PENN TERRA LTD. v. DEPT. OF ENVIRON. RESOURCES

No. 83-5448.

733 F.2d 267 (1984)

PENN TERRA LIMITED, Appellee, v. DEPARTMENT OF ENVIRONMENTAL RESOURCES, COMMONWEALTH OF PENNSYLVANIA, Patti J. Saunders, and Diana J. Stares. Appeal of DEPARTMENT OF ENVIRONMENTAL RESOURCES, COMMONWEALTH OF PENNSYLVANIA.

United States Court of Appeals, Third Circuit.

Decided April 30, 1984.


Attorney(s) appearing for the Case

Dennis W. Strain, Dept. of Environmental Resources, Pittsburgh, Pa., for appellant.

T. Lawrence Palmer, Wexford, Pa., for appellee.

Margaret L. McArdle, Pittsburgh, Pa., Bankruptcy Trustee.

Anthony J. Celebrezze, Jr., Atty. Gen. of the State of Ohio, E. Dennis Muchnicki, Asst. Atty. Gen., Environmental Law Section, Columbus, Ohio, for amici curiae, the Attorneys General and States of Ohio, California, Connecticut, Georgia, Illinois, Indiana, Maine, Maryland, Michigan, Missouri, Minnesota, New Mexico, New York, Oklahoma, South Carolina, Tennessee, Texas, Vermont, and West Virginia, in Support of appellant Department of Environmental Resources.

Before SEITZ, Chief Judge, and GARTH and BECKER, Circuit Judges.


OPINION OF THE COURT

GARTH, Circuit Judge.

This case demonstrates the difficulty encountered when two governmental policies — one federal and one state — come into arguable conflict. On the one hand, the federally created bankruptcy policy requires that the assets of a debtor be preserved and protected, so that in time they may be equitably distributed to all creditors without unfair preference. On the other hand, the environmental policies...

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