Western Australia's Department of Water has told a state parliamentary inquiry it has no veto over fracking for natural gas below proclaimed groundwater areas such as aquifer systems.

But it says it would advise authorities against the approval of shale gas fracking underneath a public drinking water source.

The Water Department made the admission on the first day of the inquiry into the implications of hydraulic fracking, the fracturing of hard rock to release natural gas. Tad Bagdon, executive director of policy and innovation at the department, told the parliamentary committee there was the potential for conflict over protection of water supplies and expanding the gas industry.

But he said his department was working closely with other agencies including the WA Department of Mines and the Environmental Protection Authority "to ensure approval processes have the appropriate level of assessment".

The Conservation Council of Western Australia told the inquiry that new draft regulations to control shale gas fracking are not tough enough.

The council's director, Piers Verstegen, says he does not have much confidence in the new rules.

"We've looked at the draft regulations pretty closely and what they actually say is they require industry best practice.

"What we know from other parts of the world is industry best practice means contaminated ground water, serious air pollution, health impacts on communities and serious environmental disturbance, so we don't think industry best practice is going to be acceptable here for Western Australia," he said.

Mr Verstegen said the council estimated there could be 100,000 wells drilled in the Kimberley in the north of the state when commercial shale gas production gets underway based on well density in the US.

But he said the figure may be out by "50 per cent".

12 shale gas fracking wells expected to be drilled this year

The peak body for the oil and gas industry, the Australian Petroleum Production and Exploration Association, said it expected 12 wells for shale gas fracking to be drilled in WA this year.

APPEA spokesman Stedman Ellis said he was confident that shale gas could be developed safely with minimal environmental risk.

He said incidences of water contamination were not from fracking but from problems with wells such as minor leaks.

"In very rare cases there had been contamination of water but that had been remedied by the regulator and the operator," he said.

He said APPEA supported full disclosure of chemicals used in fracking fluid as required by WA law but he argued there was a case to limit disclosure in the case of innovative new products to protect commercial confidentiality.

Submissions to inquiry show 'range of concerns'

The inquiry has received more than 100 submissions.

Inquiry chairman Simon O'Brien says the views expressed would be used to help form recommendations to government on the future of fracking.

"Submissions have produced a range of concerns," he said.

"We're going to be using that as the basis for a good part of our inquiry."

Mr O'Brien said the submissions indicated there were strong feelings for and against fracking.

"It's fair to say there's vested interests. What we want to do is burrow through all of that and work out what is the truth of the matter," he said.

Energy company Buru Energy plans to start fracking in the Kimberley in the Canning Basin in the north of WA in April.

Western Australia is estimated to have one fifth of the world's shale gas reserves but development of its resources is estimated to be five to 10 years away.

Fracking has provoked controversy in Australia and elsewhere with concerns about its potential impact on the environment and human health.