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Gas is leaking from a five-centimetre crack in a pipe on a Queensland coal seam gas development.
Queensland Gas Company senior vice-president Jim Knudsen said the leak was not dangerous and an exclusion zone had been set up while workers fixed the problem.
The pipe was damaged on Monday near the well head at QGC’s Berwyndale South gas field.
In a statement yesterday Knudsen said the leak posed "no significantly adverse environmental or health impact."
The Queensland Greens told AAP the leak was further evidence CSG developments should be prohibited until further investigations into the industry took place.
Greens spokesperson Libby Connors said problems continued happening despite Government audits assuring the public only a small number of CSG wells leaked.
She also said the future expansion of CSG would be a hindrance freedom of movement.
"Some residents of the Tara Residential Estate will have pipelines diagonally intersecting the heart of their properties so the restrictions on movement and activity will be extensive," she said.
The leak comes a week after The Australian Petroleum Production and Exploration Association announced it would be launching the "We Want CSG" advertising campaign.
The APPEA said Australia’s CSG debate had been distorted with misinformation and inaccuracies.
After the APPEA’s announcement left-leaning activist group GetUp said it would release its own campaign to counter the APPEA.
Earlier this week the NSW farmers association made a submission to the state’s CSG parliamentary inquiry.
It said the NSW government should maintain a moratorium on fracking until all chemicals had been tested, but stopped short of opposing the industry.
Knudsen said the government regulator and emergency services had been told about the damage and an investigation was underway.
He said the company expected the leak to be fixed within two days.