PERTH (miningweekly.com) – The New South Wales government has decided not to appeal a Supreme Court decision that in April overturned the suspension of drilling at ASX-listed Metgasco’s Rosella exploration well.

Metgasco turned to the Supreme Court last year after the New South Wales Office of Coal Seam Gas (OCSG) failed to amend a previous suspension of drilling activities at the Rosella exploration well.

The OCSG maintained the suspension, providing the company with written material in support of the renewed suspension, which had originally been based on claims that Metgasco had failed to adequately conduct community consultation.

The New South Wales Supreme Court found in favour of Metgasco, after the state government failed to lodge supporting evidence for the OCSG’s decision. The state government was given until May 22 to launch an appeal against the Supreme Court decision, but this date passed without any action from the government.

“The Supreme Court decision, handed down in April, was strongly in Metgasco’s favour, finding against the government on all three major points, any one of which was sufficient to overturn the suspension order,” said Metgasco MD Peter Henderson.

“We are pleased the New South Wales government appears to have recognised this and has avoided the damage it would have done to investor confidence in New South Wales and the waste of taxpayer funds that it appealed in the decision.”

Henderson said that Metgasco was looking to meet with government representatives to discuss the damage caused to Metgasco as a result of the suspension decision, and the future of the gas industry in the Clarence electorate.

“We would prefer to settle our claim for damages out of court. We are also keen and ready to drill the Rosella conventional gas exploration well and wish to confirm that the New South Wales government will maintain law and order,” Henderson said.