High voltage transmission lines needed for the Hunter-Central Coast Renewable Energy Zone are in potentially catastrophic conflict with the Hunter Gas Pipeline route.
Preliminary route maps for each project show the power lines would intersect with the pipeline at Beggary Creek Road, Muscle Creek, in the Upper Hunter.
Locals have expressed concern about the potential for arcing power lines to rupture or ignite the fuel pipeline.
"We know from what's happened overseas that this is a potentially disastrous scenario waiting to play out," Quirindi farmer Peter Wills said. "Are they going to put concrete over the pipeline or bury it deeper? Whatever they do, it seems that additional works will be required on that site that will significantly impair the land holder."
An EnergyCo spokesman said the final route of the high voltage transmission lines remained in the early planning stages.
"As planning progresses, EnergyCo will continue to consult with all stakeholders within the REZ including but not limited to the Hunter Gas Pipeline and other relevant entities to account for any current and potential future land use considerations, including gas pipelines," he said.
The Newcastle Herald understands Santos is also aware of the potential land use conflict.
The issue has come to light as tensions rise between Santos and landholders on the proposed pipeline.
The former state government issued the company with an Authority to Survey notice in January. It gives the company the right to conduct surveys and testing on affected properties even if landholders do not give consent.
Most land holders approached to date have refused to allow Santos onto their properties.
Numerous land holders recently received letters that stated that, while Santos was seeking to reach amicable access arrangements, the project would still proceed if this did not occur.
Some fear Santos will appeal to the government to forcibly acquire land required for the route if negotiations with land holders fail.
The Environmental Defenders Office is providing advice to landholders affected by the notice to protect their legal rights and interests.
Santos has been given until October 15, 2024, to physically commence the project or its State Significant Infrastructure approval will lapse.
Mr Wills said the ongoing campaign against the project was taking a mental toll on many in the community.
"This project [planning approval] expires in a year and a half. My question to the government is how long is a piece of string? How long will Santos get to dictate how long this battle goes on for?," he said.
"We would really hope a modification isn't forthcoming to extend this for another five years.
"People's lives are really being put on hold by this. They want to retire and move off the properties in many cases, but they are stuck."
The Herald also understands that Santos is yet to reach an agreement with Whitehaven, which owns the Vickery coal mine and Idemitsu, which owns Boggabri coal mine, to run the pipeline across land set aside for environmental offsets.
