“Environment Minister Tony Burke has extended the assessment period for AGL’s project for a further six months until March 29 next year,” Mr Oakeshott said.

“The decision is welcome news for the Gloucester community, and for those who live downstream in the Manning Valley.

“If coal-seam gas drilling presents any risk to our water supply or to key farming lands, we need to know. The best way to do that is to conduct thorough hydrological assessments,” he said.

Mr Oakeshott called for Commonwealth intervention in March after the NSW Government hurriedly approved the drilling of 110 coal-seam gas wells without consulting with the water supply authority, MidCoast Water, or with 50,000 downstream water users in the Manning Valley.

The Lyne MP also helped fellow Independent Tony Windsor introduce legislation earlier this month that, if supported by the major political parties, would further protect water resources from mining activities.

“We are witnessing unprecedented investment and exploration from the resource sector, but that enthusiasm should not threaten the amenity of communities such as Gloucester or risk the long-term viability of productive farm lands and clean water supplies,” Mr Oakeshott said.

“The Minister’s decision to extend the assessment timeframe by six months is a significant win for our community, and I congratulate everyone involved in helping to highlight our community’s legitimate concerns about the potential impacts of coal-seam gas drilling.”