It will delve into the issue of whether the coal seam gas industry should have a social licence to operate in NSW, and it will be headed by the upper house committee responsible for resources and energy.

Environmental and health impacts, economic and social implications and the role of coal seam gas in meeting the future energy needs of NSW will be explored, as well as the impact similar industries have had in other

jurisdictions.

Public hearings throughout October and November are expected to be held around the state, with encouraged stops in Gunnedah, Narrabri and Moree, where caution has been raised.

Last week, a Senate committee sitting in Narrabri heard major coal seam gas players had allegedly caused destruction to parts of the Pilliga State Forest.

Environmental group representatives and Moree Plains Shire councillors spoke of their dismay about killed trees and fauna, the concern for the local agriculture industry and the fear of residents who may not be able to prevent mining companies from accessing their properties. Legislative Council member Scot MacDonald, of Guyra, who is a member of the committee, has welcomed the inquiry.

He said the legal framework had to be right for the emerging coal seam gas industry.

“The NSW Minister for Resources and Energy, Chris Hartcher, has announced a number of regulations, including a moratorium on ‘fracking’, until the end of the year, a ban on the use of BTEX chemicals in drilling, a ban on the use of evaporation ponds with coal seam gas extraction, and the requirement for a water access licence when more than three megalitres of groundwater is used in coal seam gas activities,” he said.

“This inquiry will help to build regulatory framework to manage the industry.”

Mr MacDonald said the coal seam gas industry in Queensland had been criticised, with the impact of property access issues being the main problem raised, as well as its the impact it would have on ground water.

“Hopefully this will be addressed for NSW in the inquiry,” he said.

The inquiry will be chaired by the Shooters and Fishers Party’s Robert Brown, and the committee’s deputy chairman will be Greens MP Jeremy Buckingham, who said the inquiry would provide a forum for hundreds of community groups and experts to bring concerns about the coal seam gas industry to parliamentarians.