(JUNEAU) – House Bill 197, exempting natural gas developers from Oil Spill Contingency Plans (or "C-Plans"), passed the House unanimously on Thursday. Rep. Vic Kohring, Chairman of the Legislature’s Oil and Gas Committee, drafted the legislation and is carrying it through the legislative process.

"If a company is drilling for just gas and not oil with no possibility of oil being found due to the area’s geology, there should not be a C-Plan requirement," said Kohring. "It makes no sense to require companies to incur the expense of preparing such a plan if zero potential for oil exists."

Kohring noted that current law requiring an oil spill plan for gas drilling is not only expensive, but very time consuming, and amounts to a major disincentive for drilling in the Alaska—especially with small independent operators.

Natural gas wells, production or terminal facilities that may produce, store or transport oil are still required to have a C-Plan if otherwise required by statute and regulation. The bill does not change or exempt any other facilities from existing state requirements of having an oil discharge contingency plan or financial responsibility.

House Bill 197 now moves to the Senate for consideration.

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