Barry O'Farrell to speak with Tony Abbott after army starts bushfire Homes lost: NSW fire crews fight the State Mine fire. NSW Premier Barry O'Farrell says he wants to discuss possible compensation for victims of the State Mine bushfire with Prime Minister Tony Abbott after Defence admitted starting the fire. The admission opens the way to the federal government paying out millions of dollars. Visiting Winmalee in the Blue Mountains on Friday, Mr O'Farrell welcomed the apology from acting Defence Force chief Mark Binskin for the fire, which was sparked by a Defence training exercise at Marrangaroo range near Lithgow. Asked whether the state government would seek compensation from the Commonwealth, Mr O'Farrell said he had not yet seen any report into the fire but added: "I do intend to speak to the PM once I see that report because clearly, at least seven or so homes were lost as a result of that fire. Other property damage occurred and we need to see what's going to be done. When pressed further, Mr O'Farrell said: "Well, a fire broke out, property has been damaged, we need to settle the compensation issues and that's one of the issues I will be discussing with the PM." On Friday, more than 800 firefighters were still battling 51 fires across NSW, 22 of which were uncontained. But three major fires burning in the Blue Mountains - the State Mine, Linksview Road and Mount York fires - had all been downgraded from emergency to the watch and act level. "We have had lower temperatures and easing wind and that's been very helpful for the firefighting effort after a hot and windy week," Rural Fire Service spokeswoman Natalie Sanders said. More than 200 RFS firefighters continued a large backburning operation to strengthen containment lines around the massive State Mine fire on Bells Line of Road near Lithgow. That one is our biggest fire. More than 49,000 hectares have been burnt in total," Ms Sanders said. From what I understand, that fire hasn't been threatening properties today and backburning has been successful. Defence is still investigating the circumstances of the fire, which started on October 16. Sources have said the military demolition specialists carrying out the exercise are suspected of having used a larger quantity of explosive than is suitable for the range. No fire ban was in place at the time. Legal experts say the Commonwealth could face liability not just for properties destroyed but also for the cost of fighting the State Mine fire incurred by the state of NSW. A spokesman for Mr Abbott said the Prime Minister was in meetings on Friday afternoon and not available to comment. During the course of the week, more than 900 firefighters from interstate descended on NSW to help the fire effort, including 500 from Victoria and almost 200 from South Australia. Since last Wednesday, the fires have destroyed 208 homes and damaged 122. With increasing temperatures and stronger winds returning, the RFS warned that next Tuesday was the "day to watch." "There will be a return to some fire danger in the Hunter area on Tuesday," it said. On Thursday night, a 13-year-old youth was charged with five arson offences in the Campbelltown area. The youth, accompanied by a 15-year-old teenager and a 24-year-old man, allegedly lit five fires with a cigarette lighter in Airds, Bradbury and Campbelltown. The fires resulted in 45 square metres of bushland and grass being burnt. The 13-year-old was charged with two counts of intentionally causing fire and being reckless as to its spread and three counts of maliciously damaging property by fire. He was refused bail and was due to appear in children's court on Friday. At the weekend, the RFS expected lower temperatures and calmer winds. "The fire danger rating is high to very high which is still something that residents still need to monitor," Ms Sanders said.