While the review determined that more work was needed to build a complete model of possible cumulative impacts from CSG and underground coal mining to catchment areas, it also found that water quality issues could largely be managed through “treatment works”.

But the report also said NSW could consider banning fraccing in the Sydney water catchment because of concerns about some of the chemicals used.

In November, NSW banned CSG exploration and extraction in the Sydney water catchment’s most sensitive “special areas” pending O’Kane’s report.

The Australian Financial Review reported that the review had given the state government a green light to lift the ban and was a boost for gas company AGL.