Advent Energy applied for a new permit because its existing one runs out in January.

The licence covers an area from Newcastle to Wollongong that is 8250square kilometres and 200kilometres long.

Preliminary studies estimate there are gas reserves worth $50billion in the licence area.

New laws mean such applications will come under federal jurisdiction from January.

The laws, partly made in response to the 2009 Montara oil spill, aim to improve safety and reduce project-approval times.

Lake Macquarie City councillor Phillipa Parsons has raised concerns that community consultation may be discarded under the new laws.

The state-run community committee set up to consider Advent’s operations off Newcastle is being disbanded.

The committee’s chairwoman Margaret MacDonald-Hill said that was because there was no requirement for it under federal law.

But federal Energy Minister Martin Ferguson’s spokeswoman said the legal changes ‘‘do not impact on consultation requirements for petroleum operations in Australian waters’’.

The spokeswoman said that meant Advent must continue to consult the community on its plans.

She said Advent was able to apply to renew its permit for five years because ‘‘all conditions of the initial permit term have been met’’.

‘‘A further five-year renewal may also be considered if the legislation continues to be complied with,’’ she said.

Advent Energy failed to find gas in its first well drilled off Newcastle last December and January, but has signalled its intention to drill a second well.

Advent said the next well would be drilled within five years, but a location had not been finalised.