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MATTER OF QUANTA RESOURCES CORP.

No. 83-5142.

739 F.2d 912 (1984)

In the Matter of QUANTA RESOURCES CORP., a corporation of the State of Delaware, Debtor. The CITY OF NEW YORK and the State of New York v. QUANTA RESOURCES CORP., a corporation of the State of Delaware. Appeal of STATE OF NEW YORK and City of New York.

United States Court of Appeals, Third Circuit.

Decided July 20, 1984.

Rehearing and Rehearing Denied August 16, 1984.

Attorney(s) appearing for the Case

Robert Abrams, Atty. Gen. of the State of N.Y., New York City, for appellants; Beryl Kuder, Nancy Stearns, Norman Spiegel (argued), Asst. Attys. Gen., Frederick A.O. Schwarz, Jr., Corporation Counsel for the City of New York, Gary Tarnoff, Asst. Corporation Counsel, New York City, of counsel.

William F. McEnroe (argued), Nolan, Bell & Moore, Newark, N.J., for Thomas J. O'Neill trustee-appellee.

Leroy S. Zimmerman, Atty. Gen. of Pennsylvania, Harrisburg, Pa., James D. Morris, Howard J. Wein, Asst. Counsel, Commonwealth of Pennsylvania, Dept. of Environmental Resources, Philadelphia, Pa., Irwin I. Kimmelman, Atty. Gen. of N.J., Trenton, N.J., for amici.

Before GIBBONS, GARTH and HIGGINBOTHAM, Circuit Judges.

Rehearing and Rehearing In Banc Denied August 16, 1984.

OPINION OF THE COURT

GARTH, Circuit Judge:

This case presents an issue of major importance under the Bankruptcy Reform Act of 1978: does 11 U.S.C. § 554 (1982) permit the abandonment of property of the bankrupt estate in contravention of state and local environmental protection laws? In proceedings before the bankruptcy court, the trustee in bankruptcy here asserted the power to abandon...

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