Like so many of her neighbours, the 55-year-old single mother swapped life in Sydney for the foot of the Barrington Tops and open rolling hills, dairy cows and a quaint little airstrip.

''We had four acres (1.6 hectares), a place for the border collie and the horse,'' she said.

But lately she and a few dozen other families in Forbesdale have felt surrounded.

About three years ago, AGL won approval to start exploring a coal seam gas project.

Four exploration wells line the valley floor, the closest two kilometres from her house. One hundred more may yet follow. A recent tweak to environmental laws means that could pave the way for hydraulic fracturing, or fracking, a much-feared extraction technique.

Then, in 2012, an internationally backed company applied for a 6500-hectare, open-cut coalmine within the same fields.

Ms Wardrop put her home up for sale recently but fears the wait: ''All my eggs are in this basket.''

The home behind hers sold recently after five years and a drop of $100,000 in the asking price.

What should happen if they start mining in your backyard?

University of Technology, Sydney professor John Sheehan, a former land and environment court commissioner, says people whose homes lie in the path of major road projects have much broader rights for claiming compensation than those covered by mining laws.

The two, he argues, should be treated under the same law and consistent tests.

''The coal seam gas explorers and producers are enjoying a very beneficial situation at the moment,'' he said. ''And as the cost of energy gets higher, there's going to be an increasing need for [miners to move] into less remote areas.''

AGL's agreement with the state government allows residents to sue if they can demonstrate excessive noise has devalued their homes. But not if the natural environment is blighted or deterring rural buyers who may be especially wary of gas mining.

An AGL spokeswoman said coal seam gas wells were unobtrusive. The company agreed there was anecdotal evidence that Gloucester house prices had been affected but it was impossible to say whether this was a result of CSG or looming coalmines. A recent study by the Valuer-General returned an open verdict on whether CSG mining affected prices and found there was not yet enough data, despite noting some international and interstate evidence that prices were brought down.

Ironically, the coalmine may be Ms Wardrop's best shot at getting a fair price.

Nicholas Brunton, a lawyer and compensation expert, said if the mine was approved, it could open the door for compensation if residents could demonstrate the mine emitted excessive pollution or noise and force the miners to buy their homes.

But tests for what constitutes ''excessive'' levels can be debatable and are determined on an ad-hoc basis.

''Imagine only half the property is affected by the noise … does that mean you have to get compensation for the whole property or the half?'' Dr Brunton said. ''All these questions are decided anew every project.''

Landowners are also not able to appeal compensation estimates, Dr Brunton said.