Plans to drill 3,000 feet below Lincolnshire land for gas could be scrapped.
Scottish firm Composite Energy will find out next week if it can conduct tests on potentially lucrative underground gas stores found near North Carlton, north of Lincoln.
The company is attempting to develop the UK's first commercial Coal Bed Methane which involves extracting natural gas stored within coal.
But residents have raised concerns about the potentially explosive nature of natural gas, noise issues, water pollution and traffic problems.
Testing at the North Carlton site would take place 24 hours a day for between 28 to 60 days and samples would reveal if the coalfields contained gas which could be supplied into the national grid.
Composite Energy spokesman Peter Reilly
said the company was conducting investigations at several locations to see if it was could obtain the energy source onshore.
But in a letter from North Carlton Parish Council voices its fears about the potentially explosive nature of natural gas adding that noise, water pollution and traffic problems are of concern.
Lincolnshire County Council members will have the final say.
For full details on this story see Wednesday's Lincolnshire Echo.