739 F.2d 927 (3rd Cir. 1984), 83-5730, In re Quanta Resources Corp.

Docket Nº:83-5730.
Citation:739 F.2d 927
Party Name:Envtl. In re QUANTA RESOURCES CORPORATION, Debtor. Appeal of the NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION.
Case Date:July 20, 1984
Court:United States Courts of Appeals, Court of Appeals for the Third Circuit
 
FREE EXCERPT

Page 927

739 F.2d 927 (3rd Cir. 1984)

Envtl.

In re QUANTA RESOURCES CORPORATION, Debtor.

Appeal of the NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION.

No. 83-5730.

Submitted Under Third Circuit Rule 12(6)

United States Court of Appeals, Third Circuit

July 20, 1984

June 19, 1984.

As Amended July 25 and Aug. 17, 1984.

Irwin I. Kimmelman, Atty. Gen. of N.J., James J. Ciancia, Asst. Atty. Gen., Richard F. Engel, Ross A. Lewin, Deputy Attys. Gen., Trenton, N.J., for appellant.

William F. McEnroe, Corinne M. DeStefano, Nolan, O'Neill & Moore, Newark, N.J., for appellee Thomas J. O'Neill, Trustee.

A. Dennis Terrell, Kenneth S. Kasper, Shanley & Fisher, P.C., Morristown, N.J., for appellee Midlantic Nat. Bank.

Richard B. Honig, Klinger, Honig & Klinger, P.C., Hackensack, N.J., for appellees James V. Frola and Albert Von Dohlin.

Before GIBBONS, GARTH and HIGGINBOTHAM, Circuit Judges.

OPINION

GARTH, Circuit Judge.

This appeal presents us with the identical issue presented by the companion case of

Page 928

In re Quanta Resources Corp. (City of New York and State of New York v. Quanta Resources Corp.), 739 F.2d 912 (3rd Cir.1984). Because we have decided to reverse the district court's order in the companion case, in which New York was the appellant, we will also reverse the bankruptcy court's order in this case.

I.

Quanta Resources Corp. (Quanta) leased and operated a facility on a site in Edgewater, New Jersey, at which Quanta processed and resold waste oil and oil sludge. Quanta operated the site under "temporary operating authorities" (TOA's) issued by the New Jersey Department of Environmental Protection (NJDEP). These TOA's prohibited Quanta from accepting PCB-contaminated oil.

On June 23, 1981, NJDEP found PCB-contaminated oil at the site. On July 2, 1981, Quanta agreed to cease operating at the Edgewater location. On October 6, 1981, while NJDEP and Quanta were negotiating as to Quanta's obligation to clean up the contaminated oil, Quanta filed a petition in bankruptcy under chapter 11 of the Bankruptcy Code, an action which was later (on November 12, 1981) converted to a chapter 7 liquidation. On October 7, 1981, NJDEP issued an administrative order requiring Quanta to cease operations, close the facility within one year, and clean up all hazardous materials.

On April 23, 1983, the Trustee for...

To continue reading

FREE SIGN UP