A tussle is brewing over how mining royalties are shared in New South Wales.

For a decade, communities with large mines were backed with royalties from the NSW Government via the ‘Resources for Regions' program.

That all changed when the NSW Labor Government changed tack with royalty revenue, sharing it amongst other councils and community groups.

Now, councils where mines are based are combining forces in an effort to convince the NSW Government to re-think this approach.

A group of Councils called ''Mining and Energy-related Councils'' gathered earlier this month and are working together to get better outcomes for their districts.

Cobar mayor Jarrod Marsden says his council did well from the former Resources for Regions program, receiving between $9 and $13 million, but has taken a hit from the new approach.

"We are not wanting a fight with the government but seeking to gain revenue lost and help with getting extra people at council, especially in planning, with extra mines coming on line we’re stretched," he said.

"I talked with NSW Planning Minister Paul Scully last week, [and explained] it's not just about building things you need people on the ground.

‘’This not about government bashing we want to work with the minister," Cr Marsden said.

Meeting chairman and Orange Councillor Kevin Duffy said both mining-impacted councils and those LGA’s nearby who are affected by road damage are looking to launch an awareness campaign to win more support for more funding for their communities.

‘’We talked at NSW Parliament (Tuesday 3 June) joined by State MP for Barwon Roy Butler, NSW Planning Minister Paul Scully," Cr Duffy said.

"It was highly productive but we are going to begin a media awareness campaign to highlight how this money helps our communities and other councils are joining forces and coming on board.

"Our roads and nearby communities get hit hard without this funding."

He said smaller country councils need help with roads impacted by heavy machinery and large trucks.

The Orange and Cobar Councils will each contribute $10,000 to the fund, together with other LGA’S. But he says he and supportive councils will quietly negotiate with governments.

Resources for Regions was abolished in 2022 after delivering $140 million to NSW councils.

It is understood $47 million was available in its last year but the funds were not distributed to councils.