Linc Energy will stand trial on five charges that it breached Queensland's environmental laws at its underground coal gasification site.
The Department of Environment and Heritage Protection (DEHP) has accused the company of wilfully causing serious harm at its trial site near Chinchilla on the Darling Downs.
DEPH accused Linc Energy of causing irreversible damage to the environment by allowing toxic chemicals and gases to escape, and alleged that fugitive gases from the site — including carbon monoxide, hydrogen and hydrogen sulphide — polluted a widespread area up to six metres underground.
The legal action was the result of the biggest investigation ever undertaken by the department. Linc Energy said the case against it was circumstantial.