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Farmers in north-west New South Wales are furious at the defeat of a bill to temporarily put a stop to Coal Seam Gas activity in the state.

The Bill passed the NSW Upper House late on Wednesday night, and the Government unexpectedly brought it to a vote in the Legislative Assembly yesterday afternoon.

It was defeated 38 votes to 36.

The legislation had the support of Labor, the Greens, the Shooters Fishers and Farmers (SFF) and other independents.

The Deputy Premier John Barilaro has accused the SFF of having "sold out jobs in regional NSW to align themselves with the Greens, not because of outcomes, but because of politics".

Key points:

• The State Government defeated a bill that would have temporarily stopped all coal seam gas activity
• Farmers in the state's north-west are worried about the implications for the impending Narrabri Gas Project
• The government insists it has the community on its side

Coal seam gas (CSG) mining at just one Queensland site will produce three million tonnes of salt - enough to raise a pile 10 metres high and 11 kilometres long, senators have been told.

A parliamentary committee yesterday took evidence in Canberra looking at the impact of mining CSG on the Murray Darling Basin.

Liberal senator Bill Heffernan told the hearing of the salt produced by one approved Queensland project.

"Eleven-point-three kilometres by 30m wide by 10m high - that'll be the pile of salt that'll be produced from this one mining approval," Senator Heffernan told representatives of the NSW Department of Trade and Investment, Regional Infrastructure and Services (DTIRIS) attending the hearing.

"This is for you to think about because we don't want this to happen in NSW - that's approved under the onerous provisions of the Queensland DERM (Department of Environment and Resource Management).

"I wouldn't like that on my landscape."

Think about this — Australia is now the world's biggest exporter of natural gas, yet we're looking at importing gas to deal with a domestic "shortage".

If this happens, Australia will be using huge amounts of energy and spending large sums of money to compress, liquify and ship its abundant gas reserves to markets overseas.

Then gas will be shipped back, with all the costs and resources involved, to supply the local market.

Does that make sense? Go figure.

But there's money to be made from it.

Andrew Twiggy Forest, iron ore baron, philanthropist and one of the nation's shrewdest businessmen, is backing a proposal to import gas through Port Kembla, NSW.

Welcome to the world of Australian gas policy.

'Pure stupidity'

Alistair Donaldson, a fourth-generation farmer from outside Boggabri, north-west of Newcastle, has been fighting coal seam gas development in the region for 10 years, but he's equally appalled by the gas importation plan.

"It would have to be the purest form of stupidity imaginable," the plain-talking cattleman says.

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