NSW Farmers President James Jackson yesterday said the state's farmers "fear" that the CSG project could be a risk to groundwater.

"We need 100 per cent certainty that there will be no impact on the Basin," he said.

"It is especially concerning that a major farm insurer has now flagged that it will not insure farmers for public liability if they have CSG infrastructure on their property.

"This has left farmers in CSG hotspots wondering whether there is more to know about the risks of CSG development."

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He said a "precautionary approach is essential" regarding the project.

The precautionary principle says proponents of new developments ought to prove their projects are safe, rather than requiring opponents to prove they pose a risk to the environment or human health.

Mr Jackson said the association is not opposed to gas development, which he said has the potential to be of economic benefit for regional communities. But he condemned use of "prime agricultural land" for mining as "short sighted" and a risk to Australian food security.

He called on government to commission an independent review of the risks of CSG development to water resources like the Great Artesian Basin.

He also called on the government to implement all 16 recommendations of a 2013 report by the NSW Chief Scientist.

Legislation which would have required government to implement the recommendations failed earlier in June, when it was voted down in the lower house of NSW parliament by one vote.

The 850-well Narrabri Gas Project was endorsed by the Department of Planning last Friday.

It will now go before the Independent Planning Commission, which must make a decision to approve or reject the project by September 4.

A spokesperson for Santos last week said the proponent had "relied on the best science" and said the project "can be developed safely and sustainably" without threat to water resources.

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