The Greens, Labor, and two minor parties, Fred Nile's Christian Democrats and the Animal Justice Party supported a bill that would have seen CSG outlawed in the Northern Rivers, the Pilliga Forest and special drinking water catchment areas in Sydney and the Central Coast, putting an end to projects run by Santos, Metgasco and AGL Energy.

It would also have enacted a five-year CSG moratorium across the state to establish a scientific consensus that CSG would not damage aquifers and groundwater systems, particularly in prime agricultural land, despite the fact a report commissioned by the NSW chief scientist concluded that gas extraction could be managed.

Greens MP Jeremy Buckingham introduced the private members bill and went into the vote believing he had the support of the Shooters, although the gun enthusiasts' MP Robert Brown said that was never the case.

"I wasn't going to speak on this, but seeing as how someone has already indicated to the press that the Shooters and Fishers Party will be supporting the bill without asking us, then I decided I should speak to it," he said.

"We will decide what bills we support, we have a policy, the policy is clear. We will vote in accordance with the findings of the inquiries that we've had and with our policy."

Calling the bill a stunt, and said his party supported the government's plan to deal with community concerns about CSG industry through licence buybacks and the state-wide gas plan.

The Liberals said passing the bill would kill off the gas industry in NSW, destroying jobs and of the potential of self-reliant gas supply.

The bill's progression to the Lower House would have placed further pressure on the National Party, which was punished at the ballot box in the March election, leading to a number of National MPs supporting a ban on CSG exploration in the North Coast region.

Despite that, Nationals leader Troy Grant has backed the Baird government's strategy to address community concerns, blaming a "scare" campaign for the anti-CSG sentiment.

Lock the Gate NSW coordinator Georgina Woods said the NSW governing Liberal-National coalition had "hung their constituents out to dry on CSG".

"By nailing its colours to the mast of the CSG industry this morning, the NSW government has committed itself to a dead-end path that will only lead to more determined community action," she said yesterday.

"We are grateful to the y for building a unique political consensus and taking this bill to the very brink of success.

"We know that real change is incredibly close, and we will take this result as a signal to redouble our efforts to defend our land and water resources from this dangerous industry."

Lock The Gate says the NSW gas action plan was "dead in the water" after its central premise that CSG was needed to meet a gas supply shortfall was comprehensively debunked by the Australian Energy Market Operator.

"The only genuine path forward is to respond to community concern and rein in the industry," Woods said.

"The next phase of the community campaign to protect NSW from risky and unwanted CSG developments begins today."