Brett Guthrey said he welcomed the state government's decision to impose a moratorium until December 31 on hydraulic fracturing and to make more information available as to the location of approved mining leases.

The use of evaporation ponds will also be banned and miners who extract more than 3 million litres of water a year from groundwater sources will need a water licence.

The Camden Gas Project has 130 wells between Menangle and Razorback.

An expansion of the project will add a further four wells constructed in Spring Farm and 12 in Menangle Park.

Mr Guthrey said the mining moratoriums were a good start.

"The key will be when the actual legislation comes out and how much of that is kept," he said.

"They are recognising the groundwater can be affected. But from our point of view some sort of protection would be good — like an insurance scheme that goes for quite some time."

Mr Guthrey said it would be important for any legislation to cover existing leases and licences, not just new applications.

He said he had concerns about the potential for coal seam gas mining to poison or even destroy the water table, which would put farmers like him in the Sydney basin out of business.

Resources and Energy Minister Chris Hartcher said a balance needed to be found between the needs of the agriculture and mining industries.

An AGL spokesman said the company supported the changes to the coal seam gas industry in NSW.

"No fracture stimulation is planned for the Camden Gas Project this year and AGL does not use evaporation ponds at the Camden Gas Project," the spokesman said.

"AGL is committed to ensuring that its gas exploration and production activities have a low impact on the environment and the community, and can comfortably co-exist with other land uses."

NSW Farmers' president Fiona Simpson the moratoriums must be extended to protect agriculture in NSW.