Katherine Heigl’s decision last month to withdraw from the Emmy race because her material did not merit consideration created quite a stir but “Grey’s Anatomy” creator Shonda Rhimes recently reiterated that all is well on the set and that Heigl’s words, while surprising, were not insulting.

The public was plenty surprised when Katherine Heigl made her bold statement in June that she was withdrawing her name from Emmy contention “in an effort to maintain the integrity of the academy organization,” arguing that her material on “Grey’s Anatomy” does not “warrant” an Emmy nomination and that she wishes not to “potentially” take away the chance of another actress who was given better material.

There was speculation that the actress was making an effort to actually leave the show and pursue her blooming Hollywood career, now that she has established herself as a bona fide star, via “Knocked Up” and “27 Dresses.”

Many were already expecting to see her character, Dr. Izzie Stevens, interestingly killed off in some future episode of the show.

There were of course questions Thursday during an ABC TCA panel in Los Angeles and creator Rhonda Rhimes sought to clarify the situation.

She explained that she found Heigl’s comments “surprising” but that she could understand the situation, since “in the back half of the season, she asked me to write her light for the movie [“27 Dresses.”]”

“I didn’t feel insulted,” Rhimes told reporters, as quoted by People.com, adding, “I love and respect Katie as an actress. But she is outspoken.”

Fellow ABC showrunners on the panel were evidently amused with the situation and chimed in with their own comments.

“Ugly Betty” creator Silvio Horta joked that he would have reacted differently to Heigl’s comments, i.e., “I would have put her in a coma.”

“Desperate Housewives” creator Marc Cherry was more understanding and strived to offer a humane perspective on Katherine Heigl’s motivation for the decision: “She was drunk.”

Speculation aside, ABC has been very clear on its own position. ABC entertainment president Stephen McPherson said Wednesday that Katherine Heigl would definitely remain on the show. “She’s absolutely staying with the show,” McPherson told reporters at the Television Critics Association’s annual fall preview.