Upper Hunter MP Dave Layzell said he is desperately trying to get the Hunter Gas Pipeline running across public rather than private land.
More than 100 landowners between Muswellbrook and Maitland only discovered this week that Santos had been given the right to conduct surveys and testing on their properties even if they did not give consent.
Some landowners have already indicated they will prevent Santos from accessing their land.
With tempers at boiling point, the pipeline is certain feature prominently in the upcoming state election campaign.
Mr Layzell, who holds the seat by a 0.5 per cent margin, said consultation with Santos was essential in order to get the best outcome possible.
"I'm desperately trying to get it (the pipeline) off landholders' properties and onto public land like travelling stock routes," he said.
"I can't do that unless people are talking and having these conversations (about the route). That's why I encourage everyone to have these conversations with Santos.
"From a state government point of view, we're certainly interested in trying to help relocate the line to a location that works with the majority and avoids impact on private property."
Mr Layzell said he understood the fury of landowners who learned via the media on Tuesday that NSW Energy Minister Matt Kean had signed off on Santos' Authority to Survey for the proposed pipeline on January 13.
"It should have been done as a proper announcement and people should have been sent letters to formally advise them what was happening. There's definitely room for improvement there," he said.
Federal Labor Member for Hunter Dan Repacholi agreed the announcement was poorly handled.
"The announcement by the NSW government could have handled a little more sensitively," he said.
"The NSW government and Santos need to make sure processes are in place where discussions are being held with land owners, and that all biosecurity measures are being put in place and adhered to, before they set foot on anyone's property.
"This will impact hundreds of land holders along the route and must be handled correctly.
"I would encourage Santos and landholders to make sure they are clearly communicating."
The Department of Planning and Environment said the decision to allow Santos to conduct survey work was made after consultation and a review of landholder submissions for the Hunter Gas Pipeline.
Santos said this week that it would work with landholders to obtain access and compensation agreements before it applied for a pipeline licence.
It is estimated that the pipeline would not be built before 2025 at the earliest.
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