In the South Burnett region of south-east Queensland, Cougar Energy says that over the company's underground coal gasification (UCG) project an agreement has been reached with the Queensland Government.

Despite government tests clearing the project of contaminating bores, the company's UCG plant at Kingaroy remains shut.

If the State Government is to be believed then it states that al the information needed for an environmental assessment of the project has not been given by Cougar.

But it was informed by Cougar Energy managing director Dr Len Walker that the issue was resolved by talks held with government officials on Friday.

He added, "We had proposed to install four new monitoring bores within the pilot plant area and we will be going ahead with those as quickly as we can.”

More information was being asked by the department about the installation of the new bores and what measures were taken of mitigating any risk of the same problem occurring.

In a bid to have its pilot plant reopened, more monitoring wells will be installed by Cougar Energy and extra data will be provided on its Kingaroy coal gasification project.