Residents of a town in New South Wales have taken their ongoing battle over coal seam gas drilling to the state’s Premier.

A group from Fullerton Cove have been fighting against drilling approval awarded to the Dart Energy group for its coal seam gas pilot project near the town.

The Fullerton Cove Residents Action Group has written to NSW Premier Barry O'Farrell, outlining a number of new concerns over risks to the nearby Tomago aquifer, which contributes to Newcastle's drinking supplies.

They say a NSW Office of Water report confirms the aquifer is at high risk of saline contamination if the energy company were to drain it.

Fullerton Cove Residents Action Group president Lindsay Clout says the government should heed its own reports.

“It's what we were looking for,” Mr Clout said.

“We had always been concerned about the dangers to the groundwater ecosystem.”

Mr Clout says the group will take the matter to court if the Premier does not revoke the approval.

“The first step that I would see that we would approach is that we would be applying for an injunction... I think that is a very distinct possibility,” he said.

Dart Energy may not be rushing into the project anyway. Reports say the energy company is waiting for more supportive state environment policies before it get into full swing.