Santos chief executive David Knox said many of the claims made about the impact of coal seam gas on ground water and agriculture were "false and exaggerated".
But Mr Knox, whose company is part of the burgeoning $50 billion liquified natural gas industry in Queensland, admitted the sector needed to lift its standards in dealing with community concerns, The Australian Financial Review reports.
"We have to raise the bar and lift the standards under which we operate. At end we have to be reasonable," he told an Australian Institute of Company Directors lunch in Brisbane yesterday.
He said despite some claims, the CSG industry was heavily regulated by state and federal governments.
"We believe CSG can be mined safely and sustainably with a minimal impact on the environment," Mr Knox said.
"But we also support strong government regulation so we don't have any impact on aquifers. We have those regulations in Queensland and are working with the NSW government to have the same regulations there."
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