MATTER OF H.L.S. ENERGY CO., INC.

No. 97-50584.

151 F.3d 434 (1998)

In the Matter of H.L.S. ENERGY CO., INC., Debtor. STATE of TEXAS, Appellee, v. John Patrick LOWE, Trustee, Appellant.

United States Court of Appeals, Fifth Circuit.

August 28, 1998.


Attorney(s) appearing for the Case

Hal F. Morris, Natural Resources Div., Edith Stuart Phillips, Bankruptcy & Collections of Atty. Gen., Austin, TX, for Appellee.

Jack Minyard Partain, Jr., Renee Forinash McElhaney, Michael M. Parker, Fulbright & Jaworski, San Antonio, TX, for Appellant.

Before JOLLY, SMITH and BARKSDALE, Circuit Judges.


JERRY E. SMITH, Circuit Judge:

At issue is the priority to be afforded a state's claim on a bankrupt estate, for costs incurred by the state in satisfaction of the estate's post-petition environmental obligations. Because we conclude that such costs are "actual, necessary costs and expenses of preserving the estate," see 11 U.S.C. § 503(b)(1)(A), we affirm the district court's order that they be given priority as administrative expenses.

I.

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