"They're entombing our men and I know they don't want to do that."
The Government said the proposal "significantly" underestimated the cost and time involved.
A mining expert believes key evidence lies just metres from where the team stopped working.
It's estimated to cost up to $8 million and only take 12 weeks to complete.
The minister responsible for Pike River has been accused of emotional blackmail and lying.
Newshub has obtained a recording of Andrew Little warning families against speaking publicly.
"[He] suggested that serious criminal charges will be laid... it's going to take a lot of time."
Not all of the families accept the decision to pull out.
The Pike River Family Reference Group said it now accepts official advice.