Chemical contamination scare rose anew as routine tests on Arrow Energy's Moranbah coal seam gas project in central Queensland yielded traces of a carcinogen in the site's three gas wells.

Premier Anna Bligh though was quick to defend Queensland's environmental standard for gas projects ongoing in the state, emphasising that despite the new finding authorities have yet to determine if the chemical detected would endanger the area's groundwater reservoir.

Tests conducted on 60 fluid samples drawn from the gas exploration site showed the presence of benzene in three samples, prompting Arrow Energy to call for independent assessment that would indicate if the had already crept through the water bores.

However, the company said on Tuesday that contamination may be a remote possibility as it noted that no registered water bores are located with the five kilometre radius of the tested wells.

Yet just to be certain and for precautionary measures, Arrow is set to conduct tests on water bores proximate to the area as the company sent notice to state and local authorities about the chemical find the site's subsequent suspension of activity.

Arrow vice president Tony Knight explained that BTEX compounds were naturally occuring on lubricants used by the company in the gas site as he expressed willingness to use alternative lubricants in the event that the compounds were to be found on tests being conducted.

The new chemical scare came as BTEX compounds were also found in bore water at Australia Pacific LNG project in Surat Basin but the presence was eventually declared to be at safe levels.

Meanwhile, the state government downplayed the latest chemical scare episode that hit Queensland as Ms Bligh stressed that her government's strict environmental safeguards were highlighted by Arrow Energy's prompt action of notifying authorities on the possible contamination.

She reiterated her earlier contention that the coal seam gas industry entails environmental and work related risks but these are manageable, especially for the emerging LNG and CSG sectors that offer "Queensland and our regional areas the best prospect of growth and prosperity."

However, Denita Wawn of the National Farmers Federation told AAP that the recurring chemical scare has become a federal concern that requires a deeper inquiry as she argued no scientific evidences have yet to be presented to belie the notion that mining activities could pollute surrounding groundwater.

On that note, the Farmers Federation urged the federal and state governments to ensure that all mining activities across the mining regions would be subjected to both self-monitoring and external monitoring measures.