QUEENSLAND'S $45 billion coal seam gas industry has been thrown into confusion, with key Independents demanding federal intervention to curb its massive expansion.
NSW Independents Tony Windsor and Rob Oakeshott are threatening to withhold support for the Federal Government's mining tax, which will be introduced to Parliament today, unless the Government adopts the power to override the states on mining leases.
Fellow Independent Bob Katter, who will meet the Treasurer Wayne Swan this morning with his own mining tax amendments, has previously called for a moratorium on CSG exploration.
Prime Minister Julia Gillard met Mr Oakeshott and Mr Windsor yesterday about their demands for more work to assess the impact of CSG on groundwater, native vegetation and farmland.
A Government source described the talks as "constructive" but admitted the Independents' support had not been secured.
It is understood the Bill will to go an inquiry, on the request of the Independents.
Lock The Gate spokesman Drew Hutton said if Mr Windsor's reforms became law it would cripple Arrow Energy's gas plans in the Western Downs region of Queensland.
The Courier Mail
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