Department of Environment and Resource Management Director General John Bradley has played down reports of hydrocarbon and possibly mercury contamination of Kogan Creek near Dalby, Queensland.

Bradley's statement issued Wednesday was contrary to DERM's June test findings that fuel oil or light crude levels in the creek pose health risk to human, livestock and the ecosystem. However, DERM will carry out further testing in the weeks to come.

In January, Landcare's own tests showed that mercury in Kogan Creek is five times the normal level.

The Kogan Creek contamination is being linked to Carbon Energy's UCG plant. But Carbon Managing Director Andrew Dash was unaware of the new DERM findings that have forced a family out of their 1,000 hectare cattle property.

Two weeks earlier, the underground coal gasification plant at Kingaroy caused a groundwater poisoning scare.

Meanwhile, Western Downs Mayor Ray Brown was outraged for getting late notification from DERM about the possible hydrocarbon leak in Kogan Creek.

Down Energy Leak