subject of numerous protests. ( ABC News: Johannah McOwan; file photo )

Mr Smith was critical of the process.

"I've heard that a lot of people aren't happy with the acquisition policy and its outcome. A formula that results in about 1.5 times market value sounds reasonable, but to move to another enterprise is going to cost more than 1.5 times," he said.

He also believes Mr Murphy's hand is being forced.

"The explanation of not providing a limit because the noise was going to be so high ... that's forced acquisition, that's saying to someone well the noise is going to be really high and so therefore you need to go. It's like blackmail."

Mr Murphy has conducted informal negotiations with Whitehaven Coal about the sale of his property to the mine, but to date, a price acceptable to both parties has not been reached.

EPA investigating blast fume complaints

Mr Murphy and his neighbour Lochie Leitch claim that on February 5 this year, they were caught in blast fumes generated by the mine, whilst on their respective properties.

According to Mr Leitch, he was checking sheep in his paddock when he smelled the gas from the blast.

"I saw the dust and I felt pretty dizzy straight away. I hightailed it out of there," he said.

On the preceding day, his wife Sonja Leitch said she experienced blast fumes from the mine.

"I went down to let the chooks out of their house and I heard the blast go off and I looked up and I saw a big plume of grey-yellowish colour coming towards me. I could smell a slight odour sort of like rotten gas I suppose you could explain it," she said.

In relation to those accounts, Mr Flynn said: "I'm not aware of any incidents where they've been affected".

The EPA is currently investigating five blast fume complaints relating to the Maules Creek mine.

Australian Story requested an interview with NSW Planning Minister Rob Stokes but he declined, instead providing a statement.

"The NSW Government understands the impact that mines can have on neighbouring properties — especially when it comes to dust and noise," the statement said.

"In response to community concerns, the Department and Environment Protection Authority have commissioned an independent expert review of dust management and monitoring on the site, and have imposed a requirement for a mandatory noise audit.

"This is in addition to the comprehensive, real-time dust and noise monitoring program has been established around the mine, in accordance with the conditions of approval and approved air and noise quality management plans.

"The results of this monitoring demonstrate compliance with the dust limits in the approval. Compliance with noise limits will be determined once the results of the mandatory noise audit are available."

Watch the full report by Jennifer Feller and Winsome Denyer on Australian Story, 8pm tonight on ABC TV.