The Department of Environment and Resource Management has today ordered Cougar Energy to close the plant after test bores detected benzene and toluene in the groundwater.

AgForce, the Queensland Farmers' Federation and the Basin Sustainability Alliance have all responded angrily to the news of the contamination.

AgForce mining spokesman Drew Wagner said water quality tests taken on 29 June detected benzene and toluene in groundwater monitoring bores close to the plant.

"Carcinogenic chemicals have been found in Cougar Energy’s monitoring bores and rural property owners within a two kilometre radius of the UCG plant and two kilometres of Plantation bore are being advised not to use water from their bores for human consumption or stock watering until further testing is done," Mr Wagner said.

"Although the underground coal gasification process differs from the production of coal seam gas, it raises serious concerns about the lack of knowledge both the government and the resource industry have about the impact of mining practices on groundwater resources."

QFF chief executive Dan Galligan said the "underground water supply must be protected at all costs when underground gas is being extracted".

"The aquifer is a vital economic and environmental resource – and all sectors of the community deserve assurance that it is not being polluted," Mr Galligan said.

"The checks and balances must be in place. The resource is simply too valuable to put at risk with experiments."

Basin Sustainability Alliance chair Ian Hayllor said the forced shut down of the Cougar Energy plant was a prime example of the need to ensure the science is right before steaming ahead with the coal seam gas and LNG industries in Queensland.

"I am very concerned that the federal opposition is not supporting Mr Garrett’s request for a three-month delay to conduct additional investigations," Mr Hayllor said.

"Three months is not a long time to hold up projects when we are talking about environmental impacts that could last a lifetime."