It follows the outpouring of concern from a growing number of affected communities, including parts of the Hunter.

Various party members of the Legislative Council general purpose standing committee agreed unanimously at a meeting yesterday to establish the inquiry.

It will be headed by Shooters and Fishers MP Robert Brown and examine the "environmental, economic and social impacts of coal-seam gas activities" including exploration and commercial extraction.

The upper house inquiry will examine landowner property rights, existing regulations, the role of the gas in meeting energy needs, royalties, and a range of environmental issues from greenhouse gas and other emissions to potential aquifer impacts and the use of the process of hydraulic fracturing or "fracking".

The inquiry comes as the Greens push to introduce legislation to impose a 12-month moratorium on the industry, and mounting political pressure from the NSW Farmers Association and other groups.

Deputy chairman and Greens MP Jeremy Buckingham said the broad terms of reference meant it would be "the most comprehensive parliamentary inquiry into the coal-seam gas in Australia".

"This inquiry will provide a forum for the hundreds of community groups and experts concerned about the coal-seam gas industry to put these concerns to parliamentarians,’’ Mr Buckingham said.

‘‘This comes at a vital time with massive plans for expansion of the gas industry on the planning books and community concern building to a crescendo.’’

That has included objections from vignerons in Broke, Fordwich and Pokolbin, where AGL is exploring, and residents and farmers at Gloucester, where AGL has approval for up to 110 gas wells.

Liberal MP and committee member Scot MacDonald said Resources Minister Chris Hartcher backed the inquiry.

Mr MacDonald said there were lessons to be learnt elsewhere.

‘‘I think it’s fair to say the regulatory framework in Queensland did not keep pace with the industry’s development,’’ he said.

The Coalition government extended last month a moratorium on fracking until the end of the year, and banned the use of toxic chemicals in coal-seam gas mining.

Hunter Valley Wine Industry Association member Stewart Ewen said the inquiry was ‘‘fantastic news’’.

He and association representatives had met NSW ministers over the past week in Sydney about their concerns the Hunter’s vineyards could be detrimentally affected by coal-seam gas mining.

Submissions close on September 7. A final report is due next April.