Metgasco Limited (ASX:MEL) has begun legal action against the suspension of its drill licence in Northern NSW.
The gas explorer had its licence suspended in May by the NSW Office of Coal Seam Gas which carried out a review and decided to keep the suspension in place.
The company feels the new material offers no justifiable claim that community consultation was lacking.
CEO Peter Henderson says Metgasco believe it has complied with the guidelines and that its consultation was made explicit in its application and approved.
Metgasco reported a net loss of $2.3 million in the first half of the 2014 financial year.