Mr Cotter, a Goomeri beef producer, has been appointed by the Premier, Anna Bligh, to chair the Surat Basin Engagement Group (SBEG).

Including community and industry representatives, mining executives, state directors-general, mayors and Water Commissioner, Mary Boydell, the SBEG will try to find a way through the gas exploration minefield.

"There has never been this high a level grouping of people from across such a broad range of industry, government and community interests," Mr Cotter said.

"The investment in CSG is worth billions but the billions cannot come at the expense of other valuable industries. It cannot come at great cost to the rural landscape.

"Water will will be the key issue, and it has many numerous aspects. We must fully understand the impact of the gas industry on aquifers and surface water and the problems of water disposal. The solutions must come from a scientific process that gives weight to all."

"I will be an independent chairman. There will be nowhere for participants to hide.

"The answers will have to be found from within our group.

"We have three months to form and to determine the questions we need to answer. Decisions and initiatives will roll out over the subsequent year."

Mr Cotter dismissed questions about the challenges facing his group given the increasing number of passionate confrontations between miners and others across the Western Downs and the Surat Basin.

"We're not going to ask the protestors to stop," he said.

"It is their democratic right.

"For local government, the provision of infrastructure is important.

"We'll look at modelling to determine the economic impact on small towns.

"The Commonwealth stands to gain three times the revenue of the State and it will be important to determine what part the Federal Government will play - particularly when we look for help with infrastructure."