TIGHTER restrictions on water acquifers and how much water mining companies can take out during drilling has been labelled " pretty good" by Goulburn MP Pru Goward.
Primary Industries Katrina Hodgkinson said on Monday an interim aquifer interference regulation was an important step for the NSW Government and allowed the wider community some breathing space while proper consultation is undertaken.
"This regulation tightens up our control over mining companies, including coal seam gas, especially during exploration," Ms Hodgkinson said.
"In the past there were broad exemptions for those exploring for minerals or petroleum. The new regulation puts in place a three megalitre per year cap before a water licence is needed.
"The new regulation also removes a previous exemption which allowed holders of aquifer interference approval to take water without a licence.
"Those that hold this approval will now be subject to standard water licensing procedures."
Ms Hodgkinson said that the new rules would not be retrospective and would apply to any new enterprises from July.
Ms Goward said it would slow down exploration projects, but not Cockatoo Coal's drilling in Belanglo.
She said the drilling at Belanglo wasn't affecting water acquifers and the final regulations would apply to any application to build a mine.
But she said she wanted the regulations to go "a lot further".
"There has never been a perfect draft. I think it's a good start," she said.
A Cockatoo Coal spokesman said it supported the regulation.
"Hume Coal ( a joint venture between Cockatoo and POSCO) is committed to the preservation of the Southern Highlands valuable underground water resources and we fully support any increased protection for the state's aquifers," he said.
"Our commitment to protecting aquifers is demonstrated by our engagement of leading ground water consultants Parsons Brinkhoff and the ground watering monitoring already underway at the Hume Project.
"Hume Coal's exploration activities are subject to strict regulatory controls and on-going monitoring."
"Our drilling practices have already been the subject of independent site inspections by the Sydney Catchment Authority and DTIRIS.
"We will continue to follow best practice approach to both exploration and ground watering monitoring at the Hume Project and will ensure full compliance to the finalised aquifer interference policy when developed by the Government."
Ms Hodgkinson said the acquifer regulation was part of the Coalition's strategic land use policy.
"It is important that we allow the community adequate time for consultation while we develop the aquifer interference policy," she said.
"The new policy will form a vital part of the NSW Government's focus on strategic regional land use and will enable us to balance the competing needs of the environment, mining and agricultural sectors.
"The community is clearly concerned about the impacts of mining and coal seam on groundwater resources and this new regulation gives us greater control.
"The NSW Government is determined to find a balance between farmers, industry and the environment when it comes to rural land use, and this new regulation, along with the proposed policy, are two key steps in what will be a long process."
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