Coal seam gas exploration poses no risk to Victoria's environment, a petroleum industry chief says.
But the Victorian Farmers Federation and a hydrogeologist have told a state parliamentary inquiry into fracking that the government should extend a CSG moratorium for another five years, to 2020, to allow more research into its effects.
Paul Fennelly, Eastern Australia CEO of the Australian Petroleum Production and Exploration Association, told the inquiry 5000 Queensland farmers were now benefiting from the industry, that it expected and met the highest environmental standards, and a model could be developed to work with the dairy industry.
"We don't damage the aquifers," Mr Fennelly said.
The VFF said the jury was still out on environmental impacts and the state's moratorium should be extended to allow further scientific study, with a survey of VFF members showing 74 per cent support for a moratorium continuing to 2020.
RMIT hydro-geologist Dr Matthew Currell said the long-term impact on aquifers was not well understood but contaminated water flowing from CSG wells was a more immediate problem.
This water was typically salty, contained heavy metals, and in the US up to 10 per cent of wells had at least one reported waste water spill.
"I think the VFF's proposition of a five-year extension is reasonable," he said.
The moratorium, introduced in 2012 by the former Coalition government, was due to expire mid-2015.
Labor pledged an inquiry before any change and it continues in Sale next week.
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