NT Environment and Energy Minister Kate Worden approved natural gas company Tamboran Resources' application for gas exploration permits in the Beetaloo Basin in May.
But the territory's peak conservation body, the Environment Centre NT, will on Friday aim to halt the company's Shenandoah South E&A project.
The group has filed proceedings in the NT Civil and Administrative Tribunal seeking to set aside the environment management plan approval, which includes drilling up to 15 new wells at four exploration locations.
NT Environment and Energy Minister Kate Worden approved the application for gas exploration permits. ((A)manda Parkinson/AAP PHOTOS)
The project was set to service a gas supply agreement the government signed with Tamboran Resources in April for nine years, with a possible six-year extension.
Contamination risks to surface water and aquifers and key recommendations of the Pepper Inquiry into inshore fracking were not adequately assessed by the minister when she approved the project, the conservation group claims.
It is crucial the "largest fracking proposal ever approved in the territory" gets the scrutiny it deserves, environment centre executive director Dr Kirsty Howey said.
"Territorians won't stand for risks of damage to our precious water.
"We'll do everything we can to protect our ancient underground aquifers, and the incredible springs and rivers that they feed."
The case marks the first challenge to a fracking environment management plan following the fracking inquiry, from which new review provisions were enacted.
There are stringent processes all projects must go through to ensure gas is extracted in an environmentally safe way, the minister said.
"Tamboran's environment management plan has met this criteria," Ms Worden said.
"The Beetaloo Basin has the potential to provide work opportunities for thousands of Territorians, secure our energy supplies and deliver a huge boost to local businesses across the territory.
"We have implemented an independent monitoring program that will be in place along with strong environmental regulations for gas in the Beetaloo Basin."
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