Transcript
The landowners mounted a protest blockade of the project's conditioning plant in Hides last August.
In response the government signed an agreement to address landowners' grievances over lack of benefits and equity arrangements within thirty days
Hides landowner representative Andy Hamaga says government did not honour its promise.
"Unfortunately to date they haven't done anything. We are looking at options, whether to take them to court, or go with international arbitration, or go go back again and shut down the whole (LNG Project) operations before the general election."
At the time of last year's blockade, in response the government said the delays in benefit payments to landowners were due to complications over identifying genuine landowners.
The Petroleum and Energy minister Nixon Duban said that it was in the best interests of Hela to ensure that the right beneficiaries would be getting the payments.
However, Mr Hamaga said this was misleading.
"The state minister is not giving us the actual information. They were supposed to do this clan vetting and landowner social mapping thing before we signed the big Umbrella Benefit Agreement we have signed in 2009. I think they're using this one as an excuse."
Three months ago, 300 extra police and military personnel were deployed to Hela, after months of tribal fighting and a build-up of high-powered firearms, with Hides central to the unrest.
Police wrapped up a weapons amnesty at the end of last month with mixed success
The police commissioner Gary Baki admits high powered weapons remain in the community.
"Phase Two of the operations which is actually commencing now, that is going to be targeted operations, meaning that based on the available information and intelligence to us, we will go directly and hit those people that we believe have firearms and have not surrendered them during the period of amnesty. So I'm aware of a couple of incidents that have been happening up in Hela."
A local NGO worker who has mediated between warring tribes, James Komengi, says that while the military call-out meant that large scale hostilities abated, fresh bursts of fighting are starting up again.
"There's a lot of conflicts within the communities, and so there have been attempts to murder people. We've received reports from Komo, close to the LNG project area, that there have been some men armed with high powered weapons who have attempted to murder tribal enemies. And that was last week. So the attitude of warriors hasn't changed."
The police commissioner says police will maintain a strong presence in Hela through until PNG's elections, with polling commencing in late June.
However, Gary Baki indicated police would not get involved should the Hides landowners launch another blockade, saying it was a matter between the government, developer and landowners.