Arrow Energy has formally withdrawn from two gas exploration leases in the Scenic Rim region, south of Brisbane.
Resources Minister Scott Stewart says the leases, near the town of Beaudesert, have been removed from prospecting maps.
"My department have accepted these withdrawal applications, meaning these exploration permits no longer exist," he told parliament on Tuesday.
There were no gas leases visible in the Scenic Rim region on the Department of Resource's online map on Friday morning.
Arrow halted operations in the region in 2012 following an 18-month community blockade of its drilling sites.
The company quietly applied to extend its two leases in 2018, and as part of those applications had to submit a plan for commercial gas extraction by 2033.
Scenic Rim Mayor Greg Christensen, local Liberal National Party MP Jon Krause and activists were deeply concerned when they found out about Arrow's plans earlier this year.
Keep the Scenic Rim Scenic spokesman Innes Larkin was ecstatic to learn gas exploration and drilling have effectively been banned from the region.
"It's beautiful news, it's fantastic, it's had me screaming and yelling and jumping up and down," Mr Larkin told AAP.
"And I'm now super excited to ring my community and start spreading the news."
Mr Krause said he was glad the Scenic Rim will be protected from coal seam gas development, an issue he campaigned on when he was first elected in 2012.
The MP said his community, farmers and the tourism sector had made their views clear about gas over a long time.
"I acknowledge the position taken by the government today which looks like it has put the issue to bed permanently," Mr Krause told AAP.
"It took over 10 years of persistence, but the outcome is welcome."
Mr Larkin said while Scenic Rim locals were celebrating, his thoughts went out to other communities fighting against coal seam gas developments.
He said the Scenic Rim campaign against coal seam gas mining had succeeded because the mayor, local MP and Lock the Gate Alliance were united behind the community.
"When you have that leadership shown by magnificent people in power the world can change," Mr Larkin said.
"Our mayor came out and from the bat was going: 'I want to stand by my community. This is not appropriate for this region'.
"The local state member is not in power, but was instrumental in 2012 from stopping coal licences, also came out and did that, and that sends a really powerful message.
"If only other communities had that same sort of leadership that we had behind our community, then I think we would see massive change across Australia."
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