AGL will increase the monitoring of water and air quality for the proposed northern expansion of the Camden Gas Project.
The program, which will include monitoring of wells at Denham Court, will be in addition to AGL's existing reporting measures.
Upstream Gas division manager Mike Moraza said AGL understood the community's need to be confident there would be no adverse impact from coal-seam gas exploration and production.
"AGL is committed to demonstrating that its operations remain safe and pose no risk to the community," Mr Moraza said.
"The Camden Gas Project has been operating successfully within the Macarthur area since 2001, with no adverse health effects to residents or the environment.
"While the CSG industry in NSW has the country's most stringent environmental and safety regulations, AGL will gobeyond these in response to community concerns."
AGL will announce the details of the expanded program on March 1, in conjunction with the community consultative committee and MPs.
Data from the program will be publicly published on AGL's website.
In November Health Minister Jillian Skinner said NSW Health had an advisory role in ensuring all development applications submitted contained a detailed health-risk assessment.
"In the event that evidence of the presence of pollutants at levels likely to affect human health arises, NSW Health works with the Office of Environment and Heritage and the Environmental Protection Agency to identify the type, source, potential exposure pathways and level of pollutant to assess human-health risks," Ms Skinner said.
NSW Health has not been notified those two organisations of pollutants of concern associated with the Camden Gas Project.