The Sweetwater Action Group is contesting the concept plan's approval and the rezoning of land for the $1.8 billion Huntlee development near Branxton in a hearing before the NSW Land and Environment Court from October 19.

The group, represented by the Environmental Defenders Office, alleged Planning Minister Kristina Keneally's decision was biased.

The group was last week granted Legal Aid, which is only awarded to environmental cases that present a strong public interest value.

Applications are assessed against criteria including whether a project is likely to have a "significant impact" on the environment.

Following the funding approval, Huntlee Holdings agreed to withdraw an application it had filed for a security for costs order against the group.

An order would have required the group to pay security that would cover Huntlee's legal costs if the group lost the case.

But that could have sunk the case before it began, as the group may have been unable to pay.

Huntlee had also served a "notice to produce" on the group and a "subpoena to produce" on group member and Cessnock City councillor Chris Parker for documentation, including information about his and group members' ability to pay the costs.

But Huntlee agreed to drop the relevant sections of the notices, following the Legal Aid approval.

LWP Property, project manager and stakeholder in Huntlee Holdings, referred The Herald to its NSW manager Ian Wilks, who could not be reached for comment.