The Queensland government is urged to put controls on the the coal seam gas sector that has excessively consumed the state's water supply.

Reports from ABC News Online said the Liberal National Party (LNP) leader Campbell Newman has cited that the Queensland Government has failed to properly control growth in the coal seam gas (CSG) sector.

A Senate committee has been hearing evidence this week about the impact of CSG extraction in southern Queensland.

Mr Newman is touring the state's central-west this week where companies are also exploring.

He says he is worried exploration permits may be being granted too quickly.

"If there was a risk of compromising an acquifier, that Minister should be thinking twice before they actually give the exploration permit," he said.

Related reports from Brisbane Times said a Senate inquiry has revealed that Queensland's coal seam gas miners consume about twice the amount of water in Sydney Harbour every three years. While farmers are subject to water regulations, no such rules apply to Queensland's CSG sector, says state policy manager Michael Murray.

CSG companies are exempted from the Water Act. In order to lower water content in coal seams, the Queensland Government granted them unlimited rights to extract water.

In the past, it seemed the Great Artesian Aquifer was an unlimited source of quality potable water. Yet today it is a dwindling precious resource. When the Condamine alluvial aquifer became over-allocated, the State Government and the farmers got together to reduce water allocations and to modify farming methods in line with the water supply.

"There is no regulation of water for the CSG industry," said Mr. Murray when questioned by the Senate. Furthermore, he believed that aquifer quality and quantity were at risk.

The CSG companies are getting all this water for free. In contrast, the NSW government requires CSG companies to secure a water licence, a practice which Mr. Murray believes must be implemented in Queensland.

Queensland Farmers Federation CEO Dan Galligan told the inquiry that farmers felt helpless against big mining. "At the moment there is very little say (given to) the landholder," he said.

CSG companies have a "cowboy attitude" and operate "without regard for anyone", according to Liberal Senator Bill Heffernan. "And no amount of money is going to compensate (for any damage)." While often billed as a clean energy option, CSG is widely believed to have long-term health and environmental risks.

Ross Dunn, director at the Australian Petroleum Production and Exploration Association CSG director Ross Dunn said they would seal off any contaminated areas. However, Senator Heffernan wondered how this might be possible, observing that even the national water commission does not fully understand the aquifer geology.

The Senate inquiry hearings were held in Roma and Dalby earlier this week, and will resume later within the year.