The party made the call after the British Government announced new plans to compensate residents who would be affected by fracking by using money received from taxing the process.
SDLP MLA Richie McPhillips said the proposal is clear evidence that the Government are getting "desperate" to reverse public opinion on fracking.
He said: "That they would seek to pay people off demonstrates a complete failure to understand the most fundamental concerns held by the public around fracking.
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"Local residents will not put a price on their health, that of their children or the land that they leave behind for future generations.
"Discussing the potential of pay-outs this early also sends out a completely contradictory message. On one hand the Government tell us that fracking is completely safe while on the other they are offering residents pre-emptive compensation for unforeseen problems that might arise.
"The SDLP will always take our environmental responsibility seriously. SDLP Environment Ministers enforced a strict block on fracking. We recognised that those advocating its introduction had not proven fracking to be safe for public health or the environment."
(CD/MH)
