coal seam gas' water & cleanliness issues

I have been looking into the CSG industry and all the positive talk.

However, I have come across a lot of big questions that have been asked by government and market commentators:

Will the government and other national governments introduce tough laws against CSG companies?

Is the water that is considered waste after extracting the gas a major problem.

Is Coal Seam Gas a false 'new energy'?

Any info or links would be grateful,

talktome



"Finding a viable, and perhaps profitable use for coal seam gas water, is the ultimate aim of the coal seam gas companies, although it is significant that no commercially viable option has yet emerged, and that LNG production from coal seam gas will trigger a massive increase in water production over the next five to 10 years.

It is the water issue, along with other costs, which is causing increased speculation of more mergers in the LNG phase of the industry as companies struggle to achieve all-important economies of scale."

Eureka Report, Nov 2009.