The outback town of Coober Pedy's council is concerned that the town's water could become undrinkable if a plan to drill for commercial quantities of oil and gas goes ahead.
Mining company Tri-Star has proposed to do a stimulation drill to determine if commercial resources are in the Arckaringa Basin, an underground water source in outback South Australia.
The basin sits below the much larger Great Artesian Basin, which is the only water source for Coober Pedy, population 2,000.
Coober Pedy water manager Colin Pitman is concerned about the potential impact the drilling could have on the water supply.
"The potential is there for aquifer water to be sucked into the shale deposits, if there's not a good enough seal in the shale deposits and the basin," Mr Pitman said.
"Any activity that actually causes fracturing of the rock below the Great Artesian Basin, which could cause the hydrocarbons to penetrate the basin, would be a concern."
Hydrocarbons are an organic compound consisting of hydrogen and carbon.
Tri-Star plan to mine between William Creek and Mount Barry, 167 kilometres east of Cobber Pedy.
In a written statement, a Tri-Star spokesperson said it did not expect there to be any effects on the environment.
"Tri-Star is a responsible custodian of the environment, with an enviable track record of exceptional environmental performance," the spokesperson said.
"We do not expect our operations to adversely impact the Great Artesian Basin or the local environment.
"There is approximately 500 metres to 1,500 metres of rock between the aquifer and Tri-Star's target formations.
"Tri-Star will have control measures in place to mitigate any risks, and our exploration and fracture stimulation activities will be undertaken in accordance with all regulatory requirements."
A state government fact sheet said, before a project goes ahead it would need sufficient community support to proceed.
Local council undecided
Mr Pitman said the District Council of Coober Pedy still had not decided if it wanted to support the project.
Coober Pedy sits outside the targeted area for the drilling, however Tri Star has decided to involve it in the consultation, because of its connection to the Great Artesian Basin.
However if it does decide to support it, Mr Pitman said councillors wanted to be involved.
"We'd want to be closely associated with the results," Mr Pitman said.
"If it doesn't go ahead, many of the council members would be in favour of it not proceeding.
"[Councillors] haven't taken a vote on it at this stage, but they've decided to gain the community's understanding of what they thought about the proposal."
Representatives from Tri-Star and the state government will hold a community consultation session in Coober Pedy in early March to give locals more information on the project.
"We have a long history of working with local communities and stakeholders," the Tri-Star spokesperson said.
Project a bad Idea: Greens
SA Greens leader Mark Parnell slammed the project as wrong and dangerous.
"We have been told by scientists for many years that if we're serious about climate change, we have to leave most of the remaining fossil fuels in the ground," Mr Parnell said.
"This project is bad at so many levels."
Mr Parnell said drilling would cause harm to the natural landscape, despite Tri-Star saying it would protect the environment.
"The oil and gas industry, when they cut through aquifers, when they mess with underground water, it can end in tears," he said.
"It can cause huge amounts of pollution and it can damage water that other parts of the community rely on."
