Greens councillor Sue Wynn, of Mannering Park, said the "Number one burning issue" for residents in those towns was the fear of mine subsidence and damage to their properties.

"The least we can do is minimise the risk of that mining, and maximise the safety for residents," she said.

Singleton-based company LDO Coal is seeking approvals to extend the life of the Chain Valley coal mine by 21 years to 2030, and to expand its coal production from 750,000 tonnes to 1.2 million tonnes per year.

Locals are nervous.

In 1997, mine subsidence at Chain Valley Bay [caused by the now-closed Newvale colliery] affected about 300 homes.

Residents fear more trouble.

Cr Wynn will present a motion that would see the council urge the mining company and the State Government to apply a series of safeguards and conditions to any mining in the area.

At the top of the wish list is a mining exclusion zone under homes.

Cr Wynn said LDO Coal could achieve about 70 per cent of its target coal production by avoiding residential and commercial areas.

Cr Bill Symington, of Gwandalan, said such an exclusion zone would represent "a win for everyone".

"Residents would not be affected by subsidence, the State Government would still get its royalties, the miners would keep their jobs, and council's infrastructure problems would go away," Cr Symington said.

Cr Wynn's motion - which was due to go before the council last night - also addresses concerns over increased coal truck movements on Rutleys Road, the Pacific Highway, and the F3 Freeway to the coal port in Newcastle.

She said LDO Coal should investigate transporting its coal to coal trains via conveyor belts. This method was used by Centennial Coal at the Mannering colliery, she said.

"That would give people who live there some confidence in the mining operations."

LDO Coal said it supported more than 450 families through direct and indirect employment.

In January, LD Operations director Peter Ross said: "We are aware there have been concerns, but we do not intend to have a negative impact on the community."