A Senate committee investigating the coal seam gas industry has been "blown away" by the "absolute despair" of affected farmers, Liberal NSW Senator Bill Heffernan says.
The inquiry into the burgeoning coal seam gas industry, held in Queensland this week, is looking at a range of concerns, including its potential effects on Australia's underground water reserves.
Confidential agreements with energy companies meant some farmers were being paid just $250 for the life of a well, while others were being paid $9000 a year, Senator Heffernan told Macquarie Radio on Friday.
"There is absolute inequity ... it is an absolute disgrace," said Senator Heffernan, who is the chairman of the committee.
The inquiry had heard evidence of contamination, disruption on farmers' lands and a lack of water quality monitoring, he said.
"We absolutely need harmonisation and regulations around coal seam gas mining in Australia," he said.
All the committee members were "of a like mind" on the issue, he said.
"We were just blown away with the absolute despair of the people we met and their sense of hopelessness.
"We've absolutely, absolutely got to intervene whether through federal legislation or COAG (Council of Australian Governments) or somehow," Senator Heffernan said.
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