Though it hailed positive steps in buying back large gas exploration licences that it said threatened farmland and drinking water catchments, LTG said that more broadly the government had failed to implement chief scientist Mary O'Kane's recommendations.
O'Kane's report, delivered a year ago, found CSG could be managed with a series of regulative improvements.
LTG NSW coordinator Georgina Woods said NSW still doesn't have a process for deciding where CSG should be allowed and where it shouldn't, or an expert group to provide wide-ranging advice and comprehensive risk management recommended by O'Kane.
"Farmers are still being told by insurers that they can't get coverage for any damage CSG companies might do to their properties, and CSG companies are woefully under-insured," she said.
A parliamentary committee recommended in February that no further CSG activities be contemplated till all her recommendations are implemented.
That was backed up by the Australian Energy Market Operator's declaration that there was no gas supply crisis, and that gas demand in NSW was falling.
"Rather than acting on the advice of the parliamentary committee, the NSW government has instead approved dangerous gas flaring near homes in Gloucester and a risky waste-water irrigation project near Narrabri," Woods said.
"The NSW government only scored 1/10 on the health risks of unconventional gas in our report card. This is the biggest regulatory gap and the issue of greatest concern to the community, but there has still been no health study conducted in NSW.
"We had expected more progress from the Government on the major reforms proposed by the chief scientist by now. There is no reason why they should be pushing ahead with risky CSG drilling at Gloucester and Narrabri before all recommendations have been fully implemented."
She urged the NSW government to support an unconventional gas moratorium bill recently introduced into NSW's parliament.
Shadow energy minister Adam Searle delivered the second reading of his private members bill, Coal Seam and Other Unconventional Gas Moratorium Bill 2015, on September 10 in the NSW Legislative Council.
It requires that a moratorium be imposed on the sector until all recommendations made by the NSW chief scientist are fully implemented and the industry is proven to be safe to water aquifers, the community and environment.
"It's time for them to step up and protect people, rural industries and the environment, rather than pushing a risky gas industry that threatens them all," Woods said.
The Shooters and Fishers party joined the government last month to vote down a Greens party bill in the Upper House to ban exploration and production across most of NSW, including Lismore and Gloucester.
