(JUNEAU) - House Bill 197, by the House Oil & Gas Committee, exempting natural gas developers from Oil Spill Contingency Plans (or "C-Plans"), passed the Senate yesterday evening. Representative Vic Kohring (R-Wasilla/Mat-Su), Chairman of the Legislature's Oil & Gas Committee, initiated the legislation and led the effort to see its passage.

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

Kohring noted that current law requiring a C-Plan for gas drilling is not only expensive, but very time consuming, and amounts to a major disincentive for drilling in 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.

HB 197 awaits the Governor's signature.

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