THE Victorian Government will announce its long-awaited coal seam gas policy next week, but the industry’s experience in NSW shows Victoria has years of controversy in store as gas looks to grow.

The NSW Government launched an extensive review and reform process for CSG in 2011 in response to widespread community disquiet, including farmers’ fears over their right to object to drilling and impact on water sources.

media_camera Victorian Farmers Federation’s Gerald Leach.

Victorian Farmers Federation’s Gerald Leach said there was still not enough known about the impact CSG and mining would have on Victorian geology.

“Our members are particularly concerned about the impact on groundwater,” he said.

“I know in NSW they are doing bioregional impact research, not individual wells but impact over full regions ... Victoria hasn’t done that work so therefore we aren’t ready for it.”

NSW implemented a ream of recommendations from a comprehensive review by the chief scientist and has since bought back many of the exploration licences that were sold off five years ago before the reform process of CSG began.

What remains of the industry is the Santos project in the Pilliga State Forest, currently stalled in the development phase as depressed oil prices stifle growth.

Gas explorer AGL gained development consent before pulling the pin on its Gloucester, NSW, project when it became clear the level of after community protest made the project untenable.

In late 2015, the NSW Government paid Metgasco $25 million for its exploration and production licences in the Northern Rivers after the company previously faced months of protester blockades.

Victoria’s Auditor-General report on managing risks and impacts of unconventional gas, released in August, said: “Victoria is not as well placed as it could be to respond to the environmental and community risks and impacts that could arise if the moratorium is lifted allowing unconventional gas activities to proceed in this state.

“Compared to conventional gas developments many more landholders are likely to be affected due to the large area both above and below ground that may be impacted by the industry.”

A parliamentary inquiry followed, and despite receiving more than 1700 submissions that highlighted concerns over CSG’s impact on agriculture and underground water resources, it was unable to reach consensus and recommended further research be done.

Under current laws, Victorian landholders can negotiate with companies for an agreement when they want access to the land, but have no ­ultimate veto powers.

The Victorian opposition supports an extension of the current onshore gas moratorium until June 2020.

Australian Petroleum Production and Exploration Association chief Dr Malcolm Roberts said the Victorian moratorium was not justified by science.

“The Victorian moratorium risks creating an artificial shortage of gas and higher prices for Victorians. The Australian Competition and Consumer Commission warns that the eastern states, particularly Victoria, face tight supply and subdued competition unless new gas fields are developed,” he said.