Already widely opposed by growers and communities, coal seam gas has become a bigger burden for those with wells in close proximity to the farm.
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Allianz, the world's largest insurance company, is no longer going to cover property owners against damage caused by coal seam gas infrastructure, activities, or transport, following suit with other large insurers.
Included in Allianz's March 2024 policy update, the condition comes as further bad news for farmers after Federal Resources Minister Madeleine King announced the Government's Future Gas Strategy, voicing her support for Santos' controversial Narrabri Gas Project.
Allianz's decision not to insure for CSG damage follows a similar decision in 2020 by Australia's biggest insurer IAG, owner of major rural insurer WFI, which adversely impacted Queensland farmers with CSG infrastructure on their property.
While looking into insurance options, Liverpool Plains farmer John Hamparsum was shocked when he came across the Allianz clause.
Mr Hamparsum said Santos wants to build its Hunter Gas Pipeline right through his farm and he is concerned about what it would mean for his property and future insurance.
"This pipeline would effectively be there forever, so there would be an ongoing impact on me and future generations," he said.
"I will be doing all I possibly can to stop Santos building its Hunter Gas Pipeline.
"It would become an open artery that drains the Liverpool Plains for its food and fibre producing ability.
"If this pipeline goes in, it would open up all those tenements that Santos has been working on.
"Our community just spent 16 years preventing the BHP and Shenhua-owned coal project from being built in the middle of the Liverpool Plains and now we are forced to fight this next ludicrous challenge. Give us a break."
Mullaley Gas and Pipeline Accord spokesperson and cattle farmer Margaret Fleck said farmers were already in opposition to Santos and the decision by Allianz will only strengthen their resolve to prevent gasfields in the region.
"Landholders oppose Santos' plans because CSG threatens the underground water that sustains farming operations, and we won't accept Madeleine King attempting to sacrifice that in a push for more gas drilling that we don't need and can't afford," she said.
