Federal Resources Minister Keith Pitt faces urgent court action from environmental groups over a decision to grant up to $21 million to a controversial gas project in the Northern Territory’s Beetaloo sub-basin.

The Environmental Defenders Office filed proceedings in the Federal Court on Thursday that allege the Minister breached the Public Governance, Performance and Accountability Act 2013 when granting cash to Imperial Oil and Gas under the Beetaloo co-operative drilling program in early July.