On account of the news of the water contamination, the Queensland Government has halted the 'underground coal gasification' process. It is a technology, which converts coal into gas that is used for generating power. The procedure includes the combustion of coal beneath the earth, which evolves out the gas used for power generation. The technology is environment-friendly.

Three different Companies had been invited to carry on this trial process, but one of the Companies, Cougar Energy, had to face the dilemma, since nearby its plant, water contamination was found.

The Department of Environment and Resource Management have found the concentration of harmful carcinogenic chemicals such as benzene and toluene in the ground water near the Cougar's Kingaroy plant. Thus, the authorities have decided to case the plant till the tests are conducted. The other two Companies, Linc Energy near Chinchilla and Carbon Energy near Dalby, would continue with the process.

John Bradley, Director-General of DERM stated that there will be proper environmental evaluation. More tests will be done and the water sources will be examined against any contamination.

The inhabitants of the region have been warned against using the polluted water. As the water contains harmful chemicals, so they can also adversely affect the lands. Farmers have been advised of not using this water.

The halting of project is indeed a shock for Cougar Energy.