Swansea and the Central Coast will see on-land gas exploration come to an end, after the cancellation of the State Government's Petroleum Exploration Licence 461.
The license, granted in 2008, originally covered over 15,000 hectares around Swansea, Wyee and Budgewoi, impacting tens of thousands of homes.
Parliamentary Secretary for the Hunter Scot MacDonald has welcomed the announcement by Resources Minister Don Harwin, saying the cancellation removes uncertainty for the communities.
Greens MP Jeremy Buckingham said it's a good start but there is more the Government could be doing.
"It's a step in the right direction but the government needs to get serious about cancelling licenses across the Hunter and Central Coast," Mr Buckingham said.
"The region is still faced with many other petroleum exploration licenses and the prospect of offshore gas drilling, the State and Federal Government need to do much more to move away from fossil fuels towards a renewable energy future that deals with the impacts of climate change."
Georgina Woods from Lock the Gate Alliance has also long been opposed to this type of testing.
"We welcome the buyback of the Petroleum Exploration License. It's long overdue to be honest, a great relief for local residences," Ms Woods said.
"This was a legacy exploration license from before the Chief sciences review of the Coal-Seam Gas Industry, which recommended strict new regimes for that industry in this State and it's a terrific relief that the government has finally gotten rid of it."
For more information on Government plans on resources and energy, please visit the Department of Planning and Environment.
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