The Federal Government has decided to intervene in New South Wales to re-spark the coal seam gas industry.
Resources Minister Ian Macfarlane says he has spoken to Premier Barry O'Farrell and will be forming a committee of various stakeholders to find a real solution to the state's "gas challenge".
Mr Macfarlane has told an energy summit in Sydney today that thousands of jobs are at stake unless opposition to coal seam gas can be overcome.
He says it is one of his biggest priorities.
"It's too urgent. We've got to sort this out quickly," Mr Macfarlane said.
"We've got to get the drill rigs going, where the farmers want them going, where the geology's safe, where the water's safe, where the environment's safe, we've got to get them going by Christmas if we can."
Mr Macfarlane says the CSG industry should be treated the same way in every state and territory.
"Whatever the buffer zone is in Queensland is the same in NSW, is the same in Victoria, is the same in South Australia, is the same in the Northern Territory, is the same in Western Australia and is the same in Tasmania if they've got any coal seam," he said.
"The ACT people tell me they haven't, but if they have we have the same rules. It's called harmonisation."
But NSW Energy and Resources Minister Chris Hartcher told today's summit the state would not weaken its regime.
"We will not be altering in this State our protective framework, that we regard as non negotiable," Mr Hartcher said.
Earlier at the summit a number of protesters, led by New England farmer David Quince, were bundled away by security.
"Unreal. It's supposed to be a stakeholders meeting for gas and people from the agriculture and the bush that this sort of industry is going to impact on and we're not invited here. It's just unbelievable, unbelievable," Mr Quince said.