Metgasco has accepted a NSW Government offer to buy back its CSG licences in the Northern Rivers region.

The new agreement will see the NSW Government pay a $25 million settlement to cancel three gas exploration licenses.

The proposal also puts the responsibility on Metgasco to decommission two remaining coal seam gas wells, while the NSW Government will return $400,000 it is holding in securities to the company.

Additionally, Metgasco will withdraw its development application and legal action against the Government.

The court case was opened by Metgasco after the Government suspended its license for a drilling program at Rosella, ‘unlawfully’, the company says.

The deal has led to celebrations among conservationists.

“This is a day that people around our region have worked for and wanted for over three years,” Gasfield Free Northern Rivers coordinator Elly Bird told reporters.

“We’re over the Moon that the Government and the company have finally seen the light and decided that the community’s rejection of unconventional gas could not be overcome.”

Metgasco’s board agreed to the offer unanimously.

Company chair Len Gill said it was a difficult decision, but it was “better to accept the settlement and move forward”.

“The company has invested heavily in the Clarence Moreton Basin for over ten years and has had significant success in demonstrating large gas resources,” he said.

“While the identified gas resources could have a significant value if developed in an efficient and timely manner, the Board has to consider the risks associated with ongoing project approval delays, higher costs and difficulties funding activities over the next few years,” Gill said.

Landholder Ross Joseph, whose house is covered by the licenses, said he was grateful for the Government’s intervention.

“We’re just so proud of our community for coming together to turn away unsafe and unwelcome industrialisation of our beautiful region,” he said.

“Of course it’s not over for our communities yet.

“There’s nothing to stop the government granting new licences to explore for gas in our region, and until there is protection in law for a gasfield free Northern Rivers, we will continue to work together to achieve that.”