A fossil fuels firm behind a proposal to explore for gas using a “low volume fracking technique” close to highly protected coast and national park landscapes has been told its scheme would have “significant” environmental consequences which must be thoroughly scrutinised.

Anti-fracking campaigners heralded North Yorkshire Council’s planning officers for insisting Europa Oil and Gas undertakes an Environmental Impact Assessment (EIA) over its plan to site a 30m-high derrick and rig off the A165 Coastal Road, near Burniston, about 800m from the North York Moors National Park.

In addition, it has emerged the Conservative-led authority and Labour Scarborough and Whitby MP Alison Hume have both written to the Government calling for the closure of a “loophole” allowing firms to bypass the Government ban on fracking and needing an EIA by using a “low pressure fracking technique” called propant squeeze.

As the UK takes the use of large volumes of fluid as its definition of fracking, proppant squeeze is not included in the government ban on the controversial gas extraction method.

Campaigners said the council, whose predecessor authority sparked an outcry by approving a fracking scheme at Kirby Misperton in 2016, appeared to be “drawing a line in the sand”.

In documents submitted to the council the firm had described the scheme, to determine potential reserves of gas using proppant squeeze for up to 17 weeks, as “conventional gas exploration”.

It had advised the council that a time-consuming EIA was unnecessary as dust, noise, impacts on ecology and pollution on land or water could be avoided completely or reduced to non-significant levels through the implementation of standard mitigation and best practice measures.

The firm added its operations would take place over a relatively short period, it would be unlikely to have significant environmental effects and would be in line with national planning policy which seeks to support hydrocarbon production and contributes to UK energy security.

However, planning officers stated they considered “short-term planning permission for the construction and operation of a drilling rig for the exploration of subsurface hydrocarbons testing well… would have significant impacts upon the environment”.

The decision was announced following a meeting between senior figures from the council and the North York Moors National Park Authority.

It means the criteria for a 3.5km gas exploration buffer zone around the national park, as detailed in the park authority and council’s joint minerals plan, comes into full effect.

Green councillor and park authority member Arnold Warneken said EIA could reveal sufficient concerns for the firm not to submit an application.

He added: “We need to do everything within our powers to deter exploitation of the natural environment and take any measures we can to restrict the extraction of fossil fuels if we as an authority are going meet our carbon reduction plans.

“These companies need to know we will not let there threat to the ecology be unscrutinised .”

Councillor Steve Mason and campaign lead at Frack Free United said the decision represented “good news for the community”.

He said: “I’d like to think the council has moved on from fracking, as it’s clear again that residents simply do not want it.

“Our coalition will also be calling for the Co2 emissions from the fossil fuels produced to be included in any assessment as well as the restrictions included in the minerals plan to be strongly implemented.

“It’s all well and good claiming that it’s simply exploration. Let’s be honest, they will have a good idea of the amount of gas available.

“But this could all be addressed quickly by the new Government. The minister has to act now, close the loophole that allows fracking under different guises in our community.”