"To be awarded SSD status over the first stage of the Sydney Gas' Camden Gas Project in the first half of January 2002 is a great start to the year," Mr Butcher said. "For Sydney Gas to have achieved this so quickly is a tremendous endorsement by the New South Wales Government of the importance to the State of coal bed methane as a new environmentally friendly fuel and energy supply."

According to Mr Butcher, the Minister's declaration paves the way for the Department of Urban Affairs and Planning to assume control not only of future planning and development consents associated with the Camden Gas Project approvals, but also development approvals associated with other areas within PELs 2, 4 and 267 that are earmarked for future development.

By working closely with the DUAP, Sydney Gas was confident it would get all the benefits that came from less red tape and speed up its returns from production wells to be drilled across the Sydney Basin. Despite the announcement, Sydney Gas Company shares fell 1c to finish at 41.50c at time of writing.