Queensland Premier Campbell Newman has accused Clive Palmer of seeking preferential treatment to get approval for a rail line out of the Galilee Basin.
Mr Newman gave insight into the bitter feud with the Sunshine Coast MP and miner, saying one of the catalysts was Mr Palmer's attempt to get favours.
"Mr Palmer tried to seek preferential treatment from our government," Mr Newman told ABC Radio.
"We said we'd welcome investment, but he had to follow due process that everybody else had to follow.
"He didn't like that."
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During further meetings with the premier and deputy Jeff Seeney, Mr Palmer became increasingly more strident and agitated.
"He simply wanted us to do things that were not right."
Desperate to get his rail line up, Mr Palmer turned up to a meeting with Mr Seeney with proposed legislation which would enable him to get his proposal up, Mr Newman alleges.
"We were shocked," he said.
Mr Palmer, a former donor and life member of the LNP, is still smarting after the state government rejected his bid in preference for GVK Hancock and Aurizon's bid, partly driven by Gina Rinehart.
Mr Newman says the government has referred itself to the Crime and Misconduct Commission.
"He continues to cast these slurs on us and accuse us of corruption," Mr Newman said.
"Mr Palmer seems to have some allegation. We're sick of him making that allegation, please go and ask him to go and put his evidence on the table and investigate us."
Mr Newman says relations with Mr Palmer also soured because of a proposal to expand his Coolum resort.
The "shocking" concept plan would have included buildings on state government land and sand dunes, as well as a casino.
"He was proposing a development on public land and I felt, as a significant member of the party, that I was under quite a lot of pressure to somehow say yes, even at this meeting," Mr Newman said.
Mr Palmer says the premier's comments indicate he is concerned about the impact the Palmer party will have on the LNP at the next Queensland poll.
Shortly after Mr Newman finished his radio interview, Mr Palmer tweeted: "I'm hearing that @theqldpremier is getting increasingly anxious about the threat of @PalmerUtdParty at the next Qld election."
Mr Palmer says he'll cooperate with the CMC and has got nothing to hide.
The government's referral letter to the CMC acting chair Ken Levy was addressed "Dear Ken", which Mr Palmer says shows the government is too cosy with the impartial body.
"It's really tantamount to showing that mates culture does exists, which is what I've been saying," Mr Palmer says.
Mr Palmer says he didn't try to influence the government.
"If I have, Campbell should get his police force onto me, his Gestapo," he said.
"He's a nice little fellow with a bipolar condition that doesn't take his medication.
"I'd advise him to take his medicine and calm down."
