The two binned applications were made by little-known Tito Trapuzzano with the help of Hetherington Exploration & Mining Title Services, with the cancelled PELA 127 located about 25km south of Lismore and PELA 128 situated about 40km southwest of Lismore.

Roberts said the Office of Coal Seam Gas had advised him of Trapuzzano’s lacking financial viability.

“He has no known petroleum exploration history and no Australian financial records or reports have been identified,” Roberts said.

“Trapuzzano’s application did propose the use of experienced Australian petroleum consultants but the application significantly under-estimated the costs involved in completing the necessary exploratory work, ensuring adequate security bonds are held if approved and undertaking sufficient community consultation.”

The minister used this exercise to make more warnings.

“Companies with applications that don’t stack up should not be surprised when the Government refuses their applications,” he said.

“Three weeks ago, the NSW Government announced a freeze on the processing of new Petroleum Exploration Licence Applications and an audit of existing Petroleum Exploration Licences. The freeze will run until 26 September 2014 and allow time to put in place a more comprehensive application process.”

Part of the state government’s measures to remove “cowboy” operators was to hike the application fee for petroleum exploration licences from $1000 to $50,000.

“Under Labor, small companies, even two dollar shelf companies, flourished and were granted licences that blanketed New South Wales,” Roberts said of the previous state government.

“Labor’s legacy of 39 PELs granted without due scrutiny and oversight is responsible for considerable stress across many communities in our state.”

“The government is working to ensure that there is a comprehensive assessment process to increase participation by professional, capable and experienced companies.”