Green group Friends of the Earth is warning Victorian farmers to be wary of mining companies, looking to explore for coal seam gas (CSG).
There's currently no mining for CSG in Victoria, but a large part of the state is under exploration licence for gas and minerals.
Cam Walker, from Friends of the Earth, says the Victorian coal resource might not be as valuable as that in NSW and Queensland, but it's still a viable prospect.
"Natural gas prices are going up, the fact that we've got 4.5 million people just down the road in Melbourne that are looking for a natural gas resource, our offshore gas resources are starting to dwindle and we have really good gas infrastructure here," he said.
"If you drill gas in central Queensland, you've got to pay to get it out to Gladstone and put it on a boat and send it overseas.
"Here you've got the pipeline from Longford, you've got really good infrastructure in place, so the costs of getting out are less."
ABC Rural
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