New laws will be proposed in Queensland to protect the landholder's rights once coal seam gas exploration enters their lands.

Mines Minister Stephen Robertson said these new laws will promote more investment in the industry while farmlands, water supplies and the environment can be protected by the Queensland government.

"The changes aim to bring more consistent processes and more clarity on the rights and obligations of all parties involved in private land access, encouraging early engagement to negotiate agreed terms," Mr Robertson said.

Several farmers are dismayed over the bullying tactics made by mining companies particularly on pumping out vast amounts of water from underground aquifers on which the farmers rely on.

Coal seam gas is methane gas sealed in coal seams under water pressure. Once waer is pumped out, gas molecules are released, creating a clean energy that may be utilized and exported as liquefied natural gas (LNG).

Two of Queensland's mining areas, the Surat and Bowen basins, are both prospects for coal seam gas, with a potential to create up to 40 million tonnes of LNG per year out of Gladstone.

Mr. Robertson explained that every prospect project will be required to hand over documents on environmental impact assessment while his department will oversee on water quality.