West Australian Government proposes to compulsory acquire Aboriginal land for gas project

Mr Bergmann warned the issue could escalate quickly into a protest situation no-one could control.

"I think the tension levels are rising way beyond any expectations," he said.

"This is colonisation all over again, of taking an interest away from the most disadvantaged Aboriginal people for the benefit of the stronger party."

Mr Bergmann said compulsory acquisition only provided certainty "for a rich mining company to make billions of dollars for their shareholders".

Mr Barnett said he saw no quick resolution without compulsory acquisition.

"First, as premier I have a responsibility to ensure major investment projects, such as liquefied natural gas, are not lost to this state," he said.

"I also have a responsibility to the people of the area, and particularly the Aboriginal people, that a project like this offers a real opportunity of economic independence, of real jobs, of real opportunities."

Mr Barnett said he could not in good conscience allow further generations to remain dependent on welfare.

He said the formal compulsory acquisition process would involve negotiations in good faith with the KLC under the Native Title Act and that process could take up to 18 months.

"But it's a process that will reach a certain conclusion," he said.

Mr Barnett said he could not condone spending millions more of taxpayers' money to fund the KLC in further negotiations without a certain result.

But he said the state government would stand by its commitment to ensure $1.5 billion in benefits would flow to Aboriginal people from the project.

Woodside said compulsory acquisition provided a greater degree of certainty for the project and it remained committed to delivering the promised benefits to the indigenous community.

The KLC suspended negotiations in June after Aboriginal law boss Joseph Roe, who opposes the gas hub, challenged its right to negotiate on behalf of native title claimants.

Last month the Federal Court rejected Mr Roe's application, but this week he filed documents seeking leave to appeal the dismissal of his claim against the KLC.