They include a ban on the use of toxic chemicals and evaporation ponds, greater public consultation, stronger environmental requirements and an extension of the moratorium on hydraulic fracturing (known as "fracking"), until the end of the year.

Heathcote MP Lee Evans, who is under attack within his electorate for supporting a continuation of gas exploration and mining, welcomed the rules outlined by Resources and Energy Minister Chris Hartcher.

He said the government had responded to concerns he had raised about some practices.

The group, Stop CSG Illawarra, said the changes were "'small steps in the right direction, reflect the strength of the community campaign to date, but are completely inadequate".

Spokeswoman Jess Moore said the moratorium on fracking applied only to new projects.

If the government acknowledged the risks this practice posed to water and agriculture, it should declare a moratorium on all fraccing, she said.

Ms Moore said while banning BTEX (benzene, toluene, ethylbenzene and xylenes) for drilling was a positive step, these chemicals could still occur naturally in coal seams and be present in water that was drawn out of the seam to access the gas. She called for the government to list all approved drilling sites and conditions online.