The blockade of the Santos coal seam gas project at Spring Ridge on the New South Wales Liverpool Plains has been called off.

Santos has agreed to suspend drilling activities until the completion of the Namoi Catchment Water Study due March 2012. This study will determine the vulnerability of underground and surface water systems.

The blockade was imposed by the Caroona Coal Action Group which is part of the Lock the Gate Alliance.

President of the Lock the Gate Alliance Drew Hutton said this result was a vindication of the whole lock the gate strategy.

In a recent ABC interview AGL boss Michael Fraser lifted the lid on future pricing for coal seam gas in the domestic market.

In a case of shameless scaremongering Mr Fraser told ABC Inside Business host Alan Kohler that New South Wales might soon run out of gas.

Lock the Gate Alliance president Drew Hutton said what is really happening is that companies like AGL will use the global price for coal as leverage to double the domestic price.

Protesters halted dredging in Gladstone harbour for 2 hours today, when Friends of the Earth campaigner Derec Davies hung a banner and locked himself to a Gladstone port corporation dredge.

The protest was supported by a small group of local fishing boats and one kayaker.

Derec was locked to the dredge from 9:30 am until 11:45 am, when he was cut off and arrested by Gladstone Police.

The New South Wales Labor Party is now supporting a moratorium on all Coal Seam Gas exploration licenses, the issuing of coal seam gas extraction licenses and applications to expand existing operations

The leader of the NSW Labor Opposition, John Robertson stated that, until a water-tight regulatory framework is in place based on independent scientific research and conclusive evidence, the government should not be allowing coal seam gas mining to proceed.

This new development could ensure the NSW Greens bill imposing a moratorium on coal seam gas development passes the state upper house. This will put enormous pressure on the Coalition government.

President of the lock the Gate Alliance, Drew Hutton, said it was now time for the Queensland ALP to do the same.

The causes of the apparent ecosystem collapse in Gladstone harbour can only be satisfactorily addressed by a halt to the dredging of the harbour and a genuinely independent testing regime.

Gladstone harbour borders the Great Barrier Reef World Heritage area and Curtis Island, on which four huge liquefied natural gas plants will be built, is part of that WHA.

Friends of the Earth spokesperson Drew Hutton said neither the Queensland government nor the federal government were trusted by most people to get to the bottom of the problem because they had too strong a vested interest in seeing these projects go ahead.