A gas pipeline has ruptured in Knox Street, Goulburn.
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Police are in attendance to assist with traffic control.
Goulburn Police Inspector John Sheehan said there was no danger as a result of the leak.
"We were notified by the gas company and they are on site now fixing the problem," Inspector Sheehan said.
Police on site said the gas pipeline ruptured at 1.30pm, on the south-western corner of Knox St and Princes Ave.
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"There is a strong smell of gas. It is a fairly extensive leak," Senior Constable David Foley said.
"The gas company Jemena is on-site attempting to repair the gas line.
Two Fire and Rescue NSW crews attended the scene as well as police. Highway Patrol officers have blocked off Knox St between Elizabeth and Mary Streets.
Senior Constable Foley said there was no impact on the school but the principal and staff were on standby.
"They are trying to fix the leak before school gets out at 3.30pm," he said.
NSW Fire and Rescue station commander Darrell Law said a plumber and gas company, Jemena, was working onsite to shut off the main gas line.
"They are working on both sides of Knox Street at the Princes Ave intersection as the gas line runs underneath the road there," he said.
"We are here for protection in case of fire and explosion but there is no immediate danger to Sts Peter and Paul's School or Goulburn West School as the wind is blowing the gas away from them."
The gas company has a detector and is taking measurements of gas levels and they are not showing any impact on nearby houses or the school.
Both sides of the gas line are being shut off.
It is unclear whether the area will be cleared before St Peter and Paul's School ends the school day.
In that event, the school would make arrangements for buses to pick up children at nearby locations, but this would be up to police to control, Station Officer Law said.
A spokesperson for St Peter and Paul's School said: "The children are safe and the parents have been contacted."
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