Councillor Phillipa Parsons in her original motion which failed to gain support, wanted council to make a submission to the state government into the impacts of coal seam gas exploration and mining.

An amended motion put by Cr Laurie Coghlan and seconded by Cr Anthony Birt removed this part of Cr Parsons' motion and instead asked the Department of Primary Industries to clarify the notification process to councils of proposals to explore for coal seam gas.

Cr Parsons said coal seam gas had the potential to destroy aquifers, food producing land and have serious impacts on human and animal health.

"Given the deeper coal seams below much of Lake Macquarie and the Westlakes area there is no reason that coal seam gas exploration won't be undertaken in these areas," Cr Parsons said.

She will lead a local rally during National Day of Action on Coal Seam Gas on Sunday, October 16, at noon in the tram sheds, Foreshore Park, Newcastle.

State Energy Minister Chris Hartcher said the government would introduce tough new rules for coal and coal seam gas exploration and mining.

These would see a ban on the use of toxic chemicals, greater public consultation, stronger environmental requirements and an extension of the moratorium on 'fraccing' until the end of the year.