There are very diverse and passionate opinions about the exploration of Coal Seam Gas locally and nationally. 

The Narromine News and Trangie Advocate has put together a basic overview of what Coal Seam Gas (CSG) is and some of the differing opinions. 

Previous coverage:

According to Australian Petroleum Production and Exploration Association spokesperson, Chris Ward, CSG is a natural gas found in coal deposits.

"It is typically more than 97 per cent methane (CH4)," he said.

"Natural gas, including CSG, is often referred to as a low carbon energy source as it produces significantly less greenhouse emissions than traditional energy sources when used to generate electricity.

"It is also used for cooking and heating as well as other industrial processes."

To explore an area companies can apply for Petroleum Exploration Licences (PELs) around Australia, the State government then grants or rejects the licences.

CEEMAC Pty Ltd had its application over Narromine rejected.

Currently Minister for Resources and Energy, Anthony Roberts, has frozen all PEL applications.

"The NSW Government has extended a freeze on new PEL applications and Petroleum Special Prospecting Authority Applications until September 2015," he said.

Although Narromine does not have an application over it currently, it could happen in the future.

Mayor of Narromine Shire, Bill McAnally said council did not yet have a policy on CSG.

"We have no policy at the moment. We are looking at a couple of generic policies and we will get one together but it's not up to councils to say what landholders can do," he said.

"We don't want it in our shire but we can't stop anyone."

Coal Seam Gas is a contentious issue for many reasons, one being the potential pollution of ground water.

Mr Roberts said the State Government was aware of the risk.

"We have introduced more than 30 regulations to protect our water, agriculture and other critical industries,'' he said.

"These regulations include banning harmful chemicals and evaportaion ponds. We have also introduced a code of practice for well integrity and established a water monitoring framework to protect the state's ground water."

According to the Australian Petroleum Production and Exploration Association (APPEA) CSG could have economic benefits to society.

APPEA Chief Operating Officer Eastern Australia, Paul Fennelly said more than 90 per cent of Queensland's gas needs and one third of Eastern Australia's gas supply comes from coal seams.

He believes there is an untapped source in NSW.

"Ninety five per cent of NSW's gas supply comes from other states, yet it is estimated the state has 500 years worth of supply trapped underground," he said.

Mr Fennelly believes CSG exploration could have an impact on the rising cost of gas prices.

"The eastern Australian gas market is changing for a number of reasons and prices for businesses and households are rising," he said.

"NSW needs to source natural gas close to where it's needed most. No downward pressure can be placed on rising prices without it."

The APPEA is not deterred by anti-coal seam gas groups. Paul Fennelly said they recognised there was genuine concern about the production of natural gas from coal seams.

"We recognise there are people who are determined to denigrate our industry, however we would encourage people to look at the science, look at the facts and look at the industry's many decades of safe operations, of which we are very proud," Mr Fennelly said.

There is also a local economic benefit.

"Queensland's industry has created 40,000 jobs at its peak and contributed more than $124 million to regional community projects, charities and organisations," Mr Fennelly said.

"More than 4700 land access agreements have been signed between landholders and gas companies. It's no longer a question of can gas production and prime agricultural production coexist, it does."

Chairman of local landcare group, Macquarie 2100, Col Hamilton, is staunchly against CSG exploration, particularly in the shire.

"The majority of Narromine's groundwater as well as surface water are intrinsically linked and flowed through shires upstream of Dubbo. If ground water supplies are contaminated in Wellington or Dubbo we would end up with it in a few years," he said.

Mr Hamilton said the state can survive without Coal Seam Gas.

"We (survived) a long time before gas and there are plenty of renewable options we could be investing money into," he said.

Mr Hamilton has travelled around the world and seen the effects of CSG.

"In my research I haven't seen anywhere in the world where it doesn't impact on town water," he said.

"Ground water irrigators would be against it as well. It not only impacts on the water quality it also affects the water availability which would impact a lot of farmers in dry times when ground water is the only source."

The Macquarie 2100 chairman said water pollution is the biggest concern.

"Once the water is buggered, it's buggered forever. A few million in the Government pocket and it will sacrifice a huge area of Australia," he said.

"Narromine relies on ground water, everyone in the Narromine township uses it."

Mr Hamilton hopes to put the dangers into perspective.

"Health overrides everything, if we haven't got good clean water...well you can't eat money."

We want to know what you think let me know by emailing grace.ryan@fairfaxmedia.com.au

This story was originally published as Demystifying CSG | Coal Seam Gas in Narromine on the Narromine News Online website.