"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. It makes no sense to require companies to incur the time and expense of preparing such a plan if there is no potential for oil."
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(JUNEAU) - House Bill 197, sponsored by the House Oil & Gas Committee and Chaired by Rep. Vic Kohring (R-Wasilla/Mat-Su), is to be signed in to law by Governor Murkowski in Wasilla, on Tuesday, July 18th, Noon, at the Wasilla Chamber of Commerce's weekly meeting at the Best Western/Lake Lucille Inn.
The legislation exempts natural gas developers from oil spill contingency plans (or "C-Plans"). Rep. Kohring 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 time and 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. "The legislation is a streamlining measure, that helps the industry function with greater efficiency in the state," he said.
Natural gas wells, production or terminal facilities that may produce, store or transport oil are still required to have a C-Plan under current law.
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