To produce CSG, a large amount of water has to be pumped from the coal seams, and gas companies have proposed a range of projects to reuse the extracted water.

However, the State Government in November announced plans to seek community input into the issue, with a gathering of invited landholders, resource sector representatives and government workers meeting in Toowoomba on December 19 to formulate a list of community preferences for water reuse.

Chaired by Surat Basin CSG engagement Group chair John Cotter, the group has considered 22 written submissions from a range of impacted stakeholders, which were discussed at the Toowoomba meeting, to formulate six recommendations and a series of guiding principles detailing options for regional best use of extracted water.

The list was presented to State Minister for Natural Resources Rachel Nolan late in December.

The recommendations do not list specific projects for water usage, but rather list general community preferences for reuse.

The group considered a range of general management options, also being considered by the State Government, including reinjection into aquifers, treating and suppling water to other users, discharging into streams and substitution for use of water for agriculture and industry with the understanding that this is a temporary resource that has a life span.

Among the preferences raised was 'water banking', where treated water is returned and stored in an aquifer for future use.

Mr Cotter said the updating of legislation surrounding make good arrangements to include extracted water was considered of "utmost priority."

He said there was also an immediate need identified for a conclusive water management plan for the Surat Basin that detailed the intended management of water volumes on the basis of locality, land use and quantity and quality of treatment

The State Government will be guided by these listed community preferences when considering and approving future CSG water projects.