The inquiry, by the upper house committee on resources and energy, is expected to hold public hearings in October and November to examine the environmental impact of coal seam gas mining, including the use of hydraulic fracturing, or "fracking".

It will examine the legal rights of property owners and the effects of coal seam gas mining on property values, on food security and on farming.

The economics of coal seam gas, including state royalties and the role of coal seam gas in meeting energy needs, will be considered.

The inquiry, to be chaired by the Shooters and Fishers Party MP Robert Brown, was established following a proposal by Greens MP and spokesman for mining Jeremy Buckingham, the committee's deputy chairman.

He said it would be "the most comprehensive inquiry to be conducted into all issues relating to the coal seam gas industry".

The inquiry will consider holding public hearings in areas where coal seam gas activity has caused concerns.

Submissions to the inquiry will be called for this week.

The Australian Petroleum Production and Exploration Association spokesman Rick Wilkinson said it "welcomes and strongly supports" the inquiry.

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