The Queensland government has laid charges against a mining company for allegedly contaminating groundwater with cancer-causing chemicals.
The state's Department of Environment and Resource Management has laid charges against Cougar Energy after a gas well ruptured at a site south of Kingaroy where the company was trialling underground coal gasification.
DERM's acting director-general Terry Wall said in a statement Cougar Energy has been charged with three counts of breaching conditions of its environmental authority under the Environmental Protection Act 1994.
It is alleged Cougar failed to properly install the gas extraction well leading to contaminants being leaked into groundwater in March last year.
It's also alleged the company failed to notify DERM of the contamination as soon as reasonably possible.
Mr Wall said the cancer-causing chemical benzene and toxic chemical toluene were detected in monitoring bores on the site in May last year.
"Cougar received confirmation of these sample results on 7 June 2010 but failed to notify the department until June 30, 2010.
"We take the protection of our environment and our communities very seriously and any company that wants to do business in Queensland must meet strict environmental obligations."
If proven guilty, the company could face a maximum penalty of more than $830,000 for breaching any environmental condition.
Mr Wall said Cougar constructed a gas production well in October 2009.
A blockage and rupture of the well occurred shortly after Cougar began operating in March last year, he said.
UCG involves drilling a well into a coal seam burning the coal and extracting the product gas.
The government has only permitted three trial UCG projects and has appointed an expert scientific panel to assess whether there should be any further UCG projects.
AAP