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IN RE SECURITY GAS & OIL, INC.

Bankruptcy No. 4-83-02940-W, Adv. No. 4-86-0223-AC.

70 B.R. 786 (1987)

In re SECURITY GAS & OIL, INC., Debtor. Edward M. WALSH, Trustee, Plaintiff, v. STATE OF WEST VIRGINIA, National Grange Mutual Insurance Company and Charlie Brown, Attorney General, State of West Virginia, Defendants.

United States Bankruptcy Court, N.D. California.

As Amended March 11, 1987.

Attorney(s) appearing for the Case

Dennis D. Davis, Goldberg, Stinnett & MacDonald, San Francisco, Cal., for Edward M. Walsh, trustee, plaintiff and cross-defendant.

Lowell Greenwood, Asst. Atty. Gen., and Brenda Cole, Deputy Atty. Gen., Office of the Atty. Gen., Charleston, W.V., for defendants State of West Virginia and Charlie Brown.

Michael Vasquez, Bradley & Curley, San Francisco, Cal., for defendant National Grange Mutual Insurance Company.

OPINION

THOMAS E. CARLSON, Bankruptcy Judge.

This case raises the oft-debated question whether a bankruptcy debtor is entitled to protection from a State-created obligation to clean up environmental hazards created by the debtor prior to the filing of the bankruptcy petition.

The following facts are undisputed. Security Gas & Oil, Inc. (SGO) is a California corporation that operates natural gas and oil wells in West Virginia and other states...

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