Premier Barry O'Farrell bows to coal gas pressure from Alan Jones and the public THE state government has bowed to pressure from radio broadcaster Alan Jones and the anti-coal seam gas lobby and will today introduce a ban on CSG exploration near houses. In an about-face from the Coalition, Premier Barry O'Farrell will take further regulation of coal seam gas exploration to the party room today, effectively banning its extraction in residential areas. This follows the decision of AGL Energy earlier this month to abandon a major drilling project in southwest Sydney, after the community and local MPs banded together to oppose the project. The policy, which passed cabinet yesterday, will ban new CSG exploration within 2km of residential areas, vineyards and stables. The Environmental Protection Authority (EPA) will regulate the health and environmental impacts of mining, and the chief scientist and engineer will conduct a review of all CSG exploration - including its impact on water supply in the area. "This package makes suburbs, country towns and other urban areas no-go zones for CSG activities in NSW and clearly establishes the Environment Protection Authority as the cop on the beat," Mr O'Farrell said. The EPA will be empowered to revoke licenses from any companies that do not adhere to their license conditions. Families in residential areas should not have to worry about their quality of life being affected by the noise, visual impacts and other effects of coal seam gas mining. The policy is at odds with what the minister, Chris Hartcher, put to business leaders at the Centre for Independent Studies a fortnight ago. He told the assembled group that the CSG industry should be seen as one of the "pillars" of the state's economy, and was essential to secure future prosperity. Mr Hartcher declined to comment on the new policy. In addition to the new exclusion zone, all CSG exploration will need an environment protection licence, and an office of Coal Seam Gas Regulation will be created in the Department of Trade and Investment. Jones has frequently questioned the government's support of the mining industry, citing environmental and health effects on people who live near CSG projects.