An alliance of political groups joined forces on Sunday to urge the Albanese government to cancel the PEP-11 offshore gas permit.
A rally was held at Bar Beach, organised by the Protect Our Coast Alliance, where attendees raised the issue of why a decision had not been made on the permit.
Federal Newcastle MP Sharon Claydon said due process was being followed to ensure the case wouldn't return to court.
Asset Energy lodged a Federal Court challenge last year to former Prime Minister Scott Morrison's cancellation of the Petroleum Exploration Permit 11, after he secretly made himself the co-minister for resources.
The case was settled out of court last month and the decision returned to Labor's federal resources minister Madeleine King.
Hunter Community Environment Centre co-ordinator Jo Lynch said "we are fearful that Madeleine King is not going to cancel the PEP-11 permit".
"We're here to express and embody the big community campaign that led to its cancellation [under the Coalition]. Sharon Claydon has been very vocal on behalf of us before."
Ms Claydon said PEP-11 is "a project without friends" and "not welcome".
"It has never made sense from an economic, environmental or energy perspective," Ms Claydon said.
"The Federal Court has made clear that due process must be followed. Any effort to deviate from that process will land us straight back in court.
"I can assure the people of Newcastle that there is only one minister for resources in the Albanese Labor government and she will be diligent in doing her job properly."
The PEP-11 exploration permit spans a 4500-square kilometre area from Wollongong to Port Stephens.
David Breeze, whose company BPH Energy has a substantial stake in the PEP-11 project, has highlighted the national gas "crisis".
Mr Breeze was unavailable for comment on Sunday.
Ms Claydon said the next step in the process was for the National Offshore Petroleum Titles Administrator to prepare advice for the Commonwealth-NSW Offshore Petroleum Joint Authority.
"Once that advice is received by the joint authority, the NSW government will consider it and make their decision, and let the Commonwealth government know in writing."
The federal minister will then "consider the application and make a decision."
NSW election candidates for Labor, Liberal, The Greens and NSW Socialist Alliance spoke against the permit at the rally, along with Ms Claydon.
Niko Leka, of the Socialist Alliance, said "the age of fossil fuels is over".
Lynn Benn of the Knitting Nannas Hunter Loop added "we have to face the climate crisis".
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