They are also angry that the Government has refused to direct some royalties to Muswellbrook and Singleton councils.

They say it took Macquarie Street six months to dismiss the request with "a scant 13 lines" of a letter from former mineral resources minister Peter Primrose.

The coal royalty issue exploded this week when The Herald revealed that Hunter mining royalties would earn the Government $920 million this year, almost three times the $365 million paid in 2006.

Yesterday, the chair of the Board of Hunter Councils, Dungog Mayor Glenn Wall, said Hunter councils were determined to get a better deal for mining communities and had lodged a submission with the Government to support the claim.

"We were asking that a very minor proportion of this royalty windfall be directed to the local government areas that overwhelmingly provided it, so that those communities could start to address the negative impacts of mining and start building for a life after coal," Cr Wall said.

"After almost half a year the now former minister, Peter Primrose, wrote back in 13 lines, saying, essentially, we need the money, the royalties fund the Government's operations, write to the Treasurer."

Muswellbrook Mayor Martin Rush said mining was taking a heavy toll on the region's roads and other infrastructure but the Government was doing little or nothing about it.

Mr Primrose was mineral resources minister from November 17 to December 4.

His Upper House colleague, Ian Macdonald, was minister before Mr Primrose and was returned to the portfolio in this week's reshuffle by new Premier Kristina Keneally.

A spokesman for Mr Macdonald said that royalties were spent across NSW on hospitals and schools but if the councils had particular concerns the minister was happy to meet with them.