The Queensland government hasn't ruled out cancelling two coal seam gas leases amid a community uproar in the state's southeast.
Arrow Energy has applied to extend two leases in the Scenic Rim region, south of Brisbane, after it halted its operations a decade ago following an 18-month community blockade of its drilling sites.
The company applied to extend both leases in 2018, and as part of its applications had to outline viable commercial gas extraction by 2033.
The Scenic Rim Council, activists and the state MP Jon Krause have all expressed their alarm about Arrow's applications, saying the company hasn't consulted them about its plans.
Resources Minister Scott Stewart says he will meet Mayor Greg Christensen to discuss the community's concerns.
"I know that this is an important issue for him, but we've got to remember that the resource sector, the royalties that is generated from our resource sector, help build facilities," Mr Stewart told AAP.
"But we will assess every single application on its merits to make sure it stacks up financially, environmentally and socially."
However, Mr Stewart didn't rule out cancelling both of Arrow Energy's tenements in the Scenic Rim.
"We would need to actually meet and talk through what that actually looks like," the minister added.
"Every application goes through a rigorous process."
Mr Christensen plans to tell Mr Stewart that the Scenic Rim community doesn't support coal seam gas extraction in the region.
The farming and tourism region wants a sustainable future, the council said, and is open to renewable energy projects.
"A conversation regarding these would be welcomed," the Scenic Rim Council told AAP in a statement.
Arrow Energy, which is owned by Shell and PetroChina, confirmed its applications are pending.
The company has previously insisted it didn't plan to develop its Scenic Rim gas leases "at this time".
