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Home My WebLink AboutBUSINESS PLAN . .~~. CITY of BAKERSFIELD ,.~ '. ARE DEPARTMENT D.S.NEEDHAM ARE CHIef ""':."\ I':~.£ . c.> .;: ~9B7 i\Df:\ ~ v . , I ..~\¥.\ Vlc'! _. ;~~J...."L \ 1 ~ ,.::~~.\ (,:j,~lt-"j \ . ~~".::>" 2101 H STREET BAKERSFIELD. 93301 326-3911 '. , . " .~ 24 July 1987 Kern County Health Department Environmental Health 1700 Flower Street Bakersfield, CA 93305 Gentlemen: In response to an anonymous citizens complaint, I checked BC Chemicals at 1511 South Union for a hazardous situation. Investigation found that BC Chemicals has been in Chapter 11 bankruptcy since August 1985. There are still a large amount of containers at this location left in an unattended yard. Exterior gates are padlocked. Exterior signs show NTPA 704 logos. A view across the fence showed ruptured five gallon container of Tetrasodium Pyrophosphate. Trespass was not made. The deterioration of these and other chemical containers may lead to further problems. The last phone number we have for BC Chemicals was 832-1360. The Health Department was notified by telephone on 07-23-87. Sincerely, /Î / /Í. //) .' /&;';1 " ,/ ¿/;' f ~ /0M,,(/!..,---(/ AL.e.,"'C{...-1.', d ~__. f/ - .,' "-" , r-v 7 Michael Hendrickson Fire Captain, Station #5-C MH:trs e e LAW OF'F'ICe:S OF' RUBS & PARKER WILLIA.... C. KUHS .JA....ES R. PARKER, .JR. RALPH WM. WYATT TERI A, B.JORN SCOTT R. BAKER TI....OTHY L, KLEIER 1200 TRUXTUN AVENUE. SUITE 200 BAKERSFIELD. CALIFORNIA (eOSI 322-4004 PLEASE REPLY TO P. O. BOX 220S BAKERSF'IELO, C~ 93303 OUR F'ILE NO. August 7, 1987 639.00 HAND-DELIVERED Patrick J. Steele, Esq. Office of the County Counsel County of Kern 1415 Truxtun Avenue, 5th Floor Bakersfield, CA 93301 Re: B. C. Chemicals Dear Mr. Steele: Judge Thompson has set August 27, 1987 at 1:00 p.m. as the time for the evidentiary hearing regarding the trustee's applica- tion to expend assets for the cleanup of the B. C. Chemicals site. Briefs addressing the issues of priority for cleanup costs and any other matters deemed pertinent are due to be filed with the court on Friday, August 21, 1987. I believe it is important that Richard Casagrande of the County Health Department be available on August 27 to testify. Further, Mr. Casagrande should be thoroughly familiar with the facts, as they are available, concerning the situation at B. C. Chemicals. I would like to discuss with you and Mr. Casagrande the situation at B. C. Chemicals, and the focus of Mr. Casagrande's expected testimony. Please call me at your earliest convenience so that we may arrange such a meeting, and otherwise -discuss this matter. SRB/saw cc: Mr. Richard Casagrande R. L. Williams, Trustee I ~t\U /r\ -r-o TRAINING RECORD \IE DESCRIPTION TYPE (CLASSROOM OR QTr) HOURS INSTRUCTOR l5-f/D ,t-IC12.q....cI()<i~ wc>...1.¿ If""c;II,~ C/~~$r~()1>"- Frq" K I?c5"......./ I ~ b p.:t,-r :r Ø2- 30 -~ð II~ 2.a,.Jð<l..~ ,,-ItIS I~ If t:( ~ / f "';? c:. I q 55 ",ÕC>h'1. ;¿ F n:t '1 K R05.o." /, , b Pet,..i- .¡z ..L"t'ro d..a.c:f-tç-" 7'10 rl.. ~cw ;-dð..~ '<.'~~"~ cIQ:).5 rC70n'\ y Fyq..,k ¡''oS_ /, ~ ~ Ht-fš2.... ~ J\.c.L... ~ ;f" Ý ;)..-'&'2.- &..X-+J '1 ~bi'-C ý f'1e¡,.. ., I....~ c./~ss yC/P_..... Y F;q"K I?o~)-I,eb - v <;J )' -Cþ ::;- R ~5f'lr¿f ~"7' f,-ð -H-c f-/UI cl¿¡-s~ rOc",,- / D Cie¡"-t I)~ctdcw ~ S - ~. S" H",t..q '-cJS'&f.'S rn<.~YtQ. ( Ç'I" /1 é.. / "i '5.s .1'00/"''- J¥ b t.{ ~ I~ Ill<Q C/O t() ~ f? <. S p""Js..<. 30-87 tJú. cu..r/ /r1c¡,...'H~pt~ øf. 14.. plY'~ ~ 1"5 G/~.~ 5roo....-.. g C/ /,,-f 4:. /1 ~ct,- . : , . . - BoJ,rljer eft n-J INSTRUCTOR t<~n' <:oynf)' -/~.../r-'" þ~p'" , &..I:o,s r.~".j s .,.... (<..,!;...,- a" ..J cqqv,þt t:.C'M,""O,,f·,, l-k~ J &1- I<e.r;t C~,,,.dy 5 ia...,rf3. Dep-+. Icrlo.. 'I-lA.cfr,"j !lssö, ¡/~'1c4tf / ßc../ (ns3 ~/v.. ;1", HOURS I ,kt!'dÅ 04 AI, ,ke,~Á ú.À1s~ IC... iY Py~ m¿o-¡el 1/ 8, " ;2« /& '-10 TRAINING RECORD ~TE DESCRIPTION TYPE (C~^SSROOM OR OTT) - 17-?" Pa Y'Q M.....d L TYQ, ~ç, Kc~rc. /VI C 14 S 5 y C' () ,." - J - ßD IC-c.r" C"""~ i ~ N r I ·n I s 'P.ot~ .." ~ CIG55,C'(!)/J'7 R et:>C1r¡/t 0 {{IU,Y.S -tra,.,..,t>~ - 3C-fJ~ $ct-k~y Ccc>rd""Cf.~r CC;l4r~~ c/~~ S...- c::.<"'"" '.;25' -~t F,r~+ A, II'~"¡"r(Jc-ler C 11(.~>rt:'on-- rn &i 1+ J nvd Ie>. -).3-~~ H'1¿e1>Jøvs ¡r1e¡-k Þ-'q 6 / tJ4-1f~ ÌJr ",~ r C /~,~S rCo~ lý~ ,,,~~...- )2·~¿ tlc.2c.,d~V4 We-s-lt. ÌJ "llIer 7f'ClN"'-"J __I éle¡5S "O~),I""" - S-87 P4cf¿¡'~I'ô ~.¡: rI~¿crr~"$ ¡V1c,>kl"crls OJ'; - - - - - - - - - ,- - .- - - - - - e- - - e- - - - j <-TIM PfcA RDU/C.I-/ INSTRUCTOR J<~I rJ7 /(",)0 Is J, Ke, ih ¿ÙC1 /sA c //'., t ßc.lo~('J' c-/""',., ..b<,.t"J~ r- !J,e+cr I!€/;VZ-- --rð ~ Pr Ù I:'¡¡' HOURS 1?' '8" g' ~ ?-/r1 d .)J -87 flCl2ð.'.)O£J'.> tJCìstc Drr{/¿rllrCi,,,,~,t~ é' /C¡ss f(:>OJrl ,-{-87 lls(, q...d¡)'141...1..,~,.<.( 01- f!.~~f''''c,~',~ <:: led-:> ' ¢I!'''''- 7 -<jJ 7 1+" "- d~ ('{ PÞ-c~d/f'<' c /cýh,:~ ê/C;5:> r £'~'H1 17-87 C Iu "^' 5 -I r'7 ç ( rJq l-q rç/ Gu,S /) 14*0 q ~ C /.;. S.$ r~~C'""" J -'67 pa(ÞQð~/d oJ tI~Zq,.JGÙJ u...'<H.hj 0:5/ - - - - - - - - - - - - - - - - - - - - - - - - - - e · All respiratory protection selection, use, and maintenance shall meet the requirements of established procedures, 29 CFR 1910.134, 8 CAC 5144, and recognized consensus standards (AIHA, ANSI, NIOSH). · Heat Stress Control: Adverse climatic conditions, heat and cold, are important considerations in planning and conducting site operations. The effects of ambient temperature can cause physical discom- fort, loss of effi c i ency, personal i nj ury, and increased accident probability. In particular, heat stress due to pro- tect i ve cl othi ng decreas i ng body vent il at ion is 'an important factor (see Table 2). One or more of the following recommen- dations will help reduce heat stress. Their applicability is dependent on evaluating the climatic conditions specific to the operations. · Provide plenty of liquids to replace lost body fluids. Employees should replace water and salts lost from sweating. Use either a 0.1% salt water solution, more heavily salted foods, or commercial mixes such as Gatorade. The commercial mixes may be preferable for employees on low sodium diets. · Establish a work schedule that will provide sufficient rest periods for cooling down. This may require shifts of workers when wearing suits and SCBA (See Table 1). · Cooling devices, such as vortex coolers and cool vests, may be worn under suits. 8 emcon Associates . Establish work regimes consistent with the ACGIH Guidelines given in Table 1, with consideration given to the recommended modifications of the WBGT Index as provided in Table 2. . To assist in determining the body's recuperative ability to excessive heat, one or more of the following monitoring techniques should be used as a screening mechanism for deter- mining recovery. Monitoring of personnel should commence at least when the ambient temperature at any time during the day is 7SoF or above. Frequency of monitoring should increase as the ambient temperature increases or as monitoring indicates slow recovery rates (after every work period above 85°). a. Heart Rate (HR) should be measured by the radial pulse during 30 seconds as early as possible in, the resting period. The HR at the beginning of the rest period should not exceed 110 beats per minute. If the HR is in excess of the above value, the next work period should be shortened by 10 minute (or 33 percent) while the length of the rest peri ad stays the same. If the pul se rate is in excess of 110 beats per minute at the beginning of the next rest period, the following work cycle should be further shortened by 33 percent. 9 "" em(on Associates e TABLE 1 ACGIH HEAT EXPOSURE THRESHOLD LIMIT VALUES* WBGT INDEX WORK LOAD WORK-REST REGIMEN LIGHT MODERATE HEAVY °C of °C of °C of Continuous Work 30.0 86 26.7 80 25.0 77 75% Work - 25% Rest, Each Hpur 30.6 87 28.0 82 25.9 79 50% Work - 50% Rest, Each Hour 31.4 88 29.4 85 27.9 82 25% Work - 75% Rest, Each Hour 32.2 90 31.1 88 30.0 86 * Higher heat exposures than shown are permissible if the workers have been undergoing medical surveillance and it has been established that they are more tolerant to working in heat than the average worker. 10 emcon Rssociates e e TABLE 2 MODIFICATION OF THRESHOLD WGBT2 MOO IFICATlONS3 FACTORS WGBT (0 C) WCBT (oF) l. Unacclimatized/not physically fit -2 -4 2. Air velocity: Velocity above 1.5 mps (300 fpm) and air temperature below 35 C (95 F) +2 +4 3. Clothing: Shorts, semi-nude +2 +4 Impermeable jacket or bOd! armor! -2 -4 Raincoats, fireman's coat -4 -7 Completely enclosed suits1 -5 -9 4. Obese/elderly -1 to -2 -2 to -4 5. Female -1 -2 1 Modification for increased air velocity not appropriate with imper- vious clothing. 2 Add or subtract value from WGBT Index Values, Table 1. 3 From Ramsey, J.D.: "Abbreviated Guidelines for Heat Stress Exposure". American Industrial Hygiene Journal 39:491:495 (1978). 11 emcon Rssociates e b. Body Temperature (BT) should be measured orally with a clinical thermometer as early as possible in the resting period. Oral temperature (OT) at beginning of the rest period should not exceed 99.7°F (corresponding to 100.4°F BT). If OT exceeds 99.7°F. the next work period should be shortened by 10 mi nutes (or 33 percent) whi 1 e the 1 ength of the rest peri od stays the same. However, if the OT is in excess of 99.7°F at the beginning of the next rest period. the following work cycle should be further shortened by 33 percent. OT should be measured again at the end of the rest period to make sure thatOT decreased below 99.7°F. c. Body Water Loss (BWL) due to sweating during the work day should be measured by the difference between body weight in the morning before work and body weight in the evening after finishing work. The clothing worn should be simil ar to both weighings; preferably the worker should be nude. The scale shsould be accurate to : 1/2 pound. BWL should not exceed 1.5 percent of total body weight. If BWL exceeds 1.5 percent, the worker should be instructed to increase his daily intake of fluids by the amount of total deficit (morning body weight minus evening body weight). The ideal condition is to maintain the body fluids at a constant level during the whole work day. Thi s requi res the repl acement of the sa 1t lost in the sweat as well. This can be achieved by eating salted meals during the day and/or drinking fluids containing 0.1 percent salt. 12 emcon Associates r e e 5.0 PERSONAL PROTECTIVE EQUIPMENT 5.1 Introduction. It is important that personal protective equipment and safety requi rements be appropri ate to protect aga i nst the potenti al hazards at the site. Protective equipment will be selected based on the contaminant type(s), concentration(s), and routes of entry. In situations where the type of materi a 1 sand possibilities of contact are unknown or the hazards are not clearly identifiable, a more subjective determination must be made of the personal protective equipment for initial safety. The appropriate level of protection shall be determined prior to the initial entry on-site based on best available informa- tion. Subsequent information may suggest changes in the original level selected. Descriptions of basic levels of protection are given in Appendix II. 5.2 Identification of Levels of Protection Table 3.0 identifies the levels of protection for activities expected to be performed during Phase I of this project. Subsequent phases may require different safety procedures and these will be identified later. 13 emcon Associates Activity Walk through inspections Handling undamaged chemical suppl ies Handling empty drums Sampling & field testing contents of drums Sampling soils \. TABLE 3 PHASE I LEVELS OF PROTECTION (See Appendix II) Level of Protection Level D Level 0 Level C Level B Level C 14 e Modifications Street clothes with disposable plastic over-shoe is an alternative Hard hats and gl aves needed Face mask to have organic vapor and ad d gas cart- ridge emcon Rssociates e e 6.0 WORK ZONES AND DECONTAMINATION PROCEDURES 6.1 General A site must be controlled to reduce the possibility of exposure to any contam; nants present and the; r transport by personnel or equipment from the site. A control system is requi red to assure that personnel and equ; pment work; ng on the hazardous waste site are subj ect to appropriate health and s~fety surveillance. The poss; bi i ity of exposure or transl ocati on of contam; nants can be reduced or eliminated in a number of ways, including: · Setting up security or physical barriers to exclude unnecessary personnel from the general area. · M; nim; zi ng the number of personnel and equi pment on si te consistent with effective operations. · Establishing work zones within the site. · Establ; shi ng control poi nts to regul ate access to work lones. · Conducting operations in a manner to reduce the exposure of personnel and equipment. · Minimizing the airborne dispersion of contaminant(s). · Implementing appropriate decontamination procedures. 15 em<on Rssociates e e As work proceed s on thi s proj ect the Proj ect Manager and/or the On-site Coordinator will make any necessary decisions, or changes in procedures, as the need arises. 6.2 Field Operations Work Areas 6.2.1 Exclusion Zone Work areas (zones) will be established based on antici- pated contamination. Within these prescribed zones, operations will occur utilizing appropriate personal protective equipment. Movement between areas will be control 1 ed at check-poi nts. The future pl anned zones are: · Exclusion Area (contaminated) · Contamination Reduction Area and · Support Area (non-contaminated) For Phase I, these zones wi 11 not be requi red. The 5i te Safety Officer will establish them prior to the commence- ment of Phase II activities, using the following guide- 1 i nes : 1. Exclusion Area The Excl us i on area is the innermost area of three concentric rings and is considered contaminated, dirty or "hot". Within this area, prescribed Level A protection must be worn by any entering personnel. An entry checkpoint will be established 16 emcon Rssociates r e e at the peri phery of the Excl usi on Area to control the flow of personnel and equi pment between con- tinguous zones and to ascertain that the procedures establ i shed to enter and exit the zones are fol- lowed. The Exclusion Area boundary will be established initially based on the presence of the actual wastes or hazardous materials within the area. Subsequent to initial entry and as clean-up proceeds, the boundary will be readjusted based on observations and/or measurements. The boundary will be physically secure and posted. 2. Contamination Reduction Area Between the Exc 1 us i on Area and the Suppo rt Area is the Contamination Reduction Area. The purpose of this zone is to provide an area to prevent or reduce the trans fer of contami nants whi ch may have been picked up by personnel or equi pment returning from the exclusion area. All decontamination activities occur in this area. The boundary between the Support Area and the Con- tamination Reduction Area is t,e contamination control 1 ine. Thi s boundary separates the possibily-contaminated area from the clean lone. Entry into the Contamination Reduction Area from the Cl ean Area must be through an access control point. Personnel entering at this station will be wearing the prescrived personal protective equipment for working in the Contamination Reduction Area. Exiting the Contamination Reduction Area to the clean area requires the removal of any suspected, or 17 emcon Associates e e known, contaminated personal protective equipment and compliance with decontamination procedures. At the boundary between the Contamination Reduction Area and the Exclusion Area is the hot line and access control station. Typically, entrance into the Exclusion Area requires the wearing of the prescribed level A personal protective equipment (which is different from level B personal protective equipment requirements for working in the Contamina- ted Reduction Area). 3. Support Area The support Area is the outermost of three rings and is considered a non-contami nated or cl ean area. It conta ins the Command Post (CP) for fi e 1 d operati ons and other el ements necessary to support site activities. Nornal street clothes or Level D work clothes are usually the appropri ate apparel withi n this zone. 6.2.2 Temporary Procedures Full delineation of the various zones described above is not necessary for Phase I activities. However, there is a need to defi ne the support area in order to limit the need for excessive safety and decontamination procedures. Figure 2 identifies the area adjacent to the entrance and the office as the support area. Individuals, equipment and vehicles that only enter this area will be considered free from contamination and need not undergo decon- tamination procedures. The assumption that this area is 18 emcon Associates e - "clean" will be verified by soi1s analysis and ambient air monitoring at the start of Phase I activities. The rest of the site will be considered potentially con- taminated and individuals and equipment leaving this area will need to undergo decontamination procedures (see Section 6.3). In order to minimize decontamination procedures, vehicles entering the site for pick-up will stay in the support zone. On-site equipment will bring their loads to the edge of the support zone for loading. Preferably the on- site equi pment wi 11 onl y 1 eave thè contami nated area at the end of the project. 19 .... emcon Associates 1 ~ Phase I (Staging Area) Locked I I I I Entrance UNION AVENUE I 21- I ------1 \ / I Support I Area / \ I Office FIGURE ~ emcon W AssocIates WILLIAMS a WILLIAMS INC. INVESTIGAT10N a SAFETY PLAN 8 C aorcALs B,AKERSf'JELD. CALIFORNIA SCHEMATIC OF SITE 2 ~,tCT .0. 773-01.01 e 6.3 Decontamination Procedures 6.3.1 Introduction As part of the system to prevent or reduce the physical transfer of contaminants by people and/or equipment from on-site, procedures will be instituted for decontamina- ting anything leaving the site. These procedures include the decontami nati on of personnel, pro"tecti ve equi pment, monitoring equipment, clean-up equipment, etc. Unless otherwi se demonstrated, everythi ng 1 eaving the si te shou ld be cons i dered contam;'nated and appropri ate methods establ ished for decontamination. In general, decontamin- ation at the site consists of rinsing equipment, person- nel, etc., with copi ous amounts of water and washi ng same with detergent/water solution. If contaminants are known, then a spec ifi c detergent and! or solvent can be used to decontaminate. Disposable protective clothing will be placed in on-site drums for ultimate disposal at a Class I landfill. All decontamination washes and rinses must be contained so that they too can be properly disposed of. 6.2.2 Decontamination Solution Based on U.S. EPA recommendations for decontamination procedures, the solution for the decontamination will be as follows: For every 10 gallons of water, add 4 pounds of sodi um carbonate (soda 1 ime) and 4 pounds of trisodim phosphate, stir until evenly mixed. 21 emcon Associates . This solution is designed to react with and neutralize the inorganic acids and to remove the organic hydro- carbons. If contami nants are known then a spec ifi c detergent and/or solvent can be used to decontaminate. The decontamination process uses water and rinse solutions for washing down personnel a1d equipment. The spent solution, brushes, sponges, containers, stands, etc., used in the decontamination process must, until shown otherwise" be considered contaminated and must be properly disposed of. 7.0 EMERGENCY RESPONSE PLAN 7.1 Site Emergency Warning Systems Several warning systems may be utilized depending on the worksite conditions or emergency involved: 1. Verbal communications. 2. Verbal communications assisted with a bull horn. 3. Verbal communications assisted with a site PA system. 4. Radio communications. 5. Vehicle horns. 6. Portable hand-held compressed gas horns. For Phase I of this project, it is anticipated that only the first two will be used. Verbal instructions with or without assistance are used to deal with specific incidents. 22 emcon Associates r e e Horn signals are used to signify an emergency warning. One long blast is used on-site to signify emergency excavation of the immediate work area to a predetermined location upwind, where a head count will be taken and further instructions given. Repeated short bl asts are used on-site or from off-site to signify evacuation of all personnel from the site to the hot 1 i ne where further instructions wi 11 be gi yen after a head count is taken. 7.2 Emergency Equipment The following equipment shall be available at the work site: 1. Foam kits. 2. Fire extinguishers - dry chemical. 3. First aid kits (including chemical burn kit). 4. Emergency oxygen kit. 5. Emergency shower kit (pressurized). 6. P.D.I. (personal decontamination trailer ). et. seq . ) (Phase II 7. Non-sparking tool kit. 8. Explosive blankets/fire blankets. 9. li tters. 10. Portable two-way radio equipment. Phase II et.seq.) (Optimal, perhaps 11. Combust; bl e gas and oxygen detector al arm. Auto al arm set at 20% LEL and 19.5% oxygen (OSHA limits). 23 emcon Associates e 12. Organic vapor detection instruments - HNU photoionizer detector or Foxboro Analytical (formerly Century Systems) OVA. 13. Inorganic vapor detector tubes and air supply pumps - Draeger and/or MSA. 14. Hand-held compressed gas horns. 15. Bull horns. 16. Appropriate spill cleanup supplies and. equipment. 7.3 General Emergency Procedures In case of an emergency or hazardous ~ituation, the team member that observes this condition shall immediately give the al ann. 1. Upon hearing an alarm, all communications will cease and the member giving the alarm will proceed to give the Project Manager or On-site Coordinator all pertinent information. 2. Actions to be taken will be dictated by the emergency. 3. Power equi pment will be shut down and operators wi 11 stand by for instruction. 4. Inj ured personnel wi 11 be processed to the Personnel Decontamination Trailer (PDT). 5. In case of a fire, explosion or hazard alarm, individuals will proceed immed i atel y to ass; gned pre-located sa fe sites. 24 em<on Associates 6. Upon arri val at the safe sites, a compl ete head count will be given to Project Manager and individuals will stay at the safe site until the area is secured. 7.4 Personal Injury If an injury occurs due to an accident or exposure to a hazardous substance, EMCON1s Safety Director and the Site Safety Officer will be immediately notified. The Site Safety Officer will be given all appropriate information concerning the nature and cause,of the injury so that treatment prepara- tions can be initiated. The Project Manager will be informed and will investigate the cause of the i nj ury and make any necessary changes in work procedures. The injured person will be transported to the hot 1 ine where appropriate first aid and treatment can begin. 7.5 Ambient Monitoring Contingencies 1. When any of the following ambient monitoring readings are encountered, the Site Safety Officer and Project Manager will be requested to determine the cause and make changes in the work procedures if necessary: a. Combustible vapors in excess of 20 percent LEL. b. Oxygen level below 19.5 percent. c. Organic vapors in excess of 500 ppm. d. Radiation in excess of recorded background levels. e. Any detection of inorganic vapors. 2. When any of the following ambient monitoring readings are encountered, work wi 11 stop, all power wi 11 shut down, 25 emcon Associates e e and the a1 arm wi 11 be given to evacuate the immediate work area: 1. Combustible vapor in excess of 50 percent LEL. 2. Radiation levels in excess of 2mR/hour. The Site Safety Officer and Project Manager will be informed. The cause of the conditions will be determined and changes in work procedures or practices will be made if appropri ate. 3. When ambient monitoring on the downwind edge of the site indicates higher than background levels of any contamin- ant, the Safety Officer and Project Manager will immedi- ately be requested to determine the cause, make changes to work practices or procedures, and if necessary, make changes in site layout (i .e., change the location of the CP, decon area, or Exclusion Area), warn unprotected personnel to evacuate or don protective equipment, coordinate with local authorities to effect off-site evacuation. 8.0 RECORDKEEPING 8.1 General Recordkeeping shall be consistent with OSHA regulations in all respects. The following permanent records will be maintained in both the regional Health and Safety Office and at the site: 1. Respiratory Protection Training Records 2. Respirator Assignment Records 3. Respiratory Protection Medical Evaluations 26 emcon Rssociates e e 4. Safety Inspection Reports 5. Personnel Exposure Monitoring Records (spiral or bound permanent log books will be used) 6. OSHA 200 - Current to within 24 hours. 7. Accident reports consistent with the established CWM- ENRAC procedures. 8.2 Medical Records Permanent medical records should be maintained in confidential files by the regional contract physician and by each individual's company Health and Safety Manager. 27 "- emcon Rssociates e APpENDIX A B.C. CHEMICAL'S PRODUCT LIST e - e r . .:,~. ~Ion~.~ ~.~A :301 · P.O.'" .... ........... CA 93302 . _.(.05) 832·'300 Dear Customer: BC Chemicals is a full line chemical distributor, we' also offer a complete line of blended products, (degreasers, mud detergent, etc.). BC Chemicals operates 24 hours a day 7 days a week to fulfill your chemical needs. Should you be unable to find the particular product within these product listings, please contact your sales representative or our office. BC Chemicals has the sources available to obtain whatever product you may require, Richard J, President e e TABLE OF CONTENTS Page Number ACIDS ,."."..,."."......................,.,..,.." 1 ALCOHOLS. , , . , , , , , , , . , . , . . , , , . . . . , , . . . , , , , , , , , , , , , , , , 3 ALKALI I , , , , , , , , , , , , , , , , , , , , , , , . , , , , , , , , , , , , , , , , , , , , . , , 1 AMINES . , , , , , , , . , , , , , , , , , , , , , , , . . . , , , , , , , . , . , , , , , , , , . , 2 CHLORINATED SOLVENTS"".""...."""""""." 2 CLEANERS & DEGREASERS .. , .. , .. .. , , .. , .. , . .. .. 11 - 1 7 DRILLING FLUIDS MATERIALS.. , .. , , .. , .. , , , , .. .. .. .. 8, 9 ESTERS. , , . , . , , , , . , , , . , , , , , , , , , , , , , , , , , , , , , , . , , , , , , , . . 2 FORMULATED PRODUCTS. , , , , , , . . , , , , , , , , , , . , , , , . 18 - 31 GLYCOLS, , , , . , , . , , . , . , , . . , , , , , , . , , , . , , , . , , . , , , . , , , , 2. 3 INORGANIC & ORGANIC CHEMiCALS""""""".", 4- 7 KETONES. . , . , . , . , , . . , , , , . , , , , , , , , , , , . , , , , . , , . . , , . . . . . 3 ORGANIC ACIDS. . . , . . . , , . . . . . , , . , , , . . . . . , . . . , . . . . . . . . . 1 PHOSPHATES . . , . . , , . . . , . , . , , . , , , , , , , , , , , , , , , . , . , , . . . . 1 This product list supersedes any previous product list. e ORGANIC ACIDS Acetic Acid Glacial 480 Ib drum Acetic Acid 80% 477 Ib drum Benzoic Acid 50 Ib sack Boric Acid 1 00 Ib sack Chromic Acid 1 00 Ib drum Citric Acid 1 00 Ib sack Formic Acid 515 Ib drum Oxalic,. Acid 50 Ib sack Sulfamic Acid 50 Ib sack ACIDS Muriatic Acid (HCL) 535 Ib drum 1 40 Ib carboy Nitric Acid 600 Ib drum 90 Ib carboy Phosphoric Acid 220 Ib drum Sulfuric Acid 750 Ib drum 200 Ib carboy PHOSPHA TES Diammonium Phosphate 1 00 Ib sack Disodium Phosphate 1 00 Ib sack Page 1 -- e PHOSPHATES (con't) Soda Phos 50 Ib sack Sodium Hexametaphoschate Granular 50 Ib sack 1 00 Ib sack Sodium Hexametaphosphate Plate 50 Ib sack 1 00 Ib sack Sodium Tripolyphosphate 1 00 Ib sack Tetrapotassium Phosphate 1 00 Ib sack Tetrasodium Pyrophosphate 1 00 Ib sack Trisodiumphosphate 1 00 Ib sack Monosodiumphosphate 1 00 Ib sack ALKALI Caustic Potash Flake 1 00 Ib drum Caustic Potash liquid 50% 680 Ib drum Caustic Soda Bead 50 Ib sack Caustic Soda Flake 50 Ib sack Caustic Soda liquid 25% (bulk) 600 Ib drum Caustic Soda liquid 50% (bulk) 707 Ib drum Soda Ash 50 Ib sack 1 00 Ib sack Sodium Bicarbonate 50 Ib sack 100 Ib sack e AMINES Diethanolamine 99% 480 Ib drum Diethylene Triamine 440 Ib drum Diisopropanolamine 450 Ib drum Ethylene Diamine 478 Ib drum Isopropanolamine PRG 450 Ib drum Mixed Isopropanolamine 450 Ib drum Monoethanolamine 460 Ib drum Monoispropanolamine 440 Ib drum Morpholine 460 Ib drum Triethanolamine 85% 510 Ib drum CHLORINATED SOLVENTS Aerothene IT 54 gal drum Aerothene MM 600 Ib drum Chlorothene NU and VG 592 Ib drum Dowclene EC 54 gal drum Ethylene Dichloride 565 Ib drum Methylene Chloride 600 Ib drum Orthodichlorobenzene 600 Ib drum Perchloroethylene, Ind. 700 Ib drum Page 2 e CHLORINATED SOLVENTS (can't) 1. 1, 1 Trichloroethane 592 Ib drum Trichloroethylene 600 Ib drum ESTERS Amyl Acetate, Primary 400 Ib drum Butyl Acetate, Normal 400 Ib drum Dalpad A 505 Ib drum EE-Acetate 440 Ib drum Ethyl Acetate 85-88% 400 Ib drum Ethyl Acetate 99% 409 Ib drum Isobutyl Acetate 400 Ib drum Isopropyl Acetate 390 Ib drum N, Propyl Acetate 400 Ib drum Butyl "Cellosolve" Acetate 422 Ib drum "Carbitol" Acetate 463 Ib drum Butyl "Carbitol" Acetate 450 Ib drum GL YCOlS Diethylene Glycol 520 Ib drum Dipropylene Glycol 470 Ib drum Ethylene Glycol 515 Ib drum - Gl YCOlS Hexylene Glycol 424 Ib drum Propylene Glycol, Ind, 480 Ib drum Propylene Glycol, US? 480 Ib drum Triethylene Glycol 520 Ib drum Tripropy/ene Glycol 470 Ib drum KETONES Acetone 358 Ib drum Cyclohexanone 432 Ib drum Diacetone Alcohol 430 Ib drum Diisobutyl Ketone 370 Ib drum Dimethyl Formamide 41 0 Ib drum 1 ,4 Dioxane 473 Ib drum Ethyl Amyl Ketone 374 Ib drum Isophorone 425 Ib drum Methyl Ethyl Ketone 366 Ib drum Methyl Isobutyl Ketone 365 Ib drum 2 -Nitropropane 455 Ib drum Pentoxone 41 0 Ib drum T etrahydroturan 400 Ib drum Page 3 e ALCOHOLS Amyl Alcohol, Primary 370 Ib drum Butanol, Norrmd 370 Ib drum, Butanol, Secondary 369 Ib drum Isobutanol 370 Ib drum Isopropanol, Anhydrous 55 gal drum Methanol 55 gal drum Methyl Isobutyl Carbinol 371 Ib drum Methyl Amyl Alcohol 371 Ib drum Propanol, Normal 370 Ib drum e INORGANIC AND ORGANIC CHEMICALS Acintol FA-2 420 Ib drum Aluminum Sulfate 1 00 Ib sack Ammonia Anhydrous 1 50 Ib cyli~der Ammonia Bicarbonate 300 Ib drum Ammonium Alum 1 00 Ib sack Ammonium Biflouride 50 Ib sack Ammonium Chloride 50 Ib sack Ammonium Hydroxide 350 Ib drum Ammonium Nitrate 80 Ib sack Ammonium Sulfate 1 00 Ib sack Asbestos 50 Ib sack Barium Sulfate 1 00 Ib sack Bentonite 1 00 Ib sack Borax 1 00 Ib sack Butyl Oxitol 41 5 Ib drum Calcium Carbonate 50 Ib sack Calcium Chloride 80 Ib sack Calcium Chloride Water Bulk Page 4 e Calcium Chloride Powder 1 00 Ib sack Calcium Hypochlorite Granular , 1 00 Ib drum Calcium Hypochlorite Tabs 1 00 Ib drum Carbon 50 Ib sack Chain Oil 55 gal drum Chlorine 1 50 Ib cylinder 1 ton Cobalt Sulfate 1 00 Ib sack Copper Sulfate 80 Ib sack Cyclohexylamine 175 Ib drum Deriphat 90 Ib drum Diatomaceous Earth Hyflo Super Cel Bulk 50 Ib sack Standard Super Cel 50 Ib sack Celite 535 50 Ib sack Celite 545 50 Ib sack Fiber Cel 50 Ib sack Dioctylphalate (Depone) 436 Ib drum Dowfax 2-A-1 530 Ib drum Dowicide G 1 1 O. 1 2 Ib sack e e INORGANIC AND ORGANIC CHEMICALS (con't.) Epsom Salt 1 00 Ib sack Ethyl Mercaptan 5 gal pail Ferric Chloride Bulk Ferrous Sulfate 50 Ib sack Formaldehyde Bulk Gluteraldehyde 50% 500 Ib drum Glycerine 96 % 570 Ib drum Glycerine U.S,P. 570 Ib drum Gypsum 1 00 Ib sack Hampene 1 00 58 Ib drum H.T.H. Granular 1 00 Ib drum H.T.H, Tabs 1 00 Ib drum Hydrazene 250 Ib drum 450 Ib drum Hydrogen Peroxide 35% 275 Ib drum 500 Ib drum Kerosene 55 gal drum LAS - 99 (Cal Soft) 480 Ib drum Lime Hydrated 50 Ib sack Lime Quick (Calcium Oxide) 60 Ib sack Methyl Formate 440 Ib drum Metso 20 Sodium Metasilicate 1 00 Ib sack Mineral Oil 55 gal drum Morpholene 460 Ib drum Muriatic Acid Inhibitor Rodine 21 3 1 gal 5 gal Nickel Brightener 5 gal Nickel Chloride 50 Ib sack 1 00 Ib sack Nickel Sulfate 100lb Ninol - 1 285 400 Ib drum NTA - NA3 50 Ib sack Orzan 50 Ib sack Pine Oil 55 gal drum Potassium Carbonate 1 00 Ib sack Potassium Chloride (Potash) 1 00 Ib sack Bulk Potassium Ferricyamide 1 00 Ib drum Potassium Metabisulfite 1 00 Ib sack Potassium Nitrate 1 00 Ib sack Page 5 e - INORGANIC AND ORGANIC CHEMICALS (con't.) Potassium Permanganate 330 Ib drum Potassium Phosphate 1 00 Ib sack Potassium Sorbate 1 00 Ib sack Potassium Sulfate 1 00 Ib drum Propylene Dichloride 520 Ib drum Paraformaldahyde 50 Ib sack Quebueuo 50 Ib såck Salt XXX Bulk 50 Ib sack Salt Food Grade 80 Ib sack Soda Ash Bulk 50 Ib sack 1 00 Ib sack Sodium Acid Pyrophosphate 1 00 Ib sack Sodium Benzoate U.S.P. Flakes 1 00 Ib sack Sodium Bicarbonate 1 00 Ib sack Sodium Bisulfate Globular 1 00 Ib sack Sodium Bisulfate 1 00 Ib sack Sodium Bromate 200 Ib drum Sodium Bromide 270 Ib drum Sodium Gluconate 50 gal drum 50 Ib sack Sodium Hydrosulfite 250 Ib drum Sodium Hypochlorite 55 gal drum Sodium Hypophosphite 11 0 Ib sack Sodium Metabisulphite 110,23 Ib sack Sodium Metasilicate 1 00 Ib sack Sodium Nitrate 1 00 Ib sack Sodium Nitrite 1 00 Ib sack Sodium Silicate 40 640 Ib drum Sodium Silicate B.J, 120 640 Ib drum Sodium Silicate D 700 Ib drum Sodium Sulfate 1 00 Ib sack Sodium Sulfite 1 00 Ib sack Sodium Sulfide Flakes 415 Ib drum Sodium Sulfide 425 Ib drum Sodium Tripolyphosphate 1 00 Ib sack Sodium Thiosulfate 1 00 Ib sack' Soluble Oil 55 gal drum Page 6 e e INORGANIC AND ORGANIC CHEMICALS (con't.) Solvents Cleaning Solvents 55 gal drum lacquer Thinner 55 gal drum Mineral Spirits 55 gal drum Solvents 172-L 55 gal drum Solvent 355·L 55 gal drum Chevron 11 00 55 gal drum Solvent 1200 55 gal drum Solvent 51 5 55 gal drum Solvent B 55 gal drum Solvent G 55 gal drum Stoddard Solvent 55 gal drum V, M, &P. Naptha 55 gal drum Sulfamic Acid 50 Ib sack Sulfur Dioxide 1 ton cylinder Tartaric Acid 50 Ib sack Toluene 55 gal drum Triton N-10 475 Ib drum N-1 01 480 Ib drum X-45 480 Ib drum X-1 00 480 Ib drum OS-3D 515 Ib drum Page 7 Urea 46% N 80 Ib sack Versene 1 00 600 Ib drum Venadiam Pentoxide 1 00 Ib sack White Oil 55 gaJ drum Xylene 55 gal drum Zinc Carbonate 50 Ib sack Zinc Oxide 50 Ib sack Zinc Sulfate 55 Ib sack e DRILLING FLUIDS MATERIALS B,C. 25 L.P. 5 gal pail 3Cyanamer P·26 50 Ib sack 3Cypan 50 Ib sack Defoamer 50 Ib pail Defoamer + 40 Ib pail tDesco 25 Ib sack DMS 50 Ib pail Drillaid DFLC·L Mud Deflocculant 5 gal pail 7Drillaid FCA-11 Filtrate Control/Shale Stabilizer 50 Ib sack Drilling Starch 50 Ib sack 1 Drispac Super Low 50 Ib sack 1 Drispac Regular ,50 Ib sack 1 Driscose 50 Ib sack 2H E C Polymer 50 Ib sack Lime Hydrated 50 Ib sack Lime-Quick (Calcium Oxide) 60 Ib sack Page 8 e M,D, 5 gal pail M,D, + 5 gal pail ~Natrasol 50 Ib sack Potassium Bichromate 1 00 Ib sack Potassium Carbonate 1 00 Ib sack Potash 1 00 Ib sack eWes Thin A multi-purpose deflocculant 5 gal pail eWes Vis A bentonite extender & Drilled Solids Flocculant 5 gal pail !5Polysec K. D. 50 Ib carton Sapp 1 00 Ib sack Saw Dust 50 Ib sack Soda Ash 50 Ib sack 1 00 Ib sack Sodium Bicarbonate 50 Ib sack 1 00 Ib sack (con't) REGISTERED TRADEMARKS 1. Drilling Specialties Company 2. Union Carbide Company 3. American Cyanamid 4. Hercules Chemical Company 5. American Colloid Company 6. Mud Specialists, Inc. 7. Welchem, Inc. 8. Westbridge Oilfields Products e DRILLING FLUIDS MATERIALS Sodium Bichromate 1 00 Ib sack Sodium C.M.C, 50 Ib sack Sodium Chromate 1 00 Ib sack Sodium Hexametaphosphate Plate 50 Ib sack 1 00 Ib sack Sodium Hexametaphosphate Granular 50 Ib sack 1 00 Ib sack Sodaphos 50 Ib sack ISoltex 50 Ib sack T.e.p. Defoamer 50 Ib bucket Zinc Chloride 440 Ib drum Page 9 e Barite 1 00 Ib sack Mica Fine 50 Ib sack Nut Seal Fine 50 Ib sack Nut Seal Medium 50 Ib sack Nut Seal Coarse 50 Ib sack Sawdust 25 Ib sack Cedar Fiber 40 Ib sack Kwik Seal Fine 50 Ib sack Kwik Seal Medium 50 Ib sack Kwik Seal Coarse 50 Ib sack Cottonsead Hulls 50 I::> sack Cottonseed Pellets 50 Ib sack REGISTERED TRADEMARKS 1. Drilling Specialties Company - e CLEANERS AND DEGREASERS Page 1 0 e DEGREASER e Heavy Duty Solvent Emulsion Degreaser Deep Solvent Penetration BC DEGREASEA will quickly penetrate Grease, Oil, Tar, Carbon and many other heavy soils, Recommended for use on, production equipment engines, trucks, plant floors and metal surfaces. After allowing sufficient soak time to penetrate the soil, a steam or pressure washer will remove oil and grease with no problem of oily residue, Surface Safety BC DEGREASER may be used on all metals such as', aluminum and magnesium, glass, concrete, most paints, plastics and rubber, Versatility & Savings BC DEGREASER is used diluted with 1 to 10 parts water for most cleaning and degreasing applications. For heavy jobs BC DEGREASER can be diluted with diesel, 1 to 40, this. provides a single product to meet every heavy duty cleaning and degreasing application. Typical Dilution Rates Hardened Carbon and Deposíts. , , " ,., " , , . . . , , , , , , , , " , . , , , . . . . . Up to 2 parts water Thick Grease and Open Gear Lubricants. . . , . , . . . . . . . , , , . . . . . . . . . . . Up to 2 parts water Hardened Oils and Compacted'Soil . . . , . . , . . . . , , . , , , . , . . . . . , . . . . . . . . . 2 . 8 parts water Gas and Diesel Engine Deposits ...........,. . , . , , . , . , . . , . . . . . . . . , . 3 . 1 0 parts water Medium to Heavy Deposits of Oil and Grease. . . . , , . . . . . . . . . , . . . . . . . Up to 5 parts water Light to Medium Deposits of Oil and Grease . , . , . . , . , . . . . . . , . . . . . , , . . 3 . 1 2 parts water Chemical & Physical Characteristics Appearance .... . . . . . . . . . . . . . Amber liquid Weight Per Gallon. . . . , . , . . , , . . , . . .8.4 Ibs. pH: Concentrate. . . . . . . . . . , . , . . . . . ., .10.5 10% Solution. . . . . . , , . . , . , , ., ....,.9.65 1 % Solution '..........,.....,...... 9,25 Flash Point. . . . , . . . . . . , . . . . . , 174°F (COC) Rinsing ......,.....,.. Excellent with water Use B C Degreaser to Remove · Greases · Uncured Resins · Tar and Asphalt Stains · Printing Inks · Carbon Stains · Stamping Oils · Rubber Skid Marks · Soot Stains and Smut · Carbon Black · Open Gear Lubricants Use B C Degreaser for Cleaning · Tank Trucks · Diesel Engines · Oil Storage Tanks · Production Machinery · Grease Racks · Plant Floors · Running Gears · Auto Chassis · Fork lift Trucks · Auto and Truck Blocks Packaging 5 gallon and 55 gallon drums Bulk shipments Page 11 e - DEGREASER II Heavy Duty Solvent Emulsion Degreaser Deep Solvent Penetration , BC DEGREASER will quickly penetrate Grease, Oil, Tar, Carbon and many other heavy soils. Recommended for use on, production equipment engines, trucks, plant floors and metal surfaces, After allowing sufficient soak time to penetrate the soil, a steam or pressure washer will remove oil and grease with no problem of oily residue, Surface Safety BC DEGREASER may be used on all metals such as, aluminum and magnesium, glass, concrete, most paints, plastics and rubber, Versatility & Savings BC DEGREASER is used diluted with 1 to 1 0 parts water for most cleaning and degreasing applications. For heavy jobs BC DEGREASER can be diluted with diesel, 1 to 40, this provides a single product to meet every heavy duty cleaning and degreasing application, Typical Dilution Rates Hardened Carbon and Deposits. . , . . . . . , , , , , , , , , , , . , . , , , , , , . . Up to 2 parts Thick Grease and Open Gear Lubricants . , , , , , , , , , . , , , , , . , , . , , Up to 2 parts Hardened Oils and Compacted Soil. . . . , . , , , . , . . , . . . . , . , . . . , . . . . 2 - 8 parts Gas and Diesel Engine Deposits . . . , . . , . , , , , , , , , , , , , , , , , , , , . , , 3 - 10 parts Medium to Heavy Deposits of Oil and Grease. , , , , , , . , , , , . . . . . . Up to 5 parts Light to Medium Deposits of Oil and Grease , , , . , , . , . . . , . , , , , , . , 3 - 1 2 parts Diesel or Solvent Chemical & Physical Characteristics Appearance . . . . . . , . . . . , , , . . , Amber Liquid Weight Per Gallon. . , , , , , , , , . . . . . , ,8,4 Ibs. pH: Concentrate. . , . . , , . . , , . . . . . , . , . , 10.5 10% Solution. , . , , . , , . , . , . , . . . , . . , . , 9.65 1 % Solution. , , . , , , . . , . . , . . . , . . . . . . , 9.25 Flash Point. . . , , , . , . . . . . . . . , ,195°F (COC) Rinsing .,..........", Excellent with water Use B C Degreaser to Remove · Greases · Uncured Resins · Tar and Asphalt Stains · Printing Inks · Carbon Stains · Stamping Oils · Rubber Skid Marks · Soot Stains and Smut · Carbon Black · Open Gear Lubricants Use B C Degreaser for Cleaning · Tank Trucks · Diesel Engines · Oil Storage Tanks · Production Machinery · Grease Racks · Plant Floors · Running Gears · Auto Chassis · Fork Lift Trucks · Auto and Truck Blocks Packaging 5 gallon and 55 gallon drums Bulk shipments Page 1 2 e e THREE-WAY DEGREASER A Safe All Purpose Cleaner BC CHEMICAL THREE·WAY DEGREASER is a liquid cleaning concentrate with these outstanding advantages: Rapidly removes heavy oil, grease and grime from machinery, equipment and floors, Soluble in hot or cold water and can be rinsed off with water leaving a streak-free surface, . Safe to use because it is a non-explosive water solution, Non-corrosive to metal and concrete surfaces, Economical to use. How to use B C Chemical Three-Way Degreaser For medium to heavy deposits of oil and grime, dilute all purpose cleaner with 3 to 10 parts of water. For very heavy deposits of oil, grease or dirt, mix concentrate with 3 to 1 0 parts of kerosene or diesel oil. Application Methods B C Chemical Three-Way Degreaser may be applied by wiping, brushing or spraying on the soiled surfaces. The product may also be used in dip tanks or circulated through equipment to remove oily deposits. Vertical surfaces may be cleaned by mixing 4 parts of B C Chemical Three-Way Degreaser with 4 parts of kerosene and 1 part of water, This mixture clings to vertical surfaces until rinsed with water. Handling B C Chemical Three-Way Degreaser is an alkaline solution and contains detergents. Care should be taken to avoid splashing product in the eyes, In case of eye contact, flush eyes with plenty of water. Packaging 5 gallons and 55 gallon drums Page 1 3 e crS-1 CLEANER e In the B. C. Chemical line of cleaner products, this high-alkaline detergent is designed for use in pressure spray or soak type bottle washers. Well adaptable for heavy-duty cleaning of product lines, pasteurizers, mixers, cookers and other processing equipment. CTS-1 Cleaner is a blend of alkalies, organic chelates, sequestrants, wetting agents and other ingredients, These combine to provide a full range of Important advantages, such as: A complete bottle washing material. It's very effective in automatic bottle washing machines of all types, including high pressure spray machines, A thorough cleaning agent for spray washing of reusable plastic milk containers, The high alkaline content provides germicidal protection. CTS-1 provides lubricity to reduce friction and wear in bottle washers. Sequestrants prevent the deposition of scale on bottles and washers, O~ganic chelates aid in the control of aluminate scale, caused by dissolved aluminum foil labels, The best in cleaning results from high rinsability. In food plants, CTS-1 is a heavy-duty cleaner for product pipelines, juice pasteurizers, vegetable cookers, and other stainless steel processing equipment. How and where to use CrS-1 Cleaner Bottle Washing: Concentration of CTS-1 depends on the caustic requirements of regulätory bodies in the locaJity. 1 oz, per 1 gal. of CTS-1 equals ,71 % cuastic by weight; or .7 oz./gal. equals 1/2% caustic by weight. When a code requires 3% caustic, this can be met by using a solution of CTS-1 at 4-1/4 ounces per gallon, Food Processing Equipment: a 2 to 4 oz./gal. solution at 1600 - 1800F, will handle most jobs. Plants with central alkali system: for all phases of cleaning operations, the central reservoir should contain 4-1/4 oz./gal. to handle bottle washing, heavy-duty cleaning and circulation cleaning requirements. CTS-1 is especially useful in breweries, bottling plants, dairies and food canneries. NOTE: Uke any alkaline material, CTS-1 should be added slowly to cold water while stirring - never to hot water either for original makeup or for upkeep. The usual precautions for handling alkaline materials and solutions should be observed. Page 1 4 e AST-1 e Cleaning Compound AST-1 is a formulated product that quickly and easily removes soils and stains that ordinary cleaners do not. AST-1 is non-toxic, will not cause burns on the skin; has no Irritating fumes; is non-corrosive; safe on all plastics and paints; and on electrical insulation, Will not injure acrylic paint or other paints used on equipment, machines or autos, COMPOSITION Water based solution of alkaline ingredients, biodegradable surface, active agents, and emulsifiers, Is non-flammable and has to flash point up to and including its boiling point. AUTO AND TRUCK WASHING Pre-rinse with water. Dilute 1 cup AST-1 per gallon of water, Apply by spray and brush surface, rinse with water, This will not cause any harm to car finish, Leaves a bright and well kept appearance, STEAM CLEANING . Dilute up to 20 to 1 in solution tank, no caustic, no odor, Safe on all types of metal. Aluminum and stainless steel especially. Provides spray wetting and penetrating action. PACKAGING 5 gallon and 55 gallon drums Bulk shipments Page 1 5 e e HOT TANK CLEANER A powerful alkaline cleaner fortified with speclaJ detergents for rapid penetration and emulsification, Used for removal of caked oil on engine blocks. Protection equipment. Used where a standard degreaser Is not enough. Not recommended for use on soft or nonferrous metals, such as aluminum or magnesium. HANDLING PRECAUTIONS BC's Hot Tank cleaner is a strong alkaline compound and is hazardous to personnel, unless proper safety precautions are exercised when handling. Avoid contact with: Skin, eyes ot clothing, When handling, wear rubber clothing, gloves, and face sh!eld, In case of contact with skin: flush exposed area with water and rub area affected for 15 minutes. For eyes, flush with water, Contact physician, PACKAGING 55 gallon Fiber Drums (405 Ibs.) Page 1 6 CO.¿NTRATED ALUMINUM BRIGHTE_ri Concentrated Aluminum Brightener for all non-ferrous metals: CHROME, ALUMINUM, BRASS & COPPER DIRECTIONS: 1, Cut Concentrated Aluminum Brightener with 40 parts water, 2. Wash surface to be cleaned with soap and water, 3. Spray surface generously and evenly with cut solution of Aluminum Brightener, Allow to soak from 1 to 2 minutes, 4, Rinse thoroughly with water. On very dirty or heavily soiled surfaces, repeated application may be necessary, CAUTION: Be careful not to splash into eyes or on clothing. Do not breath fumes. Keep out of reach of children. Contains: Phosphoric mineral and organic acids. MAY BE HARMFUL OR FATAL IF SWALLOWED, DO NOT INDUCE VOMITING, GIVE MILK OR WATER. CONTACT PHYSICIAN IMMEDIATELY, IN CASE OF EYE CONTACT: FLUSH THOROUGHLY WITH WATER. CONTACT PHYSICIAN IMMEDIATELY. Packaging 1 gallon, 5 gallon, 55 gallon drums Page 1 7 Packaging 50 gallon bbl. Bulk e TRANSITMIX e e e FORMULATED PRODUCTS FOR SPECIFIC APPLICATION Page 18 e e DATA SHEET 05-100 OXYGEN SCAVENGER FOR DRILLING FLUIDS AND WATER TREATING Description: OS-100 is a 52% by weight ammonium bisulfite solution and is an oxygen scavenging agent for drilling fluids and other water systems requiring oxygen removal. Typical Properties: Appearance Density, Lb/Gal. Sulfite % pH - 50% Solution Clear Ught Yellow Uquid 10,8 55 4.5 Suggested Uses: OS-100 may be substituted directly for catalyzed sodium sulfite as an oxygen scavenger, It is a stable solution and being a liquid, there are no dissolving and plugging problems. Use of OS-1 00 in drilling fluids and other water treatment uses allows protection from Oxygen corrosion of drill pipe, pumps and other metals in contact with the media, 03-1 00 should be added continuously directly at the pump suction utilizing a chemical injection pump. Theoretical treating ratio is slightly less than 9 parts of OS-1 00 per 1 part of oxygen, Pumping rate is dependent upon the oxygen concentration present. A minimum of 1 00 ppm excess sulfite is recommended, In drilling fluids, the base line corrosion rate may be established by running drill pipe corrosion rings in the drill string prior to commencing treatment. The coupons should be run in the drill collar cross-over sub, and the kelly saver sub. If only one coupon is to be run, it should be placed in the drill collar crossover sub. Rings should be run a minimum of 50 hours (100 hours is desired). Page 1 9 , f." , f , ,: ì r r. I: '.::. ~." ,', . :~~. .~~>_.. ~I.~~'!" ~t.- ;,-. \:~. c:,:: ,~.: e e BC MICROBIOCIDES . 5 gallons 55 gallons B.C. Mlcrobloclde 1000 B.C. Microbloclde 2000 8.C, Microbiocides, available as 8,C, 1000, a 25-per cent aqueous solution of glutaral- dehyde, and B.C. 2000, a 50-per cent aqueous solution of glutaraldehyde are useful as preservatives and in formulating broad spectrum industrial biocides, I B.C, Microbiocides have many important features including: · EP A Registration · Effectiveness against a broad spectrum of microorganisms · Aqueous solutions which are easily and uniformly diluted and mixed · Ability to be easily neutralized for disposal · Effectiveness against aerobic and anaerobic organisms ·Compatible with anionic, nonionic, cationic surlactants · Do not contain or release formaldehyde · Lower vapor pressure than formaldehyde · Diluted product easily analyzed by gas chromatography · Not affected by the presence of hard water STORAGE AND HANDLING OF B.C. MICROBIOCIDES OIL WELL MICROBIOCIDE B.C. Microbiocide 1000 is an aqueous solution of Glutaraldehyde, at 25% (by weight) concentration. It is slightly corrosive to common materials of construction, such as steel, aluminum, and galvanized iron; the corrosion rates are low (equipment would not be severly damaged) but contamination of the product will result if contact is prolonged. Materials which have been tested and found to be suitable are stainless steel, certain fiberglass-reinforced plastics, and polypropylene or polyethylene, Types 304 or 316 stainless steel are suitable. Of the plastics tested, a polyester ("Atlae" 382) and a vinyl ester ("Derakane" 470) were resistant, but an epoxy showed some adverse effect after prolonged exposure to Glutaraldehyde. Uned steel containers are not recommended because iron contamination can result, due to pinholes in the coating. NOTE: Storage tanks, lines, pumps, valves, etc., must not be made of iron or steel.· Even trace iron contamination (one ppm or less) can have an adverse effect on the long-term stability of the product. The 25% solution freezes at about -10°C (14°F). Thus, if outside storage is planned, heated and insulated facilities will usually be required. However, the storage stability of Glutaraldehyde is very dependent on storage temperature and storage at temperatures below 100°F is recommended. Preferred locations for a storage tank might be either indoors or underground; drums could be stored in a warehouse or, during hot weather, in a shaded storage area where they are not directly exposed to the sun. If B.C. Microbiocide 1000 is to be heated, warm water is the preferred heating medium, in order to insure that the product will not be exposed to high temperatures. It is suggested that water temperatures should not exceed about 40-50°C (100-1 20°F) and temperature controls could be set so that the average temperature of the stored liquid is only about 20°C. This should insure a reasonably long storage life for the product. Piping and valves can be of polypropylene or polyethylene or stainless steel. A stainless steel centrifugal pump ;s suitable for transfer service. Asbestos can be used for gaskets and packing. NOTE: If B.C. Microbiocide is to be diluted, use only distilled/deionized water that is low in iron, calcium, and magnesium content. 20 ~. e e MATERIAL SAFETY DATA SHEET UCARCID£ 12-~ Antimicrobia : MICAlS ... PRODUCT (.Ap,IIo".d by u.s. D.".runtflr,,' L~b"r" H'ulfI,i~lI" ,im;I",· r" Form LS8.0aS-4 \NUI'OCTURE.R'$ NAME. SECTION 1·IDENTlFICATION OF PRODUCT BC CHEMICALS INC. )ORE.5$ (Numb." Slrut. Oty, StlHt IIflti liP Codlf) 1511 South Union Avenue/Bakersfield EMERGENCY T£L£P"'ONE. NO. .Ãot NOM£ 805/832-1360 MICROBIOCIDE 1000 CJ04EMICAI.. NAME. Not applicable/Blend of Materia CJ04CMICAI.. FORMULA II II .. .. .. .. .. 'CMICAL FAMI'-V Aldehyde SECTION II·HAZARDOUS COMPONENTS OF MIXTURES A ptec:iSl! co~position 01 this product. Is propr1etary information. A more delaJled disclosure win be provided by BC Chemic.aJs as priV\l~ed i~I~~~Íion upon request .n case 01 need lor specific treatment AQUEOUS: SOLUTION OF ALDEHYDES FREIGHT DESCRIPTION: CHEMICALS, NOIBN DANGEROUS ARTICLE DESCRIPTION: NONE DOT WARNING LABELS REQUIRED: NONE SECTION /II· TYPICAL PHYSICAL DATA 'PC,<>R'<>NCE "'NO ODOR !SPECIFIC C;RAVi:ry-' Clear liquid, formalin odor ., 1,063 JllolNG PO'NT (OF) PERCENT VOLATI'-E o 0 (BY VOLUMEI Sli9htly less than 369 FilS? C (decomposes) 100 to 1.0751 20/20oC "- ---- EVAPORATION "'ATE In- BUTYL ACETATE· 11 ~POR PRE!:SURE o @20 C = 17 mm Hg + ---- - --- ----.- ':'''OR OEN~ITv lAIR 11 J 'CU",L'TY '~:~~;::e than 1 l- ~~='=-:-= --, - -=- '=~.~E~,!.TS2~ r.Y'FIÃ~Ë !-ND, ~J'':?SI~~=~Ai~,RD _~AT~_, I -t --~ .~-¡ _:'~H ;oOINT /.";Clhod) l'lo'¡:""'~ABI.( lolMITS L.' w., " {"('<CENT BY VOloUMEI ,- -'-l "E£XTINGÜ~:'~;;G M-~oïÃ----- .- --- -----.---- -'--'-- --- ------.-. ___~_A_ _El~__ -~ __. , _!'J.°'7.J\l'EfJ~~!:,l~ LN~L. __. _ ,_._______. ,__ __ m._._____, __,______, ________ 'lCIAL "HE:. "C;HTI",G PROCEDURES, - -..- ..~9U.QPl! calÜ~______ ------- - -----~-.=~-~ _~._~ -- ----- J '/1...~L.'Ai..-ijQË: >:.·,jô-éxp<.osiõÑHÃ-::.c.ï:iãš-------- -.. j Not Applicable -.------ ....-- ----- -- .- ----- ---.----.-.---- -- --. ...::. RÒ-OÚ~' P=ÕOÜëTsc5Tc-OMB~TÕÕ;"'-"- Not Applicable ------..--- --------- -------- --- . . -~...:...:_-----_._--::_;.:.:.- ---=,_.::.-~.;;,.,:;........:...:~----~~~ -~-~...:..-_-~~~=:=.~~---=--=,,::~..,:, -~--~.:-'-'- -~:.-.:=-...: :.:-~..:- I , ,,¡ T""S ";~~;:.'.~;'II':)N ~!:l.ATES O'lLY TO THE SPECIFIC MATERiAl DESI~·;...TEO A',O I,I"'Y NOT 8: VAlolO FO~ SUCH 'AATéRIAL USED IN COM8!·j...TlON Wlni ¡"~IY CrHE.C; I.·..iERIALS OR I~I ANY PROCfSS Su';" inforrlò!"OtI is. 10 IlIe bes' 0/ BC C"'",,· ,:,a's kr>::-.....d;t' an::! ~I.t'f, accurate ""d rel,~le as 01 IlIe tUle ¡".socaled. HOWEVER. NO REPRESë:"iTATlON. \·...c.fIRANTY OR GU.I.",,-'IEE 15 I.'...";: A,S TO ITS ACCUR...CY. REUA81UTY OR COMPLI:TE"~SS. IT IS THE U~"RS RéSPO',$I8IUTY TO SATISFY HII.·SELF AS TO THE SU¡;.t..9LE!;~SS "''''0 COM¡:>L£TENESS OF SUCH Iw'op.I.IAnON FOR HIS O'.\'N P;.RiICUL:J'I USE. 21 e e SECTION V . HEALTH HAZARD DATA .~ts...OI..O I........T VAI..UE FECTS OF OVEREXPOSURE humans is irritating to, CHRONIC Prolon ed skin contact causes faint redness & tannin effects ·'tRCENCV ANO FIRST AID PROCEDURES Followin contact: Flush e es & skin with water fifteen (15) minutes. ~emove victim to fresh air artifical res iration if necessa CALL A PHYSICIAN. SECTION VI· REACTIVITY DATA ',:, !II 1-1 TV CONOITIONS TC\ "0'1"0'0 -- U~J5T A3LE STABLE X NOT APPLICABLE ·':OMPATI911..ITY IMATERIA~ TO AVOIO FOR PURPOSES OF TRANSPORT.HANDL.INC a. STORACE ONL,.VI Transport: Store in baked phenolic-lined steel or 55. oJ; in approved reinforced vessels. Heating & insulation is indicated, as required, Avoid hi-temp, "l.AROOUS DECOMPOSITION PRODUCTS Aldehydes: Avoid inhalation, skin, & eye contact. ,. SECTION VII . SPILL OR LEAK PROCEDURES '(P!.'O 9E TAKEN IN CA!.E MATERIAl.. IS RELEASEO OR SPILLEO Shut off source if possible, Advise authori ties if substance has entered a water course. - "-!.TE: OlSPOSAL (lN~URE c01"0.......'IY WITr" ~ctk O'SPo¿;AL ,:u:cULöiIONSd dilute with water. Recover by ContaLn Sp1 lea 1quLa 1 san or ear an pumping or with suitable absorbent, If spilled, it may be possible to deactivate the solution carefully with ammonium hydroxide or w/aqueous sodium bisulfite to ST1 nt.T Das1c. 9 Y SECTION VIII· PERSONAL PROïECTlON INFORMATION --.-- ,SPIR~'TORY PI'<O'TEC7'Ç)N _ Use approved respiratory protection such as air supplied if in enclosed spaces., ...OCAL E:XHALJST' . 1šPÉëÏAL Not needed in open/unconf1ned I M(CHANICAL IC~nnøl) 'õ"THER Forced ventilation if needed. -1-_ 'o~<CTiVECLÓVEÇ - ·--~Ë~OTECTIO~-- - Chemically resistant gloves~ Approved chemical splash goggles, '-~;-¿':;~õTEéï"IVEicu;ÞMENT ------- -- ------ __. _ Frotective apron of rubber, neoprene, or plastic, VE'JTlLATION -.... SECTION IX· HANDLING AND STORAGE PRECAUTIONS ·.CAUTIONS 'TO BE 7";'-;<£", IN HANOLINe ANO $TORINC Stored in baked-phenolic-lined steel or 55. or app~~~ rein_for:.ed plds~.~:_._ ~~sels. K0ep containers closed when not in use/avoid hi-temp, Wear protective clothing & - ~._.._------ ã-ccè"Ssör-i cŠ-ãš& š~r1b-éëf.-- -LÓ; l'ÕoIE'C.AVTIO....S NONE ---- ._- --.-.-----. -- ------.--.---- -" -- - -----..--. --.-..---..-. ':E:OF' IssuE APPAOV;OBY.Ii:.,'þ'_¿./~~/ __R~g_ C~C~g;_ _218?_ 1 NEW OP.~VISED: SUPERSEDES TITLE:' {/ ndus(rial Hygiene Director '-~'=~~~~~--~--="'~----~~_-~.=.o:=..::::.;: .....:-_~~- ~.. .- -. _:.===.-.-~~ 22 I~~ e e _0._'" I iEMICALS - MATERIAL SAFETY DATA SHEET PROOUCT (ApPlotl.d by U.S. D'D"fm.", of L.bo'.. ·.,,.,,,;.11.,, ,;m;I.,- to Fa"" LSB.()(J$-41 SECTION I,IDENTIFICATION OF PRODUCT --- 'ANUFACTURER'S NAME BC Chemicals OCq ESS (Nu,"b~" St"tf, C.)(1, Staff altd ZiP Cod,) 1511 So. Union Ave. Bakersfield, Calif. 93307 EMERGENCY TEL£Pl-fONE NO, (80S) 832-1360 ~£ÑÃM'¡- --- HEMICAL FAMILY CHEMICAL NAMI!; BC Microbiocide 2000 G1utera1dehyde CHEMICAL FORMUW' Aldehydes DHCC3H6CHO SECTION II·HAZARDOUS COMPONENTS OF MIXTURES A precise composilfo:'1 of this product Is proprietary information. A more delafled dlacIoeure wi. be provided by BO Chemicals u ....vI'-ed Inf' it upon reQuest In case of need fOf specific treatment. ... '...... orma on AQUEOUS: SOLUTION OF ALDEHYDES FREIGHT DESCRIPTION: CHEMICALS, NOIBN DANGEROUS ARTICLE DESCRIPTION: NONE DOT WARNING LABELS REQUIRED: NONE -----.--..... ,- SECTION III-TYPICAL PHYSICAL DATA 7õ'EA'RANëTÃ-NõOõoF'Î'-- -------- CLEAR LIQUID, SHARP ODOR SPECIFIC GRAVITY H20=1 1.131 @ 20/200C .- -- - - ------- JILING POINT ,oF) 760 MM Hg=101.20C (2l4,20p) PERCENT VOLATILE (BY VOLUME) 50 (WATER) -.. ---..--...--- - . -.----.--. - ----------------- EVAPORATlOÑï~ATË-- --------..,-, - ,---.- .--- . (n- BUTYL ACETATE· 1; 0.93 --. --.----.-.-.-. .--,-.---------------.- ------, ,--, .---....- ':'PO~ PRES::'UQE -. .-..------. .-----. ...- ':'P::'R DE.NSITV : "" R 1) Greater Than 1 -'U8'L'TV "~AT2';O~=C:M:~TE --- -=-==~=~i-==---::_:~---- SECTION IV·FIRE AND EXPLOSION HAZARD DATA I .:..~'=::1ïNr/.i:(/hÕdl-~rõñ-e_;_ë'lëveTaiiãopèñ·-cup FLAMMABLE--Cj;;;-rs-- ,- L-'-·~~·---r-~.~-'-- . ~:~~~+:~UI~~~N;~·Mi~1, ~~~~~-~e-~Uis A~:1~~5~-ff ,---rJ;:::::T :~:~~;:~ ·-'ùsë--w*:~= ::~~;:~~~ð -Ïn~~~~r1101 diox:i.de, dry chemical, alcohol-type or universal-type foams applied by mfgr, reconunended tec ;E;'C,ÃL ;ïRE·F'ïG¡::¡Ti;"~p-¡¡òëf.ë5üFïEs --- - -----..-.--- -- -- -----,. -..-.------ -----. '. .~elf_:_c~~~~i"_~.c!_bre_a~~_~~~_~p.Pa;_~.t~~,_.!!!_.c:.:____ . ____.... ,_ ___, ,.__.._ __ _ _____.. _ ..... ..J I -.--. .-- "VSUAL-'F!J;fC:ANDË:-"¡;i..OŠ,Ö"HÃ'ZÃRÔS-' - - .__~ ____.......___.___.__.__ __ .. __. .______. - .0______._-. ..__._.__ . J NONE . _ ___... ______.. __.__._.___.-._____.___ __.__.._ .__.._ ...... _._ a___ __ _ . ~._. . ._. .iz;,f!-cr:-,;Ù·~oõLï¿T;'6F-ëõ·M-é~ï·;öÑ..- --. -.-,------------------ ---- ---.---..-.--- _ __._ ,_"'__ e~~ni!1,S1 .!!.'-ª4'_.P,r_o_~uc~-~t:þ2.n- ~ºnQ)Ci9~_ ~I19¿O;-_ car-º.Qt1.c!i9~iq~.....~=,~~__=_~ "'.'S III¡FO~'A"'TI()N RELATES (")NLY ro 1'HI:: SPECIFIC MATERIAL DESIGNATED 110WEVER. ~IO RI:PRt:SENTA;'10N WARHAtfTY OR GUÞ.RANTEE: I~ M"'~ ~~ TC AND MA': NOT BE VAI_'O FOR ~UCH MATE'R;.'L USED IN COMBINATION WITH ITS ACCURACY. RELIABILITY OR COMPLETENESS IT 15 THE I.'SH, :'. AN', OTHt:H M,,'ERljlLS ,)R IN ANY PROCl:S5 Sue" 'rtor~tl,," IS. 10 !he best ot RESPQNSIBIUTY TO SATlS!"Y HIMSELF AS :0 THE '51;1~-.alENI:'S"; ,~..' ec ~·;!m..:dI, lu'owf8<lge ana bell"! aceuri!tll aM rehaÞ4e us ot!he dale Indrcated, CO....PlETENESS OF SUCH INFORMATION FOR HIS OWN PART CUI AJ1 ','~r. 23 SECTION V ' HEALTH HAZARD DATA ·...11(5"'0\..0 \..:O;.I,T VA\..UE 0.2 ppm ceiling, ACG1H (1979) ACUTE If swallowed-nausea, if inhaled-chest discomfort, bronchitis s tom õFFE<:'TS OF OVEREXPOSURE cHRoNlcProlonged or repeated skin contact may cause rash & sensitization ;:"'ERCfNCY ,IIoNO FIR$T AID PRQCEOURES Swa 10w1ng: G1ve 2 glasses of water-induce vomiting by putting finger down throat. Call hy- sician/Skin: Flush skin with plenty of water-remove fore wearing again/Inhalation: Remove to fresh air. fl h ' h 1 f 1 15 contaminated clothing-wash clothing be- call physician if symptoms persist/E es: d' us eyes W1t p enty 0 water at east m1.n., get me 1cal care eye specialist at once SECTION VI· REACTIVITY DATA ~T"'811../TV ! ur~$T A3LE éONOITIONS TC1 "VOIO -- Avoid high temperatures (removal of water, 200Cr-) ISTASLE X I'<-:OMPATI91\..ITV (MATERIALS TO AVOIO FOR PURPOSES OF TRANSPORT, HANOI.ING &. STORAGE ONl..VI , Avoid contamination with acids any alkalies. ~""ZARDOUS DECOMPOSITION PRODUCTS Burning may produce carbon dioxide and/or carbon dioxide. SECTION VII . SPILL OR LEAK PROCEDURES ;TË~õBETAKENiÑ'CASE MATERIAl.. IS REI..EASED OR SPII..I..EO I ,~~o fish: avoid discharqe to natural waters. Low con~, (10 ppm or ! Small spills flush with large quantites of water. Large spills should dis posal, Spilled material can be decontaminated with careful application of sodium hydroxide -"'ASTE OISØOSAI. (INSURE COI'<FORMI,Y WITH I.OCAI. DISØOSAI.. REGUl.ATIONS) --A~omi7e i"to ~Jlpt incinerator fire mix wit' a erate where permitted by Federal, State and local regulations. .- -..-.----- SECTION VIII. PERSONAL PR07ECTION INFORMATION "~ŠP~;'-Õ'ÃV-PRoTeëTjÕÑ -.. .._.____.,.._ _ -.--~SllPPl.i.e.d. m~~k i" hiqh conc~ntratiQJ1~. ._ lOCAl. E2<...A\JST ¡SPECIAl.. . , , ., L~ vapors are eye or nose irr1tat1ng, ,- "HI A nON ___Me.c.h.a.n 1 (".'11 rr'\om "''',,1- 1 , .'11- 1 nIl..--- \ t. L.. ....ECHANIc;.AI.. tC."..t:J) OTHER . . , Expected to be satisfactory __~, spec1al forced vent1lat1on may be req ired ",orEèTIVE:Gl'c3VÊs --,------- =rY~TECTION--- f 1 Rubber 'Vapor-proo gogg es. --.---.... -.-...-....----....--..--..-.--.- -". ------ )r....c::" ~:OTEC''',¡: ECU'PMENT '-" Eye bath, safety shower. rubber overshoes - . ---..-. -- --- ..--.- .-- --_. --- --- SECTION IX· HANDLING AND STORAGE PRECAUTIONS ""E-cîv~~orj~ iõ e-t'rÀ"K('-,iÑ-':;ANDLlÑGAÑQ'šTôRINC Use Wïtnådequãte vent11at1on, Wasn tJiOroughly after' handling, Avoid breathing vapor, Do not get in eyes, on skin. clothing, Keep container . _.- - --.- - -- .--- --.---------"- - --- -._- --_..._- closed. FOR INDUSTRY USE ONLY. )7~E" ÞRe:é)îüTlor~'s' ..--.-..--- -,-- .---~ --.------- We~r__gqg9.!~~,_?~. _f~~shield and rubber gloves when handling, .-------- :.",';'i: ·,).-;SSÛ£' ..- ------- --- ~::~.~·~~.u, ~ j/ Z-Y~,:"'---"--'--'-~~~--' TITLE: .7:; ,_~~ -- - . -- - 1 r"l ";[\"1 L-..R!õVISEO: SUPERSEOe;S - --.. ...-:-=.;..~-~.=-.=:.~ ---_._- 24 - B.C. AMAZING - B.C. AMAZING 1 ,'gallon 5 gallons ECOLOGICALLY SAFE: The ingredients in B,C, Amazing products are bio-degradable . they will break down into natural components without harming the environment. There are no phosphates, enzymes, or other chemical Ingredients known to cause pollution, In any B,C, Amazing product. ECONOMICAL: B.C, Amazing products are concentrated. That means you use less· a little goes a long way" There are no "fillers" that serve only to bulk up a product and make it look like you are getting more than you are, EFFECTIVE: There are no better products of their kind on the market than B,C, Amazing products, Because they are different, because they do not contain some of the harmful ingredients many people are used to, when they clean their stoves with B,C, Amazing and find there are no dangerous fumes and no skin Irritation. The effectiveness of products as good as B,C, Amazing can be unexpected and surprising, When the results are so far superior to most other products, it takes some getting used to. So suggest to every customer that directions be followed carefully, rather than using B,V, Amazing products "the way they've used that kind of product before!" VERSA TIUTY vs OVERKILL: Although we use tt-,e term "all· purpose cleaner" on the label of B.C. Amazing, since that has become more or less the generic term for the type of cleaner it represents, there really is no such thing as an "all-purpose" cleaner. So-called all-purpose products tend toward "overkill". They cater to man's search for the easiest way, rather than the best way. But no liquid cleaner designed to be used for scrubbing floors can be made powerful enough to remove stubborn stains, with being too powerful for gentler tasks. That's why B.C. Amazing products have been carefully formulated to provide safe, effective, and appropriate results for the task to be done according to how they are used, The versatility of B,C, Amazing products lets YOU decide how strong a cleaner YOU need for each job. The label on B.C. Amazing describes this product as "a modern, soapless product made from a balanced formula of organic ingredients, completely free of skin and eye irritants", Let's look at each term in the name of this remarkable personal cleaner and see why we can make the claims we do for it: SOAPLESS: There are no alkalies, no phosphates, no soda ash, no artificial chemicals, or other harsh, irritating or polluting ingredients in B.C. Amazing. It will leave behind no soap scum or other residual waste. It rinses away cleanly and completely without drying the skin or leaving residues or washed surfaces. ORGANIC: The ingredients in B.C. Amazing are organic, that is, composed of the same types of carbon molecules that make up natural living matter. Thus, they are not only mild, but also biodegradable - capable of breaking down and returning to the earth, without endangering any living thing. CONCENTRATE: A little bit of B.C. Amazing goes a long way. That's why we offer a mixing bottle to go with it. All directions on the label are for B.C. Amazing diluted. half and half with water - then measured in teaspoonfuls! That's real concentrated action - and real economy for any "personal touch" cleaning job! 26 _ '_ IMPORTANT: To prepare B,C, Amazing, fill a mixing bottle half way with water first' then add the Concentrate; stir or mix gently, ' TO DEMONSTRATE B.C, AMAZING: Always use B,C, Amazing according to directions In a No, 501 Jiffy Dispenser with No, 502 Flip-top on the 16 oz, size, ' ECONOMY: Point out that even after dilution, only a very small amount of B,C, Amazing is needed for most ordinary jobs, GENTLENESS: Place a drop of B,C, Amazing from the mixing bottle into the hand of your prospect. Ask her to rub it in as she would a hand lotion, As she does, explain that B,C, Amazing is gentle enough to use in bathing an Infant, and that in addition to cleaning, it actually acts much like a hand lotion in moisturing and conditioning the skin, Rinse the B.C, Amazing off with a damp washcloth or under a tap, NON-FLAMMABIUTY: Remove the cap from a bottle of B,C, Amazing and wave a match back and forth over the opening, Point out that the fumes do not ignite, Next, extinguish the match by dropping a bit of B,C, Amazing onto the flame. (A wooden match provides a better demonstration than a paper match.) EFFECTIVENESS: Mark the back of your hand with lipstick and with a ball point pen, then massage in a dab of B.C, Amazing, Point out how the two difficult-to-remove blots immediately begin to be lifted from the skin by the B,C, Amazing handkerchief, then, , , , . , show the handkerchief stained with the lipstick and ink to your prospect. Rub the stain in for better effect. Explaining that the dab of B.C. Amazing you cleaned your hand with is still enough to clean the handkerchief, dip the handkerchief under a faucet, squeeze it clean, and display the spotless handkerchief to your prospect. Point out that 8,C. Amazing is harmless to fine fabrics. Smear a steak of shoe polish, paint or grease across your palm (if you want to let this dry, you can demonstrate the match test or ask the prospect to feel B.C. Amazing for herself at this point). Point out that this technique provides excellent protection for the hands while doing a job of painting, repairing greasy machinery, gardening, etc. Finally, rinse your hands in a bowl of water or under a faucet and show how the "invisible gloves" have helped protect your hands. AUTO WASHING: Mix 2 capfuls of B.C. Amazing to a bucket of water. To remove tar from any auto finish, use the Jiffy Sprayer with B.C. Amazing, medium or strong solution, then wash with B.C. Amazing to avoid stripping wax from the finish, SUGGESTED DEMONSTRATION AIDS: Jiffy Dispenser with Pump; bowl of water; damp washcloth; handkerchief; lipstick; etc. You'll want to change or add demonstrations as you gain experience, of course . but always practice before you use them on a prospect. 27 BC ..101 PARAFFIN DISPERSA_ 5 gallons 55 gallons BC P,W.101 Paraffin Dispersant BC P.W. 101, a~ effective w~ter·dispersible par.~ffin-rem~val additive, is a high-flash, low-odor hydrocarbon solvent-dIspersant. This blend helps solubilize and disperse paraffin and asphaltic deposits, A water-external dispersion made with BC p, W, 101 is an excellent substitute for hot· oil treatments especially where oil spills and contamination are critical. ' Most paraffin dispersants do not function in aqueous systems as well as BC P.W. 101 nor do they have as effective paraffin-disolving properties, APPLICATIONS Wellbore and Tubing Clean out BC P. W. 101 can be dispersed in water or acid to clean tubular goods of: paraffin and asphaltenes allowing resumption of normal production, paraffins, asphaltenes, and other hydrocarbons prior to other stimulation treatments. BC P. W. 101 can also be used in aromatic solvents and/or mutual sclvents to help water-wet solids as the heavy hydrocarbons are solubilized by the solvents, The proper concentration of BC P,W, 101 to be added to water for optimum cleaning depends primarily on the amount of paraffin present, the hardness of the deposit, the adhesiveness of the deposit, and the temperature at which the paraffin is deposited. A 'general recommendation is: Cold Water (below 75°F)- Use 10% by volume of BC P.W. 101 ..Warm Water (75 - 1 OOOF)- Use 5%by volume of BC P.W. 101 Hot Water (1 00 - 150°F) - Use 2% by volume of BC P.W. 101 Very Hot Water (150 - 200°F)· Use 1 % by volume of BC P.W. 101 To compute volume: Diameter of casing Standing fluid in casing Feet of perforation in casing CAUTION When used for tubing clean out, the water temperature should never be hotter than the formation face because any paraffin that has melted in the treated water will re-deposit on the colder formation causing damage. Flow Line Cleanout BC P.W. 101 can be dispersed in water to clean flow lines. The above treat rates apply to flow-line cleanout. However, the water should be heated to as high a temperature as practical for most efficient removal. If the flow line is long and/or cooled by water (offshore), it may be necessary to increase the concentration of BC P.W, 101 to 5%. BC P.W, 101 will work in cold water at higher concentrations, If \ the water starts off hot then cools, the BC P.W. 101 will keep the removed solids dispersed. NOTE If large amounts of paraffin are deposited it may be necessary to use several lower-temperature treatments so as not to remove too large an amount of paraffins at one time, thereby physically blocking system. MIXING PROCEDURES BC P. W. 101 can be added to any aqueous fluis and a uniform dispersion can be achieved with I only a small amount of agitation. If left static, the dispersion of BC P. W. 101 in water is stable up to an hour. Reagitation prior to pumping the fluid is recommended. SOLUBILITY Soluble in hydrocarbons Dispersible in fresh water, salt water, acids 28 This product is available in bulk s&ents and 55 gallon NR drums, Ke'drum openings closed to even-t product contamination and evaporation. . Be' P . W. 1 01 con tains no organic halides, heavy metals, or other subs tances known to be harmful to ocess equipment or refinery catalysts, No special storage and handling precaution is required, Avoid olonged and repeated skin contact. In case of contact with skin or eyes, flush exposed area with :iter, I I I ROCEDURE I Batch feed SC P,W, 101 per general recommendation at point "S", Let it sit for approximately 24 Jurs, Be sure BC P,W, 101 is completely mixed with fluid in well, Put well back on the line, SC P,W, , 01 will perform an effective cleaning function throughout the entire system including all flow lines and , lives. To eliminate future paraffin buildup, a daily maintenance program should be followed, Inject at point ~" 2 quarts of SC P .W, 101 every 24 hours per 100 barrels of produced oil. The simple and inexpensive procedures described above will virtually eliminate costly down time due I ) paraffin cake buildup. 29 - e e MATERIAL SAFETY DATA SHEET (AÞÞ'Otf«J by V.s. D.tu'fmtttr of L.bo,.' -tuelt,iel1y .imil.,- ro Fo"." LSB.()()S41 -. ..--... .--- ---~ ~ COREXIT EMICAlS PROOUCT SECTION I·IDENTIFICATION OF PRODUCT ANUF"'C:TUR~R'S NAME EMERGENCY T~LEP"'ONE NO. I B.C. Chemicals Inc. I aORESS (fVumÞrr, :ilTur. Ul)'. :il.rr lilt . _. _ ~J (805) 832-1360 . I 1511 South Union Ave., Bakersfield, CA 93107 qAOE NAME CHEMICAL. NAME , B.C. PW 101 Not Applicable: blend of materials ..EM/CAL FAMIL.Y CHEMICAL. FORMULA Surfactant in aromatic solvents Not Applicable: blend of materials SECTION II·HAZARDOUS COMPONENTS OF MIXTURES A prøcise ~posJton of !hIs product Is prQØrielary lnfonna1lon. A InOfft detailed dlscIoaIXft wi' be provided by Be ëh~ sa prfYileged If" Ü u)On 'eQuest In case of need fOl' aøeciflc treatment. n onna on I Blend of oxyalkylated alcohols and oxyalkylated alkyl Phenol in i glycol ether and aromatic solvent. I ,. .. , SECTION III,TYPICAL PHYSICAL DATA P"EARANCE AND OOOA SPECIFIC GAAVITY Light blue liquid 0.900 @ GOo/600F (15,50/15.50C) OILING POINT (OF) PERCENT VOL.ATlL.E L;omponen ~s w 1. ~n·'S'..I:'. equal. 35SoF/1800C 18V V€6U~¥ less than 2120F /lOOoe -3 ----- n APOR PRESSUAE EVAPORATION AATE 0.55 In- BUTVL. ACETATE· 11 APOR OENSITV IAIA 11 - ,..- greater than 1 . :)LUB'I..ITV IN WATER 25% by volume, forms emulsion SECTION IV·FIRE AND EXPLOSION HAZARD DATA I C;:s;:.PõïNT (MW10d) - PM No, 2600 130°F .L..___, " -I-¡¡C-~XT"INGUISHING MEOlA '. -- .. Ex"!=J:.-~gui~"h with dry chemical(carbon dioxide or f 0 am )_ w ate r s P :;,a y may be in- ~;;::"'''' FIRE F'IGHTING PROCËÕÜ'RES --.----. --.-- ~_f.J.ec.t !.:!~~~.~~t~,!1..9.~_!.sh.1.ncL_~.3_~nt~.. Coo_l_~2:.F~. ,~~~!"<i._~,: ~!...a_c_es and protec t u._ I . _.Ee r.so.n...!l~_l wi tJl_w_a te r~§!.Y. "NUSlJAI.. F'IRE: AND EXPI..OSION I'1A;::AAOS ___a _ )~e.~,Ei.£a t o r.Y__.Er ° ~¿:_c~ ion re qui re d for fire f i 91l. tin ~_e .!....s..£!!.!1_~ ...:._____ I ---.. j ',->...'", R":;;-Ó'üš P'iio5ùc TSOF'ëõ'';;''ŠUST I ON Carbon monoxide, carbon dioxide, smoke, ..__.___ 0.__'___'_'" fumes, aromatic volatiles, _0 _ . _ "~.! ..__.._.~.. - .-- THIS INF'ORIlAATION RELÀTES ONLY TO THE SPECIFIC MATERiAl DESIGNATED AND IAAY NOT BE VAUD FOR SUCH MATERIAL USED IN COMBINATION WITH ANY aTH~R IAA TERIALS OR IN ANY PROCESS, Such In'OtTI18IIOn IS. to III. beSI of BC CheMrcals i<nowiedge at'Id blllie' eccur.'e..~ ,eliaÞIe BS of tile dBle índJcated. HOWEVER. NO REPRESENTATION. WARRANTY OR GUARANIEE: IS MJ.OE: AS 10 ITS ACCURACY, RELIABILITY OR COMPLETENESS IT 1$ THE USER'~. RESPONSIBIUrI TO SATISFY HIMSELF AS TO THE SUITJ.B:"ENESS AN=' COMPLETENESS OF SUCH INFORMATION FOR HIS OWN PARTICULAR USE 30 e e SECTION V· HEALTH HAZARD DATA '..AE:S..OLO LIMIT VALUE UNKNOWN L~qu~d ~5r~tßting äO fikin ~n~heye~.and res~iratorr ~aEs~~es. ::FFECTS OF OVEREXPOSURE ACUT e aye a SO r e t r 0 u g e s ~ n. Va p 0 sma y' r ~ a eyes. Prol~n~ed skin contact may cause dermatitis and skin CHRONIC l.rr~ a ~on. ,"E:ACE:NCV ANO FIRST AID PROCEDUR1S Remove to fresh air. I not breathing, apply artificial respiration and CALL A PHYSICIAN. Wash eyes with plenty of water for at least 15 minutes. Wash skin with soap and water.. SECTION VI· REACTIVITY DATA STABILITV ! U~;STA3Le CONDITIONS T~ AVO'D -- I STABLe X Not Applicable :NO::OMPATIBILITY (MATERIALS TO AVOID FOR PURPOSES OF TRANSPORT, HANDLING ..STORAGE ONLVI Strong oxidizing agents and mineral acids. ......ZAROOU5 DECOMPOSITION PROouCTS Not Applicable SECTION VII . SPILL OR LEAK PROCEDURES :;~~~po ea~...lâÿE~'~8~5e:¡:r&1'i'êl; 'S5'fi\{t¡'s~ 1fl:Hx¥te, if pos s ib le to do so sa f e 1 y, Adv i se authorities if substance has entered a watercourse, se~er, or has contamin- . ated soil or vegetation. ""êb"Æ€Jlf<¡'¡SA~p1Sfféao'ry£~rtlII~ WwTrtf?C~9itf°ètt '\Hilf1t'1f°â'f¡ld -d iiu t-; ~i th wa te~, Recover by .. pu~ping or with suitable absorbent. Consult an expert on disposal of recover- ed material, SECTION VIII· PERSONAL PR07ECTION INFORMATION qËŠPi¡;;-ÃT~'RV PRO:(E..CDQN It used J.n cODtJ.{lec1 sgaces or otner poor y ven J. use NIOSH7MJ::;Si-\ approved respJ.ratory protectl.on such as alr-supp J.e .---- Jj'<AL"'.AU>Tm ¡;¡;<¿,Ai:tace vc oc. y.n provJ.ae greater than 60 fpm hood I spaces, VE"¡TILATION MECHANICAI../C,"t.ttlj ,-:--~OTHER Exploslon-proof ventllatl.on equJ. ment .- --. -----,- ------ ---- ----.--,---' - ----- -- ----.. ~DO"'ECTlVE~LOVF.S -'E.:I'£ PRO,TECTioN Chemically resistant gloves ~~eml.ca splash g0gryles ,jr-,",£=-¡;"ïOT!:ëTiVE-T::::::ul~E"'T'---'''-'--- "- -- .--- -.---, ---.-.-.---' ; Us~all~,?.!.._~_~?-ed .__.__________-__,_____ ---- '------- --.---- SECTION IX· HANDLING AND STORAGE PRECAUTIO~JS 'RE-c·Åv,.iêiÑSTo'"iiËTÃ·;;:£NI~AÑOLNc ANO STORINcObser ve-nãZa rõ-p reè'ã"lft:ïi:>-ñ"'"5""w J. tnUeiñpt: iëCë-õ-ñ--= I. .~a.i.~~~. Keep cont.~.~n:.~~__clos!.~__whe.~..~:'~,!-=:._~.:.:...:_.~:.e!:__.~~~,~ frol~ heat, SP¿! t:'k5, and open flames. :¡ r;"l " "Rf: C--;:ü·Tïõ'Ñ!o---- .- ----...-.---"- --- ----..-.,. .-.-.- -----. ---.---.- - ----- õ;~_:~"au:·L.LrOm_~~~~~ ~park5 and ~~~~::~/~~~_--~: ~_ - u~-.~~::~~~~1 rì~(w [JRE"/15EO:SUPE~SEC1ES TITLE: Director 0 Industrial Hygient:: -J .. .--.0.:__-:.=......0... ---. ---.-.- - __ .__ -. - . 31 RESINS (Bulk or 50 gal bbls.) nONGATION ,., TENSIL STRENGTH PSI fLEXURAL MODULUS X 10' PSI FLEXURAL STRENGTH PSI HEAT DEFLECTION T[",peR'" lURE BARCOL HARDNESS THIXOTROPIC INOE( GeNeRAL PURPOSE LAMINA TlNG RESINS VISCOSITY 17F CPS PEAK TIMe MINUles PEAK OOTl'ERM F DEl "ME MINUTES l1f COMMENTS PROMOTED TVPE PRODUCT . .c;...... IUI ..nr.g I....... ...en df'..n f.,.,LMlCe _... CUI.. .BOO 4B .000 14 50 3B·44 ·3 B 2 400·600 6·24 310·360 ,. Yo. AiQo< AlloI< 063·i , .600 48 4,000 50 3844 ·36 400·600 2'·3 310,360 o 2· Ve. A.Qo< All. D03· '.600 48 .000 50 38·44 2 "3.0 400·600 30·35 310·360 ',2 Ves A,god All.... 063,1 i Fulet cunng. _II IIU'_ _-.g ,... ~ IIw 063 _... 8.500 50 6,000 65 40'44 2 ',30 400·600 1620 330·400 " Ves A'QId All.... 296'i ., 0.500 50 0,000 65 40'44 ·30 2 400·600 22·21 330·400 o 2· Ves R'utd 118' AII.k 8,500 8.500 50 50 6.000 65 40·44 ·36 2 400 600 3035 330400 1·21 Ves RIQld AlloI< 298·19 _... gel..... ",III good /\or_ A,Qo< 58,13 AlloI< Veçy '............ 10 dr..., ..hen 'tIed. grvft good cue _ /\ordneu_ Fill. cunng __ 01 AJI... Oge 6.000 f,1ed W,ATH N'l. 65 N:A 40·44 RESINS fOR USE IN ALUM'NUM HVORA TE ANO VITROflL filleD SVSTEMS 330·390 334 2.1,36 2 400·600 30 00, 2226 8 330·400 5 0,10 I Ves Ves s..moA'Q!d All. 090 f.1ed W/ATH NIl. NIl. 3444 1·2 30 00, 6 330· 390 11,10 Ves Sem.R,Utd AlI.k315 modIttlt. c.ure Tope. lilia, _.1. lIaI. Tope. _ .......... ....""'.... I... gel QI. .... .,....."., Tcøe. "'Iegll _.... ~ """...... 035 Good III~ I", rnonufocUvlg __ nwtIIe -.. E.,--.. """"'ec:~ lot IW,¡h ~ onyw ~""",,·n.I..... ..I""'.... ,opeI_ Tope"" ILI'o ' I... get .... ,... 2 2 2 22 ONV( RBINS fOR SVNTHETIC MARBLE 0,400 50 2,500 50 36,44 NIl. 100900 624 265·3\0 6·12 Ve. A.Qo< All.... 035 8,400 8.400 50 !l0 2.500 2,500 50 50 36·44 3'·42 NIl. NIl. 1100,1100 300·1100 22 6·24 265·310 215 305 " i·13 Ves Ves A'II'd A.god 14 All.... 200 AlloI< 0.000 8.500 !l0 !l0 .000 0,000 o 65 34·39 38·46 NIl. NIA 50 250 1150, 050, 30,34 25·35 260,290 310·340 4·18 o ·1 Ves V.o SemoA,god A.god All.... 211' AII.31i 8,500 5.0 0,000 65 38·46 NIA goo· 1100 0,16 310340 5·9 Ves A.Q>d All.... 333 E....emo/v I"Oh "''''osoty '''' IOØI _ IllIa _... get, _.1. ,... E._Io _. .,.."._ 2 8.400 50 2.500 50 36·44 NIA 2800·3400 8·H 265·310 8,12 v.. A.god All. 334 RESINS FOR CLEAR CASTING AND DECOAA "VE USES E.,....... ,010<. 'ec:....- lot cte. e-""9 01 CIec",._ op¡>IocalOOR$, _.1. gel. _alo ,... 8,500 50 6.000 65 38·46 NIA 400·600 30,36 315·335 \0 I· Ves A.god All. 33 ISOPHTHAlIC RESINS "'II" Mod.,.,. conOltOft etongaloon SePbC ...... SØUy... ,.... W"CI '..o.ra Modet'ale CO"OSlOn 'es.,IM'C:e. modef..e ...."...; hQh4f ""., dollee."" '0",_.1... ........ """" 10 AIIek 186G Good Conosoon lemøerah.Jre .."-Þtt""9 '.'.Itance 311 10.000 40 000 10 30,34 24·32 400600 2121 360420 5 Ves SemiR'Q'd 68G All'" ...... cllRecÞon ""aI good f.""I..-.ce TRADEMARK Alpha Aes.". 8 .000 50 8 000 220 38·42 ,32 24·32 2 400·600 400 600 21 21 425 400425 400 15 5 I, II Ves Yes A.go<! R.g,d A".k 284 A".k 338 e APPENDIX B LEVELS OF PROTECTION e e e APPENDIX B LEVELS OF PROTECTION I. Level A Level A protection should be worn when the highest level of respiratory, skin and eye contact protection is needed. Level A provides the maximum avai 1 abl e protecti on but does not protect against all possible airborne or splash hazards. (Level A protec- tive clothing material selected should be based on chemical per- meability and resistivity. For example, suit material may be rapidly permeable to certain chemicals in high concentrations). Level A protection is the minimum level recommended for initial site entries, until the hazards have been defined and the appro- priate personal protective equipment is utilized. All personnel working within the immediate vicinity of the exca- vation area will be required to be in Level A protection. 11. level 8 Level B protection should be selected when the highest level of respiratory protection is needed but a lesser level of skin protec- tion is required. level B protecti on will be requi red in all work areas withi n the contaminated zone other than the excavation area which will require Level A protection. 1 e e II 1. level C level C protection should be selected only when the airborne contami nant type( s) and concentrat i on( s) are known; the criteri a for usi ng ai r-purifyi ng res pi rators are met; and the exposed ski n in the few unprotected areas (i.e., neck and back of head) is unlikely to cause any adverse health effects. IV. level D level D;s the basic work uniform. Level D protection should only be selected when the work area is positively identified as having no toxic hazards. Level D alone will only be authorized in the Support Area and after contamination is removed. EQUIPMENT AND SELECTION CRITERIA I. Level A A. Personal Protective Equipment 1. Open circuit positive Approved). pressure SCBA (MSHA/NIOSH 2. Totally encapsulating suit (boots and gloves attached). 3. Gloves - Inner (tight fitting and chemical-resistant). 4. Boots Chemical-protective, steel toe and shank. Dependi ng on sui t boot construction - worn over suit boot. 5. Gloves - Outer, chemical-resistant. Depending on suit construction worn over suit gloves. May be replaced with tight-fitting, chemical resistant gloves worn inside suit gloves. 2 e e 6. Hard Hat (under suit) (Opt i ona 1 ) . 7. Disposable protective suit, gloves and b~ots. under or over encapsulating suit) (Optional). 8. Coveralls (under suit) (Optional). 9. Underwear - Cotton,long-john type (Optional). ( Worn 10. Two-way Radio Communications. B. Criteria for Use 1. When the type(s) and concentration(s) of toxic substances are known and require the highest level of combined pro- tection to the respiratory tract, skin and eyes. These conditions would be: a) Atmospheres which are "Immediately Dangerous to Life and Health" (IDLH). b) f~nown atmosphere or potential situations that would affect the skin or eyes, or could be absorbed into the body through these surfaces in toxic quantities. 1) Potential situations are those where vapors may be generated or spl ashi ng occur through si te activities. 2) Standard reference books shoul d be consul ted to obtain concentrations hazardous to skint eyes or mucous membranes. c) Oxygen deficient atmospheres with above conditions. 3 · ,- 11. Level B A. Personal Protective Equipment: 1. Open circuit positive pressure SCBA (MSHA/NIOSH approved) or type C hoseline pressure/demand respirator with escape uni t. 2. Hooded, two-piece chemical-resistant suit. 3. Gloves - Outer, chemical-protective. 4. Gloves - Inner, tight-fitting, chemical-resistant. 5. Boots - Outer (chemical-protective, steel toe and shank). 6. Two-way radio communications. 7 . Hard Hat. e. Face shield (Optional). B. Criteria for Use 1. When the type(s) and concentration(s) of substances are known and require the highest respiratory protection; but a lower level of tection. hazardous degree of skin pro- a) Atmospheres which are IDLH. Type(s) and concentra- tion(s) of vapors in air do not present a hazard to the small, unprotected areas of the body. b) Atmospheres with concentrations of known substances greater than protection factors associated with full-face, air-purigying respirators with appropriate cartridges. 4 e ,e c) Atmospheres with less than 19.5 percent oxygen. 2. A determination is made that potential exposure to body parts not protected by a fully encapsulating suit (primarily neck, ears, etc.) is highly unlikely. a) Known absence of cutaneous or percutaneous harmful agents. b) Activities performed preclude splashing of indi- viduals. 3. Total vapor level s range from 5 ppm - 500 ppm on instru- ments such as the photoionizer or Organic Vapor Analyzer and do not contain high levels of toxic substances affe:ting skin or eyes. II 1. Level C Ä. Personal Protective Equipment 1. Full-face, approved) . 2. Chemical-resistant clothing. air-purifying respirator (MSHA/NIOSH 3. Overalls and long-sleeved jacket or coveralls; hooded two-piece chemical spl ash sui t (when appl icabl e-hooded disposable coveralls) (Optional). 4. Gloves - Outer (chemical-protective) 5. Gloves - Inner (tight-fitting, chemical-resistant type). 6. Cloth Coveralls Fire resistant (inside chemical protective clothing) (Optional). 7. Escape Mask. 5 e e 8. Hard Hat. 9. Boots - Outer (chemical-protective heavy rubber throw- aways). 10. Boots - Inner (chemical-protective, steel toe and shank). 11. Two-way radio communications. B. Criteria for Use 1. Site known to contain potential hazards not to exceed: a) Air concentrations of material not greater than the protection factor afforded by a full-face mask (normally considered to be 50). Material must have good warning properties. b) Body exposure to unprotected areas (face, neck, etc.) non-existent or less than any amount that will cause harm. c) Well-documented, reliable history of site and patterns of prior entry. d) No evidence of acute or chronic effects to exposed personnel. 2. Total vapor reading between 0 ppm and 5 ppm above background on instruments such as the photoioni zer and OVA, and no evidence of airborne contaminants for which the air-purifying respirator would be contra-indicated. 3. Continuous area and personnel monitoring is required while wearing Level C protection. 6 e - e II I. Level D A. Personal Protective Equipment 1. Boots/shoes boots. safety or chemical-resistant steel-toe 2. Boots - outer (chemi cal-protecti ve heavy rubber throw- aways). 3. Safety glasses or safety goggles. 4. Hard Hat (Optional) (Face shield optional). 5. Gloves (Optional). B. Criteria for Use 1. No indication of airborne health hazards present. 2. No gross indications above background on the photoionizer and/or Organic Vapor analyzer. 3. Contínuous area and personnel monitoring is required while wearing Level 0 protection. 7 e e 1KP 1I~ 7'l«d Sewúe 500 Bbl Portable Tanks Mail-175 Ray Street Loc-3400 N, Manor Street Bakersfield. CA 93308 (805) 393-1151 Vacuum & Pump Trucks AuglL6t 72, 7987 AVt. 1Uc.haJtd CtUa.gJulnde. Ha.z~dolL6 Sub~.tanc.~ Ma.na.ge.me.nt P~og~ Kvtn. County He.aLth Ve.paJr..tme.nt 7 700 F.toWVl. Sbte.e.t Ba.k~áIe.ld, CA 93305-2237 RE: B. C. C he.m<.c.CLt6 Sde. Ve.~ M~. CtUa.gJulnde., MP Va.c.uum TItUc.k SVl.vIc.e., Inc.. htU a.dopte.d the. Sde. He.aLth a.nd Sa.áe.ty Plan p~e.p~e.d by EMCON AM Oc.M.X.~ áo~ the. B. C. Che.m<.c.CLt6 .6de. ct6 a. guida.nc.e. doc.wne.nt 6o~ MP .6.ta.áá a.nd e.mploye.u who ha.ve. ll.e.tUOI1 .to v-<..6d .the. .6de.. Tom PIl.ILUt will. be. OWL on-.6de. ma.na.gVl. a.nd CUnt BoUl1dVl. will. be. OWL ol1-.6de. .6a.áe.ty o ßáÆc.Vl.. VuJÚl1g OWl. Æl1ve.ntoll.Y phct6e., we. will. u..:ti.Uze. le.ve.l "C" pll.o.te.c.-Üon tU ou.t.tine.d In .the. plan. We. a.ppll.e.ua.te. yoWL -túne.ly c.oY/J.¡Ide.JLa..ti..on oá .t1ú.6 ma.t.tVl.. SInc.Vl.e.ly, MP VACUUM TRUCK SERVICE, INC. -.:J é7JVI ~t- Tom P!uÚ:tt CÝÚe.6 Che.m-<..6.t TP:ml ....~~:-- . ....' .,..:;;,~/ ,"'. \ ....,{""\ r ".~ . " . , . .:<' , ,,,(',\ . . \ '\ ~.) I .' I ~~,~.~<.\ .. --.' '<"" " :':.,~-> ,yY r'::~' ' \~Jv <'< " ,', i. "'>" !f\~\\ ~! ! ~ ' ." \, \..... . ", -' e e 1ItíD 1I~ 71Utd Sewáe 500 Bbl Portable Tanks Mail-1 75 Ray Street Loc-3400 N, Manor Street Bakersfield, CA 93308 (805) 393-1151 Vacuum & Pump Trucks AugM:t 19, 1987 MJc.. 1Uc.haJr.d Ca.6a.gJW.nde Ha.z~doM Sub~:ta.nc.e.6 Ma.nage.ment P~og~ KVLn County Heai.:th VepaM1nent 1 700 F .tOWVL S:tJtee.:t Ba.k~6ie.id, CA 93305-2231 RE: B. C. Chemi.c.a.L6 Sde Ve~ M~. Ca.6a.gJW.nde, MP Va.c.uum T~uc.k SVLvic.e, Inc.. p.ta.Yl..6 :to entVL :the B.C. Chemi.c.a.L6 .6de .toc.ated at 1511 South Union Avenue, Ba.keJl.-6 6ie.id, CaV..60~rU.a.. OWL ~o.te pWLpo~e w,{ll be :to c.onduc.:t a.n invento~y 06 ha.z~doM Wa.6:te.6 c.on.:t.ained on :tha.:t p~opeJLty. No c.on.:t.aineJl.-6 will be opened. The invento~y will be c.onduc.:ted a.6 60U0W6: 1. AMign ident.i6ic.ilion numbVL :to ea.c.h dJtum. 2. Log any ident.i6ying in60Jt.milion 6~om ea.c.h Mum onto invento~y .6 hee.:t. 3 . E.6 .ü.mate q ua.vr;tUy 0 6 ma.:tvU.a..t c.o n.:t.ain.ed in. dttum a.n.d .to 9 0 n.;to inventoJty .6 hee.:t. AppJtop/Úa.:te peJl.-6onal pJto:tec...:üve. eqLÚpmen.;t will be lLtilize.d wfú.te. wOJtfúng on. :the ~de. TIú.6 will inc..tu.de: 1. FuU.-6a.c.e., aht-pUJÚ6ying Jte.6p-Úta.toJt (MSHA/NIOSH a.ppJtoved!. 2 . S:ta.nd~d T yv ek. c.he.mual - Jte.6i.6:ta.nt c.£o:tlúng. (cU6 pO.6a.b.te. 3. Niliile g.tove.6 4. Boot.6 (c.he.mic.al-pJto:tec...:üve hea.vy JtubbVL, cU6po.6ab.te.J AU cU6 pO.6 a.ble pJto:tec...:üve. c.£o:tlúng will be p.ta.c.e.d in a V. o. T. a.ppJtove.d c.on.;ta.inVL a.nd .te6:t on .6de 60~ .ta.:tVL cU6po.6al. AU peJl.-6onne.i wOJtfúng on :the. ~ile ha.ve. been 6d :te.6:ted a.nd c.eJr.:tt6ie.d 60Jt Jte.6Pbr..a.:to~ Me.. AU peJl.-6onne.i ha.ve. bee.n :thJr.oughty :tJta.ined in ha.z~doM Wa.6:te ha.ndting. e e Continued-Page Two MIt. CMagMnde AugU..6;t 19, 1987 AU. peJL6onne1. will. be ;thJtoughly bJÚened on ;the ha.zaJc.doU..6 plLe6en:t benolLe en:teM.ng ;the .6de. AU. peJL6onne1. .6ane.ty pMW,C.e6 will. be c.ontinu..ai1.y mon.UolLed by OWL on-.6de .6ane.ty 0nn,¿c.eJl.. AI:, .time ),).¡ 0 n ;the e6.6 enc.e, we lLe.qUe6;t an ..i..mme.cüa.:te. 1Le6 po n.6 e. ;to ;th,W ma;t;tVt . S'¿nc.eJLe1.y, MP VACUUM TRUCK SERVICE, INC. J é}7Yt ~ Tom PIL£Ú.tt Cfúe.n Che.m),).¡;t TP:ml 1 2 3 4 5 6 7 8 9 10 11 0:: II) 12 C\I lIJ 0 >< 0 0 (II 13 III == ~ c!:I j z a:: 14 >- ... 0 0( I&. lIJ J ~ en II) >- 0( 15 0 1.11 U Z ui U a:: 0 1.11 >- : oJ 16 1.11 lIJ 0( t!) ~ z II) 0( 17 0 en U 9 18 19 20 21 22 23 24 25 26 27 28 WHT18/i1a/084íi7:1 COSKEY, COSKEY & BOXER Attorneys at Law 11601 Wilshire Boulevard Suite 1960 Los Angeles, California 90025 Telephone: (213) 473-4583 Attorneys for Debtor ..tJ e ~~ "~'. , - . ._J> ," .-,j fI >, ,qUG:] 'ì 'I:/\!/\; (,e" ~' 198'1 ....,~ '¥! t" , <~ ""'.~. " ''f(Ai ìJ-¡ D~ù r:., ì UNITED STATES BANKRUPTCY COURT ". EASTERN DISTRICT OF CALIFORNIA ,'i In re B.C. CHEMICALS, INC., Debtor. ) ) ) ) ) ) Case No. 185-01809 CHAPTER 7 Date: Time: Place: August 27, 1987 1:00 p.m. Room 204 Federal Building PRE-TRIAL BRIEF WILLIAM H. TOPKIS Attorney of Record 1 2 3 4 5 6 7 8 9 10 11 D:: III 12 III \1.1 0 )( 0 0 CD 13 DJ ~ :!: dS j Z II: 14 >- J- 0 0( I&. \1.1 J ~ ( (/ >- 0( 15 0 1&1 U z rñ U II: 0 1&1 >- J- .J 16 J- 1&1 \1.1 0( CI ~ Z (/ 0( 17 0 ( u 9 18 19 20 21 22 23 24 25 26 27 28 WHTI8/ila/0841Þq7:2 e TABLE OF CONTENTS PAGE I. INTRODUCTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 - 2 II. PURSUANT TO BANKRUPTCY CODE §365(d) (4) THE NON- RESIDENTIAL REAL PROPERTY LEASED BY DEBTOR FROM THE PHOENIX TRUST WAS REJECTED WHILE DEBTOR WAS IN CHAPTER 11 ..................................... 2 - 9 III. THE RESPONSIBILITY FOR THE MAINTENANCE OF THE SUBJECT PROPERTY OF THIS LAWSUIT SHOULD BE UPON THE PHOENIX TRUST AND NOT THE UNSECURED CREDITORS AND ADMINIS- TRATIVE CLAIl>'iANTS ................................. 9 - 11 IV. THERE IS NO STATUTORY OR CASE BASIS FOR GRANTING PRIORITY TO A CLAIM BASED ON TOXIC WASTE CLEANING. 11 - 16 V. CONCLUSION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 - 18 i 1 2 3 4 5 6 7 8 9 10 11 0:: VI 12 tII ¡J 0 >< 0 0 01 13 ID ~ c( c!S c( z oJ II: 14 >- I- 0 c( I&. ¡J J ~ () c( II) >- u 15 0 III Z iii U II: 0 III >- t- oJ 16 t- III ¡J c( CI ~ Z II) c( 17 0 () u 9 18 19 20 21 22 23 24 25 26 27 28 WHT18/i1a/08~7:3 e TABLE OF AUTHORITIES PAGE In re Arzola, 11 B.R. 762 (Bkrty. P.R. 1981) .................... 16 In re Commercial Oil Service, Inc., 58 B.R. 311 (Bkrty. N.D. Ohio 1986) ............... 7 In re Dant & Russell, 67 B.R. 360 (1986) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6, 7, 8, 9, 11, 12, 13, 15, 17 In re Franklin Signal Corp., 65 B. R. 268 (Bkrty. D. Minn. 1986) ................. 7 In re Oklahoma Refining Co., 65 B.R. 652 (Bkrty. W.D. Ok1a 1986) . . . . . . . . . . . . . . . In re T.P. Long Chemical Co., Inc., 45 B.R. 278 (Bkrty N.D. Ohio 1985) . . . . . . . . . . . . . . . . 7 12 In re Mammoth Art, Inc., 536 F.2d 950 (1st Cir. 1976) ...................... 16 In re Mowbray Engineering Co., Inc., 67 B.R. (Bkrty. M.D. Ala. 1986) . . . . . . . . . . . . . . . . . . . In re Multech Corp., 47 B.R. 747 (Bkrty. N.D. Iowa 1985) . . . . . . . . . . . . . . . 12 16 In re Peerless Plating Co., 70 B.R. 943 (Bkrty. W.D. Mich 1987) ............... 12 In re Pierce Cole and Construction, Inc., 65 B.R.. 521 (N.D. W.Va 1986) ...................... In re Steven, 68 B.R. 774 (Dist.Crt. Maine 1987) ................ In re Wall Tube & Metal Products Co., Inc., 56 B.R. 918 (1986) ................................ Mid1antic v. New Jersey Department of Environmental Protection, 4 7 4 U. S . 1 0 6 S. Ct. 755 ¡ 8 8 L. Ed . 2 d 8 5 9 (19 8 6) ¡ U.S. rehearing denied 106 S.Ct. 1482 (1986) ....... ii 1 - 2, 13, 16 12 5, 6, 12, 13 3, 4, 5, 6, 7, 8, 9, 10, 13, 14, 15, 18 1 2 3 4 5 6 7 8 9 10 11 0: III 12 \II 11.1 0 >< 0 0 ØI 13 III ~ :!: c6 j Z II: 14 >- I- 0 0( Lr. 11.1 J ~ en (J) >- 0( 15 0 III U Z cñ U II: 0 III >- I- ...I 16 I- 111 11.1 0( CI ~ Z (J) 0( 17, 0 en U 0 ...I 18 19 20 21 22 23 24 25 26 27 28 WHT18/ila/08ïÞq7:4 e TABLE OF AUTHORITIES (Con't.) Ohio v. Kovacs, 469 u.S. 274, 105 S.Ct. 705, 83 L.Ed.2d 649, 659 n. 12 (1985) ...................................... Quanta Resources Corp. v. The City of New York, 739 F.2d 912 (3rd Cir. 1984) ...................... Reading Company v. Brown, 391 u.S. 471, 88 S.Ct. 1759, 20 L.Ed.2d. 751 (1968). Southern Railroad Company v. Johnson Bronze Co., 758 F.2d 137 (3rd Cir. 1985) ...................... PAGE 5, 15 9, 13 15 16 4, 5, 6, 15 u.S. v. Argent, 15 Environ. Law Rptr. 20616 (D.New Mex. 1984) ..... 10 Statutes, Rules and Regulations Rule of Bankruptcy Procedure Rule 3002 .................. 11 use § 5 0 7 ............................................. 11 USC §365 (d) (2) 11 USC §365 (d) (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 use § 5 5 4 (p.) ......................................... 42 use §§9601-9657 ..................................... iii 4, 14 10, 16 8 2, 4, 17 8, 15 4, 8 1 2 3 4 5 6 7 8 9 10 11 0:: II) 12 C\ ¡ 0 >< 0 0 01 13 ID ~ :!: ð:I j Z II: 14 >- I- 0 < \I, ¡ J ~ co () >- 0( 15 0 ¡ u z rñ 0 II: 0 ¡ >= : .J 16 ¡ ¡ 0( CI ~ Z () 0( 17 0 co 0 9 18 19 20 21 22 23 24 25 26 27 28 WHT18/i1/081~:1 e I. INTRODUCTION On or about July 29, 1986 Robert L. Williams, Trustee gave notice of petition for authority to clean up toxic waste on the premises located at 1511 South Union Avenue, Bakersfield, California (hereinafter the "Subj ect Property"). The Subj ect Property represented the former premises of B.C. Chemicals prior to filing its Chapter 11 Petition and during the first sixty days of Chapter 11. Said premises are owned by an entity known as The Phoenix Trust. The Trustee, in his petition, indicated that the cost of disposing of the remaining inventory and clean up would be approximately one-half million dollars. The Trustee indicated that there was approximately one million dollars in creditors and that the Trustee possessed assets of the debtor in an amount approximating one-half million dollars. Coskey, Coskey & Boxer, counsel for the Official Creditors' Committee in the Chapter 11 proceeding objected to the Trustee's application. The Phoenix Trust filed an opposition to the objection of Coskey, Coskey & Boxer. At the ,hearing on the Trustees petition, the court ordered that the Trustee be allowed to expend up to $350,000 to clean up the surface of the Subject Property, an amount representing nearly 70% of the estate. On November 19, 1986, Coskey, Coskey & Boxer gave notice of appeal to the order granting authority for Trustee to clean up the premises formerly occupied by debtor. On or about June 15, 1987 the District Court remanded this matter to the Bankruptcy Court. The court indicated that the case of In re Pierce Cole 1 2 :3 4 5 6 7 8 9 10 11 II:: U) 12 (If IIJ 0 >< 0 0 01 13 CD ~ :: cö j z a: 14 >- I- 0 « II. IIJ J ~ III III >- « 15 0 ILl U z IIÎ U a: 0 ILl >= I- .J 16 ¡- ILl IIJ « CI ~ Z III « 17 0 III 0 0 .J 18 19 20 21 22 23 24 25 26 27 28 WHT18/i1/081t¡þ:2 e and Construction, Inc, 65 B.R. 521 (N.D. W.Va 1986) indicated that absent sufficient findings the court could not begin to make any determination regarding whether clean up was appropriate. The operative facts regarding this case have not been in dispute. On July 18, 1985 debtor, B.C. Chemicals, Inc., filed its Chapter 11 petition. On September 26, 1985 the debtor converted its Chapter 11 proceedings to a Chapter 7 proceeding. Debtor leased the Subject Property from The Phoenix Trust. There was no assumption of said lease pursuant to Bankruptcy Code §365 (d) (4) . There being no assumption of said lease, on September 16, 1985 as a matter of law, the lease between debtor and The Phoenix Trust terminated. While the nature and extent of any toxic waste hazard is not clear thus far from the record, it is clear that no government agency has mandated clean up of the property nor has the Phoenix Trust or any other entity undertaken any clean up procedures since the filing of the bankruptcy petition. These foregoing facts would appear to substantiate that a showing of imminent danger could not be established. II. PURSUANT TO BANKRUPTCY CODE §365(d) (4) THE NON-RESIDENTIAL REAL PROPERTY LEASED BY DEBTOR FROM THE PHOENIX TRUST WAS REJECTED WHILE DEBTOR WAS IN CHAPTER 11 Pursuant to §365 (d) (4) of the Bankruptcy Code if debtor fails to assume or reject an unexpired lease of non-residential real property under which the debtor is the lessee within 60 days 2 1 2 3 4 5 6 7 8 9 10 11 Q: It) 12 '" lI.I 0 )( 0 0 (II 13 II) == ~ ciS 0( z oJ II: 14 >- ... ~ lI.I 0( J ~ III tI) t 0( 15 u 0 z ui 0 II: 0 III >- t: oJ 16 III lI.I 0( CI ~ Z tI) 0( 17 0 III 0 0 oJ 18 19 20 21 22 23 24 25 26 27 28 WHT18/i1/081~:3 e after the date of the order for relief said lease is deemed rejected. Debtor filed its Chapter 11 petition on July 18, 1985 and an order for relief was presumptively entered that day. 60 days after said date, on September 16, 1985, as a matter of law, the lease between B.C. Chemicals and The Phoenix Trust terminated. At no time could the Trustee have assumed this burdensome lease nor has The Phoenix Trust petitioned the Bankruptcy Court for an order that the lease be assumed. On September 26, 1985 when debtor converted its Chapter 11 proceeding to the Chapter 7 proceeding, the Subject Property of this appeal was not a part of debtors estate and at no time should the Subject Property of this application be construed as a part of the Chapter 7 estate. The Phoenix Trust knew the business of B.C. Chemicals when it leased the premises and was aware of the possible toxic waste hazard before the expiration of the 60 day period to assume ~r reject the lease. Nonetheless, The Phoenix Trust failed to make an application to the Bankruptcy Court to prevent the statutory rejection of said lease. The Phoenix Trust has previously cited the United States Supreme Court Case Midlantic v. New Jersey Department of Environmental Protection, 474 u.S. 106 S.Ct. 755¡ 88 L.Ed.2d 859 (1986)¡ u.S. rehearing denied 106 S.Ct. 1482 (1986) as the paradigm case that the Trustee is responsible for paying for the clean up of the Subject Property. Midlantic held that a Trustee could not abandon property, if doing so would endanger or violate state and/or federal health standards. The Phoenix Trust's contention that said lease cannot be abandoned is misplaced. 3 1 2 3 4 5 6 7 8 9 10 11 II:: III 12 C'I ¡J 0 >< 0 0 CJI 13 III ~ :5 c¡s j z a: 14 >- I- 0 0( II, ¡J ::ï ~ () () >- 0( 15 0 ILl U Z ui U a: 0 ILl >- : .J 16 ILl ¡J 0( C) ~ z () 0( 17 0 III U 9 18 19 20 21 22 23 . 24 25 26 27 28 WHT18/i1/081~:9 e waste cite, as well as to the operator of a cite. The court substantiated its finding based upon the fact that the landlord knew that the lessee was using the leased property for a process that would involve toxic waste and that lessor must accept "the benefits as well as the burdens of its arms length transaction" (at 364); The court concluded that there was no exception to allow the lessor a preference for its environmental clean up costs. III. THE RESPONSIBILITY FOR THE MAINTENANCE OF THE SUBJECT PROPERTY OF THIS LAWSUIT SHOULD BE UPON THE PHOENIX TRUST AND NOT THE UNSECURED CREDITORS AND ADMINISTRATIVE CLAIMANTS Contrary to law The Phoenix Trust has argued that the priority of the clean up of any hazardous waste on the Subject Property should be elevated to a "super priority" over all other claims. The Phoenix Trust has contended that all funds should be utilized for the clean up of its property before any administrat~ve claims or creditors may receive funds. The Phoenix Trust has relied upon the Midlantic case supra, and the companion case Quanta Resources Corp. v. The City of New York, 739 F.2d 912 (3rd Cir. 1984). Unlike Midlantic, the Subject Property of this lawsuit is not owned by the debtor. The ultimate responsibility for losses incurred by The Phoenix Trust should fall upon The Phoenix Trust, not the other unsecured creditors and administrative claimants. Otherwise, all assets of this estate will go to the benefit of one 9 1 2 3 4 5 6 7 8 9 10 11 0:: III 12 N ¡J 0 >< 0 0 01 13 [Q 3:: ~ c!:S j Z II: 14 >- .. 0 .( I&. ¡J ::¡ ~ III 0( f/I >- u 15 0 11/ Z ui () II: 0 11/ >- : .J 16 11/ ¡J 0( CJ ~ Z f/I 0( 17 0 UI () 0 .J 18 19 20 21 22 23 24 25 26 27 28 WHT18/il/0814íÞ~:10 - unsecured creditor. Such a holding is contrary to Bankruptcy Code §SO? which has no provision which provides an unsecured creditor with a priority, if its claim is for clean up of toxic waste. The Phoenix Trust, not the other unsecured creditors or the administrative claimants has the greater responsibility to protect the environment from harm caused by substances on its own property. In U.S. v. Argent, 15 Environ. Law Rptr. 20616 (D.New Mex. 1984), the District Court held that a'lessor of land was liable without fault for pollution caused by the tenant and rejected the lessor's third party defense. The lease, the court concluded, was a sufficient contractual relationship to bar the defense. It would appear that the court assumed that the pollution was in connection with the lease. When The Phoenix Trust originally contracted to lease the Subject Property to debtor, The Phoenix Trust was responsible for the commercial transaction in which it entered. The Phoenix Trust was aware that it was dealing with a chemical company. If any unsecured creditor could have foreseen the possible environmental hazards herein, it would have been The Phoenix Trust. If The Phoenix Trust desired, it certainly could have required B.C.Chemicals to post a bond and/or have contracted at a higher lease rate to absorb the burden of a possible hazardous waste problem on its property. The Phoenix Trust also had the right to enter the premises to make sure that is property was kept in conformity with state and federal environmental codes, a right which none of the other unsecured creditors had. Nonetheless, The Phoenix Trust apparently turned a blind eye 10 1 2 3 4 5 6 7 8 9 10 11 II:: II) 12 CO( [¡J 0 >< 0 0 en 13 III ~ :!: IÌ:I j z a: 14 >- I- 0 0( I&, [¡J :ï ::.:: 10 (,/) >- 0( 15 0 ... u z ui U a: 0 ... >= I- .J 16 I- ... [¡J 0( CI ::.:: z (,/) 0( 17 0 CD u 9 18 19 20 21 22 23 24 25 26 27 28 WHT18/il/08141Þ~:11 e towards the problem and now seeks to use the entire bankruptcy estate, if necessary, for the expenses entailed in the clean up of its own property. As a class, the other unsecured creditors could not have possible envisioned this disaster as one of the commercial risks of transacting with B.C. Chemicals. Certainly each creditor bore the burden of the possibility of B.C. Chemicals becoming insolvent. Nonetheless, even with an insolvency, an unsecured creditor could expect a certain percentage of return. If this court holds the assets of the estate are to be expended with the clean up of toxic waste as a priority ahead of the administrative it would become class of claimants, commercially unsound for creditors to continue to do business wi th Chapter 11 debtors with possible toxic waste problems and it would become economically unfeasible for professionals to serve in bankruptcy administrative positions such as Trustees, representatives to creditors committees, examiners, accountants and brokers. IV. THERE IS NO STATUTORY OR CASE BASIS FOR GRANTING PRIORITY TO A CLAIM BASED ON TOXIC WASTE CLEANING In In re Dant & Russell, supra, the landlord argued that its claim was entitled to administrative priority whether or not the leases were void simply because both entities were jointly liable under CERCLA for clean up of environmental contamination on its property caused, in part, by Dant & Russell's operation of wood treating facility. The District Court held that the landlords' 11 1 2 :3 4 5 6 7 8 9 10 11 D:: ) 12 (I III 0 >< 0 0 ( 13 !D ~ ~ .¡ <C Z oJ D: 14 >- I- 0 <C II. III ::¡ ~ ) (/) >- <C 15 0 111 U Z ui U !!: 0 111 >- ... oJ 16 I- 111 III <C C!) ~ z (/) <C 17 0 UI U 9 18 19 20 21 22 23 24 25 26 27 28 WHT18/i1/081t1J:12 e continued claim under the leases for potential clean up of contamination on their property constituted a general unsecured claim. The lessor in In re Dant & Russell and The Phoenix Trust have relied on four paradigm cases where public agencies were granted administrative priority for the costs in cleaning up contaminated property: In re Peerless Plating Co., 70 B.R. 943 (Bkrty W.D. Mich 1987); In re T.P. Long Chemical Co, Inc., 45 B.R. 278 (Bkrty N.D. Ohio 1985); In re Steven 68 B.R. 774 (Dist. Crt. Maine 1987) and In re Mowbray Engineering Co. Inc., 67 B.R. (Bkrty M.D. Ala 1986). In these cases, public agencies incurred costs to clean up contamination on property held by a Chapter 7 Trustee. The courts determined that the agencies claims were entitled to priority as administrative because the agency satisfied the Trustee's obligation to perform the clean up and therefore, benefitted the estate. These holdings in cases involving the claims of public agencies for clean up are certainly not universal, e.g. see In re Wall Tube and Metal Products Co., supra, In re Pierce Cole and Construction, Inc., 68 B.R. 51 (Bkrty W.D. Va 1986), and the cases are distinguishable on the facts. First, B.C. Chemicals never had an interest in The Phoenix Trust's property, and thus, did not have an obligation to expend estate assets to clean up the contamination. By cleaning up its own property, The Phoenix Trust would be merely discharging its own obligations under CERCLA and what would be an obligation as a pre-petition debtor by B.C. Chemicals. The Phoenix Trust's claim IIII 12 1 2 3 4 5 6 7 8 9 10 11 0: 111 12 .. ¡J 0 >< 0 0 GI 13 ID ~ ~ dS j Z 0: 14 >- .. ~ 11.\ « J ~ III « U) >- u 15 0 III Z m u 0: 0 III >- .. .J 16 .. III 11.\ « l!) ~ z U) « 17 0 III U 9 18 19 20 21 22 23 24 25 26 27 28 WHTl8/il/08~':l3 e for these clean up costs is a pre-petition claim not entitled to priority: "Clearly, once the property is no longer property of the estate, any expenses thereafter incurred in connection with the property cannot qualify as administrative costs at preserving the estate." In re Wall, Tube & Metal Products Co, supra, B.R. at 923. There is also a controlling distinction between the position of a public agency using public funds to clean up estate property and The Phoenix Trust's incurring an expense to clean up its own property. Agencies required to expend public funds to clean up a contaminated site are unwitting participants in the debtor's affairs and derive no benefit from the relationship with the debtor. As demonstrated above, however, The Phoenix Trust entered into leases that required storage and handling of chemicals on its property. The Phoenix Trust also collected rents under the lease over a period of time. The Phoenix Trust relationship with B. C. Chemicals is based on a contract which necessarily, involved a voluntary acceptance of risk in the permitted uses and selection of the lessee and expected reward in the rental paid. None of these factors are present in the public agency cases. As the court found in In re Dant & Russell, supra, reliance on cases with facts similar to those in Midlantic to argue that its claim is entitled to administrative priority is misplaced. In both Midlantic, supra, and Quanta, supra, the court specifically did not treat the question of whether or not the expenditure to clean up the Subject Property was an 13 1 2 3 4 5 6 7 8 9 10 11 It III 12 1'1 III 0 >< 0 0 en 13 III ;¡: ~ liS j Z 0: 14 >- ¡. 0 0( LI. III J ~ III 0( () ~ u 15 0 z rri 0 0: 0 11.1 >- ¡. .J 16 ¡. 11.1 III 0( CI ~ Z () 0( 17 0 1/1 0 9 18 19 20 21 22 23 24 25 26 27 28 WHT18/il/08141Þ':14 4IÞ administrative expense. In Midlantic at 88 L.Ed.2d 864, footnote 2, the court stated: "The sole issue presented by this petition is whether a Trustee may abandon property under §564 in controvention of local laws designed to protect the public health and safety. New York is claiming reimbursement its for expenditures as an administrative expense. That question, however, like the question of the ultimate disposition of the property, is not before us." See also Quanta, 739 F.2d 912 at 923. In the Midlantic and Quanta cases the clean up expenses were paid for by the state and claims for reimbursement were to be made to the state. Likewise, in the case at bar, Rule of Bankruptcy Procedure Rule 3002 et seq. should be properly applied and The Phoenix Trust should be required to prove its claim. In the case at bench, The Phoenix Trust is complaining that a third winter season is going to effect its property. Nonetheless, the lessor has made no efforts to mitigate the damages by cleaning up the·<".·premises"""'·and' filing.. "a "proof ",of ,.-claim as required by Bankruptcy Rule 3002. The apparent reason why The Phoenix Tr~st will not clean the premises is misplaced reliance on ~idlantic!~ supra. By interpreting said opinion to mean that the clean up of the property is a super priority (even though the court specifically passed on that question), The Phoenix Trust has exasperated the problem and now threatens to exhaust the assets of the estate. As discussed, Midlantic stands only for the narrow 14 1 2 :3 4 5 6 7 8 9 10 11 II:: IØ 12 C\I ¡J 0 >< 0 0 en 13 III ~ ~ ~ 0( Z .J II: 14 >- I- 0 0( I&. ¡J J ~ () \I) ~ 0( 15 u 0 z ai 0 II: 0 III >- I- .J 16 I- III ¡J 0( CJ ~ Z \I) 0( 17 0 1/1 0 0 .J 18 19 20 21 22 23 24 25 26 27 28 WHT18/i1/08~':15 e proposition that a Ch_apter .} .q .Trustee ~.:;may '. not .,_..~ba!1_ªºJ1 .~~~-:-......___~ ,. _,_,,~..._~_ ' .... .._'_'_I.._,-.~_~_p..:;¡;._":""_".,,,.~,,,,¡"¡""'._",i_ ",~\~x,i~-,-,~.~,I}..!,~1~¥J,.c_~n t.¥l,i,pª"t,ed_=property.to a, ..bankrupt. ,:.~l~ÞJ._Q:r~UIl:!;:,:i.J, the Tr,u~_tee.~".t,a~_~-ª ."."..,;those "minimum ,actions, n.ec~_ssary to avoid an 'i<o'~~ - .... ~......~""...........~._.~ ._-~-, -.... " '0. "'-"."--"'- :.. ..... ."...~ ......._:,..~...i:'"~.....__~~""~.~______ increased risk t~)public",health.and., sa,fety. Indeed, footnote 9 ~.~~æ'""",..~-<j/J'¥,:·,1t':.;~.~;'""~;~E::¡.."~·· ~,,__~ ¢..'-....~.., .~t........ ....i.... -::-~'.. t of the Supreme Court's opinion in Midlantic states: "This exception to the abandonment ,power vested in the Trustee by §554 is a narrow one. I t does not encompass a speculative or indeterminate future violation such laws of tha t may stem from abandonment." Midlantic, 88 L.Ed.2d at 869. The In re Dant & Russell court supra, correctly relied on Johnson Bronze, supra, which provides valuable insight into the appropriate resolution of the issues of the priority of claims such as The Phoenix Trust has asserted. In Johnson Bronze, Southern Railway sought administrative priority for its claim against the debtor for clean up of environmental contamination. Citing Ohio v. Kovacs, supra, the court held that Southern Railways claim was only a general unsecured claim. Just as The Phoenix Trust cites the Supreme Court's opinion in Midlantic to support its argument that its claim is entitled to administrative priority, Southern Railway Co. cited the Third Circuit's Midlantic opinion in support of its argument. In deciding Johnson Bronze, the Third Circuit relied on 11 use §507 and held that equality of treatment was the applicable standard and the courts could not alter Congress' priority scheme. 758 F.2d at 141. The Phoenix Trust's claim is also not a post-petition claim for because contamination did occur the clean not up 15 1 2 3 4 5 6 7 8 9 10 11 Q: III 12 1\1 [¡J 0 >< 0 0 ØI 13 III ~ :: c/:I 0( z oJ 0: 14 >- I- 0 0( I&. [¡J ::; ~ ( () > 0( 15 0 III 0 Z ui U 0: 0 III >- I- oJ 16 I- III [¡J 0( C) ~ z () 0( 17 0 ( u 0 oJ 18 19 20 21 22 23 24 25 26 27 28 WHTl8/il/08~~:l6 e post-petition. Most courts that have considered the issue of priority for clean up costs distinguish between claims made for clean up of contamination resulting from pre-petition operations and claims for clean up for contamination that resulted from a debtor in possession's operations. For example, In re Mammoth Art, Inc. 536 F.2d 950 (1st Cir. 1976), the court stated: " it is only when the debtor in possession's action themselves -- that is, considered apart from any obligation of the debtor -- give rise to a legal liability that the claimant is entitled to the priority of a cost and expense of administration." 536 F.2d at 995 (See also In re Multech Corp., 47 B.R. 747 (Bkrty. N.D. Iowa 1985) i Reading Company v. Brown, 391 U. S. 471, 88 S. Ct. 1759, 20 L. Ed. 2d 751 (1968) i and In re Arzola, 11 B.R. 762 (Bkrty. P.R. 1981). In the case at bar there has not been, nor could it be substantiated, testimony that B. C. Chemicals caused damaged to the property post-petition. The Phoenix Trust's claim clearly arises from,pre-petition activities of the debtor and hence, is not entitled to administrative priority. (See also In re pierce Cole and Construction, Inc. 65 B.R. 521 (Bkrty W.D. W.Va 1986) where the court granted administrative expense priority only for claims arising from environmental damages caused by the debtor in possession) . IIII IIII IIII 16 1 2 :5 4 5 6 7 8 9 10 11 0: III 12 C\I ,¡J 0 x 0 0 <II 13 III ~ ~ ciS j Z II: 14 >- .. 0 0( I&. ,¡J ::; ~ III 0( 1/1 ~ u 15 0 z ui U II: 0 III >- .. .J 16 .. III ,¡J 0( (! ~ z 1/1 0( 17 0 III U 9 18 19 20 21 22 23 24 25 26 27 28 WHT18/i1/08~~:17 e v. CONCLUSION There has been no showing that the public would be endangered if the Trustee were to; (1) abandon the property back to the lessors; or (2) if this court were to deem the lease rejected pursuant to Bankruptcy Code §365 (d) (4); or (3) if the claims of The Phoenix Trust were interpreted as belonging to the class of unsecured creditors. In any of the three above listed situations, The Phoenix Trust would bear the responsibility for the clean up and prevention of any further damage to the environment and to the community, the prime priority cited in the Midlantic case. Furthermore, if this court were to hold for any of the above three enumerated options, all unsecured creditors, including The Phoenix Trust, and all administrative claimants would be reimbursed at an appropriate commensurate ratio as provided by the Bankruptcy Code. It would also insure that the court would be able to find professionals to serve in bankruptcy cases involving hazardous waste. It is respectfully submitted that this Court disallow the order proposed by the Trustee allowing for the immediate clean up of toxic waste utilizing assets of the estate and that the lessor be held responsible for the clean up of the Subject Property of the estate and then file its claim as an unsecured creditor of the debtor. Furthermore, this Court should hold that any addi tional damages caused to the property by the delay of the lessor, to liquidate its claim by immediate clean up, should not be reimbursable by the estate. It would be against equity, public policy, the Federal Bankruptcy Code and CERCLA to elevate 17 1 2 3 4 5 6 7 8 9 10 11 D: 1/1 12 C\I w 0 >< 0 0 m 13 [Q ~ ~ c¡s j Z II: 14 >- I- 0 0( b. W ::ï ~ UI II) >- 0( 15 0 IIJ U Z ui U II: 0 IIJ >- I- .J 16 I- IIJ W 0( CI ~ Z II) 0( 17 0 UI U 0 .J 18 19 20 21 22 23 24 25 26 27 28 WHTI8/il/081tþ7:18 e the status of clean up of the Subject Property to that of a super priority to be paid solely by debtor. As a super priority, the clean up of toxic waste would be to the detriment of the entire class of unsecured creditors and to all Chapter 7 and 11 administrative claimants. As held in the case of In re Dant & Russell, the claims of the lessor should not be entitled to administrative priority. Respec~fully submitted, WILLIAM H. TOPKIS for COSKEY, COSKEY & BOXER Attorneys for Appellant 18 1 2 3 4 5 6 7 8 9 10 11 II:: II) 12 1\1 LtJ 0 >< 0 0 CII 13 In 3: :!: ciS c( z ... II: 14 >- I- 0 c( I&. LtJ J ~ ( () >- c( 15 0 III U z ai 0 II: 0 III >- I- ... 16 I- III LtJ c( ~ ~ z () c( 17 0 ( 0 9 18 19 20 21 22 23 24 25 26 27 28 WHT18/i1/08~ :19 e PROOF OF SERVICE BY MAIL I am employed in the county of Los Angeles, State of California. I am over the age of 18 and not a party to the within action¡ my business address is 11601 Wilshire Boulevard, Suite 1960, Los Angeles, California 90025. On August ~, 1987, I served the foregoing document described as PRE-TRIAL BRIEF on interested parties in this action by placing a true copy thereof enclosed in a sealed envelope addressed as follows: SEE ATTACHED LIST I caused such envelope with postage thereon fully prepaid to be placed in the United States mail at Los Angeles, California. Federal I declare that I am employed in the office of a member of the bar of this court at whose direction the service was made. Executed this Jý,i3. day of August, 1987, at Los Angeles, California. 19 1 2 :3 4 5 6 7 8 9 10 11 0:: III 12 (II LL1 0 >< 0 0 QI 13 111 ~ ~ ð:I 0( z oJ II: 14 >- ¡.. 0 0( I&. LL1 J x: (J UI >- 0( 15 0 11/ U Z cti U II: 0 11/ >- ¡.. oJ 16 ¡.. 11/ LL1 0( CI x: z UI 0( 17 0 (J u 0 oJ 18 19 20 21 22 23 24 25 26 27 28 WHT18/i1/08~~:20 SERVICE LIST Robert L. Williams WILLIAMS & WILLIAMS, INC. 1706 Chester Avenue Suite 404 Bakersfield, California 93301 Scott R. Baker KUHS & PARKER P.O. Box 2205 Bakersfield, California 93303 Kenneth H. Bates P.O. Box 2537 Bakersfield, California 93303 Department of Public Health 1700 Flower Street Bakersfield, California ATTN: Richard Casagrande B.C. Barmann, County Counsel COUNTY OF KERN, STATE OF CALIFORNIA Administration and Courts Building 1415 Trustun Avenue, Fifth Floor Bakersfield, California 93301 20 e ft o ft ft III 0: ~ iii -. ::J~~~g 00::0. -0( 1&,. ~D.)C::¡: 0c!l~~ft ~U)óó~ oJ:I: '¡¡j II) :Ja.__ ~ :;¡ II: 11/ :.: ~ III e e 1 Court in Midlantic held that "a trustee may not abandon property 2 in contravention of a state statute or regulation that is 3 reasonably designed to protect the public health or safety from 4 identified hazards." (Ibid. 106 S.Ct. at 762; 88 L.Ed.2d at 869.) 5 This court finds that California's Hazardous Waste Control Law 6 (Health & Safety Code, §§ 25100 ~ seq.) and the implementing 7 regulations of the State Department of Health Services (22 Cal. 8 Admin. Code, § 66001 et ~.) are "reasonably designed to protect 9 the public health or safety . " The Trustee may not violate 10 the same administrative regulations and statutes for which B.C 11 was cited on September 10, 1985. Because the Trustee cannot 12 13 14 abandon hazardous wastes in violation of state law, this court finds that the Trustee must use the unencumbered cash assets of the estate to remove B.C.'s chemicals from the premises. (See, 15 e.g., In re Peerless Plating Co. (Bkrptcy. W.O. Mich. 1987) 70 B.R. 16 17 943, 948-949.) Thus, the court finds that an imminent and identifiable 18 threat to the public exists at the premises; the laws and regula- 19 tions reasonably designed to protect the public health and safety 20 will be contravened if the trustee is allowed to abandon B.C.'s 21 chemicals, and that, therefore, the Trustee is obligated to expend 22 the unencumbered cash assets of the estate to remove them from the 23 premises. 2.4 III. ORDER 25 The Trustee is authorized and ordered to expend up to 26 $350,000 of the cash assets of this estate to remove B.C. 's 27 chemicals from the premises in accordance with the clean up plan 28 III 10 3 4 Dated: 5 6 7 8 9 10 11 " 12 0 " " ell 13 It 0( 1&1 -., :5~~~g 14 ult:~., - 0( . :::a..IC:¡: o~i:ð(l 15 ~Ulòå8 .JJ: ..JC) 16 ;:)IL!!!_ ~ II. IÐ II: III 17 ~ 0( DI 18 19 20 21 22 23 2.4 25 26 27 28 e - 1 already approved by the State Department of Health Services and 2 California's Hazardous Waste Control Law. IT IS SO ORDERED. Judge of the Bankruptcy Court 11 e - ?HP 1'~ 71t«d Sewia 500 Bbl Portable Tanks Mail·175 Ray Street Loc·3400 N. Manor Street Bakersfield, CA 93308 (805) 393-1151 Vacuum & Pump Trucks Au.glL6t 24, 1987 MIl. R"¿c.halld Ca..6 ag/tande. HazalldolL6 Sub~tanc.e.¢ Manageme.nt P~ogÆam KeJtn County He.aLth Ve.paJc;tme.nt 1 700 H.oweJt StJr.e.e-t Bak~á"¿e.id, CA 93305-2231 RE: B. C. Che.m<..c.aL6 S.ä.e. Ve.all M~. Ca..6ag/tande., Enc.1..o~e.d ple.a..6e. á"¿nd TJUU..n..i..ng Re.c.o~cL6 áo~ ail peMonne.l wo~fúng at B.C. Che.m<..c.aL6. 1 á you have. any qu.e.¢.tÁ..OI'U>, ple.a..6 e. c.ail me.. S"¿nc.eJte.ly, MP VACUUM TRUCK SERVICE, INC. V6?Y1 ~ Tom P.!t.!Ú.tt Ch..i..e.á Chem-L6t TP:ml - . . .. ~ .- e e caSKEY, CaSKEY Be BOXER ATTORNEYS AT LAW SUITE 1960 WORLD SAVINGS CENTER 11601 WILSHIRE BOULEVARD LOS ANGELES. CALIFORNIA 90025-1781 TELEPHONE (213) 473-4583, 879-9558 TELECOPIER 478-3123 August 21, 1987 To: All Parties From: William Topkis Subject: B.C. Chemical Enclosed: Pages 4 - 8 of' Pre-Trial Brief [X] For your information [ ] In accordance with your request [ ] Please telephone me [ ] For your files [ ] Please sign & return [ [X] Your action not required. [ For information only Enclosed please copies of pages 4 inadvertently not copied and enclosed entire document. Our apologies. ] This is RUSH ] - 8 which were with the copy of the Thank you. 1 2 3 4 5 6 7 8 9 10 11 0: III 12 ØI iii 0 >< 0 0 œ 13 ID ~ ~ ~ < z ... 0: 14 )0- l- Ii iii < ::ï ~ Q)' UI ~ < 15 u 0 z iii U 0: 0 III )0- I- ... 16 I- III iii < t!) ~ z UI < 17 0 Q) u 0 ... 18 19 20 21 22 23 24 25 26 27 28 WHT18/i1/08141Þ.:4 e Even if The Phoenix Trust is correct that the property cannot be affirmatively abandoned, said lease was deemed rejected on September 16, 1985 as a matter of law, pursuant to Bankruptcy Code §365(d) (4) and was not assumed by debtor. Furthermore, said rejection' does not violate any state, federal and/or county health codes. The Phoenix Trust, as lessor, also bears the' responsibility of cleaning up its property (42 USC §9601 et seq. ) . The Phoenix Trust must submit a claim to the Bankruptcy Court like every other unsecured creditor pursuant to Bankruptcy Code Rule 3002 et seq. for its expenses incurred. Midlantic simply does not address the issues confronting the court in this case. In Midlantic, the Supreme Court considered the narrow question of whether a Chapter 7 Trustee could abandon contaminated property owned by a bankrupt corporate debtor that had no assets to clean up the site. The effect of an abandonment in Midlantic would have been to impose a financial burden of cleaning up the property on the public. In the case , at bar, B. C. Chemical's leasehold interest was terminated as a matter of law, which revested possession of the property in The Phoenix Trust, a party responsible for clean up under federal law. (Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 USC §§9601-9657 ("CERCLAn)). The issues in this case are governed by Southern Railroad Company v. Johnson Bronze Co., 758 F.2d 137 (3rd Cir. 1985). Johnson Bronze was decided by the Third Circuit Court of Appeal, the same court that decided Midlantic and whose decision in 4 1 2 :3 4 5 6 7 8 9 10 11 II: IØ 12 (\ LL/ 0 >< 0 0 01 13 III ~ ~ dj j z ø: 14 >- I- 0 <C ... LL/ J ~ III 0( I/) ~ u 15 0 z rñ U II: 0 III >= I- oJ 16 I- III LL/ <C ~ ~ z I/) 0( 17 0 ( u 9 18 19 20 21 22 23 24 25 26 27 28 WHT18/i1/081tíÞ:5 . Midlantic was affirmed by the Supreme Court, after it decided Mid1antic. In Johnson Bronze, the debtor used Southern Railways' drainage ditch as a depository for hazardous waste pursuant to a license agreement which required the debtor to restore the ditch to its original condition and -indemnify Southern Railway for any liability arising from the debtor's use of the ditch. The debtor sought to abandon its interest in the ditch after Southern Railway was held liable for clean up costs. Southern Railway opposed abandonment and sought administrative expense priority for its claim for the costs of clean up. The Third Circuit citing Ohio v. Kovacs, 469 U.S. 274, 105 S.Ct. 705, 83 L.Ed.2d 649, 659 n.12 (1985) , permitted abandonment and denied administrative expense priority for the claim: " . . if the property were worth less then the cost of clean up, the Trustee . . . would likely abandon it to the prior owner who would have to comply with the state environmental law to the extent of his or its ability. . ." 758 F.2d at 143. Similarly, in In re Wall Tube & Metal Products Co., Inc., 56 B.R. 918 (1986), the debtor in possession had conveyed contaminated property to its landlord and an environmental agency, relying on Midlantic sought to set aside the transaction. In denying the agency's objection, the court stated: "Here the Trustee's conveyance of estate property to the lessors under the July 1984 agreement is not a maneuver calculated to result in clean up at public expense by default. Unlike Quanta and Long 5 1 2 :3 4 5 6 7 8 9 10 11 II: II) 12 ~ LLI 0 >< 0 0 en 13 III ~ :!: dS j Z II: 14 >- f- a -< IL LLI :ï ~ (/) II) >- 0( 15 0 11/ U Z ui 0 II: 0 11/ >- : .J 16 11/ LLI -< C) ~ z II) -< 17 0 (/) 0 9 18 19 20 21 22 23 24 25 26 27 28 WHT18/il/081~':6 e Chemical, this action is not an abandonment to a shell of an entity drained of its assets and, thus, of any financial capacity to effectuate a clean up of the property. Rather, a conveyance of the property covered by the agreement was essentially a sale to a separate, presumably solvent entity who, by assuming ownership of the property, obviously also incurred the potential for liability for any CERCLA response thereafter in incurred costs connection with the property." "Even in view of Quanta's holding, public policy should not prohibit a bankruptcy Trustee from the sale or conveyance of such property to a solvent business entity since that entity must undertake, along with ownership of the property, the attendant liability for any subsequent clean up expenses associated with the property." 56 B.R. at 922, 923. In the cases Southern Railroad Co. v. Johnson Bronze Co., supra, In re Wall & Tube, supra and in In re Dant & Russell 67 B.R. 360 (1986), the courts have highlighted the distinction between Midlantic, where the Supreme Court refused to allow a Trustee to abandon environmentally contaminated property to "a shell of an entity drained of its assets," from a situation, such as the case at bar, where the debtor seeks to reject a property interest and return said property to a lessor or licensor. The Phoenix Trust's reading of the Midlantic decision is fundamentally incorrect. The Phoenix Trust has asserted that the . Supreme Court has created a "per se" rule that under no 6 1 2 :3 4 5 6 7 8 9 10 11 0:: II) 12 III 11.1 0 >< 0 0 ( 13 III == :!: ~ j Z II: 14 >- I- 0 ~ II. 11.1 ::¡ ~ III ~ I/) ~ u 15 0 z rñ U II: 0 III >= I: oJ 16 III ¡ ~ C) ~ z I/) ~ 17 0 III U 9 18 19 20 21 22 23 24 25 26 27 28 WHT18/i1/08~~:7 e circumstances may a bankruptcy estate abandon environmentally contaminated property. As was held in the case of In re Dant & Russell, Inc., 67 B.R. 360 (D.C. Or. 1986), and as numerous courts have held in subsequent decisions, the Supreme Court merely held that where abandonment would result in imminent and identifiable harm, abandonment. may not be permitted. See for example In re Commercial Oil Service, Inc., 58 B.R. 311 (Bkrty. N.D. Ohio 1986); In re Franklin Signal Corp, 65 B.R. 268 (Bkrty. D. Minn. 1986); In re Oklahoma Refining Co., 63 B.R. 562 (Bkrty. W.D. Okla. 1986). Indeed, the facts in Mid1antic established that in the course of abandonment, ". . . the Trustee removed the 24 hour guard service and shut down the fire suppression system" 106 S.Ct. at 758. The Supreme Court noted: liThe Trustee was not required to take even relatively minor steps to reduce imminent danger, such as security fencing, drainage and diking repairs, sealing deteriorating tanks, and removing explosive Moreover, the Trustee's agents. abandonment sites already at both aggravated existing damages by halting security measures that prevented public entry, vandalism and fire." 88 L.Ed.2d. 864, 106 S.Ct. at 758, note 3. A careful review of the facts of Midlantic highlights the narrowness of its holding. Midlantic is simply not controlling in this case. The case which appears to fit squarely with the case at bar is the case of In re Dant & Russell, Inc. , 67 B.R. 360, supra. J In the case of In re Dant & Russell, the lessor filed a claim 7 1 2 3 4 5 6 7 8 9 10 11 II:: II) 12 CII ¡ 0 >< 0 0 01 13 IQ ~ =5 ~ j Z 0: 14 >- .. 0 0( II. ¡ J ::.:: CD 0( II) >- u 15 0 IIJ Z ui U 0: 0 IIJ >- .. .J 16 .. IIJ ¡ 0( CJ ::.:: z II) 0( 17 0 CD U 0 oJ 18 19 20 21 22 23 24 25 26 27 28 WHT18/i1/08~':8 e asserting administrative priority for potential cost to clean up the toxic waste deposited by debtor on leased property. The debtor moved for permission to reject lease in effect at the time of the Chapter 11 filing and post-petition lease and objected to the priority status of lessor's claim. The District Court held that the post-petition lease was not entered in the ordinary course of debtor in possession's business, so as to void leases for lack of notice to creditors' and, more importantly, the lessor was not entitled to administrative priority for potential costs for removing toxic waste. The In re Dant & Russell court was aware of the Midlantic decision and cited extensively from that case. The court found important distinctions between Midlantic and the case at bar, finding Midlantic to have a narrow holding. (at 365) The District Court found: (1) That Midlantic dealt with the abandonment of property pursuant to 11 USC §554(a). What distinguished Midlantic is that Midlantic did not decide whether or not a lease of contaminated property ought to be rejected under 11 USC §365 (d) (2), as was presented to the Court. The Court stated that rejection is a different issue from abandonment (at 364); (2) The court found that the Midlantic case was a case where the State of New York and New Jersey would have been responsible for the clean up of debtor's toxic waste. In In re Dant & Russell, the court found that pursuant to §365(d) (2) that in the context of rejection of a lease the landlord was still available for the clean up of the site. The court also cited 42 USC §9607(a) (2) which imputes liability to the owner of any hazardous 8 - i'. .. 0 Õ 1. .. M W M --. f- () -:: ~ :J 0( - 0( U1 Z 1 -' W a: ..... f- :J 0 - 0( IL - Z ;;.... U1 W -' >- > 0( ,., W 0( u :Z3 z a: a a: 0 w -' f- W :J'¡ f- U1 ¡;: f- w - 0( U1 r. :r a: ... u w '. - \0 \l ,J 0 0( , ,... In - - - ..... ~ ,., 24 25 26 27 28 144 . .~. e 1 ROBERT L. WILLIAMS 1706 Chester Avenue, Suite 404 ~ 2 Bakersfield, CA 93301-5288 3 Phone: (805) 323-7933 File No. 5006-B 4 5 G 7 8 U 10 In re: '~'.;: e .. .'; .' I :11 ; , '". ,I . j 1() J f.~ ".;:ì\IV ('._ Id81 -(JtJ/I~ ¡'( " , ,fjtJ.:..L¡~i...¡ OJ:-- ...1-'1. iii UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF CALIFORNIA 1 ] ]2 ) 13 B. C. CHEMICALS, INC" 14 15 16 17 18 ] Ð 20 21 22 23 Debtor. TO ALL PARTIES OF INTEREST: Chapter 7 Case No. 185-01809 ) NOTICE OF FURTHER PRE-TRIAL HEARING JUDGE: ECKHART A. THOMPSON Time: 1: 30 P. M. Date: July 23.. 1987 Place: Bartkruptcy court, #204 Federal Bldg., 800 Truxtun Bakersfield, CA 93301 PLEASE TAKE NOTICE that U. S. District Court having ordered that further evidence be taken and further findings made in the above-captioned appeal, and good cause appearing therefor, YOU ARE HEREBY NOTIFIED that a further pre-trial hearing of said matter has been set for Thursday, July 23, 1987, at 1:30 P.M., in Bankruptcy Court, Room 204, Federal BUilding, 800 DATED: June 30, 1987 Truxtun Avenue, Bakersfield, California. ~RT L WILLIAMS Robert L. Williams, Trustee ~ 11 7- ..... ... 12 o Õ Mr. Scott R. Baker :J: ... 1'1 W 1'1 13 KUHS & PARKER ~ I- '" --:: 3: :3 0( P. o. Box 2205 - 0( II) Z Bakersfield, CA 93303 .J oJ 'I:t: ]4 ...:¡ I- w 0 0( :¡ ... - z - > II) W oJ 15 )- > 0( ~ W 0( U ;), ~ I:t: c:i Mr. Richard Casagrande >J o W oJ 16 Dept. of Public Health I- I- W if; I- II) ¡;: 1700 Flower street - 0( W I/) ~ :r I:t: Bakersfield, CA 93305 ... U W 17 , - <D :.:: ...:¡ o 0( " In , - 18 >-< - Kenneth .. Mr. H. Bates ~ ~ BATES & TUTTON J9 P. o. Box 2537 20 Bakersfield, CA 93303 21 22 23 24 25 26 27 28 e e 1 2 PROOF OF SERVICE BY MAIL 3 STATE OF CALIFORNIA) SSe 4 COUNTY OF KERN 5 6 7 8 I am a resident of the aforesaid county; I am over the age of eighteen years and not a party to the within entitled action; my business address is 1706 Chester Avenue, Suite ~04, Bakersfield, California 93301. On June 30, 1987, I served the within documents on the parties listed below by placing a true copy thereof, enclosed in a sealed envelope with postage thereon fully prepaid, in the United States mail at Bakersfield, California, addressed as follows: D ]0 Mr. William H. Topkis CaSKEY, COSKEY & BOXER 11601 Wilshire Blvd., #1960 Los Angeles, CA 90025 Mr. Rich Eglin 650 Alfred Harrel Hwy. Bakersfield, CA 93309 Mr. Henry Cruse, P.E. EMCON ASSOCIATES 445 West Garfield Avenue Glendale, CA 91204 Executed on June 30, 1987, at Bakersfield, California. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. S. Revnolds - Name sl S. REYNOLDS Signature e e UNITED STATES DISTRICT COURT EI~STEHN DISTRICT OF CALIFOHNIA CÜSKEY, COSEEY & BOXER, Appellant, VS, i;(jßE1<.'r L. íHLLIAHS, CHAPTER 7 'i'l;uS'j'EE Fm~ B. C. CHElvlICALS, .L dC', I et al" Appellees. ) ) ) ) ) ) ) ) ) ) ) ) CASE NO. District Court CV F 86-638 IŒC Bank:cuptcy Court Ho, 185-01809 No. CHAPTER 7 DelLe: Time: Place: FebrUéŒl' :2 3 I 1:30 p.m. COU:ctlOGH1 ] 1987 EXCERPT OF HEC(il(jJ ~--- ---_..... \HLLI.~['1 Ii. 'l'OPKIS fur: I.:U:'-)KBl, i :OS1-I: '1. t.I;( )XER 11001 ¡Iii ~:,hL,:~ L~,HIL;\'~.;1 Sui tt: J ~ t; (j Los A.Ü9l~J";f; I Calj f(h¡,j" )0025 'I'elepllOn(~; C~] 3) 4'] 3-,·b tU Attorile;¡ tu.c Apl,,:..:Ll2'1. L 'I' .. , " . ~ , , '. ,', /' , . ~ . - .. " ,..... " .':.. '. '., " , . ¡. e ~;~ ., .r ., .',' ". ". " " , " ~"'"~ ~' ~"'l. ~.", ." , : ,.,.-\ "-;.r:,' ,., F ~... ~ " " , , .\ i f \ .. '" : ¡ 1 e ·1 C) F" r.e 0 0, ! 9 á'ii '--) = V ...iL 0 . ~I~CT OF Case No. ,. . F'OHUIA CHAPTER 11 L'''ITI·:D STATES BA'\KHI3I'TCY (OUIIT FOR TilE ¡-;-¡' ~-;;---------- .----1::.--.>.1. 5.. C" CU;:;UC1-;LS I IHCo IDØ ~5-2885335 Iì~!),~~~_____u ._..__u__,____,____!,I:'.'.!\J~e~::re "II names uscd by debtor ",j!~0..!ast (j yc~~ 1. Petitioner's post-ofiic.e address is 1511 South Union Bakersfield, ~'\ VOLUNTARY CASE: D EB1'dÍ{ ,S-..J> ETI1W N a?-::X;'¡'n ~''''JL " .0'/'1 '0-::0--."" . ro.;:;¡ Q c::~-!:.. -;- t1 . !JUL 1 8 1?85 2. Petitioner has C~(.~rP~=·~;~. ~~. ;.... i: ~- o resided within this district for the preceding 180 days. :~:'¿;;";P:;~ -';:~,~ ":,;: . '~r o had domicile within this district for the preceding_lgQ,5!n~'s.¿.¿'I.ì~ "~. . o had, principal place of business within this district for the preceding'180âa}'s, tj: rc~idcJ1.~)ccn domiciled or had principal place of business \¡,¡thin thi; Uistrict for a ]anger portion of the preceding 180 days than in any other district. '.-1 3. I\:tili()fler is qualified to file this p.:tition and is entitled to the henefits of title 11, United States (ode as a \'olun· t.lry deLtúr. 4. r.J A copy of petitioner's proposed plan dated 19 is attached, o Pt:titioncr intcnds to file a plan pursuant to chapter 11 of title 11, United States Code, :r 5. Exhibit A is aU-ached to and made a part plthis Petition.· Whereforc, petitioner prays (or relief in accordance with chapter] 1 of title] L United States Code, :\,d¡J ress:., 'pos;f ,. , 'öi:"Pfc¿' 'jjÖX"'2'Š' j·t·..·....·'··..........···..·· B1\KEP.st' I ELi) ';.' ..ë'A""·9 33' ö'j'... ............ '....... Petitioner(~l signs if not rer.reicnted by attorney :' /".. ;' / i ."."..,..'., ,...:.." "'I.,..,.."'.."'" ....,.:" ..:."".. ............... ..'...... ........ E" C" Cl!El,:rCJ.-I..5:~tio¡¿¿C 0 . \ ' \ ( ,..', ,......c", ...."....:.. :':~,.,..,=::......... ,\:.....,"'~,...."., ....,.. ........ BY, . -- ,..-' Petilio)~er '- s j ~ned :.......". ....,,'........' ,...... ..... .........,....'..... ...... .....: .'::..~:::: ..m....... ~, Attorney for Petitioner DECLARA nON ]!\'DIVIOUAL: I, aIty of perjury that the foregoing is true and correct. the petitioner named in the {orc¡;oing petition, certify under pen· jO}i';T !j,DIY!DUAL5: We, and the petitioners n:1Ilwd in the forq.:oing petition, certify under penalty of pcrjury that the forp~oing is (rue <me! correct. COli I'OH.HION: I, the . , .! { r,-.......,., -,.., 'f:',...... il'· d I f . h""RT.·"'·T·r\E"f':> 1",tlllOner ]fl t Ie or(;S"¡~J<'g!.\Jf:tJ~l)n~,:.)tl: rlun er pena ty 0 perjury t ill_ wcwu:,..."tg of this pdition nn Ldlalf of the corporal ion has bl'cn auth.orized. of the corporation nal!Jed a5 is true 311(1 correcl. and th3t thc fili¡¡~ )..\I'T.\TIIS!lIf': I, u mcmber -,,-1111 uuthori::cd IIgcnt -- of the partnership 1l3111ed as ICtiliuncr ill the fOIt:;:'Jing petition, certify under p~nalty of perjur~ that the fnr,:~!u!n~ is Iru(' aIHIY','I}Ç,CL and that the fi1int! of lI,is !wlilioll on ¡'"J¡;¡]f uf thc partllPrship has hccn 3uthorizcd. ;,'" /'./ . t I ~ ( ~. Signature: .......' ,.....,......,. \( .......... r.,~~-.'':'...''''' '......,.. .................. . ___/.~ P,.:tilio'1l'r '-- ...' ~:xt:cllted on /. 19 11 85 JULY I'd ¡Iiun.,! ......Ü(j'O~) I'" ..................................-.-.............. -··-r- ~...;. . Case Number: e e UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF CALIFORNIA ATTORNEY'S DECLARATION I, Kenneth H. Bates . the attorney for the petitioner named in the foregoing petition, declare that I have informed the petitioner that he ¡she may proceed under Chapter 7 or 13 of Title 11, United States Code, and have exp!ained the relief available under each such Chapter. Executed on: 9{~1f /~, /915 ç ~"'" // /'!-- '1/'t 14 ~. : J~ Signature of Attorney for Petitioner ,-- 00002 Effective ]0/8/84 I .' Bank accounts and safe deposit boxes, ,e . What hanl- a«,,"nls havc )'ou maintaincd, al..",c ur "II,,'r \\'ith ~ny "Ilil'r p('r~"n" and j~ ynur own .or allY "r nallle, wilhin Ihe 2 )ear~ Immedlalcly prcceJlng the Ii! of tilt: ori~illall)('(itj(Jn herein? .. .~. (tit' nam(' Iln.t ßddrC':"~ of p:1ch bank, the name In which the ,sit was mail1lui,u·d. und the name and nddrC5s of e\'Cry per- lIulhoriz.{'d to mnkl" withdrawals from such Dccount.. '. Whal ~a[c Jep",it hox or Loxes or olher dCJ.>~silory or ,,,,il,,ri,,s ha\(' )ou I-cpt or used for )'our sccuntlcs, cash, ,lha \'allla¡'lc~ ",ilhin thc 2 year> immediately preceding fding ,,[ Ih" "riginal peliliun hcrein '? ',e Ih..· HartH: ;:¡nd 1'1ddn>ss uf the Lank or other depository. thi! Jl' ill which l'acn 111,:>': or other d('pository was kept. the name uddno;;s uf ('v~ry I)(.'r~(n ""'ho hnd the right of øccass thereto, ':,cl'Îption or the C'ont('nl:; thcrt..'oC. and" if the box has bcx-n SUI"" ,il·n'd. slntl.' when 5urn'ncicred or. if transferred. when trans.. .1'\1 anJ lh(' nanH.' nut! uddrcs3 o! the trans!crl"e.) Property held for another person. ,¡'hat propert)' do you huld fur an)' olher person? '.·l~ nam" 3'H~ aJdn."S:; o( ('ach person. and describe the propert)-, ;.:íliount ur \":due thereof ~nd all writings relating thereto_) Prior bar,kruptcy proceedings. ,,\'\,,;1 ca-.." lIlI.fa I¡'~ ßanl-rllptcy Act or titlc II, l'nilt'd .ll'S Cvdc J¡¡J\(' pu·,jnusJr J)(,l'11 j'Tnught Lr vI .Jgajnst yvu't :1t(' the !o('í1liljn of i.}¡I~ k1nkiuPlCY CQUI't. lhe r.aliJl·C ~nd nurn.. llf lhC' C:t5C. ;.nd \\'Lpthl.'r ;j, di::;cha1'g-e wus J..,"Tanted or l'du3cd, ¡';¡~;l' \Vas di.;mi~~erl, 01' :J C'ornpfì<:ilion. ::JIT:H\gC'ment, or plan .ví1ohrn"'l'd.1 Receivcrships, General assignments, and 9ther ,J~s úf liquidation. \i'.::' any d your property, at (he time of ¡hc filing of uri;:inal pI'!;ti'JI) hercin. in Ihe h~nJs of a r<:cci\'er, :"¡'_·C. or ollll'f JiquidJlillg agent '! :,u, #;i\'(' a Lrief í..h:~Cl'ip{iun "f the f¡J'OPC1"'tY ;¡nd th.e n::Jmc and : I·l·:..i~ 0C lht:.· J'ec('iv(,l". ll·lIste~. ur úthl'r :q;£.:nt, and, If the ab"ent . ;,j.;JüÎnl('.! in ~ coun pru('ceding, the name and Joci:ltion of ~·:'>l:l·t, the- titlc' nnd numÌJe}' úf the- cnsc, :Ir.d thf..~ n:ì.tUl"C thereof. I " ]avc YOll nude any ao,Eignment of your property for LI'I1t:fll of your uedilors. or any gencral sclllement with :r crcditors, ",ilhin Ihc 2 years immediatcly preceding lìiing of tLe "riginal petition herein? ~.J, t:in.' d¡,lcs, tile n;Jme nnel :lJdrcss of the nssigne-e, and a ....r st~.dcmcr,t of It:c lcrm::3 of D.ssignment or sC'lllement..) Property in hands of third person. '0 an)' oll,ef pl"r>on holding an)'lhing of value in which 1 b:1VC .:1n ÍntcfL$l'! (Give name nnd uddrt-ss. loc:ltion and ription of' :h..... pr,;pcrtr, ¡Ind circ~JrIl!;t~.ncl,:s of the holding.) EJt.:its, t:::ccution:;, ~nd attachnl1.:nt~. \\ L....L ) uU ~l p.:IIY to 3ny SIJit pcnding at tht' tin1C of ;Ijn~~ oj ¡J\(' t,,·j:..::i;l~d pl.'titiun Jlt:rein'! ,:. ,:;.,'/.... t1a r.,:rní..:-;\;·.,! bC:Ltior: of the ~'(:~nl :Inti thl? lille nnd .ì.~'I· "f ti¡~· "::.:~;(', ;;;~d n,ltlln' ci the... llrc:::,::..:dinr;.) \'.'cr<.: y"u ~ ¡:,;rly to ~n)' suit LrininalU! \,,¡thin Ihe f j¡ìimnJi.ilcly prtTl,¡Jing the {¡ling 0i tiìl" '"ri~;il1al peti. .1 jl,_n:i'~ (:1' ~j';, ::Î',L' lb\.· ¡¡:::Ilt: ;~l1d bC:iliol1 of th.:- CUl1rl, the :.I:d r.~t~Jr.: ¡;f UJt.: ;,ru~·I.,.".,Jjnt:. tin,} tbL' l\·3\J1t.) fl.::) ;JII:, (f y¡¡:¡r 'lddPl'rlY IHTi1 ~Jt¡':l·hl;d. ~;:lrTli:·I!l.:d) ur .1.: "J"kr ~ny h-~;:J ur <...qtlil¿dJ!c {¡¡lJt :..:::::: wjrhin tbe YC':lf 1. ji::kJ:; j,r\·lTdì¡¡¡.:. ¡ill' tj!in~ uf [1:;:' vri~iEal pt'liti:)n <In: (If ~,,), (k~crjLe the P~"'j'\::ty :';...:i:'l.-J (.r 1'·:..:r.::01: ni,.LL..J. and at \\ J.t'.,~ slliL) f':.::¡¡¡ents 0:1 lo.11~s and inst3JJm<.:nt purchases. .ï.~.l j'!Î;~:;:;kl)h IOn 1,¡Jns jn \\11O!t: l;f in pJ.rt, and wh;lt i;1'iit.; lllì ¡j1::,1jll,t'111 I¡:jft'ha~c~i of ~;uod::: <Jnd :-='·.:nj(,t:~. ;. ,'I! I.:..,:,: {~Lr;¡¡:.~ li!I' ).:..or illìti;..~!i:J.icly !,dl't:edillg 11:(; \\í d...: ,oJ iL:iIl~~1 ';,'liliulI I.cr...:!u·: Ü.," r:.U¡¡,·:.j ~¡nd :Il~dli.,~~·.t::i (jf the pc-rson$ 1'('ccÎving p:1}'fT1C'nt, . ,;;;le;; .¡ '/i:;¡;>t;:,"·;;,'~~t'ir::;/~:~~r~{~~::~:dE~<":r~'~':~;~'~;~1~ ._ ù. í1·,~,;d,·:·:..ì. tht.: re.:J¡,tiun:.>hip; if Ü.~ deùt.or i:; ~ p:\rtncrsfl1J> ¡ :;))D~ì)i¡\,¡~:::~~Et;:: ;'I;~~¡t:~,.:';li~;:):~~~;'i; ~i) ~·~t;r:):,;!:.{;~~]g~.:~ ).) Tr::r,"Ícrs oí prorcrt'y. " 11.1\1' ì'ull ;:uti,· any gifts, other than ordillaryand ;.d /r,."ClI!.s fl} i..,¡)jJy ;¡;!'¡¡dJ.t:JS and c)¡:jfjlabk,. (k1J::dl/}J1~ . i;;;~ rI,,: '.I'.H i'::I.lI,j;dl·Jy jJf(.ï...·\,·..Jj:12~ the fdull; li£ 11:,.: j ~'-} :/;t~~ ;,':;,1 ',1,1 }i.~,í;:¿r~ ~JIl(.I~ n~J~' V::/I:'~ ~t:; ~~~~.~ I.d H JJ r\'"J~t':I of ,Þ. ii.:\l: }lId 1Ju,L.: ~JJJ)' ntJH..·f Jr~.I1}:JL·r. ~d)s()Ju!e ur for ¡he . ì"'~L: Id '1'; urjty, ur .11lY odlcr di:::p(j~iliun hhich ...·.·;J5 IltJl I):,: H.,!in.ll)' ('~q11:-e_ ~tf 111l~¡rJt·>:) ,Juri¡¡g tlH~ )t'ar jllll¡)~> :. I)' ¡:I," (·.Iing 11.\' Idi¡¡~~ of th(~ (jÎiiin:d 11l~lîtÎu) hen·iJI'? I, ,. :1 ,j. ..~ 11¡(:o>lì ..i ILl.' !¡J·opt.:rIY, n/l,: .1..1.....· 0/ tJit.:' lr:..JI~~,tl.'r ur ; . ::',:::';; ','::. ~ '.":':::: ~~:; "t'¡: ~ :'~,: !':¡ ~ic;~ ~;;:L::Y;:¡' ':?;:;;!:;':'~::~ ~;: ~:: :'f:',~~;~t~;:'~ :: I (11~' ,Ii .,,,..ti.,/\ ,....! ~,¡,:h 1,'(':I:.¡,kl~tinn.) Interstate n~~275o ~ling Ave., rogular acccW!t, Ri,=,h~rc. Cglin, u~1oa Ave., B~ker6fic1d, CAJ John Carolan, 1311 So. Union Ave., llAkcrGficld, ~~J Rea Eglin, 4100 pierce r~adø Dakcrnf1ald, ChI First Interstate, payroll llCCOunt, ~e en alJove, C¿¡11fornia TIcT'u'blic ~a::U~, 1515 17t:.h St., Bakersfield" Rich~d Eglin, Bea above, Bea Eglin, see above All accounts are in B. C. Chemical's Da@e. First fiQl¿, BAkcra- 1511 ~o. 7b. Llona Am~rican Cvanaråd - , ~jpan ~39,GOO.OO Hayne, tIel:! Jersey 07'~ Noae No. Ho.. Ho. Yes. I 1;00 !Jo. ìJO.. 0000'1 S. Accounts and other receivables, ,e' !lave you a,si¡;ncd. ..ither absolutely or as f,CCUrll). ~..y 01 uu; accounts or other n:rei\'ables during the )'car imme, :ialely preccding the filing 01 the original petition herein? if 60, "ivc numes end 8ddrcs~('s of assignees.) 6. Repossessions and returns. Has any property bccn returned to, or repossessed by. he "cller or by a ~cured party during the year immediately ,¡(·ccding ¡he fiJin¡; of Ihc original petition herein? If !iO. t;ivC' pnrticulurs, inc1uding t.he n[¡me and adùress or the .:rt)' ¡;clting the properly and its description and \·u.luc.) ,7. Business leases. If you are II 1('nant 01 lJusiness property, ",hat is the lalllC and address of your landlùrd. the amount of your ,(,IlIal, the date to which rent had b"en paid at thc time of .he filin¡¡ of thc ori¡;inal pclition herein, and thc' amount .f SCêli.ity held by thc landlord? 18. Losses, a. Ib ve ) uU suIT ered any 1055eS frùm lire. theft., or gam· ,Iin¡; ,·lllrin¡.: the: ,';¡r i¡;¡[¡1cdialêly ¡fl·ct·ding the filing of ¡he lJri¡;inal 1,C:lili(,n he:fcin'? (If so, r:i\"e particulars, including ~:~t.:'_). 1.::;;1(:::', ~~nd j',J:¡CI.-"$. c¡~d the amounts or mane)" or vi1lue nnd " :ìt::-:d (..!L·jcriptien of pn..'pt'rt}· lost.) b. \ras th" ¡",s c¡,vcred in .....l,ole or pari hr insurance? ¡It :';0, givc Tli.1Tliculars.1 ¡9. \'jthdr..wals. a. Ii rOll are an individual praprictlJr 01 )(,ur ¡'USin~5S. ..l¡at r"'rsor,al ,';ithd,¿wals üí allY kind have you made from ¡hc Ll;sincss durin;! the ycar immediately pft'ceding the .~ing (,f ¡he ùri¡;ind petition herein? h. Ií the debtor is a partnership or corporation, what ;ilhdr~w;¡Js, in ar.y form (including compensation, bonuses .' Joa",,). ha"(; L ,·n ",,,de _or rcc~i\'ed hy a.ny member. of .:.l.' p;¡r~nL'r::lllp, l'; b:-' ~l;ì)" GU;\;l'[, J::-~ctor. In~lder Inanaglng :'.V:îJtj'''f:~ 0f ~.h~\réh,:dd,:.:r (¡Í ¡he C\HPÙf:lti,Jn, during the year :.;I¡;l,',J;~k¡i ¡,rL'c,Ji;¡g tL; filing of the original petition . ,,' r l; I ~1 ~ r;i'.l.' ~:;,,~ :l,~me lind (k-si¡;:n:ltion or rC!;'ltjoriship to the debtor of . <.~\I:;'l~·~~~(¡;:~.;n\~~{: (i}..~~:'-~0f.t)d nilH)~1:1t.!; (¡{ withdr~wals. and the 20. P"-yments or transfers to attorneys. 11, Ha\'e: you con£ull~d an attorney during the year imme- ,:i:¡¡t:J¡ preceding ur zince ¡he filing "Í the original petition fjd\:ilI? (Give d..le, r;¡,:mc. r:.nJ [!ddrc:;s.J L. !I::'..(; yuu Juring the year iJ1If:ediateIy pre.:eding or "lce th, fiJing of the ori¡;ina] petition herein paid any 'i1èY c., tr<Jnsfe.rr(;d ~ny ~roperty ¡o [he attorney, or to any .!:cf ~~i.:-~':;¡) en IiI"; b..:h:llf t ¡~'..:~;:. :~i:,/~ J~~~t~cu¡.~.::::. ~nc!u.~!?g' ~~~a~nt ~nid ~~T \'alue of prop- .oJ t,...._~l.·..l:.1 ..n(l ~.r..tc L'l .''',DH.:!.I. ur tr.,r.sft:!.) ~. H:,',,, y,lU. either Juri,,;; the y~:;r imzncdial~]y prcced· ':":'; or :jr:'~'(: ¡j~.: rdj¡:G of tÌ!I.;' origin2] petition I¡eï.:.:in, :lgr(;cd P,!',' :':'.~~. ¡:;r.jïl-.;Y (õr l....!n:::...:r Jny ¡:¡:-úperty to an :Illorney !;:"'~', -: "t\) ::n:. ~d!ll:r pC;':;)n (JI: }¡is LcllüH? ., "'" L' j ',. ......c.. ...:. í:l:j.;¿;:-.~: ~m{)~:::: ~:..à k:'rns of ùL1i:-;:1liün.) 1.1/ ~.:; "./ :'J,:"" '. .... I, .' _! l~::' :r1::, F. ,1::":1 (J .-r/-¡c,.rc(Jun, fhe fo/!o:~:' -,.J ~.:~.' (1 :' _ ':. :i. '. ,"\. .t.) .1. l'.fr.:niLcr:: GÍ i):,;tnl'r~d..ip; oiT1Lt:rs, dir~ctc:rs, Inan- ·...CiS. ;~ijd j~¡-~::cjl:~I ~tûcLÍìcdd..:¡s of corporation. :1. \\"L.\t i<.) IL:· ~:.I¡~e ;¡nd ~:dd¡"~,.'::s of e2cb nl(!lnlH.~r of the ··..:},:,:r :!r¡·:(i' ~,'i,': ·~:~~;;'::~:i:':~~': ~;~,:;,~;':!;::::i':,l,:';:~~~' 1:, ¡).,r:::!: ti¡C )'('~r i¡,;¡licJiJtI'Jy p,..""ding the filing of thc ",·j:..~¡r:::l rl.:1itÎ(ln LcrcÎn, L::.:: ;¡ny II,c;;·:L-.-r withdrawn fl'(¡jn the i,~¡tnt.;:LLip, 0r ~ny 'JÍÌiCt.:L, Jircctcr, insider, or ll1ilnagìng l·~o _.:..\..'\.'::!j''-~ c/f tht; l~\iítL:'Liti..:n tl.'JT¡.in::t::d his reJ:ttiüllship, or .':.!, ,lil¡;~I::i<t¡¡i:;I~;,:\!;!a;' í:{:~ ;~::~;lc~¡~1 '~f'-I';i~t~,:Ji,:i;~~?"d . ~~", d, .~:. ~::,~:~~.~·;:~'j'-~~~:':iPt~:';:·~~r/V1J r'.::J',G:1 íur \'/itiaha\·¡a1. lL'nnin.. I~. iÌ:..... ~:¡¡y. j,~·L:;,)n ~C:lui,r~ò ür Ji:;p~J~d uf.20 pl:f cent '. " :::~,r¡; ld t1:e .,¡')":' L ul 1:,1.: ('1)1 p·::;ratICln dunng t1:ë year ,:i.;..-ii,d..;jy J.r:_·\·,.~.¡i::;; tbe.: fili/lg l-.Î ì.he pctitiuu'! . ¡: 1 '.:, ~;:. : ;,;./;:'-." ,.,:,; ;!.L.!!"~.,..j ~.L,ì )J.:'lrtic;...:!:u::.;.) 110 e First Interstate Dank, 2750 lUng Ave., Dakersfield, CA Uo. H. E. Phoenix, c/o Bank of l'JT.c:rica, Trus~ R<aal Estate Sec. 8220, 615 Flower St., LO~~1101ós. CA 90017, $1450.00, July 1, 1985 H/A Richard Eglinq president ~ dividends and bonuses Yes, Kenneth nhkÐXSfield¡f Yesg Kenneth. 1122 'î'rwct:un åvenueQ Batesg cr~ Bates p ~ , - . . $4qOOOoOOo Richard Eglitlp :;.:n_"c:~.:d,.deT!t" lOO;~ B'Î:.c:;;:;1:holð.er. í ((;' c) Unsworn Declaration under Penalty oi p"i-jury "':Iily ,"ukr 1H:1I.líi1iil:1L2ir.J 11l:S11·!.í:J/ have r"ad Ihe all:,w...rs I.,':-t of IHï (uur) 1.11Uh"Jt'd~t~, illrl)rlil~l(i,,". ;111<1 belief. " -,," / F.....I'~·tllt·~i on Ii'" ./ ' 19 .- -.....- r ' an<l ,I'"~X"\JL"""'''. SU,cD,th:n." -- ~1.lkl1ll')t of "IT"ir, '" III Ih,,1 Ihey an: trut: and curred 10 the 0000:> .............. "'p'~~ .~.~:~.~~.+' ;·~:i~:i i;j·~:i;i.~· t:; ',i~'bl('I;"'" .... .... STÞ.TEI-iENT OF FINAN e AFFAIRS 12a, e LITIGATION FOR B. C. CHEMICAL 1. Kern County Superior Court B. C. Chemical v. Anthony Corderio & Wesley Gautreaux dba T & W drilling Fluids Case Number 190547 Collection Action ..f') . ( .-, 2. Ke rn Coun ty Supe r io r court B. C. Chemical v. Triad Chemicals & Supply Co. Joseph A. Elam, Doral Wayne Ambrose and Dennis Cornelsen Case Number 182643 Collection Action 3. Kern County Superior Court -- --·"1 _i: ,,- B. C. Chemical v. Bella Rosa Winery Case Number (Pending) Collection Action )1. Kern County Superior Court B. C. Chemical v. Hie ha rd Di ~jag g io dba Mr. Fiberglass Case Number 36609 Collection Action 15. Ì'!2St Kern J.1unicipal Court B. C. Chemical v. Bell Technology / CdS (; n L1 rn bel' 3 2 2 1 8 ColJ2ction Action 6. Kern County Superior Court B. C. Chemical v. Hobert Stone dba Frontier '1ud Case Number (Pending) ColJection Action OOOOR UNITED STATES lh:-':I\.HUPTCY COURT F _' In re ~~.N DISTRICT O~ .1rl Schedule A - STATEMENT OF ALL LIABlUTIES OF DEBTOR Case No. c. CU.mUCft..LS, INC., 95 -213 L 53 G 5 Include here all nam~d used by debtor within last (¡ years. Of this farm is used b)' joint debtors wllCrever the question requires separate answers for Husband (H), Wife (W) or Joint (J) insert the appropriate symbol in column headed H, W or j, If the word "debtor" or words r~Jerring to debtor are used they shall be read as if in the plural), Schcduks A.I, A,Z. and A-3 mU5t i¡¡c1ude all the claims against the debtorCs) or debtors' property as of Ú¡e dale of ÙJC filing of 11le petition by or against debtor~ SCHEDULE A.I - CREDITORS HAVING PRIORITY I (2) (3) Specify when claim wa¡ incurred and the con,ideralion therefor; -_..__.,-;~;---- J¡a"':':~ditor a:~ cempl.t. mailing address when claim is continoent, unliQuidated, disputed, or subi«1 10 "ature of C!Jim induding zÎp CGje (if Ut\knOñ'll¡ so state) setoff, evidenced by a judgment, neootiable instrument, or other wrHing, or incurnd as partner or joint contra.ctor, so indicate; sPt<;ify name of any parln.. or joinl conlraclor on any deb!. Dehlor 13. ID~ (4) (5) H \V or J Amount 01 Claim (6) ---- --------- -- - Indicate if ,(aim is contingent, unliQuidaled or disputed. s .G. \r¡¡'-"d. :>nla.rr. :::''11.1 n,tnd~j~,lOns.. ì:ldudllU: q~.c..:~ll(;n. ',L'\CTö.!JL'C t.r;d sick i~·~\·c J:tY (lwin;: to '.;d:kJ::¡·n. ~,(·:-\tln1S. :':,';):.", (IT 'ra\dlt'~¡:; ~~J~:r~;' (~-;¡L~;-;'I~)i~~~:~Pon L.1",:::'. \,,}.r.\L' or þ:lrt ~: ::~ l \' tt~~ ~ 7 ~;~ I~i.; f ~~R IJ t \'H,,·.·d¡::~ $~.ÚJO to (·:,(tì, ,,:t¡'H'd w!tlnD >:; d:.·..;. I,~·f,;,.(· r;lm; :;~ I £'1 :~I' :¡ 0: t';.~:-'.~. 1 !l':,. d I,"::':~,\'~":" it t' :.1 dCr I ~.'~ ....1 ~ d.;.ic). NOr-JE -0- ·':,~,:~0~dri'~~¥1 ~~ .~ \:¡(;¡: (ir t:'·.~'>.J.tW;J. ~ ,': ~:~.;:; ~~JJ~,.:i f:y ,,::¡:J. t-.l Ci~Il1 -0- l';·. t"":'!!~i h, :.·.:!!::.~:i:)i:l:tr(r .. -,.. , , '\ \,~':'.¡ ~'ï r:r' :j.' :,;.:::::~!;\:::~~,:\~iì~,. : L.H:~ ~'!I,;¡d 11.',0.) · :'~ ',:(';C !)(;\ :i-,\'rt,;:! 0:- : ",1d...~. :~{).:J;~~ -0- .~.... ~ · "~',~~~~,5 t?j:~} ~ll:;J ot · ..:.1;¡} l~lLlO: ~:,u:Hr :) '1'ù Ow Unltc~ £:t~tt.i 1-1 arm; -0- 'j',) Af., Sl&lo 'i'u L.."l}' olh....r 1J,:;.Hlo;: authority 00(07 To'.' --;-:::-·~C·r:--;:-.î". .1.,1 '1 1('\ '"''' __~. .tedule A-2 - Creditors Holding S_.:) (2) (3) (6) (7) (1) (4) (5) H W Or J Market ...Iu. Amount 01 claim without d.duction 01 valu. of security lIame of cr.ditor and comol.t. maíhnJ addrrss in:luding ZiD cod! (If ulIl.nown, so sial.) Destription of 'Hurily and dalt when obtaincd by creditor Sp.tify wh.n claim was inturred and Ih. con, sideration therefor; when claim is conling.nl, unliquidated, dìsputed, subject to setoff, ty;· dented by a judgment, negotiable ins\rumenl, or other writinG, or incurred as partner or joint tonlratlor, so indical.; specify name 01 any parlner Or jOinl tontractor on any d.bt. Indical. jf claim is contingent, unliouidat'd Or disputed Cl("irl:. E¡TL1ip~t 100 ¡Jest TC~I>le 1.,05 J\.!1gcles, Cl~ $ S Credit Corp. 1931 Clark forklift , - . . 5/21/81 90012 1981 ltlark forklift 20,000.0 15, 79B. 9: 8/20/01 Ba.-¡k 1984 Intern~tional .- Flatœd, 9/14/84 ~01100000 33,15~.O( 93304 ç~ Bank accounts receivable ?vfÚ' . ., au.d inve..."1tory ø 1919 ¡¡ß/'-.0 varioua Sl5,OOO.Ot 933011 . . .~ ~irst Interstate 2750 !.:~l.J.1g T:..\1Q11tlG 3êì.J::.czsfielJ..v c..!\. ~irst Iùterztate ~'\750 ::ing ~.:~Je. Ba}:ersfic16... G'\ ,<ihC Fi.r:.:::.nciD.g ',;." OD ;~o:¡: 1391 .t:~J:¡:;rsiie.la, ü\ 1~84 Œ1C one ton flatb:=d, .11/Ð/ù3 12;000.0, lOv121.lf 93302 ~ .- None of the ahove claims is contingent, liquidated or disputed unless otherwise stated, Total ¡.. ~ C d' H' U dCI' UfO! P-J4~UUIJ"OO Schedule A-3 - re Itors avmg "secure alms v\ It lOut nonL.'! H~:i1~ of cri:sitor (ir.¡:h:¿¡ng I~$\ kOQ','iil holder I Spc\:if¡ 't'¡hen c.bim ",-as incurred 3nd the tansidHaticil thuefor; \'ihe:o claim is cen- H cf ....:'Ij lìl';;,-,tJ;lbL: i;1sl,wme:nt) ('::r.1:;~c f:1Jj· tin¡¡C:.J1t. linlj~:'::cJted, displJtcd, subject to setoff, ¡;viócnce:J by a judoment, nt'C:)· 'II jJ1;) Jdórcs$ jrj:I:..JI:~ z¡~ ,oje (if L!l1l¡.ùv.'I1, tj;;b~ În5trur.;~nt or other writino, or incurred as partner or joint contí.Ictor, SJ or so s~3te). i:-::1¡C.1tC; sçc:clfy n:!me of zny partner or joint contrJ.l:.tor on ¡my debt. J ~74g07S..11 Amount of Claim _._-_.._----~. --- -_.-- j';." :3" uic1;, Prod.ucb~ Co 0 1200 18th Street De.l:u:~:i'i,2.1d, CA 93301 $ CCr:putE'I expense 1,015000_, l'~.:.~,tJ',.'c ~·1-Hr 'L.ire: S~rv.iccs Mobile Unite 327-3505 5B17 Garbar tiay P.¡:.Le.¡:-sfic;ldz CA 93307 R<;:pa.irs 24.00 A~';l",;.cr CLcsical !no" p" ().. f,o:: 6351 £,['J~erGfieldg en. 033G6 Cher.J.cale 69,193.07 :r "q r, ,- i 't01~ ,- ',-:0< [¡ .¡ "t C,-,..-.." ...J..,.~_ "_._..\. -....... \o...I.t-o 30GG :;,nH.:ÓE.98 Ltl..t"'le 1-)¿:J.u:cfield¡ Cl':;. 9330~ Cor.tainerz 33£3.39 00008 NOllc of 111(; ¡¡!Jovc claims i5 cuntingcnt, Jiquiòated or disputed unless oth(:rwi~c stated. Total Schedule A-, e Creditors Having Unsecured Claims V\e ,ot Prìority 'IMì1t 01 "tddor (In;:ludlliQ last ~nown hJldtr (¡f .)111 nr:;GI..ll¡Jt IIntrumcnO cOti1plrlr mad· n\g ;I;;örrH inc:ltllhn:¡ lip todr (if unknown. so S\3\tL Sp"ify wlt.n clJim wal incurr.d .nd th. conlid".tion Ih.rrlo.; wh.n claim il con. ling.nt. unliQuidal.d. dilgulrd, lub;,,1 to ..loll. .,id.nerd by a jUdgm.nt. n.go· tii1blt instrLlment, or other writing, or incurred 15 padntr or joint tontr,)ctor. so indICJI.; ,pteily name gl any parln" or joinl ,onhaolo. on any d.bl Ii W or J Amounl 01 Claim ;." :J. ~ync:~_ f.i COo ? D 0.. !~œ;: ~vlC3 ~,OS I~~']ele9, a 90058 s Checlcl11s 5.373.00 -';S.?-~ ~SlS Cl~i~ton Blvd. :::U:.ts.r:urgh:¡ PA 15227 Freight 5,637.18 J.;,;:d.:..:-1\-·Hee:d [¡ II1S~c'i=. Corlto ,"; ~1l.1 =~C)sE-":l~le Eiç1:'\1e~¿¡Y ~,:.:¡L;';:;::::f.::2ieldQ CA 93308 Ch~,r:<icals 21.27 ,11iG~ CLG~icQl COLp. :' 0 () 0 1::::)1~ 4 è 2 G8 _'21ï:~ F:"E1r:çisco, CS.... 9~114.1 Chc.:!: ic al s 15,173.01 :J~C.:.r ic",n Cl'~nal'1::id Co a ,)~J:t ¡-;c. 1- 0'; 91 'LCIS ;~rjYGle5, c..;. 9008iJ Cher::.icals 91,,(36.00 '.uc.ric::.n Salt Co. .).. 00 Box 96(;19 ~hic¿:.gOq 1L 6ù693 Chscl.ca1s 2., 6 2 Š . 1 0 .'.2;Je.rícan ~(~"2..nsfer COG c~·.. 00 Bo~ 1226 :':ccsno,. CA 9.3715 Freight 1,189..50 ~o Co Laboratories Inc. ~lOO pierce Ilead ';2.Lsrs:Cie:Ld, C3ì 93308 Lab Te:stiù'11 805.07 _:.32:..0:': Che¡:;Ìcals Ync 0 I ;ui'i.:0. 258 ':801 S <> Post Oal: P..oo!1d ,:oustOll¡ ¡;C2 77056 CbG".:iclÙS ~4,510000 2~LGI"s£ic.lè Electric Co.. 0,20 e';:;,od1:;an StrGet ~~~::1..c.i~s¡i2ltlv ë~ 93305 I::1.ectrica.l ~:od~ 2,079029 :;cJ.l [ò Hoz--kins EIGct.ric '>~210 ~·;0¡3t~5"",¡úll':¡(:·-.ß ,:;al:Ii-:lZ3fieidp G 9330~ Electrica~ tiork 74.00 :,'O:"1...t0r~ r::COG I:cc" ~)09 Ibth SL:cet ! ::~1":G::t3:r5..e:!.(1;, ....'" '- ,. ':'1-, -, ,. i :".:1.)\1._ Tire Repair 223.53 :î"211dco _')... Go> ED::': 3 2"~ 6 ::'.é.~ b:;r oS f itÜd,> C:l~ 933 Ü 5 Safety Fgu1p~cn~ 1#864.93 ]~3roid, Ine. p, 0, Box 206 ¡¡akersfielc1, CA 93302 12,750.00 i'\OIJC d tli<: above clai/JIs is contingent, liquidated or disputed ~nle95 otherwise ~Iated. QOOOD Total .._.____._.4_..· _.._.._.. n..___." Schedule A-_" ":reditors Having Unsecured Claims "e ...t Príority Name: of ·~·'t(J¡tor C 1/I[ludlno la1t known hoider (;1 Jny nr;¡cll.":blt insln.:mrnt) complrh r:'1J¡' 1;1g ;:\1drtH ir.:ludl"~ liP [ode (it un~nJy.,·n. 10 ,tJI,). SPt~ify when ~IJim was incurrrd and thr considrralion thrrefor; whrn claim is ton- tlng'nl, unliQuidated. dilDuted. lubject 10 seton, "id,noed by a judgm,nl. n.go· tiiJblt instrument, or othrr writino. Or incurred 'H parton Dr joint contractor, so indicate; 'Dtc¡ly nam. of any partner or joint contractor on any d.b( H W or J Amount 01 Claim Bregoilsponge International Inca 2313 Airport Avenue 1;':L8dericksburg, VIi 22401 s Chemicals 4,000.00 Bruin Chemicals 1511 So. Union Avenue Bakersfieldy CA 93307 Pallets 29,141.70 Buckman Laboratories 'Inc. 2575 El Presidio Street Dept 78 - P. O. Box 1000 I-!eraphis, TN 38148 Chemicals 6,119.40 Buena Vista Chemical Co. 2. D. BOL: i135 Bakersfield, c.~ 93302 Che..-nicals 2,980.00 Cal Data Supply Inc. 1400 Easton Drive, Suite 110 Bakersfield, CA 93309 Computer Expenses 101.34 Cal !Jeva Hinerals 1>.. O. Box 431 Shafter, CA 93263 Chemica1.s 6,290.75 California Tank Lines Inc. i~o 0.. Box 6245 S'Cockton, CA 95206 Freight 587.00 Casmalia Resources Po 0.. Bo~ 5275 Santa Barbara, CI~ 93108 Disposal 880.71 Celanese Cbe:.'l1ical Co 0 Ï!o 00 Box 96205 :~hicagoQ II. 60693 Cher:1ica1s 10,007.41 ChG1lical Transportation :21119 ~":ilmington _~venue LOD0 Beachg CA 90810 Freight 2,566.00 , Jess Clift:olì Helding 3101 EÕiliont.ol1 S'C.J:eet.. Ap"c. A B2.J:::ersfieldl c..":. 93309 Helding on equipm~t 74.00 ~J0,llç1 Printing '>.L.:) d Q Chestcl.") Srd..ta ß l:: .:~JJ:r~~!:- G f :1_2 ~Ld..1 (~J:. 9 :j 3 0 Ü Printing 57.77 ;:~O¡:i:08 Brm·!.inç)" S2J:vice 2001 Union Avenue ß:Ü:e:csfield, c..~ 93305 Office Expense 96.40 00010 NUIIC of Ihe above claims is contingent, lic¡uidated or disputed unless othenvise stated. . Tolal hil.mt of [uch1g, (IncludtnC las' kno..n hold." ot Iny n,çoliabh. iMIrL:mrnt) (0":lDlrtr mall· lOp add"" includln; }IP (tI¡)t (II ul'\known. .0 II.h). Schedule J . (.. Ie, Credilors Having Umecured Clairr ., ( ut Priority ", Sprtif, .hr" claim wU inturrtd and thr [onlidrrJlion ,dor: ....,hrn clJim ¡. ton· I~nornt. unllQuidlhd. diløulrd, lubjtet to ulo,", r,idrnerd by J juéçmrnl. nrQO- t\lblt iMhum,f\\, Of otku ...1itin;. 01 ¡nUHIIIS a\ Plltou or jcin\ Lcnlut\or. " ¡ndiclle; ,pfeil)' nlmf Dr an)' partner OJ joint (Ontr.uID' on .1ny étbl H W or J Amount 01 Clailll C-Corp 2770 vail Avenue Los Angeles, CA 90040 $ Chemicals 7,700.0C Custom Computer Serv Inc. 17th & 0 Street 2210 San Joaquin Fresno, CA 93721 C.utside Computer Service' 2,039.9f Chemex P. O. Box 1086 Bakersfield, CA 93302 Chemicals 450.0( Willard Christiarisen, M.D. 2021 22nd Street Bakersfield, CA 93301 Driver's Physical 35.0C Davenports, Jack 3300 Wible Road Bakersfield, CA 93304 Calculator repairs 4 à . 2~ Di~~ond Shamrock Chemicals 1450 W. Cape Drive, Suite 650 San Mateo, CA 94404 Chemic al s 89,955.8L Diagraph Corp. P. O. Box 3008 Carbondaté, IL 62902 Stencil Hachine 1,113.5: D . T. I. Do s s Transportation Inc. 1628 Sportsman Drive Compton, CA 90220 Freight 1,872.3: Drilling Specialties Co. c/o Phillips Chemicals Co. Box 92215 Chicago, IL 60675 Chemicals 45,070.0C Dunlap Bros Leasing & Sale 15 24 24¡~h S t:r eet Bakersi'ield, CA 93301 Auto Repairs 65.6~ Eastman Inc. 1622 19th Street Dept #53807 . Los Angeles, CA 90088 Office Supplies 193.2: Emery Smeck & Company 1222 Chester Avenue Bakersfield, CA 93301 Accounting 2,660.0( , . Environmental Protection 3040 19th Street, Suite 10 ßCiJ:crsfield, CA 93301 Disposal Fees 2,106.2' 00011 NÚllC of the: ;¡Lovc cJ;¡ims is c(Jntin:;cnt, liquidated or di!pllted unless otJH:rwif.e st;¡lcd. Tolal ..-.------ ...-.---.... , . .' Scht'Clulc .. ----- -. -.-------..--------" -_._---~ (.Cn.ditoH Having Ume-<:ured Clain4t ,. '\11. P~jorily .)prtity ",ht" cLlim _11 incurrrd and the tc"sidt'rJtion Ihfrrfor; "0'" (l'lm is cen. flnornt, unl,c;uid.lrd, dUCluttd. 1ubjrtt to uten. "idrnr,d by I jU~'IT.rnl. "'QO- babl, imtrumrnt, or Clthrr ""illng. or ¡neurite: :311 pu\nrr or joint (cnluclgr 10 Îndl[)'C HHit)' "am, of In) ¡:n1nrr or jc"lnl umhulDI Crt .n7 dtbl . h.B!".f d (rfCllc' I r!.; luClne 1"'11 "r:r..n held" cI ;!Jnt.. r r;::t¡;at';! Ir~tr"ï."nl) [~ï.~lth r',ad· Ir.; IcdrPH r,(L:~,n, ll~ ,,,dt (it ur.inown. Ie ,:¡h). ------------...---- ---.--------- Eë1st.man Chejìlical Products P. O. Box 65240 Charlotte, NC 28265 Chemicals Exxon Chemical JllTIericas P. O. Box 297104 ìIüus'lon, 'l'X 77297 Chemicals F!-1C Corporation P. O. Box 44373 San Francisco, CA 94144 Chen1icals rGderal Express 913 Douglê.s 2ak~rsfield, CA ~3308 Office Expens~s Floyds Stores Inc, P. O. Box 2940 Gokersfield, CA 93303 Miscelltneous ~';arehouse Su¡:. Fults Chemicals- P. O. Box 1456 Tulare, CA 93274 Chemicals Fred C. Gilbert Co. P. O. Box 5534 Bakersfie~d, CA 93388 Pump Parts G. A. F. Corporation P. O. Box 61000, Dept 1183 San Francisco, CA 94161 Chemicals (:;PS Industries Div Telautograph Corp. 8700 Bellanca Avenue Los Angeles, CA 90045 . Chemicals Grain Processing Corp. P. O. Box 92670 Chicago, IL 60675 Chemicals Giumarra Vineyards P. o. Bin 1969 Bakersfield, CA 93303 Wine. Gray Lift Inc. P. O. Box 2808 I Fresno, CA 93745 Forklift Repairs Genstar Line Co. 901 Mariners Island #425 File #71402 - P. O. Box 60000 San Francisco, CA 94160 '. Chemicals 00012 ~Ofe of tlte aIJo\'e claims is continr.enl. liquidated or disputed unl:2s otherwise slated. Tala1 Ii W or J lIrr:cunl 01 [I.i.. $ 14,048.34 36,809.97 27,628.78 82.00 1,431.02 1,179.75 1'8.26 13,280.40 5',645.19 4,242.00 29.89 8,694.69 5,291.25 _____.__ ,_ _____ Schedule J e, h¡",r cf C"Cllo- (Ir,:I;..:.,., 1".11 t¡.['III" t.cldrr I d ¡~)' rlr;~\ut\t ,r.~\ur.·tr·,\} (cr;.~hh n;"I. Ir.; ¡=~'ru iro;luc.r.t J,p ,c.dr (If tI:'I.nOwn. SD II,,,). ---~--_._-~._-_. --------- s Government Data Public GOP Bldg. Acctg. Div. 1661 McDonald Avenue brooklyn, NY 11230 Henderson, Berntson & Co. 841 Mohawk Street, Suite 100 Bakersfield, CA 93309 IIercul es Ine. p, O. Box 62357 ~~n Francisco, Ch 94162 ;:US;h8S Drilling Fluids 1'. O. Box 200755 ,:,~,'c:st(-jì, TX ,/216 Iiil1 E[os Che.mical Co. 1675 Horth Hain Street Orange, CA 92667 HolchC-::I11 Ine. 1224 E. Katella Ave., #200 Grange, CA 92667 Hondo Chemical Inc. P. O. Box 9931 Bakersfield, CA 93389 Hopper Inc. :lJ. O. Box 2900 ~3a.kersfield; C-"l\ 93303 Hoven & Co. 1'. O. Box 2267 ~akersfield, CA 93303 L C. C. C. [nterstate Contract P. O. Box 98842 ~hicago, IL S0693' (; Industrial Waste Engineer e. O. Box 6127 Gong Beach, CA 90806 T. C. Enterprises I ) O. Box 1089 6 ~3kersfield, CA 93389 iones Chemicals Inc. 100 Snnny Sol Blvd. :aledonia, NY 14423 Creditor!> HI1\'ÍI1E Umt:curcd CI¡¡ime.( ")IJIP~jorjty .)Prtif~ .ht" rhim wU ir.culfrd Jr.d the (o/'Hi~rr,IÎDn tt;"rlo'~ .IIn rllim il ton. \lnÐrn\, unllçuiC'lhd. dl\J'lIJ\rc!, ~L.'bJrct ,,, "'c.r.. ,.ittner!! by J iuó'tJ"'.rnl, f\r~o. 'Iable instrum,"t, 01 clhu ""il,n:, Of int\.:"t~ " ~llln" Dr jcinl rc"\IIJclol. 10 Indlcah; u~rcÎfy '.Imr of 031'1) çld"" 01 jcinl (cf.t.ulof en In7 drbt H W or J Amo""1 cf CII¡" 86.75 Accounting 2,075.00 Che.iìl ical s Chemicals Chemicals Chemicals . Warehouse Supplies Printing Freight Chemical,s Chemicals Chemicals ~one of the abo\'e claims is contingent, ]jquidated or disputed unte~s othen-.·i~ stated. 00013 Talal 17,703.28 538.30 12,516.00 7,548.75 6,959.98 18.00 ".914.74 1,586.72 618.']5 1,320.00 39,402.15 '. ScL('r1ul( _ --~--~_.._----_._-------_._-_._-.-,_.- tH.tn( ct [!rdltol (H\(I':Clr,; t~,1\ kr:~:-; f-,c.lj", I . of .an" ntt:C'I.)~1r Inslrut:":rnl) cc~;,ltI~ ,....11. In~ u~~'us IncluCH':; llf' (Od, (II Of:.nOwn, )(; ~ t ¡It). , ._._~-- ------ ---.---.--.-----------. .-...---. --..-' ,1 ~JJsen I nterna tional Inc. P. O. Box 870 ß~kersfield, CA 93302 J{i ~~co Sal es Inc. 301 Swrnoer Street Bakersfield, CA 93305 Kelco Rotary P. O. Box 2402 BaJ:ersfield, CÞ. 93303 :¡·~(.:~-Š-l rl~C;(~:.}ct.s In·:; ( !\~~l:'!:¡inal 7-~:-;ïJC:::~-: ~fj (j. Box ::; 633 .',,'., /.ngeles, c,~, :: L) G 51 . J...,(:: e C h EJÎ-.i c a 1 I n c . P.O. Box 1873 Costa !·1esa, C.r,. 92626 . J-:rcdilou. Having Umccurcd C1aie . "lit Priorit~, I ., J i . ~ ' \ ..,t~ih .hrn claim ...u inturud Ind H,t tcnsidu;,tion H:ntfcr;' \. ...n (him i, con. hn,rnl: IJnhCUldllrd, dnr.ulrd, .,uhittl 10 "Icr., r.i(rnad toy J. ¡1J~'''''rr.t. l1rgo. ~¡blr Inst,um,"', Dr Olhtr ",¡ling. Or incurrrd a, pl~n'tF CH jClnt ttn\rHtor 10 Ind,c¡h; Iprei., r.am, of JM' rJrlnu 0, ¡c.int tor.t,,:lcr en 'n)' drtoi . -------- Truck Repairs Tanks and parts Chemicals Chemicals Chemicals Liquid í'Jaste r·1anagement Ine. P. O. Box B 10801 Dale St. #G2 Stranton, CA 90680 Long Beach Shavings Co. P.O. Box 1020 1.,on9 Beach, CA 90810 Log Cabiri Florist 300 19th Street Ei:lkersfield, CA 933V! L. S. Chernical Corp. Gatx Terminals San Pedro 520 S. El Camino Real #6l~J San Mateo, CA 94402 L. W. Potter Trucking Co. 3237 Patton í'¡ay Bakersfield, CA 93308 Lonza Inc. 20851 So. Santa Long Beach, CA Fe Avenue 90810 J.!ayo Hydrauliés 225 E. Brundage Bakersfield, CA Inc. Lane 93307 McCarthy Tank & I P. O. Box 1887 Bakersfield, CA Steel 93302, Disposal Chemicals ' Flowers Chemicals Trucking to Disposal Chemicals Parts " Tanks and Parts . None of the above daims is conlin gent, liquidated or disputed unle~s othem'ise staled. -00014 Tola) H W or J Amounl of (bill! $ 11,173.6 9,884.4 1,560.0 2,301.7' 1,563.5( 97 .5( 569.0C 200.4~ 3,939.0e 1,320.0C 120.00 114.11 5,695.38 Schedule J. rCrcditon Having Uml"{;urcd Clain__ ( ~utPriorit)' h¡,.,.,.( c:f (tCdO' {lnc1udin, 1~lt hr...." hOlø.rr I \ "reif, ""hrn rlJí~ wrrll incu"rd and ttlr (C'·ntidtrillion Ihrrrfor: .(n claim is ron- el )"'1 ,nccl',,,tlr 1r.~t'UIr,rnl) (on:r.1rlr mad· I~n,rnl: unhQu(~atrd. duøutrd,' .Iub;ttt .to ulen. r,icrr'ltrd by ._ jud''''"nt. MOO' t,~.;. )::::-rus ,n, IU~ln, Jlp [odr (If un\no'flr'", 1¡t:1t Inllrumrnt. 0' olh,r ",,,lIng, Dr In(urtt~ al çulo.u 01 jOlnl tontrutor~ ,0 H IIJ1r). indicalr; HfCify "amr gf anT putner or Joint &,oohlClor Dn In1 drbt 1\ W or J Amount 01 Claim ¡·jünpO\·,1er Services P. O. Box 1201, Dept 110 ¡'LÎ. h.l¿}uk ee, VH 53! 0 1 $ Temporary Help 1,930.67 l'·jõ.t't-Chlor Inc. 4107 N. Arden Drive 81 Monte, CA 91731 Chlorinator Parts 224.18 Manville Products Corp. l(JOO hr. Tc:;nple ;05 ~n9clcs, CA 90074 Che..rnicals 13,492.22 :,;:i ~:',',ay COlúpletiún & Drill ~j. d. 30x 4 00 Feilows, CA 93224 Chern ical s 6,222.00 ~:. p, Vacumn Tl.-uck Service 17:) Eav Street ::'2J.:ersfield, CA 93308 Freight 575.00 ~';obil ChenÜcal Go. P. O. Box 100907 ~tlanta, GA 30384 Chemicals 9,372.75 :·jotor City Sales & Serv P. O. Box 672 2õ.kersfield, CA 93302 Truck repairs 5,308.61 >íontana Brand Produce Company J507 Beck Street Salt Lake City, UT 84116 I, _, ,'JC hE::nneys "~323 "R" Street l;'akersfield, CA 93301 Freight 545.40 Air conditioner repair 286.76 :Jccidental Chemical Corp. dooker Div. HOG5 P. O. Box 44378 San Francisco, CA 94144 'Chemicals 26,618.86 'Jilfie1d Chemicals oivision of Chemlink Petroleum Inc. ? O. Box 8068-1194 I ?hiladelphia, PA 19177 , Chemicals 632.50 ')lin Corporation ]. O. Box 19201 ::ansas City, MO 64141 Chemicals '3,931.02 ,')£izer Inc. }. O. Box 30038 T A ~os Angeles, CA 90030 Chemicals 1,400.40 00015 None of the above daims is contingent, Jiquiðateå or disputed unless otherwise stated. . Total . . SrI.l.dUhr"" , . -..---------------- - 'tam, cf n,d"or (In(lu~lnt IHI ~r.tNr. htlOrr . 01 Iny nr,tll;\blr I"\rl,¡r;"rnl) (or::.r:1rlr mail. In; IC:drrH ir:dudlnc llþ [eCt (If or,à.nooKn. It .hl, L I .Cr(·dilors IJ¡n,jnc Un~(·curcd CII1_.1 .' ....ul Priority t --\ ...:'fcil)' 'WIhtn (111m ..i incu",d ¡nd ~hr (omidrnltion thrr,'of. ,.,I,n rbim is [on. tin"nt, LlnI.ClIl¡:¡lrd. t'H!1ulrd. lubJrct to "ton. tfi~rnctd by I judr;mrnl. n"o. !¡¡blt ¡nllrumr"'l. 01 01"" "rilino. or ¡n[ulrrd U ¡:atlnrr or joint tCnlfU\(H, 14 iné,tJIr; Ipttilr ,.Jmr 01 Jr.,. ,:ulnr 01 Joint ronluctol c.n Jr:y drbl H W Amount 01 Claim Dr J The PQ Corporation P. O. Box 93177 Chicago, IL 60673 $ Chemicals 1,831.2 Pacific Detergents IUS \'J. "]?" St., Suite 401 San Dj.ego, CA 92101 Chern ical s 12,324.1 Penwalt Corporation P. O. Box 45080 S~n Francisco, CA 94J.45 Chlorinator repairs 396.L' P:ccsto-Tek CorD. 7321 u. PiSLJc:r~a !~Os Þ.ngeles, CA Street 90041. Hand Pumps 741.2 :E=-:co Tech Enter P. O. Bo^ 1868 ~aj~ersfield, CA 93389 Copy machine repairs 60.G Pilot Chemical Co. 11756 Burke Street Santa Fe Springs, CA 90670 Chemicals 5,284.0 Phoenix & Son Garage & Storage P. O. Box 751 Bakersfield, CA 93302 Truck repairs 2,241.1 Par Trucking Inc. 1008 E. Morven Street Lancaster, CA 93535 Freight 577.4 Pure Gro Co. P. O. Box 1-1 Pixley, CA 93256 Chemicals 935.0 Reliable Tank Line 2595 Santa Fe Avenue, Sp. 284 I Long Beach, CA 90810 Freight 2,500.2 Riverbank BulkWa~er 701 No. Pioneer Avenue Wilmington, CA 90744 Water for mixing 100.0 I Rio Bravo Disposal Fac P. O. Box 53ge Bakersfield, CA 93388 Disposal Fee 468.7 Rep Chemical Company P. O. Box 8712 Sal~ Lake City, UT 84108 Chemicals 83,375.5 R & W Services Inc. P. O. Box 975 Newark, CA 94560 Freight ·0001R 663.8 None of the aLo\"e claims is contingent. 1iquidaled or dispul(;d unless ollJ!:rwise slated. Tolal __._'_..'_________..____'__...u___~,c~)('dulc I _ ~ Crl'ùilor~ HII\'in~ Umt"curcd C1ajrn et ',oul Priority . "a~t c.f CI~d\\O~ Hnduc!lr·c IHt ~n~",n I:c:ld.,' I \ ':':Jt~lt.,. ""hen. claim .a, tncurnd and tht ton\iduallon the1tler. e! ¡ny. ,tI("O."..1r Ir"strumrr.t) 'c~..lrI,. rr.atl- t~r.ornl. IInhQult:alrC, cloÞulrd, J,ubj,cI to ulen. t"r1rncrd by I"'~ ;Hdtr~\ Il:t1oJdHI, lip ,,,:h (If tJl.,n~~. {.ablt in5humrnt, or tltar ..ritino. or Încuffrd Ii r.~lftr'\fr or J ___~~~.____~..:..___.~____. Înc(¡h; Iprcily namr tlf Jny parto,r or jeinl (Cntrattor Of1 ¡¡nr ,John R. Reedy ]Ütorney at LaYl 3434 Truxtun Avehue, SuitR 220 Bakersfield, CA 93301 Attorney fees hopak Hest Inc. 14720 Alondra Blvd. La Mirada, CA 90638 Plastic Pails Hyan Bereo Products Corp. tj. O. Box 588 curbnnk, CA 91513 J.Iachine rental .,,~tã.uffer Chemical Co. P. O. Box 45178 San Francisco, CA 94145 Chunical s Simplot Soilbuilders ~C Co. P. O. Box 207 Edison, CA 93220 Chemicals Scotsman Mfg. Corp. P. O. Box 99000, Dept 99149 Marina Del Ray, CA 90299 Office trailer Safety-Kleen Corp. Box 1800 Elgin, IL 60121 Parts Sams-U-Drive 2122 Union Avenue Bakersfield, CA 93305 Truck rental Spivey Brokers 7nc. P. O. Box 746 Mattews, NC 28105 Freight Smith Transporta~ion Dept 64468 El Honte, CA . 91735 , Freight Stinson Stationers Box 3399 Bakersfield, CA 93305 Office supplies Sea Clean Inc. 7000 SW 62nd Ave., Suite 555 l1iami, Florida 33143 'Chemicals South Union Towing 4390 Turon Avenue Bakersfield, CA 93308 Truck towing Source 1 3075 Citrus Circle, #195 Halnut Creek, CA 94593 Chemicals Nunc of the above c1aims is contingent., liquidated or disputed unless otherwise stated. ,Irn tlolim h (on. H I ;uépTJrnt, nr;o. W to::-,un! cl Chi.. "~lint tOntllCtDI so or drbt " J S 2,000.00 6,934.56 7,000.00 18,148.59 151.80 rental 364.64 79.50 . 600.96 , 8~472.88 194.06 . 15.37 22,259.87 720.50 0OOl~ 8,390.40 Total __~_,_.______ Schcdulc _, ~'lr:-:f cf ('fCllor (Ii1CIU!!lfI; 1.~lt kntlf</n holdtr ~1 Ölr.jI r'fçcllzblr insl,~r.,rr:t) [:..n;:lth r:-.ail. In; ?~¡::ttH indudlO' lj~ [cér (if 1.'/ÜI1c,fI;'n, H' J~Jt). - Crcditor5 Having Umccurcd Clni'. Jut Priority S;atil, ....htn r.laim .1' ¡n"""rd and thr ron.idrr'3tl:>n thnrlo.. hrn ,I,im ¡¡ ton· IInetnt, unhtuld.ltd. dopulrd. ,ubjrcl to utor., "idrntrd b, I juÓ,rnrnt. "rgo· liatlr indrumrnl, 01 Dthu ~rjltn~. Dr ¡I¡currrd II padnrl Of joint conlrattor 10 inClcatc; Hittif)' n3mr 0' .ny ~Jr1n" Dr JOint ,0nlr"lor [in InJ debt . -,-.---.----. --. H W 0' J "meun' 01 CI.i.. ScJJi'.:ebel Petroleum Co. i). O. Box 512 Bakersfield, CA 93302 s Chemicals 9,790.6E Si:1\-Jtelle & Rosprim of Bakersfield 201 East 5th Street Bakersfield, CA 93307 Parts 24 .6 E Stepan Company P. O. Box 93036 Chicago, IL 60673 Chemicals 15,014.5: South Union Truck Parts 2130 So. Union hvenue Bakersfield, CA 93307 Truck parts 719.59 So-Cal Transport Inc. 3272 Easter Cr. Huntington Beach, CA 92649 Freight 2,027.31 System Transport 1710 East 29th Street Long Beach, CA 90806 Freight 1,590.45 Tierra Chemical Inc. P. O. Box 9931 Bakersfie¡d, CA 93389 Chemicals 1,50'0.00 Tool Shack of Bakersfield, #2 2825 Niles Street Bakersfield, CA 93306 Tools 31.69 Tyacks Tires Inc. 211 Summer Street Bakersfield, CA 93305 Tires and tire repair 2,150.87 Trans-West Security Serve 4444 Grissom Street Bakersfield, CA 93309 Guard service 3,769.60 Union Carbide Corp~ Attn: Tom Stillman Dept 1-2004 Los Angeles, CA 90088 Chemicals 77,499.40 Uni9n Chemicals Div. petrochemical Group 1000 \'7. 'Temple, File 9185 Los Angeles, CA 90074 Chemicals 45,494.40 U. E. Specialties 9161 Russell Avenue Garden Grove, CA 92644 ". Chemicals 639.00 00018 None of the: above claims is contingent., ]iquidate:d or disputed unle~s othe:no.·ise stated. Total --h:m-:-:-~';o. «n'~'.n' Il~n~~~1 - cf In, nr;:II~t.Jt Irdrur:-:rnl) ccrr.rlrlt mail· .... Inc J~érl\ ,"(I..J~ln, )p codr (If un~flo",", ~ )o,ht,),' united \'1holesale Lumber Co. P. O. Box 820 l1ontebello, CA· 90640 Van Waters & Rogers P. O. Box 2062 T A Los Angeles, CA 90051 Ventura Transfer & Storage 2418 E 223rd Street Long Beach, CA 90810 Vivion Chemical Co. Inc. 929 Bransten Road San Carlos, CA 94070 Valley Industrial Services P. O. Box 6397 Bakersfield, CA 93386 Westridge Oilfield Product 3770 Tansy Street San Diego, CA 92121 I'lelchem p, O. Box 100003 Houston, TX 77212 \'lestco Chemicals 11312 Hartland Street No. Hollywood, CA 91605 Haymire Drum Co. Inc. P. O. Box 187 Downey, CA 90241 í'1iding Transportation Inc. P. O. Box 03159 Portland, OR 97203 ~}estern Farm Service Inc. P. O. Box 1168 Fresno, CA 93715 West Coast Salt & Milling 608 Kentucky Street Bakersfield, 'CA 93305 Western Briquette Co. P. O. Box 8712 ISalt Lake City, UT 84108 _"_ ~"U·".b _...·....~....u '-Hi."." -"'\)UL S. Tlor'I)' S_"i1r .hrn ,I"m ".. in,u",d "od Ih. con'id".!;"n!fA "'.n d.,,,, ¡. '0." t,n;rnt, tJnl.cu~ltrd. dllruhd, 1ut,rcl 10 utero, "i~l~ . Jvd~mrnt . ~IJt:1r in'\,u~rnt. Or othrr w,ibnC. or ,r'lu,'rt: a¡ ¡:lItnu Of' Jotnt tcntfat't~tQ:G Intl':lh; H-t"', nlmr Ð' an)' p:rtnrr Dr Jou;1 ten'llt'Of Dn Inl -'rbl . Pallets Chemicals Truck wash out Chemicals Uniforms Chemicals Chemicals Chemicals Drums Freight' Chemicals Chemicals Chemicals ~ - -.-- -. _...-----_.~._--- None of the abo\'e claims is conting!:n!.. ]iquidated Or dhputed un1e~s ot'hcn·..ise staled. o 0 n 1 (i~ Tola) II W l.mounl 01 Clli.. CI J $ 4,347.20 6,353.23 132.90 10,519.60 1,770.12 5",822.20 58,69,2.00 5,400.00 30,491.27 66.50 2,140.60 305.5J 6,842.85 1,278,¿68.13 SCHED& ( - STATEMENT OF ALL PRO.\r1 IFDEBTOR Scllf'rlulcs I\,l, B·2, B·3, and (!,4 must include all propert)' of the dehtor as of the date of the filing of the petition by or against de!.¡ Schedule B-1 - Rcal Property Ducriohan and louti011 'of all rral property in which debtor has an intfrut (including equitable ~nd future inhresh, intrtuls in tstatrs by Ihe tntirrlr. community propert,. lih utates, least· hold., and rights and po..." .."dubl. lor Ih. b.n.hl 01 d,blorl Nalur. of inl.rrsl (sptcily all d..d. and written instruments relating. thereto) II M..k.1 ..Iu. 01 d.blor', in W 'withoul deduction for .fcur.d { or lishd in Uhfdult A·2 Dr f J lionl ,aim.d in seh.dul. B, $ Debtor O¥ffiS no interest in real property. Debtor is a tenant in a ~onth-to-rtl0ntb lease for the property at 1511 Soutfi Union AVCnU6g Bakersfield, California . . . '" . - .' . .. . - : , . not: d teJ win~d Total Schedule B-2 - Personal Property T)'¡J£ 01 Prop..ly Descriplion and localion K Marhl value of debtor'. inlt' W "ithoul d.duclion for .tcurod c/, or li.t.d on "h.dul. 4·2 or 'H' J tion. tlaim.d in .<h.dule 8·4 a, Co.h on hand $ 346 00 b, Deoosit. of money "ilh to";;r., in.li, tutìons, 1J.vings ilnd ¡jJn .associa· lions, credil union., public utilily <o",pani.s, I.ndlord., and olhell Firõt Interstate Dan, 2750 field, CA California Republic Bank, Bakersfield, CA Ming Ave. p Dakers- overdr um 1515 17th St., . -. . '. .. 23,009 29 , c, IIculthold good., .upplie., and furni.h· incs 1::WNE d. Sooks, pielurll, and olh.. arl obitcts; slamp, cain, and olh.r cciltclions í10NE ., W.ving apparel, j.".lry, fjrurms, spar 15 'Quipnant, and olhl( personal possession¡ NOrm I, Aulomobi.., Irucks, tra¡¡"., and olhu "hid.. ... -0- -0- ~ -0- 216,000 00 g, D031s, molars, and Ih.ir acc,"oriu '7' 00 0 :~ n Total -0- NOUE _.____.._ __..u_ e ule B-2 - Personal Property (Con_ \.' Type of property Ducription and location f, Marht UIUf of dtblO,', Înt,,"1 without drduclion for ucurtd clllm, ¡,.ltd on sohedule A·2 Or eump· tion, tl¡¡mfd.in ·"htdult 8·4 h. Livestock, poultry. Jnd other animals NONE $ -0- i. fo1rming supplies and implements NOiJE -0- j. alfiet eQuipment. furnishings. and supplies Hisccllaneoo.s chairs Ii office furniturol ,: 20 c1c::l::.s & chairs, 10 calcula.tors, 25 file cabinets - . . 40,000 00 r.. M.lchir.cry, f.xtures. equipment, ~nd suppliu (other than thost ¡¡sled in itcrr.s j and I) used ¡r¡ busir.tss shop tools; puaps, t~~~9, forklifts - 100,000 00 I. In\'enlor)' 53~,968 00 roo. Taopib1e personal property of any other du"iption -0- Hmffi n. Paten¡, copyriahts, franchises, and other gentral intanaibles (specify HOm~ -0- all documents and writings relating thertlo) o. Go.ernmenl and corporale bonds and other neaot¡able and nonnegotizble in~truments HOUE -0- p. Other liquidated debts owing deblor nOl'iE " -0- Q. Continaenl and unliquidated claims of h"r:ry nature, including ccunluclJ.ims receivable, trade ..c:::.--- ' 1,230,91E.66 of Ih. deL tor (ghe ,slimaled yalue accounts ~ of each) - , r, Inltrtsts in insurance polities (Hemin ,urrend., or refund yalu,s rf each) NmtE -0- s. Annuilies 1:. ONE .. . -0- I. Slocks and inlerests in incorporated jlnd unincorporahd companies (jttm. ¡It separately) Bruin Checlcal .. . u, Inler,sls in parlne"hips NONE - -0- " . " Equitable and fulure interuls, lire ut~hsr and rights ar pDn'HS uer- dub I, ror Ihe benefit or Ih. d.blor ~'¡02JE (olh., Ihan thole lilted in sch.dul. B·l) [spedfy all wrilhn ¡nltru· ments ..Ialing Ih.nlo] OO( 2 _ -0- Total SC. .e B-3 - Property Not Otherwise sct ' d Tyoe of property Ducription and location ~ I or J Mark,l ...¡Iut of drbto,'l Intffut without drduttion lor u[ur,d claim, IIstrð in Hhtdule A·2 Or furnD· liollS tlaimrd in uhrtlulr 9·4 :\. Prorarty trt\1I5ferrrd under J.Hlgumtl1l for bent'" of elt.dltoH. within 12Q days prior to '¡lillQ of ottilio" Ope<ify dale of ",ignm.nt, name J,nd ilddrtH tot õluignu. amount rr,ltil.d (h."from by the alsignee, and disposilion of placerds so far "I known 10 d.btor) f UONI: -0- " , Ploper~y cf ;In)' kir.d net ctr.erwise sri:duJ{j I t~O¿'I~ -0- Total i.}c.Ltor ~elect5 the follo\\'ing property as exempt pursuant to o 11 U.S,c. ~.122Idl o the laws of the State of. ........,...........,....,....,................ Schedule B-4 - Property Claimed as Exempt -0- H I Type of property location, delcription, and 10 far al "Inant to the claim of exemption. Specify Italuft creating the W Value clainled exempt prelen! ule of property uemption or J S HœŒ . . -0- 0 , .\ -- nnn?9 Total SUMMARY OF DEBTS AND PRt <TY (From the sl nts oT the debtor in Schedule A and B Tolal Sch.dul. DEBTS A-I/ a, b...... Wagcs, ctc. having priority,.............,..,.,.:.............................,............. A-I (c) ......... Deposits of Inoncy..........,.... ................,..........................................._. A-I/ (d) 1.....Taxcs owing United States................................................................ A-I/ (d) 2.....Taxes owing states ......................,............................................_,....... A-l/ (d) 3.....Taxes owing other taxing authorities......,............_.......................... A - 2.. ......... .... Secu red cIa i ms ,............. .n...'.......,. ...... ........................................ ......... A -3............... Unsecured c1aims without priority......................................,........,..... Schedule A total PROPERTY B-1. '............. Real property (total value) ......,...................................................._. B-2/ a.,...... ,...C ash on h an d.........",.................................... ........................... ........_.. B- 2/b......,.... De pas i ts ............. ................... ..._..... .....,.. ...... ..._........................... ...... B-2/ c, .... ....... Household goods ........................................ ..........................,..' .......... B-2/ d.......... ..Books, pi ct ures, and collecti ons. ........................................................ B-2/ e............ Wearing apparel and personal possessions..._.................................. B-2/f............A u tom obiles and other vehicles..,...............,............. '.........,............. B-2/ g..._...... Boats, motors, and acccssories.. ........................................,...............' B- 2/h. '...... ,.. .Li v estock an d 0 th er an i m als,..n........,.... ....... .......... ..............., ....... ..... B-2/i.. .......... F armi ng supplies and im plements..................................................... B-2/j ............ 0 ffice cqui pment and supplies........ .................................................. B-2/k...........1\Iachinery, equipment, and supplies used in business....................... B-211............1 n v en tory .. ... .........' .................... ......... ............................. ............ ........ B-2/ m...........O ther tangible personal property.,..................................................... B-2/n ............P aten ts and other general in tangibles,.............................................. B- 2 / 0..._...... ,B 0 n ds an d other instruments.. .......'. ....... ................................ ........ ,... B- 2/ p..........., 0 t her ) i qui d atcd debts.......... .....~ ........ ...... .......... ...................., ....... ..._ B-2/ q ........... .Contingen t and unliqui dated claims. ................................................. B-2/ r............ In terests in insurance policies...... ..,...........................'......,..,........... B- 2/ s.,. _....,.. Ann u i ties ....'..... ........ ,_.... ....... ....... ..........' .... ............................ .......... B-2/t.............Interests in corporations and unincorporated companies......,.......... B-2/ u....... ....' In terests in partn ershi ps...,. ..... m. ..... .......... ...,........................'..'. ...... B-2/v...........,£quitable and future interests, rights, and powers in personalty...... B-3/ a.....mm.Property assigned for benefit of creditors..............................._......_ B-3/b........... Property not otherwise scheduled.......................................,............ Schedule B total For joint cases Husband (H) Wife (W) .............................--... ............................. ............................... ............-.................... ...................--.............. - .............-..................... .................................... ..........-.................... ...............-..................... ........-.---.--.......-........ .......-.....---............... .............--...................... --..............-.............. ................--.............. ---...---....................... ...............--...--..-......... -_..........._--.---............. ........--...................... .............................. ............................. ............................................ ............--......................... ...-.................................. ............................... .......................................... ............................-...... ........................-................. ..-...............-................ ............................................. ........................................ .......................................... ~O.~................................. .......' ..... ,..., ,......... -:!l ~.................., ...--...................,... -()- .................. ............... .......-...... ......... --0.. ................. ....... ....................,....... -() - ............ ....... ........ ............. ,....... S 7'4','&7 5 '.'1 ~ 1,273,~('8.1: 1,C32,3t.3.2,' I ---..,:......,.......---.... '..,0 ~,........... ...... ........ .........,.......... .......3.4,6..0 Q, .....,...___....__.....m.. ·Z3·(}Q-9·.·:2 9' .............,...... ........ -(1...... .,............. ..... ................. ...... ..0.......'............. I .................................... -0...·..·..··..·..·..·......·..· .', ............... ..·......216' ï'OO'O'~; 00' .................................. -0-········..····.......... ,........ '''''''''' "'"'''' -0 ;,;,;.................. .' .... ".................... --~ ;,;,;,..........,...... .............. ....... ....... 4 crï'o-O'û'~' 0 0' .. .......' ...m.... .......1. 0 0 ï'O'O'O'~' 0 O· ...... '''''''' ............. 53 Sï'9' 6-g'~' 0 O· .'...,..... h............... "';1);';; ...........,.....' ...........--......... ...... ..;.a~'''' ......., .....' ............',.....,........ ...;0;.;; ,................, ... h.................". ,.. ";'0;';'; ............ ...... '..·..·..·...........·3:-;·2 3a'~·9T6·~· £5' ....--..... --..,.... ...... .. ...;.a;.;;...........'...... ",..' ...................... ~'O;.;;·..---··..·'u.... ....................................... ...:0:.:;·........·..·....·..·..·....· ..,...........,..... ........ ..;;0;,;,;....·.......,....· .,... ---......... "'" ...n. ~O ;,;,;.................. ..... ,...................... ~'Ö~.......·n .......' -0- .2,.l46,;C;>.~S ...' U~SWORN DECLARATION UNDER PENALTY OF PERJURY INUlVWUAL(Sj: I (we) and certify under penalty of perjury that I (we) have read the foregoing schedules, consisting of correct to the best of my( our) knowledge, information, and belief. . .~ sheets, and that they are true a¡ Con PO RATION: I, the (insert president or other oDker or an authorized agen ~CHARD EGLIN .. . of the corporation named as debtor in this case, certify under pen a] of perjury that) hR,Hãå%l)-"Gregoing schedules, consisting of . . . sheets, and that they are true and correct to the best of 1: knowlccige, informat,ion, and belief, "16 uf perjur) that I have read the foreging schedules, consisting of knowledge, information, and belief. a (insert member or an aulh.orized agen of the partnership· named as debtor in this case, certify under pcnaì sheets, and that the); are true and correct to the best of r. P,\RTI\r:RSHII': I., .' Executed on 1/ July" :". P 85 .... ............... ...... ..... si~;;; ;;;;~ ...... ............... ...... .,. ., . .., ...: ,. 19 ~ì: ............. ............ ..... si~ ;;;;;~...;;.:;. ............. !J 0 n ',-,' ; - - r r .~ ~ ~ ,,'.;¡c' J -~ . " ~. :- . . . . : ....f ,,:' 0,", ~ ~ "", ~ ). ::. j " . ". '.' . , .\ ) " ...., Z 1'-1 'l 0 Õ i: 'l <'1 - W <'1 r~ l- e> .< :; ::J 0( '; < II) Z -J .....,: ¡~ c: ~ 1- ::J 0 ..... < z "- > 01 W -J >- > -.: ,.., I~ . ,... '. e( e( ROBERT L. WILLIAMS 1706 Chester' Avenue, Suite 404 2 Bakersfield, CA 93301 3 Phone: (805) 323-7933 4 5 6 7 (' o UNITED STATES BANKRUPTCY COURT ~) EASTERN DISTRICT OF CALIFORNIA 10 In 1'12: Chapter 7 Case No. 185-01809 11 B. C. CHEHICALS, INC., PETITION FOR AUTHORITY TO CLEAN UP TOXIC WASTE PREMISES 12 Debtor. 13 TO THE HONORABLE ECKHART A. THOMPSON, BANKRUPTCY JUDGE: 14 The petition of Robert L. Williams, respectfully shows: 15 1. That petitioner is Trustee in the above-captioned 16 matter, duly appointed, qualified and acting. Ii 2. That the Health Department, County of Kern, and the 18 State of California, have determined that there is a serious 10 toxic waste problem at the B. C. Chemicals premises at 1511 South 21 petitioner as Trustee, Trustee met with the Kern Cnunty Health 20 Union Avenue, Bakersfield, California. That on appointment of 22 Department~ Phoenix Trust, the owner of the premises at 1511 23 South Union Avenue, Bakersfield, Californi~, and officers of B. 24 C. Chemicals, Inc., the debtor corporation herein. That during 25 Chapter 11 proceedings, the motor vehicles and "good inventory" 26 of B. C. Chemicals had been sold to Great Western Chemicals 27 pursuant to order of court. That the remaining inventory was 28 "leftover" which the Health Department infoimed Trustee could not -1- , ()O()!)" ,.' () 11 '-, ( . ~ .. 12 0 õ :¡; .. e, - W '" 13 ~ I- O! ,. ;: ::¡ .( " ~ .{ UJ Z ,..; .J W a:: 14 H I- ::¡ 0 ..., .( z u. (f) W .J ,.,.- >- > .( 15 ,.... \<1 < U .¡ 2 it: Q C!: VI..; 0 W .J 1G l- I" if. I- tf) ¡;: I- W ;2 < :r: I., a:: <' u w 17 , .... .:J ~ , 0 .( I-< ~ ill ,J 18 ,..; ,.. "of ,.... 19 20 2] 22 23 24 25 26 27 28 e( e, be removed from the premises without their approval. That 2 Trustee agreed to hire Emcon Associates as approved by the Health 3 Department, to supervise removal of inventory. That thereafter, 4 Trustee noticed all remaining saleable inventory for sale, and 5 pursuant to order of court, that inventory was sold to Chern ß Sources, Inc., for $3,500.00 on condition that the buyer remove 7 all saleable inventory. 8 3. That pursuant to said sale, Chern Sources, Inc. has !J substantially removed a large amount of the remaining inventory. I 10 That Trustee estimates that if he had paid toxic ~vaste haulers to dispose of said inventory, the cost thereof would have been in the neighborhood of $500,000.00. That the remaining inventory on the premises will have to be hauled away, and Bmcon Associates has provided Trustee with a remedial action plan'which has been approved by the County of Kern, and we are awaiting approval thereof by the state of California. That after the remaining inventory is removed from B. C. Chemicals, Inc. premises, then it will be necessary to drill test holes to determine how much soil is contaminated and what will have to be done with the same. 4. That Trustee prays that he be authorized to carry out the remedial action plan as provided by Emcon Associates, and to disburse funds as necessary to clean up the toxic waste problem at 1511 South Union Avenue, Bakersfield, california. That the United states supreme court has ruled that a Trustee in Bankrupt- cy cannot abandon toxic waste premises and must clean those premises up to the best of Trustee's ability. That B. C. Chemi- cals has approximately $1,000,000.00 in creditors, and Trustee' now has on hand $536,333.68. That the Health Department has -2- f)002~ 2 3 4 5 G ï 8 U 10 Ü 11 Z >-i -: 12 o õ rj'¡ -: !'1 '''; W '" 13 ~ r- C> ...' ~ 3 <: <, .... <: ~1 Ž ..:¡ .. w c:: 14 ~ ~ ::J ~ .... z _ ... ~J W .. ,..-. >- > <: 15 ,; w <{ u ~ ~ a; ci o w .. 16 I/) r- r- w r- U) ¡;: .,.. <{ w U) ~ :r cr ~ u w )7 .... I,:) :=:: ~ o <{ r- Q ~ )8 .... ~ )9 20 2) 22 23 24 25 26 27 28 e( e( \ estimated that clean up of B. C. Chemicals, Inc. premises will cost $1,500,000.00 to $2,000,000.00. That Trustee is hopeful that the clean up can be done for less than $500,000.00, which Nill leave something for the creditors of B. C. Chemicals, Inc. Trustee believes that he has already saved in excess of $500,000.00 in clean up costs. 5. That Trustee has miscellaneous tanks still on hand on premises Nhich still ahve not been sold. That Trustee expects to offer those tanks for sale at the hearing herein for authorization to clean up premises. WHEREFORE, Trustee prays as follows: 1. That the remedial action plan of Emcon Associates be approved, and that Trustee be authorized to carry out said remedial action plan; 2. That Trustee be authorized to disburse funds as necessary to clean up the toxic waste problem at the premises of B. C. Chemicals, Inc., 1511 South Union Avenue, Bakersfield, california, to be paid ahead of all creditors; 3. That Trustee be authorized to sell tanks on premises for best price available; and 4. For such other and further relief as is meet and proper. DATED: July 29, 1986 ROBERT L WILLIAMS Robert L. Williams Trustee -3- 00026 nnnnn. . ' .' .. " , - -, . 'i",:" ,í,' ... .. '.:.'--' ." , -.,. ,'r' " .' -- . í,'" '" " , - ¿ F "c." ~' .' .. .: -. , ~L. - ... :.e " > . '. " \. : .. . A': .. / . , ' 'c·' ., ., . r1--, .. '" ..; . ':'.... ,- '., .' ," ( I 1 1 .~ ·f j .. ': ~ -; " ( { ~. ,. ~ % ...., " 0 Õ if: " ."} ..... W 1'1 ¿, ;- C> <: ~ :J « ..... -( U1 Z , .J c:: ..... w ~ ;- :::> 0 -( ,~ .... Z :; >, 0' w I"" >- > « ,,- w « u ~ Z It ri Q: 0 W .J f- f- W (/) 0' ü: 1- lU .... « 0' ~ :r cr .... U W ., .... '" :.: ;-1 0 « ,.. CJ ~ - ,-< ~ .,.~ ,-" \~Í l,~ r' 'Ii .t, ;1 '5 }. :1 ,} ,ij [1 :~ 23 24 25 2G 27 28 e " (, ¡ .( ROBERT L. WILLIAMS 1706 chester Avenue, suite 404 2 Bakersfield, CA 93301 3 Phone: (805) 323-7933 4 5 G I 8 UNITED STATES BANKRUPTCY COURT D EASTERN DISTRICT OF CALIFORNIA 10 In re: Chapter 7 Case No. 185-01809 1 J NOTICE OF AND APPLICATION FOR AUTHORIZATION TO CLEAN UP TOXIC WASTE PREMISES 12 B. C. CHEMICALS, INC., a California corporation, ) ) August 28, 1986 10:00 A.H. Room 204, Bankruptcy Bakersfield, CA ]3 ] 4 15 IG Date: Time: Place: Court, Debtor. ) TO ALL CREDITORS AND PARTIES IN INTEREST: Please take notice that on August 28, 1986, at 10:00 A.M., ]7 in Bankruptcy Court, Federal BUilding, 800 Truxtun Avenue, Room 204, Bakersfield, California, Robert L. Williams, Trustee will 18 ask the court for authority to clean up toxic waste premises of the above-captioned debtor corporation and to disburse funds as ]9 necessary to clean up said toxic waste problem at 1511 South Union Avenue, Bakersfield, California, pursuant to remedial 20 action plan of Emcorn Associates. 2] That Trustee has on hand $528,865.72. That estimated costs of cleanup are over $1,500,000.00 to be paid ahead of creditors, including taxes. 22 That Trustee will also offer for sale remaining tanks on premises. Any creditor wishing to object may'file a written objection with the Clerk of the U. S. Bankruptcy Court, 1130 "0" street, Fresno, California 9372l, and send a copy to Rober~ L. Williams, Trustee, at the address above or" may appear at the time and place set forth above. DATED: Ju1¥ 29, 1986. RODERT L V·/tLLlAMS Robert L. Williams, Trustee .. 00027 . .' , . '- . , - 1. '. ..... . ~. r /" \\ II ,¡ :1 1 :1 ; 2 íI II i I 3 I 4 5 611 7 1i Ii II 8 II ¡I 9 i ~ ~ ; 101\ !' i' L1 11 c: c: ~J 0 " 0 ô CI : 19 ¡' rn ;; < '" ,¡ .¡; j z 13 II ¡:: >- I- 0 I:- hi ...: ~ ..J I ill < 14 ! (f) ;.. u 0 J z ci t) ~ ¡,j I ~ 0 ..J (: w 1511 ll! «: CJ " < iñ 0 <'1 16! 0 3 17 18 19 20 21 22 23 24 25 26 27 28 e( HLC18/n/0818l :'_ e ~...____4' I ,~' , ; \ COSI':EY, COSl<EY & BOXER lRECEr\f~~J \\\\ t:? m @~ fÐ ~ Attorneys at Law ~ 11601 \Hlshire Boulevar AUG ~_17 is:'o ì \.. ~"(' i);; In:1" Suite 1960 . , . .,1,1·... J :/ ') Los Angeles, California 90025 \t\." U· ( 213 ) 473 - 458 3 . C C & B _j.'." E~:;~;~~::~:~':~'~;~~rJ C.,,~ Counsel for Official Cre~LI.I.L ~ committee -... ~-..,. UNITED STATES BANKRUPTCY COURT EhSTERN DISTRICT OF CALIFORNIA In re: ) ) ) ) ) ) ) ) ) Chapter 7 Case No. 185-01809 B. C. CHEMICALS, INC., a California corporation, OBJECTION TO APPLICATION FOR AUTHORIZATION TO CLEAN UP TOXIC ~"¡ASTE PREIUSES Debtor. Date: Time: Place: Court: August 28, 1986 10:00 a.m. Room 204, Bankruptcy Bakersfield, CA Coskey, Coskey & Boxer, objects to the Petition of the Trustee for Authority to Clean Up Toxic \'laste Premises and alleges as follmvs: 1. Coskey, Coskey & Boxer, Objectors, are counsel to the official Creditors' Committee in the Chapter 11 proceedings which proceeded this proceeding. Coskey, Coskey Boxer are & administrative creditors of this estate and have applied for fees for their services to the of~icial Creditors' Commit~ee. 2. Objector did not receive notice of said Petition until August 15, 1986 and therefore notice was not timely. 3. The failure to timely serve objector with notice of the Petition of the Trustee , constitutes denial of procedural and 00028 \ I 1 I ¡ 2' I ~5 I 4 5 611 I 71 8, 9i ! 10 ! L1 I f~ N 11 i v! 0 I 0 ö ~) m ?; :: 12 ,. <t Z <;;¡ ..J ~ >- I- 0 13 u. w <t :ï v (" lñ <t >- U 0 w 14 z ui U " w >= ~ ..J III 15 w ~ CJ ~ Z () < 0 fJ) 16 u 0 ..J 17 18 19 20 21 22 23 24 25 26 27 28 e HLC18/n/0818t _. ( r subst¡.:mt due process of law to objector. 3. The Petition fails to comply with Rule 21 of the local rules of this court in that among other things no factual contentions supported by affidavits, declarations are or othen'lise. 4, The Pe·tition is contrary to law. The Petition, without citation, states that the United States Supreme Court has ruled that a Trustee in Bankruptcy cannot abandon toxic waste premises 2nd rnus t c lean those premises (Petition, Page 2, 1 ines 23-26). Presumably, the Petition refers to Hidlantic Na"cional Bank vs. New Jersey Department of Environmental Protection, 88 L. E.D.2d 859 (1986) In the Midlantic case, the debtor owned the real property. That property had become property of the estate and the Trustee was attempting to abandon it. In the case at bench, it appears from the Petition that the Trustee has no interest in the property which has the toxic waste problem and upon which he plans to expend over one-half million dollars. The original interest of the estate in the property was a leasehold interest. That interest terminated as a matter of law pursuant to §365 (d) (4) 60 days after the date of the Order for Relief. It would appear that the only way in which this estate could have become responsible for obligations to clean toxic waste would have been an affirmative act of the Trustee assuming a burdensome lec.ise. Objector is unaware that the Trustee underto~ _ such action. In his dissent, Justice Rehnquist points out that conduct such as that which the Trustee proposes to undertake would place the fiscal interests of the municipality involved ahead of the 2 0002'9 1 2 3 4 5 6 I I r¡i 8 9 10 ~ rI 11 - f-o 0 13 <t 1<. W :ï ~ (!) <{ U) >- u 0 IIJ 14 z iii U ¡:: ltI 0 .J >- ¡: ltI 15 w <t (!) ~ z U) «: 0 UJ 16 u 9 17 18 19 20 21 22 23 24 25 26 27 28 IILC18/n/081' . claims of other creditors in this estate. There lS no authority for such a proposition (Midlantic Page 875)~ 5. There lS no evidence before the court of the nature of the toxic waste on the premises or the requirements of any agency requiring a clean up of those premises. CONCLUSION It is respectfully submitted that the Petition of the Trustee be denied. At best, any claim for toxic waste clean up would be an unsecured claim which would participate in the funds available for creditors along with all other creditors. There is no basis for giving that claim an administrative priority over the other creditors of this estate. 3 ooo3b ,'. .,. ..' .,;' ,., .-;.' .. . .. .. .. .' ¡:'. , . }i :.;F~ .... e.. ( e( VERI FICA TION STA TE OF CALIFORNIA, COUNTY OF I have n;;¡u the forcgoing_ _. . -----.---.--.----.-.--- -----.--- ._-_.__._--~. -~-_.-_.-.--.._._.- and know ils I:onl<:nls. -'--'---'-' o o tEJ CHECK APPLICABLE PARAGRAPH I am a party to this action. The: matters stated in the forcgoing documcnt arc truc of my own knowkdge e:xcept as to thosc matters which are: stated on information and belief, and as to those: matters I bclievt: them tù be true. I am 0 an Officer 0 a partner_____O a...___.__,______oL_._,____..,_ ,'..____,.______ -----.--- - ...-- -----------.-.. -------..". .." ------------...---...----.-. _. ---- --".--. . o a party to this action, and am authorized to make this verification for and on its behalf, and I make: this verification for that reason. 0 I am informed and believe and on that ground allege that the matters stated in the foregoing document are true, 0 The matters stated in the foregoing document are true of my own knowledge except as to those matters which are stated on information and belief, and as to those matters I believe them to be true. I am one of the attorneys for _________.._____ _.__,"'" a party to this action. Such party is absent from the county of aforesaid where such attorneys have their offices, and I make this verification for and on behalf of that party for that reason. I am informed and believe and on that ground allege that the mattt.:íS stated in the foregoing document are true. Executcd on-------,- , 19-, al.--- ._California. I declare: unJ¡,;r penalty of perjury under the laws of the State of California that the foregoing is true and correct. Type or Print Name ACKNOWLEDGMENT OF RECEIPT OF DOCUMENT (other than summons and complaint) Signature Received copy of document described as on 19_, Type or Print Name Signature PROOF OF SERVICE STATE OF CALIFORNIA, COUNTY OF LOS ANGELES I am employed in the'county of Los Anqeles . State of California, I am over the age of 18 and not a party to the within action; my business address is: 11601 ~il.§.h:i,~e Boulevard, Suite 196º-~º?__ADg.§lesL__Ca~0025-178 On Auq. 20 19--ªJ? I served the foregoing document described as OBJECTION TO APPLICATION FOR AUTHORIZATION TO CLEAN UP TOXIC HASTE PREMISES Trustee 011 in this action by placing a true copy thereof enclosed in a sealed envelope addressed as follows: Robert L. Williams, Esq. 1706 Chester Avenue, Suite 404 Bakersfield,Ca. 93301 [] (BY MAl L) I c¡¡used such envelope with postage thereon fully prepaid to be placed in the United States. mail at Los Anqeles, California. Executed on August 20 , 19 86, at Los Angeles , California. (BY PERSONA L SERVICE) I caused such envelope to be delivered by hand to the offices of the addressee. Executed on . 19--. at . California, (State) I declare under penalty of perjury under the laws of the State of California that the above is true and correct. (Federal) I decl¡¡re that I am employed in the office of a member of the bar of this court at wh~se/ction the service was m,d,. ¿. 0A BETTY HOLDEN .~~./, ~~~_,___ Type or Print Name Signature 00031 o o @ - -- _. -- -- . - .-- ...-- ._...-,~-... ....~... .' ,,' 'l.. " . , ' . , ,f' c ~'._. .' ,; - ~ -. , ; " -~ . ," : "0 . , .' : <: " . " ( "/ .'; " .. > ., +', ~¡ '. '. . , .. -, .~ ',,'. .. , o. .~. oj', .... ;j ---;-1' \t, :.'; .,- """ '. ~.: '.~'~ >', . < , 'c" " "- I,"; ",'\ .' 1 ,~ , " .: ...~~. ". t.' " ( . > '. '.. " .>. J J . } { t 1 '; ? :} '; , ,} ,J /' 17 18 19 20 21 22 23 24 25 e e, (SPACE. .LOW FOR FILING STAMP ONLY) ( 1 2 3 LAW Or-FICES KUHS & PARKER P. O. Dox 2205 DAKER6FIELO. CALIFORNIA 113303 (UO~) 322.4004 4 5 Attorneys for The Phoenix Trus t 6 7 8 9 10 UNITED STATED BANKRUPTCY COURT EASTERN DISTRICT OF CALIFORNIA 11 In re B. C. CHEtnCALS, INC., ) ) 12 Debtor.) ) 13 ) 14 15 16 Case No. 185-01809 (Chapter 7) OPPOSITION TO OBJECTION TO APPLICATION FOR AUTHORIZATION TO CLEAN UP TOXIC WASTE PREMISES Date: Time: Place: August 28, 1986 10:00 a.m. Room 204, Federal Building, Bakersfield, California ... To the Honorable Eckhart A. Thompson, United States Bankruptcy Judge: The Phoenix Trust ("the trust") hereby opposes the Objection to Application filed in this matter by Coskey, Coskey & Boxer ("Coskey") and supports the Application of the bankruptcy trustee and represents: 1. The trust owns real property on'South Union Avenue in Bakersfield ("the property") leased by B. C. Chemicals, Inc. 26 ("the debtor") from which the debtor operated its business. The 27 trust is a creditor in the referenced proceeding. 28 2. On or about July 18, 1985, the debtor filed its 00032 n 12 '0 OJ g 13 " « L:JL,;<: Ç) '.' b - 0 14 w2NgÒ ~<l:NlJ..'f ka.xJ~j 0;¡s ß ð OJ 15 ~(f)Òé~ .IX ..Ie¡ 16 :::>11.8.... .. lJ.. - III II: ~ 17 ~ 26 27 28 e( e 1 petition for protection from creditors pursuant to Chapter 11 ') .... of the Bankruptcy Laws of the United States. 3 3. By letter dated September 10, 1985, the Kern County 4 Health Department cited the debtor for numerous violations of :3 California's Health and Safety Code and California's Administrative 6 Code relative ~o a hazardous waste problem existing on the property. 7 4. On or about September 26, 1985 the debtor converted 8 its Chapter 11 proceeding to a Chapter 7 proceeding and Robert L. 9 Williams was appointed trustee. 10 5 . On or about October 24, 1985 this court authorized 11 the trustee to employ EMCON to evaluate, and perform certain tas)ç:s rela tive to, the hazardous waste situation. 6. By the petition presently before the court, the trus tee is seeking authority to implement the plan formulated by EMCON to remedy the hazardous waste situation. The plan has been approved by the Kern County Health Department and State Department of Health. 18 19 20 7. Trustee's petition is consistent with his obliga- tions and with relevant law. In his petition, trustee correctly asserts "that the United States Supreme Court has ruled that a 21 trustee in bankruptcy cannot abandon toxic \vaste premises and 22 must clean those premi ses up to the best of trustee's abili ty." 23 24 (Petition, page 2, lines 23 to 26.) In Midlantic National Bank v. New Jersey D.E.P. (1986) 88 L.Ed.2d 859, the Supreme Court 25 granted certiorari and consolidated for hearing two Third Circuit cases, Matter of Quanta Resources Corp. (1984) 739 F.2d 912, and In re Quanta Resources Corp. (1984) 739 F.2d 927. These cases ~nvolved the abandonment of hazardous waste disposal sites operated 2 00033 ~) b n n o a: « l1J - q tJ~ ~g ~~ ~'i t;: a. I: ;:¡ ::J 0c1í:ã~.) ;;iflO· ·Lì « Co .JJ:.¡JQ ;:¡Q.-~ ,¡II l;. - G) a: \¡ " :t t:J e - ( 1 by Quanta Res9urces in New York and New Jersey, respectively. ') '" Quanta Resources apparently owned the New York property, but leased 3 the New Jersey facility (In re Quanta Resources Corp., supra, 739 4 F.2d 927, at 928). 5 In Matter of Quanta Resources Corp., supra, 739 F.2d 912, the Third Circuit recognized that the assets available for distri- 6 7 bution to creditors would be seriously depleted by reguiring the ß trusteé to comply with hazardous waste disposdl laws (Id., at 921). 9 Nevertheless, the court refused to allovl the trustee "to dispose of 10 hazardous \-lastes under the cloak of the abandonment power," 11 (Ibid.), and reversed the lower court ruling allowing such an 12 abandonment. 13 In the companion case, In re Quanta Resources, supra, 14 the Third Circuit observed that, even though the premises were 15 leased to Quanta Resources, there were "no principled distinctions 16 bet\·¡een the issues presented in this case and those presented in 17 th~ companion Quanta case in which New York is the appellant 11 18 (In re Quanta Resources Corp., supra, 739 F.2d 927, at 928). The 19 court additionally held "that the trustee does not have the right 20 to abandon property of the estate where abandonment contravenes 21 state public health and safety lavlsll (Id., at 928-929). 22 In Midlantic, the Supreme Court upheld the decisions of 23 the Third Circuit in both cases, ho1 ding that ". a trustee 24 may not abandor property in contravention of a state statute or 25 regulation that is reasonably designed to protect the public 26 health or safety from identified hazards." (Midlantic National 27 Bank v. New Jersey D.E.P., supra, 88 L.Ed. 859,869.) The Supreme 28 Court made no distinction between leased and owned premises. 3 00034 CO) 12 ö CO) (,1 13 Ç) a: < CD~I!)Zg 14 w-ÒC:o ~œ~j~'1 ¡~<{ _ü l:.. Co " ,J N oc;¡g~Ç) 15 ~ .. ¡; .;:UìOco .J J: . LJ CD 16 ::¡a...!_ <- I>. C!I c: 17 1.:1 ~ < ¡ 18 19 20 21 22 23 24 25 e( - 1 Indeed, the Court stated that "the abandonment of the New Jersey f) ~ and New York facilities presented identical issues." (Midlantic 3 National Bank v. New Jersey D.E.P., supra, 88 L.Ed.2d 859, 864; 4 emphasis added.) 5 Recently, the District Court for the Western District 6 of Pennsylvania held that a lessee/debtor in a Chapter 11 pro- 7 ceeding was responsible for the clean up of a mine site that posed alenVironmental threats. (United States v. F.E. Gregory & Sons, Inc. 9 (W.O. Pa. 1986) 58 B.R. 590.) The debtor argued that if the case 10 were converted to a Chapter 7, the trustee could abandon, rather 11 than clean up, the property and that such an anomaly was inequitable he court stated, "The argument is now foreclosed by a recent decision of the Supreme Court, Midlantic National Bank v. New Jersey Department of Environmental Protection, U.S. ~ 106 S.Ct. 755, 88 L.Ed.2d 859 (January 27, 1986). The Court held that a trustee may not abandon property in contravention of state environmental statutes and regulations. Id. at , 106 S.Ct. ~t 763-64. Midlantic makes clear that defendant is treated no differently as a as a (sic) lessee than as a trustee." Thus, Objector Coskey's attempt to distinguish the 26 present matter from the rule stated in Midlantic by saying 27 28 "the debtor [in the Mid lantic case] owned the real property" (Objection, page 2, lines 12-13), is not well taken, being both 4 00035. 20 Dated: 21 22 23 24 25 26 27 28 ,.' (1' 12 o Ç) ~ 13 n: 0( W -!t B~~~g 14 ~r':~e'i I~« -<.J<'I o<!~ðÇ 15 ~(¡¡òô~ .JJ: ...Ie¡) 16 :JD.~", ~ ~ a: !;! 17 :.( CII e e (. ( 1 factually inaccurate and legally insignificant. 2 8. Contrary to the assertion made by Objector Coskey 3 (Objection, page 3, lines 13 and 14), costs of cleaning up a 4 hazardous waste site are to be treated as an administrative 5 expense of the estate (In re T. P. Long Chemical, Inc. (N.D. 6 Ohio 1985) 45 B. R. 278). "'1 CONCLUSION [3 The debtor has been cited for violating state laws that 9 are designed to protect the public health and safety as well as 10 the environment. The toxic waste situation, that exists in the 11 present matter poses a potentially serious threat to the public health and safety and to the environment. The immediate implementation of the plan formulated by EMCON will serve to abate that threat. The trustee is obligated to proceed forward with the cleanup process and his petition for authority to do so is consistent with, and mandated by, the Midlantic holding. .... For these reasons, it is respectfully requested that 18 the court approve trustee I s petition and authorize the immediate 19 implementation of the EMCON remedial action plan. August 27, 1986 KUHS & PARKER ORIGINAL SIGNED BY By scen R. BAKER Scott R. Baker Attorney for The Phoenix Trust 5 00036 , . .' '> "' \ ., " . , '. . ^' - ' ... >\ " r .:/, \ --' '. ,:' d. . ~ : __f"" : . ", :,. ...... .....-, , " ,. of' :: .....!.-. - ~.. '. ",.....L'~.~ ~f ~ .... / { " ; ~;...,l· . r i 1 .~ } i ~ ,I ~ ~ { ¡ ¡, \ 1 i( ? ? ~ ". ' ., ,'"'\ ~v ~ L1 11 - I· 0 13 <: IJ.. w :¡ ~ U) <: lJ) >- u 0 u 14 z f1Ì U c; w ~ 0 .J : u 15 w <: ø ~ z lJ) <: 0 () 16 u 0 .J 17 18 19 20 21 22 23 24 25 26 27 28 \ I 1/¡ Ar e! \'JìlT12/CJg/O~8G: 1 CaSKEY, CaSKEY & BOXER Attorneys at Law 11601 \hlsl1ire Boulevard Suite 1960 Los Angeles, California 90025 (213) 473-4583 <) '" ,.' -I 0/ 4 il 5 II 6 II Ccur:sel for Official Creditors' Committee r) " : ~ C.. ,! i UNITED STATES BANKRUPTCY COUHT B':.STERN DISTHICT CF' C;"Lll-:-ORNlPc In re: ) ) ) ) ) ) ) ) ) ) Date: Time: Place: Case No. 185-01809 (Chapter 7) B. C. CHEMICALS, INC., a California corporation, REPLY TO OPPOSITION TO OBJECTION TO APPLICATION FOR AUTHORIZATION TO CLEAN UP TOXIC WASTE PREMISES Debtor. September 15, 2:30 p.m. Via Telephone Conference 1986 TO THE HONORABLE ECKHART A. THOMPSON, U~.uTED STATES BANKRUPTCY JUDGE: Coskey, Coskey & Boxer replies to the Opposition to the Objections of the Petition of the Trustee for authority to clean up toxic waste premises and alleges as follows: 1. pursua"nt to §365 (d) (4) if debtor fails to assume or reject an unexpired lease of non-residential real property under which the debtor is the lessee within 60 days after the date of the Order for Relief, said lease is deemed rejected. B.C. Chemicals, Inc. ("debtor" ) filed its Chapter 11 petition on July 18, 1985. Therefore, 60 days after said date, on September 16, 0003'7 1 2 3 4 5 6 I r¡i 81 ! !I 9 'I , I' :I 10 II n: L' 11 - I- 0 13 Lt. W « :¡ ~ w « III >- U 0 w 14 z r.ñ U n: w >= ~ ..J w 15 w « CJ ~ Z III « 0 () 16 u 9 17 18 19 20 21 22 23 24 25 26 27 28 \'JIlT 12 / gg / O.:J ~ u : 2 - 1985, as a matter of law, the lease between B.C. Chemical and the Phoenix Trust ("Trust") terminated. On September 26, 1985, the debtor converted its Chapter 11 proceeding to a Chapter 7 proceeding. At no time should the subject property of this application be considered a part of the Chapter 7 estate. The Phoenix Trust did not timely make a motion or an application to this court to prevent debtor from rejecting its unexpired lease and therefore at no time was this property aéministered in the Chapter 7 estate. The Phoenix Trust was aware of possible hazardous waste situations, both prior to the filing of debtors' Chapter 11 peti tion and prior to the expiration of the 60 day period in which the Phoenix Trust could make application to this court to prevent the statutory rejection of said lease. 2. The Phoenix Trust now has filed its opposition to the objection filed by Coskey, Coskey & Boxer to the application for authorization to clean up toxic waste on the subject real property's premises. The Phoenix Trust claims that said property cannot be abandoned pursuant to §554 of the United States Bankruptcy Code. The Phoenix Trust cited both Mid-Atlantic Bank vs. New Jersey Depart~ent of Environmental Protection, 88 L. Ed. 2d 859 (1986), and Quanta Resources Corp. vs. the City of New York, 739 F. 2d 912 (3rd. Cir 1984). The Phoenix Trust's objections on the grounds that said lease cannot be abandoned, is misplaced. Even if the Phoenix Trust is correct that the property can not be abandoned, said lease terminated on September 16, 1985. 3. The best any claim for the cost of cleaning up any 2 00038 1 2 3 4 5 61 ¡i r, ! . j1 P II u' a i¡ v , ii lO ; --- ;1 er.: L1 l ~ I '1 hi a _1. i 'ß a Ö ::> ill ~ < 12 cO j 2 c:: >- I- 0 13 li. w ct :¡ ~ CD <t (j) >- u 0 L:J 14 z ui U 0: W 0 .J >- ¡: L:J 15 w ~ l:) v z iii < 0 en 16 U 0 oJ 17 18 19 20 21 22 23 24 25 26 27 28 \"¡IIT12/99/09Is'6: 3 e( hazardous waste located at the subject property could be considered, would be as an administrative expense in Chapter 11 as the property technically was never a part of the Chapter 7 estate. Moreover, since the damage occurred pre-petition and the lessor was aware of the damage pre-petition, the claim should properly be considered as an unsecured claim like all other parties dam~ged at that time. The Phoenix Trust now desires to utilize the entirety of the assets of B.C. Chemicals to bring their property into conformity \'lith state environmental standards. Any damage caused to the Phoenix Trust, and to its subject property, should be treated no different than the damages sustained by the other creditors of B. C. Chemical. The Phoenix Trust, like each of the unsecured creditors, was damaged prior to the filing of debtor's Chapter 11 petition. Indeed, the Phoenix Trust had an affirmative duty, as landlord, and lessor of said subj ect property, to· insure that said property was maintained in conformity with state and federal environmental standards. Unlike Mid-Atlantic, the subject property was not owned by the debtor. The property belongs to the Phoenix Trust and the ultimate responsibility for losses to their property belong with the Phoenix Trust. It would be an abuse of authority for this court to utilize all funds collected in this case for the sole benefit of one unsecured creditor. The P¡10enix' Trust I s claim that the benefit is also for the environment is ~.¡ithout basis. The Phoenix Trust, not the debtor, has a responsibility to protect the environment from harm caused by substances on their property. No showing has been made that they do not have the 3 00039 1 2 3 4 5 6 I' '1' I 81 9 II II 10 P L' I æ 01 11 i w 0 " 0 ö CJ r.a ;: < 12 à:S <:: z .J c:: >- t- o 13 I ù. w <:: J ~ CD <>: (J) >- u 0 w 14 z ui U a: w >= 0 oJ t: w 15 w < C) ~ z (J) <>: 0 () 16 u 0 .J I? 18 19 20 21 22 23 24 25 26 27 28 el WHT12/gg/09098b:4 - capacity to do such. In U.S. v. Argent, 15 Envtl L.Rep. ~,0616 CD.N.M. 1984), the court held a lessor of land liable without fault for pollution caused by the tenant and rejected the lessor's third party defense. The lease, the court concluded, was a sufficient contractual relationship to bar the defense. It would appear that the court assumed that the pollution was in connection with the lease, The Phoenix Trust has cited no authority which reveals why the dë:.mages caused to them by the debtor should be given a priority over the damage sustained by any of the other creditors of debtor. While there is a possible exigent need to prevent the exposure to the environment of the toxic waste located at the former premises of B.C. Chemicals, it is improper that said clean up should be at the expense of the entirety of the unsecured creditor class. Indeed, it would appear clear that the Phoenix Trust is not requesting that the assets of debtor be used to benefi t debtor, but rather that all of' said assets go to the benefit of the Phoenix Trust. It is the responsibility of each creditor to bear the burden of the risk of the transactions in which they entailed with B.C. Chemical. Each of the unsecured creditors have already incurred the losses which were the commercial risk of their transactions with debto~. It would be improper for them to bear the burden of the damages to the property of the Phoenix Trust for the benefit of the Phoenix Trust. In deed, the Phoenix Trust entered into the lease agreement with B.C. Chemicals with knowledge of the operations debtor would perform, and therefore, any risk of 4 00040 1 2 3 4 5 61 Ii 7 i' i 81 I ! 911 10 :1 I L1 ,I L: - l- e 13 u. w <t :¡ ~ iii <! (() >- u 0 ~J 14 Z cñ U r.: w >= e ..J : 1:.1 15 w < l!) ~ z (I) <t 0 G) 16 u 0 ..J 17 18 19 20 21 22 23 24: 25 26 27 28 e . WIlT12/gg/09098b:5 hazardous waste damage to their property was the commercial risk which they entailed. ,.' 4. In both Mid-Atlantic and Quanta, the court specifically did not treat the question of whether or not the expenditures to clean up the subject property was an administrative expense. In l-1id-Atlantic, at 88 L.Ed. 2d 864 Footnote 2, the court stated "the sole issue presented by these petitions is whether a trustee may' ¿bandon property under §554 in contravention of local laws des igned to protect the public health and safety. New York is claiming reimbursement for its expenditures as an administrative expense. That question, however, like the question of the ul timate disposition of the property, is not before us." (See also Quanta 739 F. 2d 912 at 923). 5. In the case of Union Scrap Iron & Metal Co., 49 B.R. 477 (Bkrtcy. 1985), the court was confronted with a similar situation to the case at bar. The court disagreed with the Third Circuit Quanta opinion. In Iron ScraQ, the court was urged by the MPCA (the Minnesota Pollution Control Agency) to take and sell property which properly belonged to a secured creditor and to utilize said funds to pay the costs of clean up. The court found that said argument was without "any support in the Bankruptcy Code or other Federal Statute", 49 B.R. at 478. /1/1 IIII 111/ 111/ IIII IIII 5 00041 1 2 3 4 5 ô 71 81 ! 9 II 10 il (~ L1 11 N W e .. 0 () c: DJ ~ :: 12 ¿j ~ Z ..J ~ :.-- I- e 13 l:- ll! ... J ~ t;) <J: (J) >- u 0 W 14 u c: ~1 L:J >= 0 ..J I: LJ 15 w « 17 .- Z ¡¡¡ <t 0 Ll lô 0 0 .J 17 18 19 20 21 22 23 24 25 26 27 28 ~, WHT12/gg/090986:6 e( CONCLUSION It ~s respectfully submitted that the petition of the Trustee be denied. It would be against Equity, public policy and the Federal Bankruptcy Code to elevate the status of the clean up of the subject property to that of a super priority. As an administrative Chapter 7 claim, the clean up of waste would be to the detriment of the unsecured creditors, a class to with the Phoenix Trust should properly be a member of, and to all Chapter 11 administrative creditors. The Trustee in the Phoenix Trust has shown no basis for giving that claim an administrative priority over the other creditors of this estate. ,,. WILLIAM H. TOPKIS for COSKEY, COSKEY & BOXER Counsel for Official Creditors' Committee 6 00042 e( e VERI FICA TION STATE OF CALIFORNIA, COUNTY OF I have read the foregoing_____, -- -....---.- ---. -----------_.._--------"-. --.---------.-_. ----.--..-.--..-- .... ------.--. , h _ and know its contents. o o ~ CHECK APPLICABLE PARAGRAPH I am a party to this action. The matters stated in the foregoing document arc true of my own knowledge except as to those matters which arc stuted on information and belief, and as to those matters I believe them to be true, I am 0 an Officer 0 a partner 0 a of o a party to this action, and am authorized to make this verification for and on its behalf, and I make this verification for that reason. 0 I am informed and believe and on that ground allege that the matters stated in the foregoing document are true. 0 The matters stated in the foregoing document are true of my own knowledge except as to those matters which are stated on information and belief, and as to those matters I believe them to be true, I am one of the attorneys for a party to this action. Such party is absent from the county of aforesaid where such attorneys have their offices, and I make this verification for and on behalf of that party for that reason, I am informed and believe and on that ground allege that the matters stated in the foregoing document are true. Executed 00- , 19-. at California. I declare under penally of perjury under the laws of the State of California that the foregoing is true and correct. Type or Print Name ACKNOWLEDGMENT OF RECEIPT OF DOCUMENT (other than summons and complaint) Signature Received copy of document described as on 19_. Type or Print Name Signature PROOF OF SERVICE STATE OF CALIFORNIA, COUNTY OF LOS ANGELES I am employed in the county of Los An gel e S , State of California, I am over the age of 18 and not a party to the within action; my business address is:, 1160 1 Hi 1 S h ire Boulevard. Suite 1960. Los Angeles, California 90025 On Sept. 9, 1986. I served the foregoing document described a5 REPLY TO OPPOSITION TO OBJECTION TO APPLICATION FOR AUTHORIZATION TO CLEAN UP TOXIC WASTE PREHISES 011 The In t ere s t Par tie s in this action by placing a true copy thereof enclosed in a sealed envelope addressed as follows: Mr. Robert L. Williams, Esq. 1706 Chester Avenue, Suite 404 Bakersfield, CA 93301 Mr. Scott R, Baker KUHS & PARKER P.O. Box 2205 Bakersfield, CA 93303 B (BY MAIL) I caused such envelope with postage thereon fully prepaid to be placed in the United States mail al Los Angeles ,California. Executed on September 9. .19 86, at Los Angeles , California. o (BY PERSONAL SERVICE) I caused such envelope to be delivered by hand to the offices of the addressee. Executed on , 19----. at . California. o (State) I declare under penalty of perjury under the laws of the State of California that the above is true and correct. o (Federal) ~~~~~re that I am employed in the office of a member of the bar of this court at Who~se direction the service was Julia Fairfoot ~;I U Type or Print Name gnature 0 0 4 3', ro......n........ r...n............. .,."rr:~lula::Q 1::!"VIC::J:n fill\." Ie \ .' r: :' , ,", í r ;Ì - ') I "' . .....~". f ' " I í ,( , , " ¡ . .' 26 27 28 II e, ( ;E BELOW FOR FILING STAMP ONLY) ed 1 L-AW OFFICES KUHS 8< PARKER P. O. [lox 2205 DAKERGFIEL.D. CAL.IFORNIA 93303 (DO!» ;)22.4004 2 ..' 3 4 5 Attorneys for The Phoenix Trust 6 71 I 81 I I r, I ~ I! i: 10ii 'i 11'1 In 12 UNITED STATED BANKRUPTCY COURT EASTERN DISTRICT OF CALIFORNIA re B. C. CHEMICALS, INC., ) ) Debtor. ) ) ) Case No. 185-01809 (Chapter 7) SUPPLEMENTAL OPPOSITION TO OBJECTION TO APPLICATION FOR AUTHORIZATION TO CLEAN UP TOXIC WASTE PREMISES 13 14 15 16 17 Date: Time: Place: September 15, 1986 2:30 p.m. Via Telephone Conference To the Honorable Eckhart A. Thompson, United States 18 Bankruptcy Judge: 19 The Phoenix Trust ("the trust") in Response to the 20 Reply to Opposition to Objection to Application for Authorization 21 22 to Clean Up Toxic Waste Premises filed by Coskey, Coskey & Boxer represents: 23 1. In their reply brief, Coskey , Coskey & Boxer are 24 apparently confusing the abandonment authority afforded the 25 trustee purs?ant to section 365 of the Bankruptcy Code and that given to the trustee pursuant to section 554 of the Code. Coskey, Coskey & Boxer assert that "the Phoenix Trust's objections on the ground that said lease cannot be abandoned, is misplaced. 00044 M 12 o M ~ 13 a:: -< w -~ ¡nv~zo 14 wë:('~o !:!«('¡,.:'i I::a.,,;:j~ oc¡ßðØ1 15 ~û1óö~ ..II: 'r;1D 16 ;:)0._- ~ I;¡ ffi 17 ~ -< CD e ( e( 1 Even if the Phoenix Trust is correct that the property cannot be 2 abandoned, said lease terminated on September 16, 1985." (Reply .' 3 Brief, at page 2, lines 23 to 27.) The Phoenix Trust has never 4 asserted that because the lease between it and B. C. Chemicals ~ cannot be abandoned the trustee has an obligation to clean up the G hazardous waste condition on the premises. Despite the urgings 7 10f Coskey, Coskey & Boxer that is not the issue. The issue, 8 II simply, is whether or not a trustee can, pursuant to section 9 554, abandon property of the estate, when to do so would be in 10 contravention of state law reasonably designed to protect the 11 health and safety of the public. The United States Supreme Court in Midlantic National Bank v. New Jersey Department of Environment, Protection (1986) 88 L.Ed. 859 has expressly held that the trustee may not abandon property under those circumstances. 2. As they did in their previous brief objecting to the application of the trustee, Coskey, Coskey & Boxer again assert that the Midlantic holding is distinguishable from the 18 present situation by the fact that the property subject to the 19 ~iidlantic holding was owned by the debtor whereas the property 20 in the present situation was leased by the debtor from the trust. 21 (See e.g. Reply Brief at page 3, lines 19 and 20 "unlike 22 Mid-Atlantic (sic), the subject property was not owned by the 23 debtor.") As pointed out in the trust's brief in opposition to 24 Coskey, Coskey & Boxer' s initial objection, 'one of the companion 25 cases affirmed by the Midlantic Court involved property leased 26 by the debtor. Coskey, Coskey & Boxer's attempted distinction 28 27 on this basis is spurious. 3. Much of Coskey, Caskey & Boxer's reply brief 2 00045 (3 9 10 11 t'I 12 '0 O t'I 13 (I) D:: < WItIZ~ Ô~OD:g 14 uD::~0'i ¡;: q: !: <-I ...n.><.JN 15 o~¡£ðO ~inÒë~ ..I J: . ¡;j II) 16 :)0._- ~ ... III IX 17 I¡ v < fI e e( ( 1 attempts to convince the court that the trust, rather than the ') .... debtor, is somehow responsible for the hazardous waste condition 3 existing on the B. C. Chemical premises~ These allegations are 4 both legally unsupporte4 and unsupportable, serving only as a 5 feeble attempt to distract the court from the simple fact that 6 the Midlantic holding is on point and determinative of the issue 7 presently before this court. Coskey, Coskey & Boxer goes so far as to cite a case for support of their position which expressly disagreed with the Quanta Resources Corp. v. City of New York (3d Cir. 1984) 739 F.2d 912 and was effectively overturned by the affirmation of Quanta in Midlantic National Bank, supra. (Union Scrap Iron & Metal Co. (Bkrtcy 1985) 49 B.R. 477, see Reply Brief, page 5, lines 14-22.) CONCLUSION The Supreme Court has held that "a trustee may not abandon property in contravention of a state statute or regula- tion that is reasonably designed to protect the public health 18 or safety from identified hazards." (Midlantic National Bank, 19 supra, 88 L.Ed.2d 859, 869.) Richard Casagrande of the Kern 20 County Health Department has testified before this court that 21 citations were issued to be B. C. Chemicals relative to hazardous 22 conditions existing on the premises in question. He further 23 testified that the condition posed a health hazard to the public 24 and the thr;at to public health and safety would only be 25 exacerbated by a failure to ameliorate the hazardous condition 26 as it now exists. The application of the trustee in bankruptcy 27 to utilize cash assets of the debtor's estate to effectuate a 28 III 3 00046 3 Dated: 4 5 6 7 8 9 10 11 II) 12 ì:) II) II) 13 (j a: 0( WIDZ~ fJ~Ocrg 14 ua:~ooq ¡¡: < !: ~ ...0.><..1<'1 15 o~~ðØ ~inÓé~ ..I J: . ¡;J co 16 ;:)0.__ ~ ... co II: 17 I¡ :.: 0( CII 18 19 20 21 22 23 24 25 26 27 28 e( \ e( 1 clean up of the hazardous condition is consistent with the 2 mandate of the Supreme Court in the Midlantic, supra, holding. " September J~, 1986 Respectfully submitted, KUHS & PARKER B ORIGINAL SIGNED BY Y ~()TT R RAKER Scott R. Baker Attorney for The Phoenix Trust 4 00047 I,¡ L ~- '" , -.-, '.' ...... ~ ' . 'j ( " (e '\ ...... .' , .. " . . ~. , .~. J./~~~-; "._c,'''-' ....,- .: .<- ~ -'-, ¥,-' f\ .J-,," .,' .: . "' ~ '. " ,,\ . .. . , . J '" , ? , ? ¡ ì t ,1 . <- ,. .t, ' -. ,. .. 's.-'.. . ,"', .......t' " ,).',;, -' ., () t::. H <t 0 Õ (j) <t M ..... W r1 ~ l- e;¡ <: ~ :J .( ~ < VJ Z ....¡ oJ c: W ....¡ I- :J 0 0( lI. .... z :ï ~ VJ W >- > .( W 0( U ~ '" a: ci a: 0 w .J I- W (f) I- U ¡;: I- W ~ 0( :r VJ c: <: u w ~ tD :x: ....¡ 0 .( r- ID ....¡ - ~ :;:. ~ 21 22 23 24 25 26 27 ',' 28 '. ' ]3 ] 4 15 ]6 17 18 19 20 e, e; ... 1 2 ROBERT L. WILLIAMS 1706 Chester Avenue, Suite 404 Bakersfield, CA 93301 ~,_., _...-- ...;.., 3 Phone: (805) 323-7933 4 5 6 \ - >J , ., ...... r.... ~ J .'~ . I 8 UNITED STATES BANKRUPTCY COURT u EASTERN DISTRICT OF CALIFORNIA lOIn re Chapter 7 Case No. 185-01809 11 B. C. CHEMICALS, INC. 12 Debtor. ORDER ON PETITION FOR AUTHORIT' TO CLEAN UP PREMISES At Fresno, California, in said District, this ____ day of November, 1986. The petition of Robert L. Williams, Trustee, for Authority to Clean up Toxic Waste Premises at 1511 South Union Avenue, Bakersfield, California, having come on for hearing on August 28 1986, and having been heard on October 29, 1986, Robert L. Williams, Trustee, appearing in person, Phoenix Trust, the landlord, appearing by Scott R. Baker of Kuhs & Parker, the Creditors' Committee appearing by William H. Topkis of Coskey, Coskey & Boxer, and Richard casagrande of the Kern County Health Department, appearing in person, and Notice of and Application for Authorization to Clean Up Toxic Waste Premises having been sent to all creditors, and good cause appearing therefor, the court makes the following Findings of Fact: 1. That Robert L. Williams is Trustee in the above- captioned debtor proceeding, duly qualified and acting. That -1- ': ~.; ·00048 ;.. 1 2 3 4 5 6 ï 8 Ð 10 v 1 1 % rl 't 12 o õ if) 't M ~ W M 13 I- 0> <: ~ 3 4: .... < IJ) ž ,...¡ ..J . c: 14 ,...¡ I- W 0 « :;¡ ... .... z - > IJ) W ..J >- > .( 15 ..... bJ « U ~ Ë c: ci o W ..J I G (/) I- I- W I- IJ) ¡;: ~ « W IJ) :¡: tr < U W 17 .... . '" ~ ,...¡ o « r- III ,...¡ 18 .... .... K' ..... 19 20 21 22 23 24 25 26 27 28 . e , Chapter 11 proceedings were filed herein on July 18, 1985, and those proceedings were converted to a Chapter 7 on or about september 26, 1985. 2. That the court finds that Robert L. Williams, Trustee, I I I I , \ may expend 'up to $350,000.00 for the clean-up of the surface of the premises at 1511 south Union Avenue, Bakersfield, California. That at such time as all substances are removed from the surface of said premises, the Trustee will return to court for further authorization to do subsurface testing and for authority to clean up any subsurface toxic waste problems. o R D E R IT IS HEREBY ORDERED, ADJUDGED AND DECREED that Robert L. Williams, Trustee, is authorized to expend up to $350,000.00 for the clean-up of the toxic waste problems on the surface of the premises at 1511 south Union Avenue, Bakersfield, California. That at such time as the surface clean-up is complete, Trustee, Robert L. Williams, will ask the court for further authority to proceed with clean-up of any subsurface toxic waste problems. DATED: Bankruptcy Judge ..... . .' ", . , " -2- 00049 ü Z H .., 0 õ rj) .., '" .,.. w '" ,¿:, I- 0\ < ?; :J -< .... -< U! Z ~,~ oJ W ex: ,..:¡ I- :J 0 ..... 0( Z "- ::?- 1.1 W oJ >- > 0( .- W 0( U ci8 z a: â ex: 0 w oJ I- W (f) I- 111 ¡;: I- W ~ 0( VI ,¿:, :t ex: <: u w .... '" v ,..:¡ 0 0( ...:¡ ~ CD .... :> ;> ; I ! , I ]0 ] ] ]2 ]3 ] 4 15 ]6 17 18 19 20 21 22 23 24 25 26 27 28 e e ~. PROOF OF SERVICE BY MAIL 2 3 4 5 6 7 8 STATE' OF CALIFORNIA) SSe COUNTY OF KERN ) I am a resident of the aforesaid county; I am over the age of eighteen years and not a party to the within entitled action; my business address is 1706 Chester Avenue, Suite 404, Bakersfield, California 93301. On November 7, 1986, I served the within documents on the parties listed below by placing a true copy thereof, enclosed in a sealed envelope with postage thereon fully prepaid, in the Unlted states mail at Bakersfield, California, addressed as follows: D Mr. Scott 'R. Baker KUHS & PARKER P.O. BOx 2205 Bakersfield, CA 93303 Mr. William H. Topkis COKEY, CaSKEY & BOXER 11601 Wilshire Blvd., #1960 Los Angeles, CA 90025 Mr. Richard casagrande Dept. of Public Health 1700 Flower Street Mr. Rich Eglin 650 Alfred Harrell Hwy. Bakersfield, CA 93309 Mr. Kenneth H. Bates BATES & TUTTON P. O. Box 2537 Bakersfield, CA 93303 Executed on November 7, 1986, at Bakersfield, california. I declare under penalty of perjury under the laws of the State of California~that the foregoing is true and correct. S. Reynolds Name ·s/ S. REYNOLDS .Signature . :1 .. , ' ,,". " " 00050 \.. ;¡ " . - .' / " . . ". .~ e . . "C "',-">. >;:. !', ,"') " ;,'':- 's' - --,. : ~ ,. .....~, . ,,"'I..,., . ',,- . ',¡ -\ ,~ ". . . . .. . ~~ ',¡ " . ~. , t ,_ .' ",..;" -' .:. ^": ~. J - i ,;r'. , ~ : ,¡ t :? '- ., . ~ " '. j " t .{ I ~ .1<''- " f , " i '. t ". ...( 1 I 2 3 4 5 ,I r ¡! o ,I ? :! ..... ,. ü :1 (-: 10 ,¡ ~, 11 ;1 c; OJ I.cJ 0 0 Ö Q CJ ~ .;: 12 ¿¡ « z .J c: >- I- 0 13 L:. W <: :i v (j) () <: >- u 0 w 14 z ui U r.: w 0 .J >. t: w 15 w <: L'J ~ Z {f <: 0 ~1 16 U 0 .J 17 I 18 19 20 21 22 23 24 25 26 27 28 \W'l'14/WW/fP· (; 1 e r- \ COSKEY, COSKEY & BOXER Attorneys at Law Suite 1960 11601 Wilshire Boulevard Los Angeles, California 90025 (213) 473-4583 Attorneys for Appellant, Caskey, Caskey & Boxer U~ITED STATES BANKRUPTCY COURT E;'_S~ERN DIS'l'EICi' OF C.z,LIFOLEliò. In re Case No. 185-01809 B.C. CHEMICALS, INC., CHAPTER 7 Debtor. NOTICE OF APPEAL (No Hearing Date Set) The appellant, Coskey, Coskey & Boxer, appeals to the United States District Court from the final Order Granting Authority to Trustee to Clean up Premises formerly occupied by debtor. That Order of the Bankruptcy Court was entered on November 12, 1986. The parties to the Order appealed from and the names and addresses of their respective attorneys are as follows: 1. Caskey, Coskey & Boxer: Attorneys: Hal L. Coskey, William H. Topkis, Caskey, Coskey & Boxer, 11601 Wilshire Boulevard, Suite 1960, Los Angeles, California 90025 (213) 473-4583. 2. Robert L. Williams, Chapter 7 Trustee for B.C. Chemicals, Inc.: IIII 00051 1 2 3 4 5 6 ,-' ( n C ," , '-..... 10 ., I !l: L) 11 OJ w 0 .- 0 " Q 0 12 L1 ;; < c:J < .J c: >- 1- 0 13 l:. w o.t .J ~ (.1 o.t (j) >- U 0 L:J 14 z uí u c: L; 0 .J >- \: l:J 15 w < l'J ~ Z (j) < 0 l~ 16 u 0 .J 1'7 18 19 20 21 22 23 24 25 26 27 28 \"111 T 14 / \..¡w / 111 (,~ : 2 . Attorneys: Robert L. Williams, Williams & Williams, Inc. 1706 Chester Avenue, Suite 404, Bakersfield, California 93301 (805) 323-7933, 3. The Phoenix Trust: ~Lo,.ttorneys : Scott K. Baker, IZuhs & Par]:er, P,O. Box 2205, G¿kersfield, California 93303 (805) 322-4004. 4. B.C. Chemicals: Richard Eglin 650 Alfred Harrell Hwy. Bakersfield, California 93309 Attorneys: Kenneth H. Bates P.O. Box 2537 Bakersfield, California 93303 (805) 325-5717 5. Department of Public Health Richard Casagrande Department of Public Health 1700 Flower Street Bakersfield, California DATED: November 18, 1986 :/ÚJ/,;wL: WILLIAM H. TOPKIS for CaSKEY, CaSKEY & BOXER Attorneys for Appellant 2 00052, e- \ e VERI FICA TION STA TE OF CALIFORNIA, COUNTY OF I have reau the foregoing. ___ __ ____..._,____________.__ .. -- -_.~-----_._---_._--- .__....'__. .... n. _ u..__.___.. ____ ._____._+.. ___. ---. --.------.-----. .... ... . ..---.-.---.--..---. ..and know its conlents, o o ø C/-IECK APPLICABLE PARAGRAPH I am a party to this action. The matters stated in the foregoing document are true' of my own knowledge except as 10 those mailers which arc slateu on information and belief, and as to those matters I believe thcm to be true. I am 0 :In Offïcer 0 a partner 0 a___ ____,_oL_ ________ .__. '0 _.____.n __. . ____ _ .. _ ._._ ----~_._-----.. ---..-..------.- .__._---~--- a party tl> this action, :lnd am authorizcd to makc this verifïcation for and on its behalf, and I make this vcrifïcation for that reason. 0 I am informed and bclicve :lnd on that ground allege that the matters stated in the foregoing document arc truc. 0 The mattcïs ~tatcJ in ¡hc Îor~']oing document arc true of my own knowledge except as to those matters which arc stat..:d on inÎorrnalio¡¡ ¡¡nJ bclid, and as to those matters I believe them to be true. D I am ,)i,C of tl,<.; ;;[[')i'l'(,;:.S ¡o¡ .+---_.- ------...------.-.-- - ." ..- -- a pimy (0 ¡iliS ;,diù:, SL;cii P¡¡rty is aD'.,,"t fïOrn the county of aforesaid where such :.ittorneys !¡;¡ve their offices, and I make lhis Vèrl¡JC,:tio!i jvr :'¡j¡J l:n i,~h,:ii' of ,f¡:;¡ party for that reason. I am infonm:d ¡¡lid hclicI'c tind on thiJt ground allege that ¡hc lììallè,:i ~t"t(;J in the forcJoil1g Jo<':u:;¡~i1t arc true, Excœtcd on..-,..----.. .._,.._, 19 --', al..---.-_....__,..____"'..,." . _ ___California. I lkd::ïC under penalt:> or' ¡;::ïjury unGcr ¡hi: bws of the State of Californi" that the for¡;going is true and corïect. -------- --------- T¡pc or Print Name ACKNOWLEDGMENT OF RECEIPT OF DOCUMENT (other than summons and complaint) Signature Received copy of document described as on 19_, Type or Print Name Signature PROOF OF SERVICE STATE OF CALIFORNIA, COUNTY OF LOS ANGELES I am employed in the county of Los 2I.ngeles , State of California. I am over the age of 18 and not a party to the within action; my business address is: 1] h 01 wi 1 s n j rE' RmIl euard Suite 1960, Los Angp-lp-~, r~liforni~ 90025 oJiovember 199M, I served the foregoing document described a~ CH~PTER 7 NO'T'Tr.F. OF ~PPF.~T, op rn~ interested parti~ in this action by placing a true copy thereof enclosed in a sealed envelope addressed as follows: SEE ATTACHED LIST [] (BY MAIL) I caused such envelope with postage thereon fully prepaid to be placed in the United States mail at T.()~ ~nlJ~' E''3, California. Executed on Novp-mhp-r 1 q, . l~, at Los Anryel.e.s , California. o (BY PERSONAL SERVICE) I caused such envelope to be delivered by hand to the offices of the addressee. Executed on , 19----. at , California. ~ (State) I declare under penalty of perjury under the laws of the State of California that the above is true and correct. o (Federal) I declare that I am employed in the office of a member of the bar of this court at whose direction the service was made. ~) Jh AN nJ>R A MA RG01.I S {Jf;¡. :/Ü (f. /II ¡j/l.-#G Type or Print Name SIgnature STUART'S EX BROOK TI~~~AVfR (REV'SEO G/G3; 0 0 0 5 3 1 2 3 4 5 6 7 8 9 10 ~ II) 11 CI ~ 0 0 Ô Q CD :: « 12 ~ j z c: >- I- 0 13 < u. W :¡ v 0) iñ « >- u 0 1>1 14 z ui 0 c: w >= 0 .J I: w 15 w < ø v z iñ < 0 (j) 16 0 9 17 18 19 20 Pol 22 23 24 25 26 27 28 e· \ SERVICE LIST Robert L. Williams Williams & Williams, Inc. 1706 Chester Avenue Suite 404 Bakersfield, California 93301 Scott R. Baker Kuhs & Parker P,O. Box 2205 Bakersfield, California 93303 Kenneth H. Bates P.O. Box 2537 Bakersfield, California 93303 Department of Public Heà1th 1700 Flower Street Bakersfield, California Attn: Richard Casagrande e/ 00054 . - 'ì " .. _. \ . " í ", .0' r <'~ '1 '\ , " t ..-' '" : .. ~. , , , , '- 'I /. ~ r f' ç /' ,.. 1 ] ..; % ,..... .. 12 o õ )) .. '" - w '" 13 ..... f- C> -< ;; :; 0( .... 0( II) z , oJ 'c:: 14 .... f- w 0 ~ 0( :J u. .... Z _ >- II) W oJ 15 >- > 0( ~ W 0( U ~ ~ cr ci o W oJ 16 :n f- f- W f- II) ü: .... 0( W II) ..... J: c: -:: U W 17 .... co :.: ~. o « ,... OJ ~ 18 .... >- ~ 10 20 21 22 23 24 25 26 27 28 " " ¡ I ,~ , ., ,'" ï e, e ROBERT L. WILLIAMS 1706 chester Avenue, Suite 404 2 Bakersfield, CA 93301 3 Phone: (805) 323-7933 4 5 G Î, 8' UNITED STATES BANKRUPTCY COURT ~ ) EASTERN DISTRICT OF CALIFORNIA 10 In re Chapter. 7 Case No. 185-01809 B. C. CHEMICALS, INC. ORDER ON PETITION FOR AUTHORITY TO CLEAN UP PREMISES Debtor. At Fresno, California, in said District, this day of November, 1986. The petition of Robert L. Williams, Trustee, for Authority to Clean up Toxic Waste Premises at 1511 south Union Avenue, Bakersfield, California, having come on for hearing on August 28, 1986, and having been heard on October 29, 1986, Robert L. t~illiams, Trustee, appearing in person, Phoenix Trust, the landlord, appearing by Scott R. Baker of Kuhs & Parker, the Creditors' Committee appearing by William H. Topkis of Coskey, Caskey & Boxer, and Richard Casagrande of the Kern county Health Department, appearing in person" and Notice of and Application for Authorization to Clean Up Toxic waste premises having been sent to all creditors, and good cause appearing therefor, the court makes the following Findings of Fact: 1. That Robert L. Williams is Trustee in the above- captioned debtor proceeding, duly qualified and acting. That -1- 00055~' 2 3 4 5 6 7 8 9 10 c3 1 ] Z H 't _ 12 o 0 (/¡ 't '" .... W 1'1 13 .... f- C> .... ~ :; 0( .., - 0( \J1 Z ,..¡ ..J . c:: 14 ,..¡ f- w 0 0( :) ... - z _ > \J1 W ..J 15 r > 0( ,.... W 0( (J ~ ~ a: ci o W ..J 16 [f] r- f- W f- \J1 ¡;: .... 0( W I/) ~ :x: a: ~ u w 17 .... \0 :<: ,..¡ o 0( , ,... I!J ,..¡ 18 ..... .... ::> 19 20 21 22 23 24 25 26 27 28 e( e ( Chapter 11 proceedings were filed herein on July 18, 1985, and those proceedings were converted to a Chapter 7 on or about September 26, 1985. 2. That the court finds that Robert L. Williams, Trustee may expend up to $350,000.00 for the clean-up of the premises 1511 South Union Avenue, Bakersfield, california. That, if necessary, the Trustee will return to court for further authori' zation for expenditure of funds to clean up any remaining toxic waste problems. o R D E R IT IS HEREBY ORDERED, ADJUDGED AND DECREED that Robert L. Williams, Trustee, is authorized to expend up to $350,000.00 fOl the clean~up of the toxic waste problems of the premises at 15: South Union Avenue, Bakersfield, California. That, if necessar~ at such time as the funds have been expended;, Trustee, Robert L. ~'¡illiams,' will ask the court for further authority to proceed with clean-up of any remaining,toxic waste problems. DATED: Bankruptcy Judge ':'2- 00056 2 3 4 5 6 7 8 D 10 d 11 Y. H "t 12 o õ :r. "t M ... W M 13 ~ I- CI ..... ~ 3 < .., ..... .( 111 Ž ,J ..J 'C: ) 4 ,J f- w 0 .( ::¡ ... .... z - :> 111 W ..J 15 >- :> .( ,..., w <t U ~ ~ It ci o L&J ..J 16 \/) I- I- L&J f- 111 ~ ... .( L&J 111 ~ :t a: ..... U L&J 17 .., ... II) ~ ....J o .( " m ,J 18 ..... ~ 19 20 21 22 23 24 25 26 27 28 e - PROOF OF SERVICE BY MÀIL STATE OF CALIFORNIA) ss. COUNTY OF KERN ) I am a resident of the aforesaid county: I am over the age of eighteen years and not a.party to the within entitled action: my business address is 1706 Chester Avenue, Suite 404, Bakersfield, California 93301. On November 12, 1986, I served the within documents on the parties listed below by placing a true copy thereof, enclosed in a sealed envelope with postage thereon fully prepaid, in the United States mail at Bakersfieldf California,. addressed as follows: Mr. scott R. Baker KUHS & PAR.KER P.O. Box 2205 Bakersfield, CA 93303 Mr. William H. Topkis CaSKEY, CaSKEY & BOXER 11601 Wilshire Blvd., #1960 Los Angeles, CA 90025 Mr. Richard casagrande Dept. of Public Health 1700 Flower street Mr. Rich Eglin 650 Alfred Harrell Hwy. Bakersfield, CA 93309 Mr. Kenneth H, Bates BATES & TUTTON P. O. Box 2537 B~kersfield, CA 93303 Mr. Henry Cruse, P.E. EMCON ASSOCIATES 445 West Garfield Avenue Glendale, CA 91204 Executed on November 12, 1986, at Bakersfie11, California. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. S. Reynolds Name sl S. REYNOLDS Signature 00057 <, " ~. . I ~, ., ;-' .. , - ~- i <. :,.. ;' ,~. -. ,. '" -"': " '"11_- " , , '"," ". .. '" :... ",- \~, .': -- ~ ,-." {', ',: ' , '< ',' .~ ? .. ,( } ,.r .'J ) J :, j '} t ,-...',' .' . - ~ ' ;'" " . " -'''', \' } 'f ....' " " - "., 1 2 3 .:1 5 , ,.. I °1 ¡ ? i, II ,I 8 Ii J! I' 9 :1 II I, , 10 ¡ a: UI 111 CII w 0 >< 0 0 c !II ~ « 12 c:J: j Z 0: >- ~ 0 13 u. hI J ~ () <t (J1 >- U 0 w 14 z rñ U 0: W > 0 ..J ~ w 15 w C) ~ Z LO « 0 CD 16 u 0 .J 17 18 19 20 21 22 23 24 25 26 I 27 I '1 28 I , I ~ e,' \-iHT 14/ g 1/11 L 6( _ : 1 e( COSKEY, COSKEY & BOXER Attorneys at Law Suite 1960 11601 Wilshire Boulevard Los Angeles, California 90025 (213) 473-4583 Attorneys for Appellant, Caskey, Caskey & Boxer UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF CALIFORNIA In re ) ) ) ) ) ) DESIGNATION OF ITEMS TO BE INCLUDED IN THE RECORD ON APPEAL AND STATEMENT OF ISSUES TO BE PRESENTED Case No. 185-01809 B.C. CHEMICALS, INC., CHAPTER 7 Debtor. (No Hearing Date Set) Appellant, pursuant to Rule 8006, does hereby designate the following items to be included in the record on appeal and a statement of the issues to be presented with respect to the appeal from the Order of the Bankruptcy Court entered on November 12, 1986 granting authority to the Trustee to clean up premises formerly occupied by the debtor. A. DESIGNATION OF ITEMS TO BE INCLUDED IN RECORD: 1. Notice of Appeal. 2. Order on Petition for Authority to Clean Up Premises. 3. Transcript of hearing of August 28, 1986. 4. Transcript of hearing of October 29, 1986. 5. Petition of Chapter 11 filed by debtor. o 0 0 fi ~~ 1 2 3 4 5 6 7 8 9 10 a: ~~ 11 rl W 0 x 0 0 C> I!] ;: .:: 12 ¿s < Z ..I c:. >- I- 0 13 tz. w < ::i ~ (J) < () >- u 0 l: 14 z u c:. ~, w >= ê ..I w 15 w < (!) ~ z () < 0 () 16 u 0 ..I 17 18 19 20 21 22 23 24 25 26 27 28 e WHT14/g1/112bv6:2 e , 6. Notice of an Application for Authorization to Clean Up Toxic Waste Premises. 7. Petition for Authority to Clean Up Toxic Waste Premises. 8. Objection to Application for Authorization to Clean Up Toxic Waste Premises. 9 . Opposition to Application for Objection to Authorization to Clean Up Toxic Waste Premises. 10. Reply to Opposition to Objection to Application for Authorization to Clean Up Toxic Waste Premises. 11. Supplemental Opposition to Objection to Application for Authorization to Clean Up Toxic Waste Premises. B. STATEMENT OF ISSUES TO BE PRESENTED: 1. Was the entry of the Order from which this appeal is taken an abuse of discretion. 2. Was the entry of the Order from which this appeal is taken authorized by the Bankruptcy Code. 3. Did the Bankruptcy Court err by the entry of the Order re clean up of toxic waste where the original interest of the debtor in the property was a leasehold interest and said property could be abandoned? 4. Did the Bankruptcy Court err by the entry of the Order re clean up of toxic waste where the original interest of the debtor in the property was a leasehold interest and when the Trustee has not assumed said burdensome lease? 5. Did the Bankruptcy Court err by the entry of the Order re clean up of toxic waste when pursuant to Bankruptcy Code §365 (d) (4) a debtor who fails to assume or reject an unexpired 2 0005Q 1 2 3 4 5 6 7' 8 9 10 œ It) 11 C~ w 0 .- 0 Ô en en ~ <:: 12 dS j z c: >- I- 0 13 II.. w c( :ï :r: () c( UI > u 0 1:1 14 z ui U c: 1:1 0 .J >- : 1:1 15 w c( ~ :r: z UI c( 0 () 16 u 0 .I 17 18 19 20 21 22 23 24 25 26 27 28 WHT14/g1¡:~(.J: 3 e( lease of nonresidential real property under which the debtor is the lessee within sixty (60) days after.. the date of the Order said lease would be deemed rejected and therefore no funds should be expended for the clean up of toxic wastes? 6. Did the Bankruptcy Court err by the entry of the Order re clean up of toxic waste when the entire benefit of said order is tor the Phoenix Trust, the lessor of the subject property, and should the, Phoenix Trust, be in the position or an unsecured creditor and thereby receive its pro rata share of damages as an unsecured creditor? 7. Did the Bankruptcy Court err by the entry of the Order . re clean up of toxic waste when the entire benefit of said order is for the Phoenix Trust, the lessor of the subj ect property, where the Phoenix Trust failed to file its petition prior to the expiration of the sixty (60) day period in which the Phoenix Trust could make application of this Court to prevent the statutory rejection of said lease? 8. Did the Bankruptcy Court err by the entry of the Order re clean up of toxic waste when the entire benefit of said order is for the Phoenix Trust, the lessor of the subject property, where the Phoenix Trust, and its subject property, should be treated no different than the damages sustained by the other creditors of B.C. Chemical? The Phoenix Trust, like the unsecured creditors, incurred its damages prior to the filing of debtor's Chapter 11 petition. 9. Did the Bankruptcy Court err by the entry of the Order re clean up of toxic waste where the Phoenix Trust had an affirmative duty, as landlord, and lessor of said subject 3 0006.0 1 2 3 4 5 6 7 8 9 10 a: III 11 N I1J e >< 0 0 CI m :: :3 12 cIS :) Z 0: ~ l- e 13 u. <I: J ~ (J <I: (/) > u 0 1.11 14 z vi U 0: 1.11 >= ~ oJ III 15 I1J <I: U :.:: z (/) <I: 0 (J 16 u 9 17 18 19 20 21 22 23 24 , . 25 26 27 28 e·, WHTI4/g1/112ö~v:4 ./ \, property to insure that said property was maintained in conformity with state and federal environmental standards. 10. Did the Bankruptcy Court err by the entry of the Order re clean up of toxic waste effectively give to the Phoenix Trust a priority over the damage sustained by any of the other creditors of debtor and a priority over Chapter 11 administrative claims. ÄUíJlM- WILLIAM H. TOPKIS for CaSKEY, CaSKEY & BOXER Attorneys for Appellant 4 00061. e-, . \ VERI FICA TION STATE OF CALIFORNIA, COUNTY OF I have read the foregoing__ ----.-.--" --- o o ,_____...___.______and know its contents. (g CHECK APPLICABLE PARAGRAPH . I am a party to this action. The matters stated in the foregoing document are true of my own knowledge except as to those matters which are stated on information and belief, and as to those matters I believe them to be true. I am 0 an Officer 0 a partner 0 a of o I a party to this action, and am authorized to make this verification for and on its behalf, and I make this verification for that reason. 0 I am informed and believe and on that ground allege that the matters stated in the foregoing document are true. 0 The matters stated in the foregoing document are true of my own knowledge except as to those matters which are stated on information and belief, and as to those matters I believe them to be true. I am one of the attorneys for a party to this action. Such party is absent from the county of aforesaid where such attorneys have their offices, and I make this verification for and on behalf of that party for that reason. I am informed and believe and on that ground allege that the matters stated in the foregoing document are true. Executed on , 19--, at California. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Type or Print Name ACKNOWLEDGMENT OF RECEIPT OF DOCUMENT (other than summons and complaint) Signature Received copy of document described as on 19_. Type or Print Name Signature PROOF OF SERVICE STATE OF CALIFORNIA, COUNTY OF LOS ANGELES I am employed in the county of T,os An gp.l P.S , State of California. I am over the age of 18 and not a party to the within action; mý business address is: 11601 Wilshire :elud., Ste. 1960. Los Anqeles, CA 90025 On Dec 3, , 19 86, I served the foregoing document described ae CHAP 7. DESr(;NAT.I.ON OF IT: TO BE INCLUDED· IN THE RECORD__ON ÄJ?PE.b.k AND-.S.TATEMF.N'l' OF .ISETTBS TO BE PRESENTED. CHAP 7. REQUEST FOR RECORDER'S ~RAN~~RTP~ ~N APPEAL op Interested Parties in this action by placing a true copy thereof enclosed in a sealed envelope addressed as follows: ROBERT L. WILLIAMS Williams & Williams, 1706 Chester Ave. Suite 404 Bakersfield, CA 93301 Inc. Scott R. Baker Kuhs & Parker P.O. Box 2205 Bakersfield, CA Kenneth H. Bates P.O. Box 2537 Bakersfield, CA 93303 Department of Public Health. 1700 Flowe Street. Bakersfiel, States mail CA 933 93303 [E] (BY MAIL) I caused such envelope with postage thereon fully prepaid to be placed in the United at Los Anqeles, California. Executed on December 3. . 198JL, at Los Angp.l P.~ . California. o (BY PERSONAL SERVICE) I caused such envelope to be delivered by hand to the offices of the addressee. Executed on , 19----. at . California. o (State) I declare under penalty of perjury under the laws of the State of California that the above is true and correct. Ef (Federal) I declare that I am employed in the office of a member of the bar of this court at whose direction the service was made. Brenda J. Jonker Type or Print Name .(Ll~~ Sig STUAArs EJ<ÐROOK TIMESAVER (REVISED 81831 'e - 1 2 3 4 5 6 7 8 9 10 11 0:: N 12 III 0 >< 0 0 m ca ::: :: 13 0( 2: ctS .J ¡¡: >- I- 0 III 0( u. 141 ~ UJ .J (/) >- 0( 0 III U U z ui 15 ¡¡: 0 w > I: .J W III <C C) 16 ~ z (/) <C 0 III 17 u 9 18 19 20 21 22 23 24 25 26 27 28 WHT15/pp2/ \. e .87: 1 e PROOF OF SERVICE BY MAIL I am employed in the county of Los Angeles, State of California. I am over the age of 18 and not a party to the within action; my business address is 11601 Wilshire Boulevard, Suite 1960, Los Angeles, California 90025. On January 23, 1987, I served the foregoing document described as EXCERPT OF RECORD on interested parties in this action by placing a true copy thereof enclosed in a sealed envelope addressed as follows: SEE ATTACHED SERVICE LIST I caused such envelope with postage thereon fully prepaid to be placed in the United States mail at Los Angeles, California. Federal I declare that I am employed in the office of a member of the bar of this court at whose direction the service was made. Executed this 23rd day of January, 1987, at Los Angeles, California. '1£0 1 2 3 4 5 6 7 8 9 10 11 ~ UI N 12 w 0 x 0 0 en m == :: 13 ciS j Z II: >- I- 0 c( II. 14 w ::¡ ~ ( c( () >- u 0 III Z rñ 15 u II: ~ III ~ .J I- III c( C) 16 ~ z () c( 0 ( 17 u 0 .J 18 19 20 21 22 23 24 25 26 27 28 WHT15/PP2/L4It387:2 - SERVICE LIST Robert L. Williams WILLIAMS & WILLIAMS, INC. 1706 Chester Avenue Suite 404 Bakersfield, California 93301 Scott R. Baker KUHS & PARKER P.O. Box 2205 Bakersfield, California 93303 Kenneth H. Bates P.O. Box 2537 Bakersfield, California 93303 Department of Public Health 1700 Flower Street Bakersfield, California ATTN: Richard Casagrande UNITED STATES DISTRICT COURT Office of the Clerk 5408 Federal Building 1130 "0" Street Fresno, California 93721 e e 11tP 1I~ 7~ SMfIia 500 Bbl Portable Tanks Mail-175 Ray Street Loc-3400 N. Manor Street Bakersfield, CA 93308 (805) 393-1151 Vacuum & Pump Trucks June 24, 1987 Kern County Health Department Environmental Health Services 1700 Flower St. Bakersfield, Calif. 93305 Attn: Richard Casagrande RE: BC Chemicals Gentlemen: M.P. Vacuum Truck Service proposes to conduct a precise inventory of hazardous wastes contained in drums, pails, bags, and tanks located on property identified as BC Chemicals, 1511 South Union Ave., Bakers- field, California. The following is an outline of work to be performed: 1. Prepare inventory Each waste container will be numbered, and a written inventory prepared, This inventory will contain a description of the container including; a. Size of container b. Condition of container c. Volume contained d, External markings (if any) 2. Sampling of containers Containers with unknown or uncertain contents will be sampled. This sampling will be accomplished in accordance with the procedures, including quality control, in E.P.A. 's "Test Methods For Evaluating Solid Waste,SW-846". 3. Hazcat analyses The samples that are collected will be tested for hazardous characteristics. The tests will include: a. pH test b. Flashpoint test c. Cyanide test d. Sulfide test e. Halogenated organic test f. Physical properties (visual) A secondary purpose of this testing is to determine which wastes may be safely combined for disposal. \ - e Pg.2 4. Written report A report will be prepared which will include the waste inventory, hazcat results, and a plan to process, trans- port, and dispose of the wastes. All work will be accomplished under the direction and superv1s10n of a qualified chemist and safety engineer. Personnel protection and safety will be accomplished by means of appropriate protective clothing and respiratory protection. If you have any questions, please feel free to call me. Sincerely; J!hrl1duM Tom Pruitt Chief Chemist e e LAW OFFICES OF KUHS & PARKER WILLIAM C. KUHS JAMES R. PARKER, JR. RALPH WM. WYATT TERI A. BJORN SCOTT R. BAKER TIMOTHY L. KLEIER 1200 TRUXTUN AVENUE, SU'TE 200 BAKERSFIELD, CALIFORNIA 180S) 322-4004 PLEASE REPLY TO P. O. BOX 220S BAKERSFIELD, CA. 93303 OUR FILE NO. June 29, 1987 639.00 Mr. Richard Casagrande Kern County Health Department 1700 Flower Street Bakersfield, CA 93305 Robert L. Williams, Esq. Williams & Williams Inc. 1706 Chester Avenue Bakersfield, CA 93301 Re : B . ~-~C.~'ch'~-;i~-;;Iš-;--Inc.; Dear Messrs. Casagrande and Williams: Enclosed please find a copy of Mr. Pruitt's letter dated June 24, 1987 to Mr. Baker. Mr. Baker asks that after you have had an opportunity to review Mr. Pruitt's letter you call him with your comments. Please note Mr. Baker will be out of the office until Monday, July 6, 1987. Very truly /.(,:.J'vl L / ,~ ./ .. L Sandi Winter Secretary to yours, !{/{i ~~'. ¡// Scott R. Baker Enclosure 1 2 3 4 5 6 7 8 9 10 11 0:: III CII 12 I.LI 0 )( 0 0 01 ID ~ .( 13 4Ö j ;z II: >- I- 0 0( \I. 14 I.LI ::ï ~ III 0( II) ~ u 0 z ai 15 u II: 0 III >= ~ .J III I.LI 0( CI 16 ~ z II) 0( 0 III 17 u 9 18 19 20 21 22 23 24 25 26 27 28 WHT16/m/030e, :4 e administrative preference to the Phoenix Trust. While the results of not allowing an administrative preference to the Phoenix Trust may appear to be harsh to the Phoenix Trust, it should be clear that the damage done to the Phoenix Trust was committed by the debtor pre-bankruptcy and that the damages which have been incurred by the Phoenix Trust should fall in the same category as the damages which were incurred by the other unsecured creditors. CONCLUSION It is respectfully submitted that this case should be remanded to the Bankruptcy Court requiring that the Phoenix Trust either file a Proof of Claim as any other unsecured creditor or that the Phoenix Trust make a showing such that the Bankruptcy Court could find that the public health is in imminent danger if an immediate clean up is not performed upon the property. Furthermore, there should be a showing that the Phoenix Trust as landlord does not have the ability to make the clean up themselves. As can be ascertained by the transcripts of the prior hearings in the Bankruptcy Court in this matter the Bankruptcy Court has shown the inclination that pursuant to the Midlantic opinion of the U.S. Supreme Court that if toxic waste is involved the Trustee cannot abandon and therefore, the Trustee would be authorized to use any funds whatsoever for clean up. The Bankruptcy Court should be instructed upon remand that in order for the Phoenix Trust to receive an administrative priority, a sufficient showing should be made as delineated in the In re 4 1 2 3 4 5 6 7 8 9 10 11 rr II 01 12 LII 0 )( 0 0 III ID ~ ~ 13 ciS j Z II: >- I- 0 0( ... 14 LII ::¡ ~ Ø) 0( 1/1 ~ u 0 z ui 15 u II: ~ 11/ >= .J 11/ LII 0( CJ 16 ~ z 1/1 0( 0 Ø) 17 u 9 18 19 20 21 22 23 24 25 26 27 28 WHT16/m/03~ :5 e Pierce Cole & Construction, Inc. opinion. Respectfully submitted, WILLIAM H. TOPKIS for COSKEY, CaSKEY & BOXER Attorney for Appellant 5 1 2 3 4 5 6 7 8 9 10 11 0: III 01 12 ¡ 0 >< 0 0 GI In ~ :!: 13 cö j Z 0: )- t- o < ... 14 ¡ ::¡ ~ OJ en ti 0( u 0 z øi 15 0 0: ~ III >= ..I III ¡ < I!) 16 ~ z en < 0 OJ 17 0 9 18 19 20 21 22 23 24 25 26 27 28 WHT16/m1/03_ 7: 3 e PROOF OF SERVICE BY MAIL I am employed in the county of Los Angeles, State of California. I am over the age of 18 and not a party to the within action; my business address is 11601 Wilshire Boulevard, Suite 1960, Los Angeles, California 90025. On March 9, 1987, I served the foregoing document described as SUPPLEMENTAL BRIEF OF APPELLANTS on interested parties in this action by placing a true copy thereof enclosed in a sealed envelope addressed as follows: SEE ATTACHED LIST I caused such envelope with postage thereon fully prepaid to be placed in the United States mail at Los Angeles, California. Federal I declare that I am employed in the office of a member of the bar of this court at whose direction the service was made. Executed this ~~ day of March, 1987, at Los Angeles, California. 1 2 3 4 5 6 7 8 9 10 11 0:: II) (II 12 ¡ 0 >< 0 0 (II m ~ :!: 13 ðS j Z II: >- .. ~ ¡ ~ ::¡ 14 ~ III CD ~ ~ u 0 z iii 15 u II: ~ III >= oJ III ¡ ~ CI 16 ~ z CD ~ 0 III 17 u g 18 19 20 21 22 23 24 25 26 27 28 WHT16/m1/ojlþJ7:4 - SERVICE LIST Robert L. Williams WILLIAMS & WILLIAMS, INC. 1706 Chester Avenue Suite 404 Bakersfield, California 93301 Scott R. Baker KUHS & PARKER P.O. Box 2205 Bakersfield, California 93303 Kenneth H. Bates P.O. Box 2537 Bakersfield, California 93303 Department of Public Health 1700 Flower Street Bakersfield, California ATTN: Richard Casagrande UNITED STATES DISTRICT COURT Office of the Clerk 5408 Federal Building 1130 "0" Street Fresno, California 93721 .. WHT16/m(03~~;1 . ~-.-'!,.. .. . '. ..: ,....), . ., -.' -. ". ,I',' . . , .F. ...._. " , , J:t' .. . . =~. ~~. ,:" I . ""'.' 1>:-' - .' ~ . , -I.' ,,"',. '~ . ", ~ _'. .: i ~ ,'{", ,. <:' '.: ~~,r' .:.~¡, . " . ,_1a, . ~ . '.,',' .-. ;. .1. ,.'~ . r' , '. " . . ',' \" , . '. , , 1 :.'" ", ,",-'.-' ,.,',c:~, ,UNITEDSTÀTESDISTRìèrt cOURT . ~ .:' , ' . .'..7 . ,1.:'1 l ""/..' - -, .' . - ~,~.> ".' . . .~ y 1 " '. ;.;.~ ~. ~ ...... - '. "' . ,~':' ~',.:; - I . - _ .. EASTERN DISTRICT OF ,~ALIFÓRNI~':~:':.:" "" , ~ .,," ,-: ~ ,.-, . ",,~ ,':" ( COSKEY, COSKEY & BOXER, Appellant, vs. ROBERT L. WILLIAMS, CHAPTER 7 TRUSTEE FOR B.C. CHEMICALS, INC., et al., Appellees. , . .. . . -', ;~ ,', '. '- . . .,. . " ..... ) ) ) ) ) ) ) ) ) ) ) ) CASE NO. District Court No. CV F 86-638 REC Bankruptcy Court No. 185-01809 CHAPTER 7 Appeal from the United States Bankruptcy Court Eastern District of California Honorable Judge Eckhart A. Thompson SUPPLEMENTAL BRIEF OF APPELLANTS ~, WILLIAM H. TOPKIS for COSKEY, COSKEY & BOXER 11601 Wilshire Boulevard Suite 1960 Los Angeles, California 90025 Telephone: (213) 473-4583 Attorney for Appellant 1 1 2 3 4 5 6 7 8 9 10 11 It: II) tII 12 ¡ 0 x 0 0 CÐ III ~ ::!: 13 IÖ j Z II: >- I- 0 0( I&. 14 ¡ :¡ ~ UI III > 0( 0 III U Z m 15 u II: 0 III >= : .J III ¡ 0( C) 16 ~ z III 0( 0 UI 17 u 9 18 19 20 21 22 23 24 25 26 27 28 WHT16/ml/ojlþ37:1 e TABLE OF CONTENTS PAGE I. 2 INTRODUCTION ...................................... II. THE BANKRUPTCY COURT FAILED TO PROVIDE SUFFICIENT FINDINGS OF FACT TO SUPPORT THE ORDER FROM WHICH THIS 2 - ,4 APPEAL IS TAKEN ................................... CONCLUSION ............................................. 4 - 5 i. 1 2 3 4 5 6 7 81 9 10 11 0: II) N 12 \¡ 0 >< 0 0 01 In ~ :! 13 0( z cö oJ IX >- I- 0 \¡ 0( ... 14 ~ ( ::¡ III > 0( 0 III U z ai 15 u IX ~ III >- oJ III \¡ 00( CJ 16 ~ z III 00( 0 ( 17 u 0 oJ 18 19 20 21 22 23 24 25 26 27 28 WHT16/m1/03en :2 e TABLE OF CASES PAGE In re Dant and Russell, Inc., 61 B.R. 688 (Bkrtcy. Ore. 1986) . . . . . . . . . . . . . . . . . . . 3 In re Franklin Signal Corporation, 65 B. R. 268, 15 B. C . D. 55 (Bkrtcy. Mn. 1986) ...... 3 In re Oklahoma Refining Co., 63 B.R. 562, 14 B.C.D. 877 (W.D.Ok. 1986) ......... 3 In re Pierce Cole & Construction, Inc., 65 B.R. 521 (Bkrtcy. N.D.W.Va. 1986) . . . . . . . . . . . . . . 2 Midlantic Bank v. New Nersey Department of Environmental Protection, 474 U.S. 106, S.Ct. 755, 88 L.Ed.2d 859 (1986). 2 Ohio v. Kovacs, 469 U.S. 83 L.Ed.2d 649, 105 S.Ct. (1985) 3 Southern Railway Company v. Johnson Bronze Co., 758 F.2d 137, (3rd Cir. 1985) ..................... 3 ii. 1 2 3 4 5 6 7 8 9 10 11 0:: I/) « 12 iii 0 >< 0 0 ( III ;c ~ 13 ~ :5 z II: >- I- 0 c( I&. 14 iii ::i ~ () c( () > u 0 III Z ui 15 u II: ~ III >- .J III iii 0( CI 16 ~ z () 0( 0 () 17 u 9 18 19 20 21 22 23 24 25 26 27 28 WHT16/m/03~7:2 e I. INTRODUCTION On February 23, 1987 this Court requested interested parties to submit briefs regarding disposition of this case. This Court referred parties to the case of In re Pierce Cole & Construction, Inc., 65 B.R. 521 (Brktcy. N.D.W.Va. 1986). II. THE BANKRUPTCY COURT FAILED TO PROVIDE SUFFICIENT FINDINGS OF FACT TO SUPPORT THE ORDER FROM WHICH THIS APPEAL IS TAKEN As discussed at oral argument, on February 23, 1987 there were insufficient findings of fact to support the order of the Bankruptcy Court to allocate $350,000 for the clean up of toxic waste on the property of the Phoenix Trust. The only testimony given in this case regarding damages to the property was given by Richard Michael Casagrande at the hearing of August 28, 1986. Said testimony was given at a hearing where appellant was not given proper notice. There was no cross-examination by appellant at said hearing nor was it ever established that Mr. Casagrande would be an expert in this matter. Furthermore, it was not established that there was an imminent danger to the public. The Bankruptcy Court took the position at the hearings that because the property could not be abandoned under the holding in Midlantic Bank v. New Jersey Department of Environmental Protection, 474 U. S . 106 , S . Ct. 755 , 88 L . Ed . 2 d 859 ( 1986) ; U.S. reh. den. 106 S.Ct.1482 (1986) no findings of fact were necessary. The court made no findings of fact regarding whether 2 1 2 3 4 5 6 7 8 9 10 11 II:: III N 12 I.IJ 0 )( 0 0 QI ID :: :!: 13 ci:I ~ Z 0: > I- 0 < II. 14 I.IJ J ~ ( In > < 0 1&1 U z rri 15 u It: 0 1&1 >= : ..I III I.IJ < CJ 16 ~ z In < 0 ( 17 u 0 ..I 18 19 20 21 22 23 24 25 26 27 28 WHT16/m/03~7:3 e or not the claim of the Phoenix Trust should rise to that of a priority nor did the Bankruptcy Court consider the legal implications of the Phoenix Trust being a landlord. In In re Pierce Cole & Construction, Inc., supra and in the cases of In re Dant and Russell, Inc., 61 B.R. 668 (Bkrtcy. Ore 1986) and Southern Railway Company v. Johnson Bronze Co., 75·8 F.2d 137, (3rd Cir. 1985) the courts have established that the Midlantic, (supra) decision did not specifically deal with the issue of administrative claims. Thus, the decision of the Supreme Court in Ohio v. Kovacs, 469 u.S. 83 L.Ed.2d 649, 105 S.Ct. (1985) which viewed an obligation to pay money for toxic waste clean up as a dischargeable debt in bankruptcy had not been overturned. (See Pierce Cole & Construction Co., Inc. 65 B.R. at 526-528.) Furthermore, in the cases of In re Oklahoma Refining Co., 63 B.R. 562, 14 B.C.D. 876 (W.D.Ok. 1986) and in In re Franklin Signal Corporation, 65 B.R. 268, 15 B.C.D. 55 (Bkrtcy. Mn. 1986) the courts held that the mere fact that toxic waste is involved does not prevent an abandonment. In both the Franklin and the Oklahoma cases, the court allowed the abandonment of toxic waste drums. In both of these post-Midlantic decisions, the judge did not find that an imminent danger to the public health existed and that the Midlantic holding was to prevent the abandonment of toxic waste only where the danger to the public was imminent. There have been no finding of facts which would support that the toxic waste places the public health in imminent danger and therefore, there has been no showing that the unsecured creditors should have their rights usurped by what is tantamount to an 3 1 2 3 4 5 6 7 8 9 10 11 II: III ØI 12 J¡ 0 x 0 0 CII III ~ ~ 13 tt! j Z II: > t- o IIJ 0( I&. 14 ::ï ~ CÐ 0( UI ~ U 0 z ai 15 0 ø: 0 III >= 5 .J III IIJ ~ 16 x z UI 0( 0 CÐ 17 0 0 .J 18 19 20 21 22 23 24 25 26 27 28 WHTl6/m/03dIÞ :5 e Pierce Cole & Construction, Inc. opinion. Respectfully submitted, WILLIAM H. TOPKIS for COSKEY, COSKEY & BOXER' Attorney for Appellant 5 1 2 3 4 5 6 7 8 9 10 11 0: II) 01 12 ¡ 0 >< 0 0 III m ~ ~ 13 ciS j Z II: >- t- o ¡ .( \I, 14 ~ 01 :¡ en > .( 0 III U z rñ 15 u II: ~ III >- ,J III ¡ .( 19 16 ~ z en .( 0 01 17 u 9 18 19 20 21 22 23 24 25 26 27 28 WHTI6/ml/03e 7: 3 e PROOF OF SERVICE BY MAIL I am employed in the county of Los Angeles, State of California. I am over the age of 18 and not a party to the within action; my business address is 11601 Wilshire Boulevard, Suite 1960, Los Angeles, California 90025. On March 9, 1987, I served the foregoing document described as SUPPLEMENTAL BRIEF OF APPELLANTS on interested parties in this action by placing a true copy thereof enclosed in a sealed envelope addressed as follows: SEE ATTACHED LIST I caused such envelope with postage thereon fully prepaid to be placed in the United States mail at Los Angeles, California. Federal I declare that I am employed in the office of a member of the bar of this court at whose direction the service was made. Executed this ~~ day of March, 1987, at Los Angeles, California. 1 2 3 4 5 6 7 8 9 10 11 0:: II) (II 12 iii 0 )( 0 0 III m ~ ~ 13 ctI j Z II: > l- II iii .c ::¡ 14 ~ III 0( II) ~ u 0 z iii 15 0 II: 5 1&1 >= oJ 1&1 iii CJ 16 ~ z II) .c 0 III 17 0 9 18 19 20 21 22 23 24 25 26 27 28 WHT16/m1/0~37:4 e SERVICE LIST Robert L. Williams WILLIAMS & WILLIAMS, INC. 1706 Chester Avenue Suite 404 Bakersfield, California 93301 Scott R. Baker KUHS & PARKER P.O. Box 2205 Bakersfield, California 93303 Kenneth H. Bates P.O. Box 2537 Bakersfield, California 93303 Department of Public Health 1700 Flower Street Bakersfield, California ATTN: Richard Casagrande UNITED STATES DISTRICT COURT Office of the Clerk 5408 Federal Building 1130 "0" Street Fresno, California 93721 e e 1 2 3 4 DATED: June J~~1987. 5 United 6 7 8 9 10 1 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 -9- A072 (Rev.8/82) e CERTIFICATE OF srn4 COSKEY, COSKEY & BOXER vs ROBERT L. WILLIAMS, TREISTEE ) ) ) ,1 ) ) ) ) ) ) Case No. CV-F-86-638-REC . '. I, the undersigned., hereby certif'y that I am an employee in the Office or the Clerk, U. S. District Court, Eastern District of Calif'on;ria. That on 6/15/87 I served a copy of the attached DECISION AND ORDER ~ by placing said copy in a postage-paid envelope addressed to the persons hereiDa.:f'ter listed, by depositing said envelope in the United States Mail at Fresno, Calirornia,· or by placing said coW into an inter-off'ice deliver:T receptacle located in the Clerk's Office. - Served by Mail RiJt.KXä Served by Inter-Of'f'ice Delivery u.s. BANKRUPTCY COURT WILLIAM H. TOPKIS 11601 Wilshire Blvd. Suite 1960 Los Angeles, CA 90025 ROBERT L. WILLIAMS 1706 Chester Ave. Suite 404 Bakersfield, CA 93301 SCOTT BAKER P.O. Box 2205. Bakersfield, CA 93303 KENNETH BATES P.O. Box 2537 Bakersfield, CA 93303 RICHARD CASAGRANDE Department of Public Health 1700 Flower Str~et Bakersfield, CA 93305 ~1 - p-n!J~ ,"0 ~ 1V\ e ~f?U~yD...io~.l C\<fìS" - \<18$:2 _____~ (!,:,~J \c!)~5" t!)~~{'";.)Z"U"t\~)(£-b. ... __. . ~~~r ~~;TJ¡V-<;k.'¡"~ ~€j¡~11!j) ÎS+. -- .. e ~7 I !' ~ +~1 L) ~\<i"l ¡ \)ß~~ \ _I'~- Q(¿l~ ;_ . ,_ . 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JQI...{~~c-~~'t!?:'~}~\_, · ~____ 1\( '" Ai"" ~ .RL"';¡.£Co55~b~j ..""¡ß..!1HL ~-~\(~'-'"\>_~~\ _~~1>'l~[k \<L~t' I , ,.,..-- .--. - , T' . ..'-- ~., '. _~ ~l d::_~~"r.g.~~'"' _ à.t."~ ~*: "-.~!~CiL ~\;J!~-,L'-_'______d /!\;î; -~~~-\"~5\~~~~~\~,:-~~"~:7~ ~W\0. ..~--~\ uC =: ,~~~' ¡..._______.__ ____.__,_~.~Ja.__Â2h,-.~-L9-0Jru~.t~ ______.. ~..._..__.--,.___,~__-_~~cD..~'b~ (~~~vJ .., . ,......--...-. ---.---...,-.--,..--- -<,..-- ._,- ___._r"'_~C"~~~~d~.~~ ðt: 1~A\"-$:~~h·~~~,~sJ $. -.- ,___.____,~ àr . ,__t^~~..NJ $.. _.h__,__' ~o_:a., ,» .0'__. .. ..,.d....--.-.-.-h~r.--.-, ............-_.~-~-......., .'~____,_."ff : - -'. -:. . . -. - -'...,-.... ~ ~ EmCOn ASSOCIATES \::!./ L,;,,i; ."'d' ii'7'J 2.1 V -= 1:)) ..j; \~ 'JR 2 { Î987 KERN COUNTY tÜ.:AUH DEPT, e ö , KERN COUNTY HEALTH OEPARTMENT 1700 FLOWER STREET BAKERSFIELD, CALIFORNIA 93305 ATTENTION: MR. RICHARD CASAGRANDE MARCH 31, 1987 INVOICE NO, 03349 JOB NO, 85901,01 Page 1 of 2 FOR: SAN JOAQUIN DRUM COMPANY REMEDIAL INVESTIGATION PROFESSIONAL SERVICES FOR THE PERIOD ENDING MARCH 31, 1987 ---------------------------------------------------------- PROFESSIONAL PERSONNEL HOURS RATE EXEC MANAGER CRUSE, HENRY 2,0 90,00 TECHNICAL STAFF HABDANK, LES 1.5 44.00 NOVAK, MICHELLE 13.0 55.00 STEPHENSON, SHEILAH 12.0 40.00 NON-TECHNICAL LOGIUDICE, LAURIE 1.0 27.00 WORD PROCESSING EVANS, SANDI 2.5 35.00 PHILLIPPS, JANETTE 0.5 35,00 SHEPHARD, CHERYL 5.0 35.00 TOTALS 37.5 AMOUNT 180.00 66.00 715,00 480,00 27,00 TOTAL LABOR 87.50 17.50 175.00 1,748.00 1,748,00 CONSULTANTS LAB OUTSIDE SERVICES AP 03136 3/31 BC LABORATORIES, INC AP 03137 3/31 BC LABORATORIES, INC SUBTOTAL TOTAL 1,085.60 79.35 1,164.95 1,164.95 1,164.95 2,912.95 PROFESSIONAL SERVICES TOTAL Please Remit To: 1921 Ringwood Avenue. San Jose. California 95131, (408) 275-1444 Branch offices: 445 W. Garfield Avenue, Glendale. California 91204 TERMS: NET DUE UPON RECEIPT OF INVOICE ¡mean ASSOCIATES REIMBURSABLE EXPENSES MATERIALS & OTHER TOTAL . 10.60 10.60 , INVOICE NO, 03349 JOB NO. 85901,01 Page 2 of 2 10.60 ----------- TOTAL THIS INVOICE $ 2,923.55 Credit for overpayment on Invoice #02089 Total Now Due Please Remit To: 1921 Ringwood Avenue, San Jose, California 95131, (408) 275-1444 Branch offices: 445 W. Garfield Avenue, Glendale. California 91204 =========== 180,00- $ 2,743,55 ----------- ----------- TERMS: NET DUE UPON RECEIPT OF INVOICE e - UNITED STATES DISTRICT COURT EASTERN DISTRICT 01' CALIPORNIA COSKEY, COSKEY « BOXER, ) CASB NO. CV I' 86-638 REC ) Appellant, ) Bankruptcy Court No: ) 18!5-01809 vs. ) ) ROBERT L. WILLIAMS, CHAPTER ) 7 TRUSTEE FOR B. C. ) CHEMICALS, INC. , et ale , ) ) Appellees. ) ) Appeal from the United States Bankruptcy Court Eastern District of California Honorable 3udge Eckhart A. Thompson BRIEI' 01' APPELLEB, COUNTY 01' KERN B.C. BARMANN, COUNTY COUNSEL COUNTY OF KERN, STATE OF CALIFORNIA By Mark L. Nations, Deputy Administration and Courts Building 1415 Truxtun Avenue, Fifth Floor Bakersfield, California 93301 Telephone: (805) 861-2326 Attorney for Appellee, COUNTY OF KERN 16 17 18 19 20 21 22 23 24 25 26 e e 1 2 3 TABLE OF CONTENTS Page 4 I. STATEMENT OF ADDITIONAL ISSUE PRESENTED AND APPLICABLE STANDARD OF APPELLATE REVIEW · · · · · · . . · · · · 1 A. Statement of Issue Presented . . . · · · · 1 B. Applicable Standard of Appellate Review . . . . · · · · · · . . · , · · 2 II. STATEMENT OF ADDITIONAL FACT · · · 2 III. ARGUMENT . . . . . · · · · · · · · '. · 3 5 6 7 8 9 10 11 12 13 14 15 i 10 e e 1 2 3 4 5 TABLE or AUTHORITIES Cases Paqe 6 Midatlantic Bank v. New 3ersev Department of Environmental Protection (1986) 474 U.S. 7 , 106 S.Ct. 755, 88 L.Ed.2d 859 . . . . 3, 4, 5, 6 8 9 Codes 11 Bankruptcy Code Section 348 . . . . . .. .... 4 Bankruptcy Code Section 365 . . . . . . . . . . . . . 4 12 Bankruptcy Code Section 365(d)(4) . . . . . . 3, 4, 5, 6 Bankruptcy Code Section 554 . . . . . . . . . . . . . 4 13 14 15 16 17 18 19 20 21 22 23 24 25 26 i1. e e 1 B.C. BARMANN, COUNTY COUNSEL COUNTY OF KERN, STATE OF CALIFORNIA 2 By Mark L. Nations, Deputy Administration and Courts Building 3 1415 Truxtun Avenue, Fifth Floor Bakersfield, California 93301 4 Telephone: (805) 861-2326 5 Attorney for Appellee, COUNTY OF KERN 6 7 8 9 UNITED STATES DISTRICT COURT 10 EASTERN DISTRICT or CALIFORNIA 11 12 COSKEY, COSKEY a BOXER, CASE NO. CV F 86-638 REC 13 Appellant, BRIEF OF APPELLEE, COUNTY OF KERN 14 vs. 15 ROBERT L. WILLIAMS, CHAPTER 7 TRUSTEE FOR B. C. 16 CHEMICALS, INC., et al., 17 Appellees. 18 19 20 21 22 23 24 25 I. STATEMENT OF ADDITIONAL ISSUE PRESENTED AND APPLICABLE STANDARD OF APPELLATE REVIEW. A. Statement of Issue Presented. In addition to the issues presented in the brief of 26 appellant, this matter presents an additional issue which 1s 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 e e stated as follows: 1. Should a tenant/debtor in possession be allowed to effectively abandon property it has con- taminated, thus leaving the responsibility for cleanup solely with the landlord? B. Applicable Standard of Appellate Review. The standard of review for the issue stated above is that of plenary review. The court will be presented only with questions of law and of uncontroverted facts. II. STATEMENT OP ADDITIONAL PACT. In addition another pertinent attention: to the facts stated in appellant's brief, fact should be brought to the court's On September 10, 1985, debtor was cited by the Kern County Health Department for ten violations of the California Health and Safety Code and Title 22 of the California Administrative Code. The violations stemmed from debtor's mishandling of toxic chemicals on the subject property. /111/ 1111/ IIIII II1II ... 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 e e III. ARGUMENT. The COUNTY OF KERN'S underlying interest in this matter is to see that the site occupied and contaminated by debtor B. C. CHEMICALS, INC. be cleaned up in accordance with applicable state and local health laws. If some or all of the cost of cleanup can rightfully be expected from the debtor, then COUNTY requests affirmance of the bankruptcy judge's order. Debtor has raised issues for which this party has found no precedent on point. Debtor contends that the lease pursuant to which it occupied the subject property was excluded from the bankruptcy estate by operation of law [Bankruptcy Code Section 365(d)(4)] before the debtor converted to a Chapter 7 proceeding. The debtor goes on to argue that since the lease was not part of the bankruptcy estate, there was nothing for the Chapter 7 trustee to assume or abandon and therefore the trustee cannot use funds from the bankruptcy estate to conduct the cleanup. The watershed case which is receiving intense scrutiny in this matter is Midatlantic Bank v. New Jersev Department of Environmental Protection (1986) 474 U.S. , 106 S.Ct. 755, 88 L . Ed. 2 d 859. However, in Midatlantic, supra, there does not appear to have been any issue as to the propriety of including the contaminated property in the bankruptcy 3 e e 1 estate. The court held that a trustee cannot abandon 2 property under Section 554 in contravention of state statutes 3 or regulations that are designed to protect the public 4 health. This assumed, of course, that the property was sub- 5 ject to abandonment in the first place. Presumably, a 6 trustee has no power over property that is not part of the 7 bankruptcy estate. 8 Debtor's contention that the property was not part of 9 the bankruptcy estate is based on Bankruptcy Code Section 10 365(d)(4) which states: 11 "Notwithstanding paragraphs 1 and 2, in a case under any chapter of this title, if the 12 trustee does not assume or reject an unexpired lease of nonresidential real property under which 13 the debtor is the lessee within 60 days after the date of the order for release, or within such addi- 14 tional time as the court, for cause, within such 60 day period, fixes, then such lease is deemed 15 rejected, and the trustee shall immediately surrender such nonresidential real property to the lessor." 16 17 Debtor assumes that the 3uly 18, 198~ order for relief 18 is the time from which the 60 days is calculated under Section 365. However, Section 348(c) appears to require the 19 20 debtor to substitute the date of conversion order when the 21 Chapter 11 was converted to a 7 in place of the original 22 order for relief issued in the Chapter 11 case. Section 23 348(c) states: 24 "Sections 342 and 365(b) of this title apply in a case that has been converted under Section 706, 112, or 1307 of this title, as if the conversion order were the order for relief." 25 26 IIIII 4 e e 1 Therefore any calculation of 60 days should begin with 2 the order of conversion. There is no indication in the 3 record of when the order for conversion was entered nor 4 whether the trustee declined to assume the lease after the 5 conversion. His actions to date have certainly been 6 consistent with assumption of the lease. If the trustee in 7 fact assumed the lease, then Midatlantic, supra, obviously 8 controls the outcome of this case. 9 Assuming, for the sake of argument only, that the 10 trustee failed to assume the lease in accordance with Section 11 365(d)(4) and the lease is deemed rejected and debto~ is 12 required to surrender the real property to lessor PHOENIX 13 TRUST, the COUNTY submits that public policy prohibits the 14 trustee or the debtor in possession from doing by inaction 15 what they cannot do by direct action, that is, abandon this 16 real property. 17 Midatlantic, supra, stands for the proposition that a 18 trustee cannot abandon property that the debtor polluted if 19 such an abandonment is contrary to public health laws. The 20 bankruptcy court must formulate conditions to protect the 21 public before the abandonment can be authorized. That is 22 precisely what the parties were attempting to do here. The 23 trustee was seeking permission to clean off the surface of 24 the property before any more contaminants could leach into 25 the soil. A representative of the Health Department, Richard 26 C. Casagrande, testified at the August 28, 1986 hearing that 5 e e 1 the presence of chemicals on the site constituted a public 2 health hazard. [August 28, 1986 transcript, page 11, line 11 3 through page 14, line 5. The testimony of Mr. Casagrande was 4 erroneously attributed to Mr. Vandenberg.] It does not 5 appear that the parties dispute that the presence of the chem- e icals on the site do in fact pose a public health hazard of 7 some degree that will not abate without a very expensive 8 cleanup effort. Therefore the rule adopted in Midatlantic, 9 supra, should apply here even if Section 365(d)(4) applies 10 since rejection by operation of law amounts to the same thing 11 as an abandonment, the end result being that the poll~ter 12 walks away from the property and expects others to clean it 13 up for him. 14 It is certainly equitable to require the polluter to 15 clean up the site to the extent possible, even at the expense 16 of unsecured creditors and administrative claimants. They 17 too should bear some risk of dealing with an insolvent toxic 18 polluter, though their burden may not be as heavy as the land- 19 lord's. The public health and welfare is surely a concern of 20 paramount importance relative to the financial interests of 21 the unsecured creditors and administrative claimants. 22 What the appellant is asking for in this case is a 23 ruling which permits a polluter/tenant to file bankruptcy, 24 reject the lease by operation of Section 365(d)(4), and shift 25 the responsibility for cleanup solely to the landlord. 26 Midatlantic, supra, argues against such a result and 6 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 e e 1 justifies adoption of a rule which would require the polluter 2 to pay for as much of the cleanup as possible before responsi- 3 bility for cleaning the land shifts back to the landowner. 4 Therefore appellee COUNTY OF KERN requests affirmance of 5 the bankruptcy judge's order authorizing expenditure of funds 6 to assist in the cleanup of the subject property. 7 8 Dated: February 10, 1987. 9 B.C. BARMANN, Count By Mark . Natl0 , Deputy Attorney for Appellee, COUNTY OF KERN 7 e e VERIFICATION STATE OF CALIFORNIA, COUNTY OF I have read the foregoing and know its contents, o o 181 CHECK APPLICABLE PARAGRAPH I am a party to this action. The matters stated in the foregoing document are true of my own knowledge except as to those matters which are stated on information and belief, and as to those matters I believe them to be true. I am 0 an Officer 0 a partner 0 a of o a party to this action, and am authorized to make this verification for and on its behalf, and I make this verification for that reason. 0 I am informed and believe and on that ground allege that the matters stated in the foregoing document are true. 0 The matters stated in the foregoing document are true of my own knowledge except as to those matters which are stated on information and belief, and as to those matters I believe them to be true. I am one of the attorneys for a party to this action, Such party is absent from the county of aforesaid where such attorneys have their offices. and I make this verification for and on behalf of that party for that reason. I am informed and believe and on that ground allege that the matters stated in the foregoing document are true. Executed on , 19-, at California. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Type or Print Name ACKNOWLEDGMENT OF RECEIPT OF DOCUMENT (other than summons and complaint) Signature Received copy of document described as on 19_. Type or Print Name Signature PROOF OF SERVICE STATE OF CALIFORNIA, COUNTY OF KERN I am employed in the county of K ~ r n I am over the age of 18 and not a party to the within action; my business address is: 1415 Truxtun Avenue, Bakersfield, CA 93301 On Fe b. 11 19...JiJ, I served the foregoing document described a~ BRIEF OF APPELLEE. COUNTY OF KERN , State of California. 0['1 I n t ere s t e d par tie s in this action by placing a true copy thereof enclosed in a sealed envelope addressed as follows: SEE ATTACHED MAILING LIST []I (BY MAIL) I caused such envelope with postage thereon fully prepaid to be placed in the United States mail at Bake r sf i e ld . California. Executed on February 11 ,19~?at Bakersfield ,California. (BY PERSONAL SERVICE) I caused such envelope to be delivered by hand to the offices of the addressee. Executed on . 19~ at , California. (State) I declare under penalty of perjury under the laws of the State of California that the above is true and correct. (Federal) I declare that I am employed in the office of a member of the bar of this court at whose direction the service was made, o o ~ Betty L. Fowler Type or Print Name Signature ....,.--... -................, .................. ,...~........... ,........ e SERVICE LIST WILLIAM H. TOPKIS, ESQ. Coskey, Coskey & Boxer 11601 Wilshire Boulevard, Suite 1960 Los Angeles, CA 90025 ROBERT L. WILLIAMS, ESQ. Williams & Williams, Inc. 1706 Chester Avenue, Suite 404 Bakersfield, CA 93301 SCOTT R. BAKER, Kuhs & Parker Post Office Box Bakersfield, CA ESQ. 2205 93303 KENNETH H. BATES, ESQ. Bates & Tutton Post Office Box 2537 Bakersfield, CA 93303 DEPARTMENT OF PUBLIC HEALTH 1700 Flower Street Bakersfield, CA 93305 Attention: Richard Casagrande UNITED STATES DISTRICT COURT Office of the Clerk 5408 Federal Building 1130 "0" Street Fresno, CA 93721 e · e UNITED STATES DISTRICT COURT EASTERN DISTRICT OF CALIFORNIA OFFICE OF THE CLERK U. S. COURT HOUSE FRESNO. CALIFORNIA 93721 JAN 9, 1987 WILLIAM H. TOPKIS COSKEY, COSKEY & BOXER STE. 1960 11601 Wilshire Blvd. Los Angeles, CA 90025 KENNETH H. BATES ATTORNEY AT LAW P.O. BOX 2537 Bakersfield, CA 93303 ROBERT L. WILLIAMS WILLIAMS & WILLIAMS, INC. 1706 Chester Ave., Ste404 Bakersfield, CA 93301 RICHARD CASAGRANDE DEPT. OF PUBLIC HEALTH . 1700 Flower St. Bakersfield, CA 93303 SCOTT R. BAKER KUHS & PARKER P.O. BOX 2205 BAKERSFIELD, CA 93303 RE:C~ F 86-638 REC COSKEY et al v WILLIAMS et al YOU ARE HEREBY NOTIFIED .that the original record concerned, was filed with this court on Dee 30. 1986 , for further action pursuant to paragraph d(3)(B) of Local Rule 19. You are directed to file and serve briefs pursuant to Rule 8008 of the Bankruptcy Rules, and this matter is placed on the calendar of Judge Covle on Feb 23. 1987 at 1:30 for oral argument. This matter will be heard in Courtroom # 1 , U. S. Courthouse Buildin~ 1130 "0" Street, Fresno, CA. Very truly yours, J. GRINDSTAFF, Clerk By: Clerk DATED: cc : Bankruptcy Court - -- - IN THE UNI TED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF CALIFORNIA -000- ) ) ) ) ) ) ) ) ) ) ) ) ) ) -000- Bankruptcy Hearing in the Matter of: B. C. CHEMICAL, INC. Bakersfield, California Reported by: Richard X. Bencomo Shorthand Reporter -000- No. 185-01809 Chapter 7. Pre-trial Hearing on Complaint for Turnover by Trustee Robert L. Williams versus County of Kern, Parks and Recreation Department, First Interstate Bank, (186-0191). Hearing on Application for Allowance of Compensation and Reimburse- ment of Disbursements to Counsel for Official Creditors Committee. August 28, 1986 BANKRUPTCY HEARING -000- © (Q)Q' i~ )7 Lt L: e 1 e IN THE UNITED STATES BANKRUPTCY COURT 2 FOR THE EASTERN DISTRICT OF CALIFORNIA The above-entitled matter came on regularly for bankruptcy hearing in the United States Bankruptcy Court for the Eastern District of California, before Eckhart A. 3 -000- No. 185-01809 Chapter 7. Pre-trial Hearing on Complaint for Turnover by Trustee Robert L. Williams versus County of Kern, Parks and Recreation Department, First Interstate Bank, (186-0191). Hearing on Application for Allowance of Compensation and Reimburse- ment of Disbursements to Counsel for Official Creditors Committee. August 28, 1986 17 Thompson, Judge, on Thursday, the 28th day of August, 1986, 4 Bankruptcy Hearing in the ) ) ) ) ) ) ) ) ) ) ) ) ) ) -000- 18 commencing at the hour of 9:30 o'clock a.m. 5 Matter of: 19 Robert L. Williams, Esq., was present in court as 6 B. C. CHEMICAL, INC. 21 William Topkis, Esq., was present in court on behalf 7 8 9 10 11 12 Bakersfield, California 13 -000- 23 Scott Baker, Esq., was present in court on behalf of 14 15 16 20 trustee. 22 of Coskey, Coskey & Boxer. 24 the Phoenix Trust. 25 Whereupon, the following proceedings were had, to 26 wit: 2 e e 1 THE COURT: B. C. èhemical, Inc. 2 MR. WILLIAMS: Your Honor, there are two matters 3 in B. C. Chemical, Inc. There is the Petition of the 4 Creditors Committee, Coskey, Coskey & Boxer, for fees and 5 there is an objection. Mr. Topkis is appe ar ing for Coskey, 6 Coskey & Boxer. 7 We also have on the calendar the petition of Robert L. 8 Williams, Trustee, for authorization to proceed with toxic 9 waste cleanup, and 10 Coskey & B 0 xe r . 11 I might say we have objections to that from Coskey, that the trustee has on hand about 12 $525,000 and probably will collect a little more money and 13 the toxic waste cleanup will probably be one million dollars 14 or more and that will mean that the unsecured creditors will 15 get no money whatsoever, and of course, the creditors 16 committee is objecting to that. 17 Now, I will let Mr. Topkis tell you why. 18 MR. TOPKIS: I believe, your Honor, perhaps we 19 should first handle the well, I don't know which matter we 20 should handle first¡ the fee application or the objection. 21 THE COURT: 22 any money for fees. 23 MR. TOPKIS: 24 THE COURT: Well, I don't know if there will be This is a sad situation. Yes, it is. The trustee has to pay for the 25 cleanup and so he might not even get paid. 26 MR. WILLIAMS: Well, your Honor, I think that the .) It e 1 trustee can get paid but the Chapter 11 administrative fees 2 may not get paid, your Honor. 3 THE COURT: Are these Chapter 11 attorneys' 4 fees? 5 MR. TOPKIS: Yes, they are, your Honor. 6 THE COURT: I can't order them paid now. All I 7 can do is continue the hearing on that fee application until 8 the Chapter 7 case is closed. 9 MR. TOPKIS: You can set the fees at this time, 10 your Honor, there wouldn't be any additional fees being 11 incurred under the Chapter 11. There has been no objection 12 as to the amount, so we can set the fees today, which might 13 obviate the need to come up at a future date. 14 MR. BAKER: Our objection wasn't to the amount, 15 your Honor, just to the fact that they will be paid at this 16 time. 17 MR. WILLIAMS : Here is a copy of their 18 application which is for $11,000. 19 20 21 22 fees? 23 THE COURT: And you represent who? MR. WILLIAMS: I am the trustee. THE COURT: And you have no objection to the MR. WILLIAMS: I have not objected to them, your 24 Bonor, that is right. 25 THE COURT: All right. I will approve the 26 amount, but make no order as to the allowance and continue 4 e e 1 the matter of the hearing as to the allowance to the final 2 meeting of creditors hearing for all of the applications~ 3 MR. WILLIAMS: I have no objection to that, your 4 Honor. 5 THE COURT: I mean until we get to that, we don't 6 know whether there will be any money for fees. 7 MR. WILLIAMS: That is right. 8 And the Chapter 7 fees have to be THE COURT: 9 dealt with first before any Chapter 11 fees or expenses. 10 This is a horrendous result, but -- 11 MR. WILLIAMS: Your Honor, that brings us to the 12 next item. I was appointed trustee last fall and this was a 13 Chapter 11 to start with and it was converted to a Chapter 7 14 and the first thing I did was to go to a two or three-hour 15 meeting with the Health Department. 16 The Health Department found that there was a 17 substantial toxic waste problem at 1511 South Union. Also, 18 there has been citations for the toxic waste problem there 19 and, of course, I have met with the Health Department and met 20 with them since that time, and Impound Associates has 21 prepared a remedial action plan for cleanup and, of course, 22 that is what we are asking the Court to approve. But in the 23 meantime, the trustee sold, pursuant to an order of the 24 Court, a substantial or sold inventory on the premises that 25 had very little value and was sold for $3,500 on condition 26 that the buyer take off substantial amounts of property. 5 e e 1 The buyer did that. We have disposed of inventory or 2 items on the premises that would probably cost, if I had 3 hired it to be hauled away, I would say $500,000. And that 4 has been done under the supervision of the Kern County Health 5 Department and Impound Associates, who had a man there at all 6 times~ to make sure that we didn't do something wrong. 7 THE COURT: I hope you tell me all about this in 8 your fee application. 9 MR. WILLIAMS: I'm sure I will, your Honor, and 10 so now we are down to a point where what is left on the 11 premises has to be disposed of and, of course, the remedial 12 action plan calls for cleaning the premises up and then we 13 are going -- when we get the premises cleaned up, we are 14 going to have to drill to see how deep the toxic waste 15 contamination is. 16 Now, the trustee has on hand about $525,000 and if we 17 collect more money, we may have another seventy-five or 18 $100,000, hopefully. But that is going to be a drop in the 19 bucket in the event that they have to haul away surface, haul 20 away dirt from the premises. Now, the cleanup -- 21 THE COURT: Where would they haul it to? 22 MR. WILLIAMS: Well, they are going to have to 23 go to Kasmalia or up to Buttonwillow, they still do it but 24 that is maybe going to be a real problem. Now, the immediate 25 next problem is to clear off the surface, so probably I 26 estimate that it would cost maybe $200,000. And all we are o e - 1 asking today is that if the Court says that the trustee 2 cleans up ahead of the creditors, we would ask for authority 3 to proceed with the remedial action plan, and that would be 4 the first thing that we do. 5 So I think that it would probably cost us, in my 6 estimation, maybe $200,000 to clean off the surface and then 7 that will leave us some money for drilling and we will see 8 what other problems we have. I don't think that we have as 9 much contamination of the soil as the Health Department 10 thinks. 11 Is Mr. Casagrande here? He was going to be here 12 today, or Mr. Harris? But now, your Honor, we have 13 objections to the trustee's position to clean up the toxic 14 waste problem on the basis that the Supreme Court case 15 involved 16 premises 17 Boxer. an ownership premises where this is a lease-hold and those objections were filed by Coskey, Coskey & 18 And then, of course, the landlord is represented by 19 Cushion, Parker, and they say that that Supreme Court case 20 doesn't matter whether it's a lease-hold or an ownership 21 premises. 22 Your Honor, I think that we did not serve Coskey, 23 Coskey & Boxer with that application timely, and I told them 24 that if they wanted additional time to file points and 25 authorities, why, the Court would certainly give them time. 26 Now, the trustee has read that Superior Court case and e e I 1 does not believe it makes any difference whether this is a 2 lease-hold 3 THE COURT: I notice that the creditors committee 4 disagrees. Counsel, do you have any argument on the law in 5 that matter? 6 MR. TOPKIS: Your Honor, I think that it is 7 unclear whether or not they should stand as another unsecured 8 creditor or if they waived their rights by the fact that the 9 executory contract was not, or the lease-hold was not 10 maintained after sixty days of the conversion. I think that 11 the property, technically, has been abandoned as a matter of 12 law. 13 14 it? 15 16 17 Parker. THE COURT: Isn't the law that you can't abandon MR. TOPKIS: Well, your Honor MR. BAKER: Your Honor, Scott Baker of Cushion, I represent the Phoenix Trust. The Quantas 18 Resources cases that went up to the Superior Court were 19 decided under the name of Mid-Atlàntic National Bank, which 20 involved two properties, one in New Jersey and one in New 21 York. The New Jersey property was, in fact, a leased 22 property and the Third Circuit addressed that in the holdings 23 and said that there was absolutely no difference or 24 distinction to be made on that basis. 25 And therefore, the Mid-Atlantic case is right on point 26 and involves the abandonment of property, not the abandonment 8 - 1 of the lease itself, your Honor. 2 3 THE COURT: MR. BAKER: You are agreeing with the trustee? Yes, we are supporting the trustee's 4 application, your Honor. 5 MR. TOPKIS: As stated, our position would be 6 that they stand with other unsecured creditors on their 7 claim. Either way we have not -- these arguments have not 8 been presented to us until today. I did receive Mr. Baker's 9 objection to our objection at about 9:15 this morning and I 10 have had no time to substantiate -- 11 THE COURT: Well, actually, this matter has been 12 in the newspapers for quite a while and I think the trustee 13 is right in that if this is something ,that you would like to 14 appeal and if it is appealed, I would suggest maybe you could 15 agree that he could cl€an up the surface for the $200,000 and 16 then they can file their appeal and I could issue a stay 17 pending the appeal. 18 MR. WILLIAMS: Well, I don't think that we can 19 start spending money here until we get a court order that is 20 final. I just don't think that we are in a position to do 21 tha t. But I would say that if I re ally th ink that what 22 Cushion, Parker and Baker says is correct, that the Supreme 23 Court rule on those cases, one involves a lease-hold 24 25 THE COURT: MR. WILLIAMS: Well, I'm inclined to agree. And one involves ownership and, of 26 course, if counsel wants some time, like ten days, to file 9 - e 1 some more points and authorities, he may have it. But 2 really, the trustee believes that there should be a court 3 order and, of course, we are corning up to the fall and we 4 should get this work underway. 5 6 THE COURT: MR. WILLIAMS: Well -- And I think we should have a final 7 order before the trustee starts spending substantial amounts 8 of money. 9 MR. TOPKIS: Your Honor, we don't see no 10 declarations, no affidavits, no proof of how serious the 11 damage is, although, I do understand that there is some sort 12 of damage. The application that was filed by Mr. Williams as 13 required by local rule, I believe it's 21, does not show any 14 of the counsel's intention as required, and we were not 15 served in a timely manner and now it would appear that, 16 nonetheless, all the unsecured creditors, as well, could have 17 forty percent, or close to that amount, that would be 18 available to them taken away for the purpose of -- 19 THE COURT: Or everything taken away. 20 MR. TOPKIS: Or everything taken away from them. 21 If $200,000 was taken away today -- 22 THE COURT: According to what Mr. Williams has 23 said, they wouldn't get a dime if he has to clean this place 24 up. 25 MR. WILLIAMS: That is my petition, and the 26 Notice says that there would be nothing left. .1U e e 1 THE COURT: And the consensus of opinion is that 2 if he doesn't clean this place up, he is going to get sued. 3 MR. WILLIAMS: Well, there is already a criminal 4 complaint, your Honor, and so -- 5 THE COURT: Aga inst you? 6 MR. TOPKI S : No, not against me. 7 MR. WILLIAMS: Not against me. 8 THE COURT: Not against the trustee? 9 MR. WILLIAMS: We can make those declarations and 10 I see that Mr. Vandenburg, from Impound Resources, is here, 11 who can probably in five minutes tell the Court what the 12 toxic waste problem is. 13 THE COURT: Well, what about these potential 14 problems of timely notice? Do you want to continue those? 15 MR. WILLIAMS: I would say, your Honor, to give 16 them additional time. I agree that they didn't get timely 17 notice on this. 18 THE COURT: Do you want to continue this to 19 September 24 at 2:00 o'clock? 20 MR. BAKER: Your Honor, we are concerned about 21 delaying the cleanup that long. We have hired independent 22 consultants that have indicated that there is an ongoing 23 release of toxic at the site that needs immediate attention. 24 I would rather set it for the minimal notice and have it 25 heard in Fresno. 26 MR. TOPKIS: Your Honor, that would be an extreme 11 - - 1 burden on us for the obvious reasons that we have to come up 2 to Fresno and having it set immediately. The facts are that 3 the application, technically, has not been dealt with 4 properly and if they wanted to make an ex-party motion to put 5 it up in Fresno, I suppose that would be at their discretion, 6 but otherwise we would normally need the full time for a 7 full-noticed hearing. 8 MR. WILLIAMS: Your Honor, I would like to ask 9 Mr. Vandenburg as to the toxic waste problem and damages. 10 THE COURT: All right. 11 MR. WILLIAMS : Mr. Vandenburg, will you please 12 tell the Court about that? 13 MR. VANDENBURG: The toxic has been deposited on 14 to the ground and otherwise cost damage. The damage has not 15 fully been assessed so that we can get a complete site 16 characterization so that we know how much, exactly, damage 17 may have occurred. We do know that there is some damage on 18 the site. 19 MR. WILLIAMS: Have you seen the remedial action 20 plan prepared by Impound Associates? 21 MR. VANDENBURG: Yes, we have seen drafts of the 22 plan and we have reviewed and commented with them to get a 23 plan that is approvable. 24 MR. WILLIAMS: And I hand you, I think, one of 25 the latest drafts of that remedial action plan. In general, 26 will you tell the Court what that provides for? 12 1 Well, first of all, it provides for disposal of all 2 remaining items on the surface of the property, is that 3 correct? 4 MR. VANDENBURG: That is correct. 5 MR. WILLIAMS: Then th is next step after all of 6 th surface has been cleaned off, there will be drilling to 7 determine the extent of the toxic waste in the soil, is that 8 correct? 9 MR. VANDENBURG: That is correct. 10 MR. WILLIAMS: And is there anything else that 11 you want to add besides that? 12 MR. VANDENBURG: Yes. As all remedial action 13 plans for the investigation of the site, or however you want 14 to term it, follow an outline. The proposal made by the 15 company that follows an outline, approved by EPA, and by the 16 State, so that we have some uniformity, justification, and 17 rationale on the best approach. 18 And in doing that, we follow this outline, this 19 outline is complete, so that we have justifiable and . 20 rationale work going on out there, work that includes a 21 health and safety plan for both work safety and community 22 safety. 23 MR. WILLIAMS: Now, at this point the material 24 that we have removed from the premises to date, has been 25 under the supervision of Impound Associates and that has met 26 your approval to date, is that correct? 13 e e 1 MR. VANDENBURG: That is correct. 2 MR. WILLIAMS : And is there a reason for the next 3 step or the next phase the r emov al of materials should be 4 done as soon as possible, is there a reason to do that as 5 soon as possible? 6 MR. VANDENBURG: Well, there continues to be the 7 materials above ground that still constitute a hazard both to 8 environmental degradation that has already occurred and will 9 only enhance it if it continues to stay there and which is 10 already in the ground in places and if it is not removed in 11 an expedient fashion, would only continue to exaggerate the 12 problems that are there. 13 MR. WILLIAMS: Now, you have an estimate, a much 14 higher estimate than the trustee has as to what it is going 15 to take or cost to clean up those premises. What is your 16 estimate? 17 MR. VANDENBURG: Well, our estimate is only based 18 on the estimate of Impound and I think it was a six-figure 19 number. 20 21 22 MR. WILLIAMS: MR. VANDENBURG: MR. WILLIAMS: Over one million dollars? Yes, that is right. Your Honor, I have no other 23 questions. If counsel wants to ask questions, that's fine. 24 25 26 THE COURT: MR. TOPKIS: MR. BAKER: All right. Your Honor, I have no questions. I have just one. l4 e THE COURT: MR. BAKER: e 1 All right. 2 Does the continued presence on the 3 site of the chemicals and the other hazardous waste, cause a 4 threat to any person who enters on to those premises? 5 MR. VANDENBURG: Yes, they do. 6 MR. BAKER: Thank you. That is all I have. 7 MR. WILLIAMS: Your Honor, it is the position of 8 the trustee that the trustee is obligated to proceed with 9 this, but I also think that they are entitled to time, so I 10 think that Septmeber 24 in Bakersfield would give them a time 11 to respond. 12 MR. BAKER: Well, your Honor, that is another 13 month for problems to continue and problems to be created and 14 I think that is an enorminant amount of time to allow before 15 the cleanup is begun and I agree with your suggestion that 16 the trustee be authorized to implemen t immediate cleanup to 17 the e xten t of the $200,000 or whatever is necessary to get 18 the chemicals in drums out of there. 19 THE COURT: Well, I anticipate an appeal in this 20 case regardless what the Court's order is and I don't want 21 the case to be reversed on a technical ground and have to 22 come back for retrial. 23 MR. BAKER: I understand that, your Honor. 24 THE COURT: And so counsel has raised an 25 objection on the grounds that he hasn't had proper notice and 26 if he persists on that objection, I think we ought to give 15 e e 1 him a further hearing. 2 Now, I don't think counsel is doing his clients any 3 favors, but 4 MR. TOPKIS: No, your Honor, and I am not sure 5 that we necessarily want to take that position, but I do want 6 to state the fact that I do want to research the law and it 7 does create a problem, but it is not the matter of just the 8 technicality of untimely notice. We received their objection 9 today and I have no way of ascertaining whether or not that 10 is accurate legal research and whether or not our research 11 would show that that would be an improper expenditure and for 12 us to say that -- 13 THE COURT: Well, would it be agreeable to give 14 you two weeks to file a brief, if you desire to do so, file 15 it sooner than that and set it for a telephonic conference 16 and I can let you know at that time whether or not your brief 17 has changed my mind or not? 18 MR. TOPKIS: We would be amenable to that, your 19 Honor. 20 THE COURT: Would you waive any procedural 21 diff icul ty if that were done? 22 MR. TOPKIS: I think we could do that, yes, your 23 Honor. I would like to know who the principals are. 24 MR. WILLIAMS: I will let you talk to the 25 principals. In fact, you can talk to Richard ~nglin, who is 26 the president of B. C. Chemicals, and I have no objection to 16 1 2 3 4 5 6 7 8 9 you talking to him and asking him whatever questions you want to of Mr. Englin. MR. TOPKIS: Is Mr. Englin part of the Phoenix T ru s t? MR. BAKER: No. Phoenix Trust is the landlord and Mr. Englin leases the premises. MR. WILLIAMS: He is B. C. Chemicals. MR. TOPKIS: And there is no relationship between the two, other than the lease? 10 MR. WILLIAMS: Right. 11 THE COURT: All right. Then let's set it for 12 telephonic conference on October the -- 13 14 MR. WILLIAMS: THE COURT: You mean September, your Honor. Yes. September the 13th at 2:30. 15 Would that be agreeable? 16 MR. TOPKI S : That is fine with us, your Honor. 17 MR. WILLIAMS: That is fine with me, your Honor. 18 THE COURT: All right. And who will place the 19 call? 20 MR. WILLIAMS : I would say let me know before 21 that time, if you want the telephonic conference. 22 MR. TOPKIS: That is true, your Honor. We will 23 need to research the law. 24 THE COURT: Now, will you get your brief on file 25 by September the 10th so that I have a chance to look at it? 26 MR. TOPKIS: Yes, your Honor. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 17 e 1 THE COURT: And set it off, put a little yellow 2 sticker or a red sticker on it to the attention of the law 3 cle rks, otherwise it might get into the file and I may neve r 4 see it. Send it to the attention of the law clerk so that it 5 will go directly to the law clerk and then to me. And make a 6 note that it is to be set for a telephonic conference. 7 THE CLERK: Who will initiate the conference 8 call? 9 MR. WILLIAMS: I will place the call if counsel tells me he wants to have it, yes, I will place the call. THE COURT: MR. WILLIAMS: MR. TOPKIS: All right. Thank you, gentlemen. Thank you, your Honor. Thank you, your Honor. -000- ~8 e e 1 2 3 4 STATE OF CALIFORNIA ) ) ss 5 COUNTY OF FRESNO ) 6 I, RICHARD X. BENCOMO, Shorthand Reporter, do hereby certify 7 that the foregoing pages numbered 1 to 17, inclusive, 8 comprise a full, true and correct transcript of my shorthand 9 notes, and a full, true and correct statement of the 10 proceedings had upon the hearing of the above-entitled 11 matter. 12 13 14 15 16 ph 17 18 19 20 21 22 23 24 25 26 .l2LJ;r#~ RICHARD X. BENCOMO Shorthand Reporter -000- IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF CALIFORNIA -000- Bankruptcy Hearing in the Matter of: B. C. CHEMICAL, INC. -000- Bakersfield, California -000- ) ) ) ) ) ) ) ) ) ) ) ) ) No. 185-01809. Chapter 7. Continued Hearing on Objection to Application For Authorization to Clean Up Toxic Waste Premises by Transwest Security Services. Continued Hearing on Application for Authoriza- tion to Clean Up Toxic Waste Premises by Trustee. Continued Pre-Trial Hearing On Complaint for Turnover. October 29, 1986 BANKRUPTCY HEARING -000- Reported by: Richard X. Bencomo Shorthand Reporter @®rPv e 1 IN THE UNITED STATES BANKRUPTCY COURT 2 FOR THE EASTERN DISTRICT OF CALIFORNIA 3 -000- ) ) ) ) ) ) ) ) ) ) ) ) ) No. 185-01809. Chapter 7. Continued Hearing on Objection to Application For Authorization to Clean Up Toxic Waste Premises by Transwest Security Services. Continued Hearing on Application for Authoriza- tion to Clean Up Toxic Waste Premises by Trustee. Continued Pre-Trial Hearing On Complaint for Turnover. 4 Bankruptcy Hearing in the 5 Matter of: 6 B. C. CHEMICAL, INC. 7 8 9 10 11 -000- October 29, 1986 14 The above-entitled matter carne on regularly for 12 Bakersfield, California 13 -000- 15 bankruptcy hearing in the United States Bankruptcy Court for 16 the Eastern District of California, before Eckhart A. 17 Thompson, Judge, on the 29th day of October, 1986, commencing 18 at the hour of 1:30 o'clock p.m. 19 Robert L. Williams, Esq., was present in court as 20 trustee. 21 Scott Baker, Esq., was present in court on behalf of 22 the Phoenix Trust. 23 William Topkis, Esq., was present in court on behalf 24 of Coskey, Coskey & Boxer. 25 Whereupon, the following proceedings were had, to wit: 26 -000- 2 1 2 - THE COURT: MR. WILLIAMS: B. C. Chemicals, Inc. Your Honor, there are two matters 3 on B. C. Chemical on calendar today. We have an order 4 already on the second matter with the Kern County Parks and 5 Recreation Department. 6 So what we have left is the application of Robert L. 7 Williams, Trustee, for authorization to clean up toxic waste 8 premises. And we have also objections on file to that. 9 Now, the trustee has a substantial toxic waste problem 10 at 1511 South Union Avenue. We have estimates of $200,000 to 11 $350,000 to clean up the surface. We have gotten a lot of 12 stuff removed previously pursuant to court order, and we also 13 have about $50,000 worth of Chapter 11 debts, including 14 taxes. 15 I had proposed that we authorize the trustee to pay 16 the Chapter 11 debts and then spend money to clean up the 17 toxic premises, but we have objections to that, but I think 18 we can stipulate. We need to start cleaning up the surface 19 because it is going to start raining and we may have barrels 20 start breaking and things like that. So my proposed 21 stipulation is that the Court authorize the trustee to spend 22 up to $350,000 to clean up the surface, which we think will 23 do it. In fact, I hope to have some money left over. 24 We would also authorize now the payment -- the Court 25 has already approved the attorneys' fees of the creditors 26 committee at $11,000 plus $400 and, well, it's about $12,000 3 e 1 that has been approved, but no order for payment. We would 2 pay the creditors committee, Coskey, Coskey & Boxer, those 3 fees. Then we would wait and in the meantime, the trustee 4 will be objecting to those Chapter 11 claims and we will 5 kn ow 6 THE COURT: Are there any Chapter 11 claims? 7 Well, no, there is about $50,000 MR. WILLIAMS: 8 including taxes. 9 THE COURT: Well, you can't pay attorneys' fees 10 ahead of other Chapter 11 claims. 11 MR. WILLIAMS: Well, this is the attorneys' fees 12 for the creditors committee. 13 THE COURT: A Chapter 11 claim is a Chapter 11 14 claim and it doesn't make any difference who it's for. 15 MR. WILLIAMS: Well -- 16 17 You can't prefer one over another. THE COURT: MR. WILLIAMS: I was trying to get something that 18 we can all live with and I think that by stipulation we can 19 pay that. 20 THE COURT: Well, I think they can live with it, 21 but the other creditors can't. 22 MR. BAKER: Your Honor, Scott Baker for the 23 Phoenix Trust. Your Honor, what I was proposing to the 24 trustee and Mr. Topkis by way of compromise, was perhaps 25 segregating sufficient funds for those Chapter 11 expenses as 26 they exist now and going ahead with the cleanup efforts, 4 e e 1 since there are plenty of funds available to do that. And 2 then 3 THE COURT: Isn't the law that you have to clean 4 th is up? 5 MR. BAKER: That is right, your Honor. 6 MR. WILLIAMS: Your Honor, those cases, the 7 Supreme Court cases, you read them and they don't say 8 anything about, you know, it just says cleanup and doesn't 9 say about payment of Chapter 11 debts. 10 I don't know if they had a Chapter 11 involved in 11 those cases or not, but it doesn't say about paying Chapter 12 11 debts, so it's just not clear. 13 THE COURT: Well, are you willing to take a 14 chance? 15 MR. WILLIAMS: Well, I will under a court order. 16 THE COURT: I don't think that a court order will 17 protect you if you are not supposed to do it. 18 MR. WILLIAMS: Well, your Honor, maybe the answer 19 is just to make an order authorizing the trustee to spend -- 20 I got $554,000 on hand, round figures, right now, as of the 21 1st of the month. I got $334,000 on hand and we think it 22 will cost $300,000 I would say $250,000 to $350,000, about 23 $350,000 to clean off the surface. 24 And then after we get the surface cleaned off, I am 25 still going to have, you know, if I spend $350,000, I will 26 almost have $200,000 left and then we can, of course, what he 5 e 1 is saying is segregate and hold the money. 2 THE COURT: I don't think you should pay anybody 3 until the Chapter 7 is closed. 4 MR. WILLIAMS: Well, no, I wouldn't -- I would 5 not be paying until further order, but maybe the answer today 6 is to just make an order that the trustee clean off the 7 surface, spend up to $350,000. 8 THE COURT: If you think that the law is that you 9 are required to clean up that toxic waste regardless of any 10 other consideration, why, I think that is what you should do. 11 Well, I think that is the law, but MR. WILLIAMS: 12 the law doesn't -- 13 THE COURT: Do you think you should ask the Court 14 to make an order that is going to be appealed? 15 MR. WILLIAMS: Your Honor, the Supreme Court 16 cases that say, you know, two years ago all the trustee would 17 have done would be to abandon the premises. The Supreme 18 Court ruled that the trustee can't do that, I am supposed to 19 clean up the toxic waste. 20 THE COURT: Well, that is my understanding of the 21 law. 22 MR. WILLIAMS: But it does not say in those 23 Supreme Court cases, you know, what debts can be paid. For 24 example, taxes or Chapter 11 debts. 25 It says that you have to clean up the THE COURT: 26 toxic chemicals. 6 e e 1 MR. WILLIAMS: Well, that is right. 2 THE COURT: I don't think it addresses th at, I 3 don't think it's concerned about what you do with the rest of 4 the money. 5 MR. WILLIAMS: Well, can we stipulate to an order 6 today that just says that the trustee can expend up to 7 $350,000 to clean up the surface and leave this other for 8 further order down the line? But, your Honor, I'd like to 9 get started on the cleanup before we start getting any rain. 10 MR. BAKER: He doesn't even need an order, your 11 Honor, to clean up. 12 MR. WILLIAMS: Well, I want a court order to do 13 that because we have objections to my plan, my petition for 14 authorization to clean up. 15 THE COURT: If you request it, I will make an 16 order that you are authorized to spend whatever you have to 17 to clean it up. 18 MR. WILLIAMS: Well, your Honor, I think that 19 would be appealed. I think that would go on appeal. 20 THE COURT: I think that would be desirable, an 21 appeal, and find out whether the Court is wrong or not. 22 MR. WILLIAMS: Your Honor, maybe down the line we 23 may have an appeal but I would like, at this po in t , authority 24 to clean up the surface. That is where I got possible 25 liability fr om the people next door and o the r places. 26 THE COURT: All right. As far as I'm concerned, 7 e e, 1 you got it. 2 MR. WILLIAMS: I would like to have a court order 3 that says that the trustee can spend up to $350,000 to clean 4 up the surface and then with us coming back for further 5 orders to do anything else. 6 THE COURT: Any objections to that? 7 MR. BAKER: No objection, your Honor. S THE COURT: This has been noticed to creditors, 9 has it? 10 MR. WILLIAMS: Yes, it has. It has been noticed 11 to all creditors. 12 THE COURT: Very well. That will be the order. 13 MR. BAKER: Thank you, your Honor. 14 MR. WILLIAMS : Thank you, your Honor. 15 We also have Mr. Casagrande from the Health Department 16 and-- 17 THE COURT: Seriously, Mr. Williams, I would 18 welcome an appeal because I think we are going to have this 19 corne up time and again and I think as trustee, you would want 20 to know how you stand. 21 MR. WILLIAMS: We may have an appeal, your Honor. 22 I think down the line we may have an appeal, possibly, but at 23 this point 24 MR. TOPKIS: Our position is that they would 25 stand as an unsecured creditor just as any other unsecured 26 creditor, and that -- 8 e 1 THE COURT: Who is that? 2 MR. TOPKIS: That the Phoenix Trust would stand 3 as an unsecured creditor and certainly they are. 4 MR. WILLIAMS: They are the landlords, your 5 Honor. 6 MR. TOPKIS: They are the landlords and they are 7 entitled not to have the property abandoned. However-- 8 THE COURT: I am not concerned about the Phoenix 9 Trust, I am concerned about the government. The government 10 says you can't do it, isn't that right? 11 MR. WILLIAMS: Well, that is right. They say I 12 can't abandon it. 13 MR. TOPKIS: He cannot abandon it but that 14 doesn't indicate that they are -- by not abandoning that, 15 does not mean that all the funds are to be used to clean it 16 up. They are responsible to clean up, but that doesn't mean 17 that there might not be a priorty. And indeed, there are 18 cases that show that secured creditors would have a priority 19 over the cleanup. 20 THE COURT: Over the cleanup? 21 MR. TOPKIS: That is correct, your Honor. 22 THE COURT: Do you have such authorities? 23 MR. TOPKIS: Yes, there are, your Honor. 24 MR. WILLIAMS: We don't have any secured 25 creditors. 26 lvm . TOPKIS: They are not secured creditors, 9 e 1 these involved Chapter 11 administrative expenses. The 2 Mid-Atlantic and the Quantas case specifically states that 3 they are not determining the issue of whether or not the 4 cleanup is an administrative expense. It is determining 5 whether or not it can be abandoned and the answer to that, of 6 course, was no, that they cannot abandon the property, but 7 that would not necessarily give them the authority to spend 8 the money that would properly go to Chapter 11 administrative 9 claims over the unsecured's. 10 THE COURT: It says that they can't abandon the 11 property and they are responsible for cleaning it up. 12 MR. BAKER: Your Honor, I think the reason that 13 they didn't reach that issue is that there was no money left 14 over to discuss whether or not it should be an administrative 15 expense or not. 16 MR. WILLIAMS: In this case I am going to have 17 almost $200,000 left over if I spend $350,000 which we are 18 going to have to address that issue down the line. 19 Your Honor, we have Mr. Casagrande from the Health 20 Department who would like to say a few words. 21 MR. TOPKIS: Well, your Honor, the comment on .4 22 of the order, or the fact number 4 is saying that the Court 23 finds 24 MR. WILLIAMS: Well, we are going to have to make 25 a new order. 26 MR. TOPKIS: Okay. 10 e e 1 All the order is going to be is MR. WILLIAl'.5: 2 that we are going to spend up to $350,000 to clean up the 3 surface and come back for further orders. 4 MR. TOPKIS: There is a definition 5 Mr. Williams, in making this order I THE COURT: 6 am doing this at your request. I am not indicating that you 7 should be limited to $350,000, you understand that? 8 MR. WILLIAMS: Well, your Honor, I know, but I 9 think this will give us what we need and we can come back and 10 argue that later. This may go up on appeal, but at least I 11 can get the surface cleaned off before I get a lot of 12 problems. 13 THE COURT: All right. 14 MR. CASAGRANDE: To be financially e;~pedient, it 15 may be proper that as the top is being cleaned off, as that 16 characterization is ongoing, you continue to do the 17 below-ground investigation. That is the most cost-efficient 18 manner as per the plan that we all agreed to, and that is 19 going to save a bigger chunk of money in the end. 20 That bottom layer under the ground, the sub-surface 21 that transfers water, has to be addressed. That is as 22 important as above-ground receptacles. 23 MR. WILLIAMS: Well, we are going to get to that 24 as soon as we can, but the first thing is that we are going 25 to clean the surface. 26 Correct. But what I am saying MR. CASAGRANDE: 1.1. e e. 1 is that you should not keep it above ground and below ground, 2 they are one issue. Clean up of a site is a clean up of a 3 site and you can do that most efficiently with the same 4 people being out there doing the same core sampling and so 5 forth. It is just much more economically advantageous. 6 MR. WILLIAMS: Well, I will say that Henry Cruz, 7 you know, under our remedial investigation plan, well, he 8 agrees that we can do it as we are proposing. 9 MR. CASAGRANDE: Okay. Including and not 10 limiting to just above ground, but to subsurface also. 11 MR. WILLIAMS: That we are going to clean up the 12 surface. 13 MR. CASAGRANDE: Immediately? 14 MR. WILLIAMS: Yes. 15 MR. CASAGRANDE: Okay. As long as you are not 16 hampered by, you kn ow , maintaining it above ground. 17 MR. WILLIAMS: Well, you know, I am going to run 18 out of money before this is over. 19 THE COURT: Very well. So ordered. 20 MR. WILLIAMS: Thank you, your Honor. 21 -000- 22 23 24 25 26 12 - e 1 2 3 4 STATE OF CALIFORNIA ) ) ss 5 COUNTY OF FRESNO ) 6 I, RICHARD X. BENCOMO, Shorthand Reporter, do hereby certify 7 that the foregoing pages numbered 1 to II, inclusive, 8 comprise a full, true and correct transcript of my shorthand 9 notes, and a full, true and correct statement of the 10 proceedings had upon the hearing of the above-entitled 11 matter. 12 13 14 15 16 ph 17 18 19 20 21 22 23 24 25 26 ~/; ~//J . '/. ,/ ...fA ' .',£ ~~~,;r RICHARD X. BENCOMO Shorthand Reporter -000- 1700 Flower Street Bakersfield. California 93305 Telephone (805) 861-3636 aN COUNTY HEALTH DEPARTMEN. HEALTH OFFICER leon M Hebertson, M.D, ENVIRONMENTAL HEALTH DIVISION pierre Rivas Community Development DIRECTOR OF ENVIRONMENTAL HEALTH Vernon S. Reichard TO February 11, .,J;jR-" FROM /- ...' /...~' ,//7. / //// /' Richard Casagrande ¿Y:../~.,,~( .:I.¡.,ý1·r----'-~ ;" '" '-. ---"/ ...- Hazardous Materials Management Program Contact Staff: John Harris SUBJECT: Cas a Loma Specific Plan Draft EIS COMMENTS ON DEIS FOR CASA LaMA FREE ENTERPRIZE REGARDING B.C. CHEMICALS. 1. Document: "EPA notice to Kern County Community Development" Page 4, Pagagraph 2. "Although some drums buried contamination. cleanup has taken place here, there are on-site and an unknown amount of still soil Comment: Al though there buried on the charges have evidence exists explored when begin. have been allegations of drums having been B.C. Chemical property, as of today these been unsubstantiated. and no conclusive to support them. This possibility will be site investigation/remediation activities 2. Document: "Kern EPA comments": comments" #1. County Page 2 Community Development reSDonse to "Hazardous Waste Responses to Comment: Responsibility for site clean up since B.C. Chemical filed for bankruptcy has not transfered to State of California, In fact, current legal precedent puts clean-up liability on B.C. Chemical before all creditors are paid, Case is currently on appeal in the U. S. District Court, which could uphold or reverse this opinion. Kern County has revieNed and approved the site remedial investigation plan as prepared by Emcon Associates. The state does Dot have lead agency status in this case. The County Health Department has assumed such lead agency status and has kept all other appropriate state agencies informed. nl~T"t""T rH:C:I"'C~ e e Casa Loma Specific Plan Draft EIS February 11, 1987 Page two 3, Document: "Continued" Page 3 Paragraph I, Sentence 2, 3, 4 Comment: Kern County Health Department will require that the B,C. Chemical site be remediated in such a manner as to allow for safe future development. The manner of remediatIon wIll. however not be limited to any specific method, Page 3 Paragraph 2 Sentence 1 Comment: Kern County will monitor Associates and report to clean up activities of the Department of Health Emcon and Services. RC:JH:sw KENNETH H, BATES THOMAS A. TUTTON e SATES & TUTTON e A PROFESSIONAL CORPORATION ATTORNEYS AT LAW 1122 TRUXTUN AVENUE. SUITE 101 TELEPHONE la051 325·5717 MAILING ADDRESS' POST OFFICE BOX 2537 FILE NUMBER BAKERSFIELD. CALIFORNIA 93303'2537 2239 February 2, 1987 Of~'~ of thE;/~lerk of the uni~~~ta~~s District Court U.S. courbJHouse 5301 Fede~~ Building 1130 IIO?' I trè~t Fresno, A 9~2l .. Re: Caskey, Caskey & Boxer v. Williams CVF 86-638 ('î , , /....... ,,,~.',..":.\/ ,.~- ¡ "'J' Gentlemen: This matter is presently on calendar iòr February 23, 1987 at 1:30 p.m. in Courtroom #1. We represented the bankrupt B.C. Chemicals in the filing of the initial Petition for Relief in July of 1985. We will not be filing any brief in this particular matter, and the appeal can be submitted for decision in our absence. Very truly yours, KENNETH (.I, BAYES Kenneth H. Bates KHB/bc cc: William H. Topkis for Coskey, Coskey & Boxer Robert Williams for Williams & Williams Scott Baker for Kuhs & Parker Richard Casagrande for Dept. of Public Health . - " , , "'\,'-. . . . t'·,·- ...., '. .. ~.;: ",' f"> . . .'~ . ~': "::"'\;",~.:~ .', : ',~... " .'!'. ~.. - '. ¡ " ,'. ; " .' t.", , .' . ..: t' .... .,,' ,"4' . .' .';'. , ~ . "', : ... '., i , ,\ ,''). . ..'t ì .. .- ..- --,"', . ~ ~. ;,; . '. . .....-,. ~ I ~, :. -;. '.' . '",.", . . .,' e ,<: >: :;'::':"'-.'~~:,. ',; .' .. /, :>~. , . ~ . . . :'.';.:J .' -~. '. --'''7. .......;., .:" '. . . '." .. . , . ¡' I . '. "': '";. .," ,-" .' -, ,':" . . -. "'.~.' ~. :. .:·<-,::·.'·/~·.. .:' :"~"' . .~. . ;' ,', . ," . ~ . - : ...,'~ J-: ".\ . .: ¡'.';' . .: . .... ". ,". ~ . .... .' ...' ..~. .. , .-1 ," , , . ~. .... " ,. \'. '- .'- ". . - .~ , " ...... :,. ,..... . . . . ¡.' ,."' .", ., . . '. . .,.- - ~ <0, ,. ·~··-.I!· .-< .' " , , , .',... ' . ;-' '':'.- '.' .:' ..~" . . . .:'" ,.' ..~~.' ~-" ~: .:. . ~. . . "".:"; ~ , i J ., . i. ' '.. UNITED STATES DISTRICT COURT . '. ; ) ::. '. "". . ',' -h ," . ',:' ~ .., ' '. ::. ': .... ". ". ~... . ,"., ^ , , ¡ : EASTERN DISTRICT OF CALIFORNIA " . .,' ., ~. .!., , . " :.,~ l. J. ,~, . c' , .. Appellees. ) CASE NO. District Court No. ) CV F 86-638 REC ) Bankruptcy Court No. ) 185-01809 ) ) CHAPTER 7 ) ) ) Date: February 23, 1987 ) Time: 1:30 p.m. ) . Place: Courtroom 1 ) COSKEY, CaSKEY & BOXER, , Appellant, vs. -. ROBERT L. WILLIAMS, CHAPTER 7 TRUSTEE FOR B.C. CHEMICALS, INC., et al., Appeal from the United States Bankruptcy Court Eastern District of California Honorable Judge Eckhart A. Thompson BRIEF OF APPELLANTS WILLIAM H. TOPKIS for COSKEY, CaSKEY & BOXER 11601 Wilshire Boulevard Suite 1960 Los Angeles, California 90025 Telephone: (213) 473-4583 Attorney for Appellant . ¡Ib 1 2 3 4 5 6 7 8 9 10 11 ~ N 12 w 0 " 0 ~ G, 0 úJ ~ .( l~'j -:: " ,;¡j .J 0: '" '" 0 L!J « II. 1¡~1 ~ u; .J <t (!) >- u 0 w Z cñ 15 u c: 0 L:J ...I >- I: w w 0{ (! 16 ~ z (/) .( 0 (J) 17 u 0 ...I 18 19 20 21 <)f) r:"" ¡...." 23 24 25 26 27 28 WHT15/pp1/ 01. 7: 1 e TABLE OF CONTENTS I. STATEMENT OF THE BASIS OF APPELLATE JURISDICTION ...................................... II. STATEMENT OF THE ISSUES PRESENTED AND THE APPLICABLE STANDARD OF APPELLATE REVIEW...................... A. STATEMENT OF THE ISSUES TO BE PRESENTED ...... B. APPLICABLE STANDARD OF APPELLATE REVIEW ...... III. STATEMENT OF THE CASE ............................. A. NATURE OF THE CASE ....................,...... B. Srf'ATEMENT OF THE FACTS ....................... IV . ARGU't/1ENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 2 2 2 - 3 3 3 3 - 4 4 - 5 5 A. PURSUANT TO BANKRUPTCY CODE §365(d) (4) THE NON- RESIDENTIAL REAL PROPERTY LEASED BETWEEN DEBTOR AND THE PHOENIX TRUST WAS REJECTED WHILE DEBTOR WAS IN CHAPTER 11 ............................ 5 - 6 B. THE RESPONSIBILITY FOR THE MAINTENANCE OF THE SUBJECT PROPERTY OF THIS LAWSUIT SHOULD BE UPON THE PHOENIX TRUST AND NOT THE UNSECURED CREDITORS AND ADMINISTRATIVE CLAIMANTS ....... 7 - 9 C. THERE IS NO STATUTORY OR CASE BASIS FOR GRANTING PRIORITY TO A CLAIM BASED ON TOXIC WASTE CLEANING ...................................... 9 - 11 VI. CONCLUSION ........................................ 11 - 12 i 1 2 3 4 5 6 7 8 0 10 11 Q: UI N 12 w 0 " 0 ö CI> t!1 ~ ~ 13 oJ: z àj ..J [! >- ¡... 0 I¡J ..: I~ 14 ~ IJJ ..J ~') >- « 0 l:J U Z ui 15 u r:: 0 UI I: ..J >- l:J LtI ~ t9 16 ~~ z (J) ~ 0 UJ 17 u 0 ..J 18 19 20 21 2:2 23 24 25 26 27 28 WHT15/PP1/0141Þd7:2 . TABLE OF CASES AND STATUTES Page Midlantic Bdnk v. New Jersey Department of Environmental Protection, 474 U.S. 106 S.Ct. 755; 88, L.Ed.2d 859 (1986); U.S. Reh den 106 S.C. 1482 (1986) ................. 6, 9 Quanta Resources Corp. v. The City of New York, 739 F.2d 912 (3rd Cir. 1984) ...................... 7, 10 Union Scrap Iron & Metal Company, 49 B. R. 477 (B . Minn. 1985) .....................,.. 10, 11 D,S, v. Þ.rgent, 15 Envtl.L.Rptr. 20616 (D.N.M. 1984) .............. 7 Bankruptcy Code §365(d) (4) ..........................,.. 2, 4, 5, Bankruptcy Code §507 6 and 10 3 & 7 2 9 ..... ......... ...... ... ............ Bankruptcy Code §554 .. ................... .............. Bankrutpcy Code §564 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rules of Bankruptcy Procedure Rule 3002 et seg. ......... 2, 6, 9 and 10 Title 28 U.S.C.A. § 157................................ 2 Title 28 U.S.C.A. §158(a) .............................. 2 ii 1 2 3 4 5 6 7 8 9 I 101 11 ú:: 10 C\I l 'J l;j c -,~ " 0 0 () L1 :: ~ 13 < z o;s ..J c: >- t- o llJ < u. 14 ~~ tl ..J < L'I >- U 0 I;. z 15 u n: Ll 0 I;J ... ..J >- ... UJ W -=: ø 16 ~ z (/) < 0 (J) 17 u 0 ..J 18 19 20 21 22 23 24 25 26 27 28 WHT 15 / pp / 10 2_. : 2 e I. STATEMENT OF THE BASIS OF APPELLATE JURISDICTION Appellate jurisdiction is based on Title 28 U.S.C.A. §158(a) which states in pertinent part: "The District Courts of the United States shall have jurisdiction to hear appeals from final judgments, orders and decrees, and, with leave of the Court, from interlocutory orders and decrees, of Bankruptcy Judges entered in cases in proceedings referred to the Bankruptcy Judges under §157 of this Title. An appeal under this subsection shall be taken only to the District Court for the judicial district in which the Bankruptcy Judge is serving." II. STATEMENT OF THE ISSUES PRESENTED AND THE APPLICABLE STANDARD OF APPELLATE REVIEW A, STATEMENT OF ISSUES TO BE PRESENTED 1. Was the property formerly leased by Debtor a part of the bankruptcy estate? 2. Should funds of the bankruptcy estate be spent on property previously abandoned and/or rejected pursuant to §554 and §365(d) (4) respectively for the clean-up of t ~ic waste? 3. Does the landlord bear the burden of cleaning up the subject property of this appeal and must the landlord file a Proof of Claim pursuant to Rule 3002 et seq. of the Rules of Bankruptcy Procedure? 4. Is the lessor of the premises formerly leased by Debtor entitled to priority over unsecured creditors and administrative claimants for the clean up of toxic waste, in controvention of 2 1 2 3 4 5 6 'J 8 0 10 I a: IS) 11\ OJ w 0 121 0 ( C> ú1 ;.: « 13 oJ: z èJ ..J c: >- f- a l:J .s: 11. JA ..J ~ "1 oJ: 01 ;. U 0 U z 15 u c: U) 0 UJ >- f- ..J 1- I:J W o! 19 16 ~ z (j) « 0 (f 17 u 0 oJ 18 19 20 21 22 23 24 25 26 27 28 WI1TI5/PP/I02_ : 3 . Bankruptcy Code §507 et seq.? B. APPLICABLE STANDARD OF APPELLATE REVIEW For all issues presented the appropriate standard of review is that of plenary review. The court will be presented only with questions of law and of uncontroverted facts which do not include' conn, icting testimony by live witnesses. III, STATEMENT OF THE CASE A. NATURE OF THE CASE Parties to this appeal are Coskey, Coskey & Boxer, appellant; Robert L. Williams, Chapter 7 Trustee for B.C. Chemicals, Inc., ("Trustee") ¡ the Phoenix Trust, the landlord for the subject property of this lawsuit; B. C. Chemicals, Inc., a California corporation, Debtor herein; and the Department of Public Health. On or about July 29, 1986 Robert L. Williams, Trustee gave Notice and petitioned for Authority to Clean-Up Toxic Waste on the Premises located at 1511 South Union Avenue, Bakersfield, California. (The "subject property" of this appeal.) (ER-52-27, ER 51-24:et seq.) Said premises represented the former premises of B.C. Chemicals prior to filing its Chapter 11 petition and during the first sixty (60) days of Chapter 11. Said premises are owned by of the Phoenix Trust. (ER-55-32:24) The Trustee, in his petition, indicated that the cost of disposing of the remaining inventory and clean-up would be in the neighborhood of 1/2 million dollars. (ER-51-25 : 12) The Trustee indicated that there were approximately $1 million in creditors (ER-51-25: 27) 3 1. 2 3 (1 5 6 71 i 81 ~I I I 101 ! 11 ú:: III OJ 1 <) w 0 -"-' 0 0 (ñ ro :;: < 13 -< z àj .J c: >- I- 0 W < IJ.. 14 ~ () J If) > < 0 ~I U Z uí 15 u c: 0 bJ >- 1- .J l- ll! W < l? 16 ~ z If) < 0 () 17 u 0 .J 18 19 20 21 22 23 24 25 26 27 28 WHT15/pp/102_ : 4 . , I and that the Trustee had on hand approximately 1/2 million dollars. ER-51-25:28) Caskey, Coskey & Boxer, Counsel to the Official Creditors Committee in the Chapter 11 proceedings objected to the Trustee's Application. (ER 54-28 et seg.) The Phoenix Trust filed an Opposi tien to the Objection of Caskey, Coskey & Boxer. (ER, 55-32 et seg.) At the hearing on the Trustee's petition the court ordered that the Trustee be allowed to expend up to $350,000 to clean-up the surface of the subject property, an amount representing nearly 70% of the estate. (ER 74-48 et seg, ER 67-55 et seg.) Apparently two separate Orders were forwarded by the Trustee to the court. It would appear that the operative order was entered on November 12, 1986. On November 19, 1986 Appellant Coskey, Coskey & Boxer gave Notice of Appeal to the final Order Granting Authority to Trustee to Clean-Up Premises formerly occupied by Debtor. (ER-65-51 et seg. ) B. STATEMENT OF THE FACTS The operative facts regarding this Appeal are not in dispute. On July 18, 1985 Debtor B.C. Chemicals, Inc. filed its Chapter 11 Petition. (ER-1-1 et seg.) On September 26, 1985 the Debtor converted its Chapter 11 proceedings to a Chapter 7 proceeding. (ER 67-56:2) Debtor leased the subject property of this appeal from the Phoenix Trust (ER-55-32:24) There was no assumption of said lease pursuant to Bankruptcy Code §365(d) (4). 4 1 2 3 4 5 6 7 8 9 10 11 r.c: UI N 12 w 0 " 0 0 m OJ ;¡: <t 13 <t z oij .J a: >- ... 0 <t LL 14 w J ~ lJ) U) >- <C 0 lJ U Z ui 15 u a: 0 w ... .J >- ... w W <t CJ 16 ~ z U) <t 0 () 17 u 0 .J 18 19 20 21 22 23 24 25 26 27 28 WHT15/PP/I02~:5 - The Trustee has in excess of $500,000 in the bankrupt ~state and the anticipated cost of cleaning the premises is in excess of 1/2 million dollars. (ER-6-27: 21) The nature and extent of any toxic waste hazard is not clear from the record. IV. ARGUMENT A. PURSUANT TO BANKRUPTCY CODE §365(d) (4) THE NON- RESIDENTIAL REAL PROPERTY LEASED BY DEBTOR FROM THE PHOENIX TRUST WAS REJECTED WHILE DEBTOR WAS IN CHAPTER 11. Pursuant to §365(d) (4) if Debtor fails to assume or reject an unexpired lease of non-residential real property under which the Debtor is the lessee within sixty (60) days after the date of the Order for Relief, said lease is deemed rejected. Debtor filed its Chapter 11 petition on July 18, 1985 and an Order for Relief was presumptively entered that day. (ER-l-1). Sixty (60) days after said date, on September 16, 1985, as a matter of law, the lease between B.C. Chemical and the Phoenix Trust terminated. At no time could the Trustee have assumed this burdensome lease nor has the Phoenix Trust petitioned the Bankruptcy Court for an Order that the lease be assumed. On September 26, 1985 when Debtor converted its Chapter 11 proceeding to a Chapter 7 proceeding (ER-67-56: 2) the subject property of this appeal was not a part of Debtors estate and at no time should the subject property of this application be construed as a part of the Chapter 7 estate. 5 1 2 3 4 5 6 7 8 9 10 11 r~ 111 CII 12 w 0 '" 0 0 Ç\ úl 3 ~ 13 <t :::: 0<1 -J c:: >. I- 0 <t II. 14 l¡J J ~ UJ <t L') >- u 0 w Z ui 15 u c: 0 w : -J >- w W o! CJ 16 ~ z lJ) « 0 (/) 17 u 0 .J 18 19 20 21 29 .~ 23 24 25 26 27 28 WH'l'15 I pp I 102 __ . 6 - The Phoenix Trust knew the business of B.C. Chemicals when it leased the premises and was aware of a possible toxic waste hazard, both prior to the filing of Debtor's Chapter 11 petition and before the expiration of the sixty (60) day period to assume or reject the lease. Nonetheless the Phoenix Trust failed to make an application to the Bankruptcy Court to prevent the, statutory rejection of said lease. The Phoenix Trust has previously cited the United States Supreme Court case Midlantic Bank v. New Jersey Department of Environmental Protection, 474 u.S. 106 S. Ct. 755; 8 8 L . Ed . 2 d 859 (1986); u.s. Reh. den. 106 S.Ct. 1482 (1986) as the paradigm case that the Trustee is responsible for paying for the clean-up of the subject property. Midlantic held that a Trustee could not abandon property if doing so would endanger or violate state andlor federal health standards. The Phoenix Trust's contention that said lease cannot be abandoned is misplaced. Even if the Phoenix Trust is correct that the property cannot be abandoned, said lease was deemed rejected on September 16, 1985 as a matter of law, pursuant to Bankruptcy Code §365(d) (4) and was not assumed by Debtor. Furthermore, said rejection does not violate any state, federal andlor county health codes. The Phoenix Trust as lessor should bear the responsibility of cleaning up its property. The Phoenix Trust must submit a claim to the Bankruptcy Court like every other unsecured creditor pursuant to Bankruptcy Code Rule 3002 et seq. for its expenses incurred. IIII IIII IIII 6 1 2 3 £1 5 6 7 8 9 10 11 n:: U1 N 12 111 0 >< 0 0 G> CJ) ::: <t 13 <t z ~ ..J c: >- I- 0 W <t II. 14 J ~ L1 <: (J) >- u 0 III Z ui 15 u c: 0 ~J >- I- ..J I- L~ ~I < C) 16 ~ z ill '" 0 L1 17 U 0 ...I 18 19 20 21 22 23 24 25 26 27 28 J WHT15/PP/10~ :7 - B. THE RESPONSIBILITY FOR THE MAINTENANCE OF THE SUBJECT PROPERTY OF THIS LAWSUIT SHOULD BE UPON THE PHOENIX TRUST AND NOT THE UNSECURED CREDITORS AND ADMINISTRATIVE CLAIMANTS. Contrary to law the Bankruptcy Court herein has elevated the priori ty of the clean-up of any hazardous waste on the subject' property to a "super priority" over all other claims. The Phoenix Trust has contended that all funds should be utilized for the clean-up of its property before any administrative claims or creditors may receive funds. The Phoenix Trust has relied upon the Midlantic case supra and the companion case Quanta Resources Corp. v. The City of New York, 739 F.2d 912 (3rd Cir. 1984). Unlike Hidlantic, the subject property of this lawsuit is not owned by the Debtor. The ultimate responsibility for losses incurred by the Phoenix Trust should fall upon the Phoenix Trust, not the other unsecured creditors and administrative claimants. Otherwise, all assets of this estate will go to the benefit of one unsecured creditor. Such a holding is contrary to Bankruptcy Code §507 which has no provision which provides an unsecured credi tors \·¡i th a priority if its claim is for the clean-up of toxic waste. The Phoenix Trust, not the unsecured creditors or the administrative claimants has the greater responsibility to protect the environment from harm caused by substances on its property. In D,S. v. Argent, 15 Envtl.L.Rep. 20616 (D.N.M. 1984), the District Court held that a lessor of land was liable without fault for pollution caused by the tenant and rejected the lessors third party defense. The lease, the court concluded, was a 7 1 2 3 4 5 6 7 8 9 10 11 n: II) N 12 IIJ 0 .- 0 " en 0 ro :; ~ 13 ~ z ci:I .J r.<: >- I- 0 W « u. 14 ~ (J) .J « (¡) >- u 0 l:J Z cñ 15 u c:: 0 w >- ~ .J U W « (9 16 ~ z (f « 0 (J) 17 u 0 .J 18 19 20 21 22 23 24 25 26 27 28 , WHT15/PP/I0~ :8 - sufficient contractual relationship to bar the defense. It would appear that the court assumed that the pollution was in connection with the lease. When the Phoenix Trust originally contracted to lease the subject premises to Debtor the Phoenix Trust was responsible for the commercial transaction which it entered. The Phoenix Trust, was aware that it was dealing with a chemical company. If any unsecured creditor could have foreseen the possible environmental hazards herein it would have been the Phoenix Trust. I f the Phoenix Trust desired, it certainly could have required B. C. Chemicals to post a bond and/or have contracted at a higher lease rate to absorb the burden of a possible hazardous waste problem on its property. The Phoenix Trust also had the right to enter the premises to make sure that its property was kept in conformity with and environmental federal codes. state Nonetheless, the Phoenix Trust apparently turned a blind eye toward the problem and now seeks to use the entirety of the bankruptcy estate if necessary for the expenses entailed in the clean-up of its property. As a class, the other unsecured creditors could not have possibly envisioned this disaster as one of the commercial risks of transacting with B.C. Chemicals. Certainly each creditor bore the burden of the possibility of B.C. Chemicals becoming insolvent. Nonetheless, even with an insolvency, an unsecured creditor could expect a certain percentage of return. If this court holds that the assets of the estate are to be expended for the clean-up of toxic waste as a priority ahead of the class of administrative become it claimants, would 8 1 2 3 4 5 6 7 8 0 10 11 a:: \I) N 12 !¡J 0 >{ 0 0 c;¡ Cù ;: :: 13 « -, oÖ ..J ~ r.:: >- I- 0 1.11 < ¡¡. 14 ~ ~, ..J If) >. ..: 0 ¡, u z ui 15 u c.: 0 w >- I- ..J I- ¡, W <! C) 16 ~ .. (}) :;: 0 II) u 0 17 ..J 18 19 20 21 22 23 24 25 26 27 28 WHT15/PP/I02ð1Þ:9 e , I commercially .unsound for creditors to continue to do business with Chapter 11 debtors with possible toxic waste problems and it would become economically unfeasible for professionals to serve in administrative as Trustees, positions bankrutpcy such representatives to creditors committee, examiners, accountants and brokers. C. THERE IS NO STATUTORY OR CASE BASIS FOR GRANTING PRIORITY TO A CLAIM BASED ON TOXIC WASTE CLEANING. In both Midlantic, supra and Quanta supra, the court specifically did not treat the question of whether or not the expenditures clean-up subject the property to was an administrative expense. In Midlantic at 88 L.Ed.2d 864, footnote 2, the court stated: "The sole issue presented by these petitions is whether a Trustee may abandon property under §564 1n controvention of local laws designed to protect the public health and safety. New York is claiming reimbursement its an for expenditures as administrative expense. That question, however, like the question of the ultimate disposition of the property, is not before us." (See also Quanta 739 F.2d 912 at 923.) In the Midlantic and Quanta cases the clean-up expenses were paid for by the state and claims for reimbursement were to be made to the estate. Likewise in the case at bar Rule of Bankruptcy Procedure Rule 3002 et seq. should be properly applied and the Phoenix Trust should be required to prove its' 9 1 2 3 :1 5 6 7 8 9 10 11 a: III N 12 111 0 ., 0 ô (¡) 131 ¡¡¡ :: ~ dj < z oJ c: >- 1- 0 W « 11. 14 J ~ (/) 0( (J) >- u 0 w z uí 15 u 0: 0 I<! ~ oJ >- )- I<! W 0( C) 16 ~ z (J « 0 U) 17 lJ 0 oJ 18 19 20 21 22 23 24 25 26 27 28 WHT15/pp/102e 10 e claim. In the case at bench, the Phoenix Trust is complaining that a second winter season is affecting its property. Nonetheless, the lessor has made no efforts to mitigate the damages by cleaning up the premises and filing a Proof of Claim as required by Bankruptcy Rule 3002. The apparent reason why the Phoenix· Trust will not clean the premises is a misplaced reliance on Midlantic, supra. By interpreting said opinion to mean that the clean-up of the property is a super priority (even though the court specifically passed on the question), the Phoenix Trust has exacerbated the problem and now threatens to exhaust the assets of the estate. In the case of In re Union Scrap Iron & Metal Company, 49 B.R. 477 (B.Minn. 1985) I a pre-Midlantic case, the court was confronted with a situation similar to the case at bench. In Union Scrap Iron, the court was urged by the MPCA (the Minnesota Pollution Control Agency) to take and sell property which properly belonged to a secured creditor and utilize said funds to pay the cost of clean-up. The court found that said argument was \vi thout "any support in the Bankruptcy Code or other federal statute" 49 B.R. at 478. v. CONCLUSION There has been no showing that the' public would be endangered if the Trustee were to; (1) abandon the property back to the lessor; or (2) if this court were to deem the lease rejected pursuant to Bankruptcy Code §365 (d) (4); or (3) if the claims of the Phoenix Trust were interpreted as belonging in the 10 1 2 3 4 5 6 7 8 9 10 11 œ L1 N 12 l¡J 0 -.- 0 ô ()) fa ?: « 13 « z <:is ..J a: >- 1- 0 Ilj .( LL 14 v é') _I iii >- « 0 I.:J U z 15 u n: ¡¡j 0 I.:J >- !: ..J I.:J W « CI 16 v z ¡¡¡ « 0 () u 0 17 ..J 18 19 20 21 22 23 24 25 26 27 28 ; WHT15/pp/1024IÞ :11 e class of unsecured creditors. In any of the three above,listed situations, the Phoenix Trust would bear the responsibility for the clean-up preventing any further damage to the environment and to the community, the prime priority cited in the Midlantic case. Furthermore, if this Court were to hold for any of the above three enumerated options all unsecured creditors, including the' Phoenix Trust, and all administrative claimants would be reimbursed at an appropriate commensurate ratio as provided by the Bankruptcy Code. It would also insure that the Court would still be able to find professionals to serve in bankruptcy cases involving hazardous waste. It is respectfully submitted that the Order by the Bankruptcy Court allowing for the immediate clean-up of toxic wastes utilizing assets of the estate be reversed and the case be remanded to the appropriate Bankruptcy Court mandating that the lessor be responsible for the clean-up of the subject property of this estate and then file its claim as an unsecured creditor of Debtor. Furthermore, this Court should hold that any additional damages caused to the property by the delay of the lessor to liquidate its claim by immediate clean-up should not be reimbursable by the estate. It would be against equity, public policy and the Federal Bankruptcy Code to elevate the status of the clean-up of the subject property to that of a super priority. As a super priority, the clean-up of toxic waste would be to the IIII IIII IIII IIII 11 1 2 3 4 5 6 7 8 9 10 11 0: III (II 12 w 0 >< 0 0 (1\ CIJ :: 0( 13 qj 0( Z .J 0: >- I- 0 W 0( ll.. 14 ~ 01 ::¡ III >- 0( 0 III U Z ui 15 u c:: 0 III >- : ..J III W 0( C) 16 v z ¡¡¡ 0( 0 III 17 u 0 .J 18 19 20 21 22 23 24 25 26 27 28 WHT15/PP/102~:12 - detriment of the entire class of unsecured creditors, and to all Chapter 7 and 11 administrative claimants. Respectfully submitted, ~:rJ;k WILLIAM H. TOPKIS for COSKEY, COSKEY & BOXER Attorney for Appellants 12 1 2 3 4 5 6 7 8 9 10 11 œ In N 12 w 0 >< 0 0 01 In ~ ~ 13 « z ~ ..J c: >- I- 0 W « 11. 14 ~ () J II) >- « 0 w U Z ui 15 u c: 0 w >= I: ..J W W « CI 16 ~ z II) « 0 () 17 u 0 ..J 18 19 20 21 22 23 24 25 26 27 28 WHT15/PP2/0~87:1 e PROOF OF SERVICE BY MAIL I am employed in the county of Los Angeles, State of California. I am over the age of 18 and not a party to the within action; my business address is 11601 Wilshire Boulevard, Suite 1960, Los Angeles, California 90025. On January 23, 1987, I served the foregoing document described as APPELLANT I S BRIEF on interested parties in this action by placing a true copy thereof enclosed in a sealed envelope addressed as follows: SEE ATTACHED SERVICE LIST I caused such envelope with postage thereon fully prepaid to be placed in the United States mail at Los Angeles, California. Federal I declare that I am employed in the office of a member of the bar of this court at whose direction the service was made. Executed this 23rd day of January, 1987, at Los Angeles, California. n "rlMr^- ffi a¿(~v1 ~MARGOLIS/, Declarant 1 2 3 4 5 6 7 8 9 10 11 œ UI III 12 w 0 >< 0 0 en IQ 3: 0( 13 cij 0( Z .J c:: >- .. 0 < II. 14 w :¡ ~ In 0( II) >- u 0 1&1 Z ui 15 u c:: 0 ¡ >= I: .J ¡ W < ø 16 ~ z II) < 0 In 17 u 0 .J 18 19 20 21 22 23 24 25 26 27 28 WHT15/PP2/04IÞJB7:2 e SERVICE LIST Robert L. Williams WILLIAMS & WILLIAMS, INC. 1706 Chester Avenue Suite 404 Bakersfield, California 93301 Scott R. Baker KUHS & PARKER P.O. Box 2205 Bakersfield, California 93303 Kenneth H. Bates P.O. Box 2537 Bakersfieldr California 93303 Department of Public Health 1700 Flower Street Bakersfield, California ATTN: Richard Casagrande UNITED STATES DISTRICT COURT Office of the Clerk 540B Federal Building 1130 "0" Street Fresno, California 93721 . . .. ' " ' r:'t , , ~~I .,<il .jf ;1 . . ræ·n:: iC j£ 1! 'Ij IE l1J; FEB 1 9 1987 . .. ' KERN COUNTY HEALTH DEPT. '. S' -- ~ UNITED STATES DISTRICT COURT EASTERN DISTRICT OF CALIFORNIA COSKEY, COSKEY .& BOXER, ) CASE NO. District Court No. ) " CV F 86-638 REC Appellant, ) Bankruptcy Court No. ) 185-01809 vs. ) ) CHAPTER 7 'ROBERT L. WILLIAMS, CHAPTER 7 ) TRUSTEE'FOR B.C. CHEMICALS, ) INC. , et a1., ) Date: February 23, 1987 ) Time: 1:30 p.m. Appellees. ) Place: Courtroom 1 ) Appeal from the United States Bankruptcy Court Eastern District of California Honorable Judge Eckhart A. Thompson REPLY BRIEF OF APPELLANTS TO PRINCIPLE APPELLEE BRIEF BY THE PHOENIX TRUST WILLIAM H. TOPKIS for COSKEY, COSKEY & BOXER 11601 Wilshire Boulevard Suite 1960 Los Angeles, California 90025 Telephone: __:J.~13) 473-4583 "J .'. - Attorney f~~,~PP~llant . ~ ;;,3-5 . \i . ~~ . ;- '~""'+"', So;-- ..~ ..::)""" , . ~ ~ !it~~ ~.: ., ~, .: 1-::~. _" __ ;"'~~:,;J.:!; .~. ..- '.. , , ",=';:;. - 1 2 " 3 ., . 4 5 6 7 8 9 10 11 II:: (/ C\I 12 ¡ 0 >< 0 0 01 ID ~ c( 13 tiS j z ex: >- -,.. ~ ¡ 0( ::¡ 14 :II:: DI III > c( 0 1&1 U z iii 15 u II: ~ 1&1 ~ ...I 1:1 0( u 16 :II:: z III c( 0 1/1 17 0 9 18 19 20 ,; 21 22 23 . 24 25 26 27 28 ¡. ; WHT1S/f3/41Þ387:1 - TABLE OF CONTENTS PAGE I. APPELLEE ASSERTS THE INCORRECT APPLICABLE STANDARD OF APPELLATE REVIEW............................... 2 - 3 II. APPELLEE'S RELIANCE ON MIDLANTIC IS MISPLACED . . . . . 3 - 6 III. APPELLEE'S ASSERTION THAT APPELLANT CITED NO AUTHORITY REGARDING A SPECIAL DUTY ON THE PART OF THE LANDLORD TO INSURE THAT THE LESSOR DOES NOT CREATE A HAZARDOUS WASTE SITUATION IS INCORRECT ... 6 IV. APPELLEE FAILS TO ADDRESS THE ISSUE REGARDING THE LACK OF STATUTORY OR CASE AUTHORITY WHICH GIVES BASIS FOR GRANTING PRIORITY TO A CLAIM BASED ON THE CLEAN-UP OF TOXIC WASTE ........................... 6 - 8 V. CONCLUSION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 - 9 i. 1 2 3 4 5 6 7 8 9 10 11 It: I) 01 12 11.1 0 >< 0 0 ell ID :t ~ 13 ctJ j Z II: >- I- 0 0( ... 14 11.1 ::¡ ~ II 0( tII ~ U 0 Z vi 15 u II: ~ 101 >= ..I 101 11.1 0( c¡ 16 ~ z tII 0( 0 III 17 u 9 18 19 20 21 22 23 24 25 26 27 28 WHT15/f3/0~87:2 e TABLE OF CASES PAGE In re Federation Worker's Credit Union, Inc. 354 F.Supp. 1206 N5 (N.D. Ohio 1973) .............. 3 Midlantic National Bank v. New Jersey, 47 4 U. S . 1 0 6 S. Ct. 755 ¡ 88 L. Ed . 2 d . 8 5 9 (198 6) . . . 5 In re TP Long Chemical, Inc., 45 Bkrty.Rptr. 278 (Bkrty, N.D. Ohio 1985) . . . . . . . 7 In re Mowbray Engineering Company, Inc., 67 Bkrty.Rptr. 34 (Bkrty.M.D. Ala. 1986) . . . . . . . . . 7 In re Quanta Resources Corporation, (New Jersey) 739 F.2d 927 (1984) . . . . . . . . . . . . . . . . . . 5 In re Quanta Resources Corp., (New York) 739 F.Rptr.2d. 912 . . . . . . . . . . . . . . . . . . . . . 5, 7 U.S. v. Argent, 15 Enriron. L.Rptr. 20616 (D.N.M. 1984) ........... 6 BANKRUPTCY CODES Bankruptcy Code §365 Bankruptcy Code §554 4, 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 4 TREATISES 6 Collier on Bankruptcy §117.95 15th Edition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 ii. ",.. 1 2 3 4 5 6 7 8 9 10 11 0:: II) N 12 11.1 0 )( 0 0 01 IQ ~ 0( 13 ~ j Z 0: >- .. 0 11.1 0( II. 14 ~ en :¡ () >- 0( 0 1&1 U Z ui 15 u 0: ~ 1&1 >= .J 1&1 11.1 0( " 16 ~ z () 0( 0 en 17 u 9 18 19 20 21 22 23 24 25 26 27 28 ,.. , .\< . . ;, ....~ t ~¡ . i 'g' WHT15/f2/~387:2 - I. APPELLEE ASSERTS THE INCORRECT APPLICABLE STANDARD OF APPELLATE REVIEW Where an Appeal Deals with Disposition of a Motion Decided on the Basis of Affidavits or on the Colloquy of Counsel, the "Clearly Erroneous" Rule Does Not Apply. The court in its orders entered on November 18, 1986 (ER-64 and ER 67) made only two findings of fact. Finding of Fact Number 1, in each Order, found that Robert L. Williams was Trustee for the within matter, duly qualified and acting and that Chapter 11 proceedings were filed herein on July 18, 1985 and those proc€:edings were converted to a Chapter 7 on or about September 26, 1985. Said finding is not disputed by Appellant. Finding of Fact Number 2, however, in each Order, is disputed. Finding of Fact Number 2 for the first Order (ER-64-49:4-10) stated: "That the court finds that Robert L. Williams, Trustee, may expend up to $350,000.00 for the clean-up of the surface of the premises at 1511 South Union Avenue, Bakersfield, California. That at such time as all substances are removed from the surface of said premises, the Trustee will return to court for further authorization to do subsurface testing and for authority to clean up any subsurface toxic waste problems." Finding of Fact Number 2 for the second Order (ER-67: 56, 4-9) stated: "That the court finds that Robert L. Williams, Trustee, may expend up to $350,000 for the clean-up of the premises at 1511 South Union Avenue, Bakersfield, California. That, if necessary, the Trustee will return to court for further 2 1 2 3 4 5 6 7 8 9 10 11 0: II) CII 12 IIJ 0 >< 0 0 ØI Ø1 == 0( 13 0( z iii oJ II: >- t- o IIJ 0( Ir. 14 ::¡ ):: III 0( III > u 0 11/ Z ai 15 u II: 0 11/ >- ~ oJ 11/ IIJ 0( CI 16 !II:: z III 0( 0 III 17 0 9 18 19 20 21 22 23 24 25 26 27 '1 28 '. ~¡ { i i-! 1.! ,I ~ I ~I ., WHT15/f2/dlÞ387:3 - authorization for expenditure of funds to clean up any remaining toxic waste problems." Said findings of fact are not based upon the trial court making determinations between conflicting witnesses. Collier on Bankruptcy states: "[T]he 'clearly erroneous' rule should be applied only when the bankruptcy judge has made a finding of fact based upon conflicting testimony by live witnesses.. If the Appeal deals with the disposition of a motion decided on the basis of affidavits or on the colloquy of counsel, the 'clearly erroneous' rule does not apply." 6 Collier on Bankruptcy, il17.05 15th Edition. See e.g. In re Federation Worker's Credit Union, Inc., 354 F.Supp. 1206 N5 (N.D. Ohio 1973). Notwithstanding, said standard regarding findings of fact, Findings of Fact Number 2 are in actuality legal conclusions and therefore, this court is required to apply the plenary standard of review. II. APPELLEE'S RELIANCE ON MIDLANTIC IS MISPLACED Appellees based its entire argument on the premise that debtor and/or the Trustee cannot abandon the property of this estate pursuant to §554 of the Bankruptcy Code. However, it is important for this court to be cognizant that the Orders before this court are for the clean-up of the surface and subsurface soil of lessor's property. While Appellee attempts to cloud the issue before this court with claims unsubstantiated by any evidence of drums leaking toxic waste (Appellee's Amended Brief, page 6, lines 22-26), it is essential that it be made clear that 3 1 2 3 4 5 6 7 8 9 10 11 0: III 01 12 III 0 )( 0 0 III III ~ :5 13 cö j :z II: >- t- o III .( II. 14 ~ en :ï II) > .( 0 1&1 U Z ui 15 u II: 0 1&1 >= I: .J 1&1 III 0( I! 16 ~ z II) .( 0 CD 17 u 0 .J 18 19 20 21 22 23 24 25 26 27 28 WHT15/f2/0e;87: 4 e the operative orders before this court are order to clean-up the surface and subsurface of the property (ER-64, page 49:12-18) (see also Reporters Transcript for October 29, 1986, RT-page 10, line 1 through page 11, line 19). The first fact this court must determine is whether or not the property is a part of the Chapter 7 estate. Appellee fails to address the issue that this property was never assumed by the Trustee and by law is not a part of the Chapter 7 estate. While the Appellee is quick to alert this court that Appellant confuses the rejection of lease pursuant to §365 of the Bankruptcy Code with the abandonment of property under §554 (Appellee's Amended Brief, page 6 lines 14-19), it is the Appellee who fails to note a distinction between the relevant code sections and, therefore, does not make an argument as to why the property ought not be deemed rejected. Pursuant to §365, this court must find that the property has been deemed rejected as there is no assumption of the lease. The duty to assume the lease would have been either upon the Trustee or upon the Phoenix Trust. In the absence of an application by the Trustee to assume the property, it became the duty of the Phoenix Trust to protect whatever rights they desire to assert by applying for the court to order that the lease be assumed. By so waiving said affirmative duty, the property never passed into the Chapter 7 estate. It is not the responsibility of the Trustee to use the funds which rightfully should belong to the creditors to pay for the clean-up of lessor's property. While Midlantic (infra) hold that a Trustee may not abandon property, it does not excuse a landlord from a duty to have a 4 1 2 3 4 5 6 7 8 9 10 11 0: IØ (II 12 III 0 )( 0 0 () ID ~ :! 13 ciS j Z II: >- I- 0 III c( II. 14 ::i ~ !II c( II) >- u 0 ¡ z ui 15 u II: ~ III >= .J ¡ III c( C/ 16 :.:: z II) c( 0 !II 17 u 9 18 19 20 21 22 23 24 25 26 27 28 WHT15/f2/0~87:5 - lease assumed. The obligation to protect the public' health, based upon the Phoenix Trust's failure to make application, that the lease be assumed now rests with the Phoenix Trust. The Appellee I s continue in their amended brief at page 6, lines 22-26 to alert the court that if the lease was deemed rejected, that the Trustee would still be responsible for the clean-up of the personal property on the estate. Said issue is not before this court and is irrelevant to a determination of whether or not funds could be used to clean-up the surface and subsurface of the Phoenix Trust property. Upon this court I s finding, that the lease should be deemed rejected pursuant to §365 of the Bankruptcy Code, this court need not determine whether or not the property should be abandoned. Neither Midlantic National Bank v. New Jersey, 474 U.S. 106 S.Ct. 755; 88 L.Ed.2d. 859 (1986) and the lower court case of In re Quanta Resources Corporation, (New Jersey) 739 F.2d 927 (1984) discuss the clean-up of leased property. The Midlantic holding was that the Trustee was responsible for cleaning up the property that belonged to the debtor. Although Appellee is correct in its assertion that the companion case Quanta involves leased property, the court clearly states at page 929: "Because NJDEP - unlike the city and state of New York in the companion case at 739 F.2d 912 has not argued that it should be reimbursed for any expenses incurred in cleaning up or restoring the property, (indeed, NJDEP has not as serted that it incurred any such expenses), we have no cause to address that issue." (emphasis added) 5 1 2 3 4 5 6 7 8 9 10 11 II:: III 01 12 III 0 X 0 0 ( III ~ ~ 13 c!S j Z II: >- t- o III ~ I&. 14 ~ ØI :¡ en t = .J ... III 0( I!I 16 ~ z en « 0 ØI 17 0 9 18 19 20 21 22 23 24 25 26 27 28 WHT15/f2/0~87:6 - Appellee's assertion that Midlantic applies to· leased property pursuant to the Quanta decision is specifically excluded by the holding in Quanta and is an incorrect reading of the cases. III. APPELLEE'S ASSERTION THAT APPELLANT CITED NO AUTHORITY REGARDING A SPECIAL DUTY ON THE PART OF THE LANDLORD TO INSURE THAT THE LESSOR DOES NOT CREATE A HAZARDOUS WASTE SITUATION IS INCORRECT In Appellee's Amended Brief at page 7, lines 18-21 Appellee asserts that Appellant "cites no authority" for the proposition that "the Phoenix Trust had some special duty, as landlord, to ensure (sic) that B.C. did not create a hazardous situation." Appellee refers this court to Appellant's Brief at page 7, lines 25-28 and page 8, lines 1-25. Said assertion is false. At page 7, line 25 Appellant's cite the case of U.S. v. Argent, 15 Environ. L.Rptr. 20616 (D.N.M. 1984) where the District court held that a lessor of land was liable without fault for pollution caused by the tenant and rejected the lessor's third party defense. IV. APPELLEE FAILS TO ADDRESS THE ISSUE REGARDING THE LACK OF STATUTORY OR CASE AUTHORITY WHICH GIVES BASIS FOR GRANTING PRIORITY TO A CLAIM BASED ON THE CLEAN-UP OF TOXIC WASTE As has already been demonstrated in Appellant' s principal 6 1 2 3 4 5 6 7 8 9 10 11 ~ IØ C\I 12 III 0 X 0 0 GI m ~ ~ 13 cö j Z II: >- ... 0 III c( I&. 14 :J ::.:: CD c( I/) >- u 0 III Z I1Ï 15 u II: ~ III >= oJ III III 0< CJ 16 ::.:: z I/) 0< 0 CD 17 u 9 18 19 20 21 22 23 24 25 26 27 28 'r .1 I WHTl5/f2/dIÞ!87:7 4IÞ brief at page 9, lines 10-23, the Supreme Court in Mid1antic, supra, and the Circuit Court In re Quanta Resources Corp., (New York) 739 F.Rptr.2d. 912, specifically did not treat the question of whether or not the expenditures to clean-up the subject property was an administrative expense. Appellee appears to desire to pass on discussing this issùe by indicating that the question of priority was not considered by the Bankruptcy Court (Appellee's Brief, page 8, lines 21- page 9, line 7). This position is without merit. I f the court's Order to expend $350,000 for the clean-up of lessor's property is affirmed, (a sum representing approximately 60% of the estates assets) in essence, the estate will be tremendously depleted and a priority will have been made. Appellee's cite the case of In re Mowbray Engineering Company, Inc., 67 Bkrty.Rptr 34 (Bkrty.M.D. Ala. 1986) as holding that toxic clean-up is an administrative expense having first payment of priority. Appellee's fail to inform the court that In re Mowbray is a case involving the clean-up of abandoned real property of the debtor which was cleaned up by a governmental agency, the Environmental Protection Agency. The court stated in In re Mowbray that it rests its decision upon In re Long Chemical, Inc., 45 Bkrty.Rptr. 278 (Bkrty, N.D. Ohio 1985). The holding in Mowbray was that the EPA took over the role as the Trustee in that the Trustee would not possibly have sufficient assets to clean-up the property which belonged to debtor and no other third party, such as a lessor, could be relied upon to do the clean-up. The "EPA stands in the shoes of the Trustee in 7 1 2 3 4 5 6 7 8 9 10 11 II:: III C\I 12 III 0 >< 0 0 ØI ID ~ ~ 13 c1S j Z IX >- ~ 0 III -< ... 14 ~ m J en >- -< 0 III U Z ø 15 0 IX 0 III >- : ..I III III -< CI 16 ~ z en -< 0 m 17 0 9 18 19 20 21 22 23 24 25 26 27 28 WHT15/f2/0~87:8 e preserving the estate and is entitled as the Trustee would be but for abandonment, to recover costs upon sale of the property prior to satisfying any secured claims against the property." (at p.35) In the case at bench, the Phoenix Trust is not in the position of the Trustee nor is the Phoenix Trust a government agency normally entitled to a priority. Nor is this property a part of the Chapter 7 estate. The costs of clean-up of the property herein ought to be an unsecured claim by the lessor. v. CONCLUSION Appellee has confused the issue as to whether or not the subject property of this estate has been abandoned with whether or not the lease should be deemed rejected pursuant to §365 of the Bankruptcy Code. Appellee has attempted to confuse the court regarding what is involved in the clean-up by indicating that there are toxic waste drums on the property and that it would be the responsibility of debtor's estate to do the clean-up. The issue before this court is whether or not $350,000, representing 60% of debtor's estate, should be used to clean-up the surface and subsurface soil of lessor's property as a priority over the entire class of unsecured creditors. Nowhere has Appellee in its brief given this court one reason why the losses incurred by the Phoenix Trust should be a higher priority than the losses incurred by the remainder of the unsecured creditors who are owed approximately $1,500,000 by debtor. The fact that toxic waste is involved has not been shown to be dispositive upon a priority to an unsecured creditor. While there is no question that the cost 8 1 2 3 4 5 6 7 8 9 10 11 ~ III CII 12 III 0 )( 0 0 CD ID ~ :!: 13 c!S j z a: >- I- fl III 0( ::i 14 ~ III 0( I/) >- u 0 1&1 Z r1Í 15 u II: g 1&1 >= oJ 1&1 II! 0( CI 16 ~ z I/) 0( 0 III 17 u 9 18 19 20 21 22 23 24 25 26 27 28 WHT 15/ f 2 / 0 e 87 : 9 e incurred when toxic waste contaminates property is enormous, the only proper result pursuant to the Bankruptcy Code is for the Phoenix Trust to file a Proof of Claim and receive the same percentage on its large loss as the other unsecured creditors have incurred for losses to their property. Any other finding would be equitable and contrary to law. Respectfully submitted, ;P:r;u WILLIAM H. TOPKIS for COSKEY, COSKEY & BOXER Attorneys for Appellant 9 1 2 3 4 5 6 7 8 9 10 11 It III (II 12 III 0 >< 0 0 en m ~ ~ 13 ciS j Z II: >- .. 0 III 01( II. 14 !II:: m ::; I/) >- 01( 0 ÞI U Z ui 15 0 II: ~ ÞI >= .J ÞI III 01( CI 16 !II:: z I/) 01( 0 UI 17 0 0 ...I 18 19 20 21 22 23 24 25 26 27 28 WHT15/pp2/~387:1 e PROOF OF SERVICE BY MAIL I am employed in the county of Los Angeles, State of California. I am over the age of 18 and not a party to the within action; my business address is 11601 Wilshire Boulevard, Suite 1960, Los Angeles, California 90025. On February 17, 1987, I served the foregoing document described as REPLY BRIEF OF APPELLANTS TO PRINCIPLE APPELLEE BRIEF BY THE PHOENIX TRUST on interested parties in this action by placing a true copy thereof enclosed in a sealed envelope addressed as follows: SEE ATTACHED SERVICE LIST I caused such envelope with postage thereon fully prepaid to be placed in the United States mail at Los Angeles, California. Federal I declare that I am employed in the office of a member of the bar of this court at whose direction the service was made. Executed this 17th day of February, 1987, at Los Angeles, California. '. .. 1 2 3 4 5 6 7 8 9 10 11 II: II) C\/ 12 1&1 0 >< 0 0 ØI m ~ 0( 13 j z ciS II: >- .. ~ 1&1 0( ::¡ 14 ~ CD 0( en > u 0 1&1 Z iii 15 u II: 0 1&1 >= : ..I 1&1 1&1 0( C) 16 ~ z en 0( 0 CD 17 u 0 ..I 18 19 20 21 22 23 24 25 26 27 28 ",. " "' 1. .' - i t t- t, ~ ... - ¡~ l' .;' ,J ;: I J- t '!\ " ~ ., l :!> 1~ ~~ ,. .~ Ii '~ ;~ ._-! ~i"} ·f' f :r, " l' .~.. r ~l· ¡ :"I' t i I"···, . ' " WHT15/pp2~2387:2 e SERVICE LIST Robert L. Williams WILLIAMS & WILLIAMS, INC. 1706 Chester Avenue Suite 404 Bakersfield, California 93301 Scott R. Baker KUHS & PARKER P.O. Box 2205 Bakersfield, California 93303 Kenneth H. Bates P.O. Box 2537 Bakersfield, California 93303 Department of Public Health 1700 Flower Street Bakersfield, California ATTN: Richard Casagrande UNITED STATES DISTRICT COURT Office of the Clerk 5408 Federal Building 1130 "0" Street Fresno, California 93721 1 2 3 4 5 6 7 8 9 10 11 cr: II) C\I 12 ¡ 0 >< 0 0 en III ~ ~ 13 Ið j z a: )0- t- O « I&, 14 ¡ J ~ (II en >- « 0 III U z ai 15 u a: ~ III >= .J III ¡ « ~ 16 ~ z en « 0 (II 17 u 9 18 19 20 21 22 23 24 25 26 27 28 WHT15/j2/0~ 7:8 e PROOF OF SERVICE BY MAIL I am employed in the county of Los Angeles, State of California. I am over the age of 18 and not a party to the within action; my business address is 11601 Wilshire Boulevard, Suite 1960, Los Angeles, California 90025. On February 19, 1987, I served the foregoing document described as REPLY BRIEF TO THE PRINCIPLE BRIEF OF APPELLEE, COUNTY OF KERN on interested parties in this action by placing a true copy thereof enclosed in a sealed envelope addressed as follows: SEE ATTACHED SERVICE LIST I caused such envelope with postage thereon fully prepaid to be placed in the United States mail at Los Angeles, California. Federal I declare that I am employed in the office of a member of the bar of this court at whose direction the service was made. Executed this 19th day of February, 1987, at Los Angeles, California. ~ " ''1 8 l 2 3 4 5 6 7 8 9 10 11 0:: 111 ØI 12 111 0 >< 0 0 01 Øl ~ 0( 13 cö j Z 0: >- I- 0 0( II. 14 111 ::ï x: m « II) >- u 0 III Z uí 15 u 0: 0 III >- t: .J \11 111 c( CJ 16 x: z II) c( 0 m 17 u 9 18 19 20 21 22 23 24 25 26 27 28 WHT15/j2/0~J7:9 SERVICE LIST Robert L. Williams WILLIAMS & WILLIAMS, INC. 1706 Chester Avenue Suite 404 Bakersfield, California 93301 Scott R. Baker KUHS & PARKER P.O. Box 2205 Bakersfield, California 93303 Kenneth H. Bates P.O. Box 2537 Bakersfield, California 93303 Department of Public Health 1700 Flower Street Bakersfield, California ATTN: Richard Casagrande UNITED STATES DISTRICT COURT Office of the Clerk 5408 Federal Building 1130 "0" Street Fresno, California 93721 B.C. BARMANN, COUNTY COUNSEL County of Kern, State of California By Mark L. Nations, Deputy Administration and Courts Building 1415 Truxtun Avenue, Fifth Floor Bakersfield, California 93301 9 e I ' ~ .' -- UNITED STATES DISTRICT COURT EASTERN DISTRICT OF CALIFORNIA COSKEY, COSKEY & BOXER, Appellant, vs. ROBERT L. WILLIAMS, CHAPTER 7 TRUSTEE FOR B.C. CHEMICALS, INC., et al., Appellees. ) CASE NO. District Court No. )CV F 86-638 REC ) Bankruptcy Court No. ) 185-01809 ) ) CHAPTER 7 ) ) ) Date: February 23, 1987 ) Time: 1:30 p.m. ) Place: Courtroom 1 ) Appeal from the United States Bankruptcy Court Eastern District of California Honorable Judge Eckhart A. Thompson REPLY BRIEF TO THE PRINCIPLE BRIEF OF APPELLEE, COUNTY OF KERN ',..' ,"~..,; "''''.. ,,.;;:'~"" ~/ AJ ...§"\..'-" .(." ,"y' \..c.:- .- .' ~,- ~» , '" .--" <1 <"/:.:. " .~ . . ,/\Y r\ ..-~ .')of> ' (),~ '-.I ,/r~' .,p \'0 ,"'. v <:'-. 'i> .~~.', .......~ ((\<::<: '\" " WILLIAM H. TOPKIS for C0SKEY, COSKEY & BOXER 11601 Wilshire Boulevard Suite 1960 Los Angeles, California 90025 Telephone: (213) 473-4583 Attorney for Appellant -- , 1 2 3 4 5 6 7 8 9 10 11 It: III CII 12 I1J 0 >< 0 0 en ID ;¡: ~ 13 ~ 0( Z ..I II: >- I- 0 0( II. 14 I1J :ï ::.:: 01 () >- 0( 0 w U z ui 15 u 0:: ~ W >= .J W I1J 0( C) 16 ::.:: z () 0( 0 01 17 u 9 18 19 20 21 22 23 24 25 26 27 28 WHT15/j3/~J87:1 e TABLE OF CONTENTS I. APPELLEE'S "STATEMENT OF ADDITIONAL FACT" IS WITHOUT ANY EVIDENTIARY SUPPORT ................... II. INTRODUCTION TO ARGUMENT .......................... PAGE 2 2 - 3 III. APPELLEE'S RELIANCE ON MIDLANTIC IS MISPLACED ..... 3 - 5 IV. APPELLEE'S INTERPRETATION OF THE BANKRUPTCY CODE IS NOT CONSISTENT WITH LAW .................ò...... 5 ~ V. CONCLUSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i. 6 - 7 1 2 3 4 5 6 7 8 9 10 11 0:: III CII 12 ¡ 0 >< 0 0 CI III :I: < 13 cö < z ,J D: >- I- 0 < II. 14 1&1 :ï ~ 01 0( II) >- u 0 1&1 Z ui 15 u D: ~ 1&1 >= ,J 1&1 1&1 < '" 16 ~ z II) < 0 01 17 u 9 18 19 20 21 22 23 24 25 26 27 28 WHT15/ j3/02e 7: 2 e TABLE OF CASES PAGE Midlantic National Bank v. New Jersey, 474 U. S . lO 6 S. Ct. 755; 88 L. Ed . 2 d . 859 (1986)... 3 BANKRUPTCY CODES Bankruptcy Code §365(d) (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4, 5, 6 Bankruptcy Code §348 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Bankruptcy Code §348(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Bankruptcy Code §554 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Bankruptcy Code §554 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 ii. 1 2 3 4 5 6 7 8 9 10 11 II: IØ (! 12 1.1.1 0 >< 0 0 ØI ID ~ 0( 13 ~ j Z II: >- t- o 1&/ < "" 14 :ï ~ III 0( (/) >- u 0 ... z rñ 15 u II: ~ III >= .J ... 1.1.1 0( CI 16 ~ z (/) 0( 0 III 17 u 9 18 19 20 21 22 23 24 25 26 27 28 WHT15/j2/0241Þ7:2 e I. APPELLEE'S "STATEMENT OF ADDITIONAL FACT" IS WITHOUT ANY EVIDENTIARY SUPPORT In the Brief of Appellee, County of Kern, at page 2, lines 15-22 (henceforth CK-P2:l5-22) Appellee adds an additional fact regarding purported violations of Health and Safety Codes. Such a statement is neither supported by any evidence in the record, nor supported by any evidence cited in Appellee's Brief. Said facts should be disregarded as unsubstantiated by this Court as they were never raised before the Bankruptcy Court. II. INTRODUCTION TO ARGUMENT The County of Kern sets forth in its first paragraph of argument that the primary prerogative of the County is to see that the site formerly occupied by B.C. Chemicals, Inc. be brought into conformity with state and local health regulations. (CK-P3:4-10) While said position is commendable and it would appear that all parties to this action desire that this "hazard" be cleaned up, said reason alone is not sufficient for affirming the Order of the Bankruptcy Court. It would appear that the County of Kern believes that the most expeditious way to clean-up the site would be to affirm the Bankruptcy Court I s Order. While the timeliness of clean-up is important, it is not a sufficient reason to improperly allocate assets of this estate. It is also apparent that the County of Kern is under the misapprehension that this Appeal has been brought by the debtor. (CK-P3:11-13, P4:8-10, etc.) This Appeal 2 1 2 3 4 5 6 7 8 9 10 11 0: III (II 12 III 0 )( 0 0 en III ~ ~ 13 0( z ciS .J a: >- I- 0 0( II. 14 III J ~ () 0( III > U 0 \JJ Z r¡j 15 0 a: 0 \JJ ~ t: .J \JJ 0( CI 16 ~ z III 0( 0 en 17 0 0 .J 18 19 20 21 22 23 24 25 26 27 28 WHT15/j2/04IÞ37:3 e has been brought by the former counsel for the Chapter 11 Creditors Committee. The assets of the estate which the County of Kern desires to see applied towards the clean-up of the subject property of this Appeal are no longer the assets of B. C. Chemical, Inc. What remains of this estate are assets which will, in some manner, be distributed among the creditors and administrative claimants of this estate. What is at issue in this Appeal is whether or not the claim of the Phoenix Trust is a higher priority than that of the other administrative claimants and unsecured creditors. This Appeal is not an attempt to retain assets for the debtor, but rather an attempt to equitably distribute the assets of this estate among all the unsecured creditors which would include the Phoenix Trust. While it is possible that a portion of the clean-up would be paid for by the estate, it would be improper to advance the claim of the Phoenix Trust such that it would deplete the estate for all unsecured creditors. III. APPELLEE'S RELIANCE ON MIDLANTIC IS MISPLACED The County of Kern, like the Phoenix Trust has improperly interpreted the holding of Midlantic Bank v. New Jersey Department of Environmental Protection, (1986) 474 u.s. 106 S.Ct. 755, 88 L.Ed.2d 859. This court is referred to the Reply Brief of Appellant to the Amended Brief of Appellee IS, the Phoenix Trust which is already on file. (See Appellants Reply Brief, II, P3:20 - P6:4) The primary thrust of the argument of the County of Kern 3 1 2 3 4 5 6 7 8 9 10 11 0: III III 12 LII 0 >< 0 0 CD In == ~ 13 ciS j Z II: >- I- 0 LII 0( I&. 14 ~ 1/1 :¡ If) >- 0( 0 1&1 U z ai 15 0 II: 0 1&1 >= : .J 1&1 LII 0( ~ 16 :.:: z If) 0( 0 III 17 0 9 18 19 20 21 22 23 24 25 26 27 28 WHT15/ j 2/02_,': 4 e regarding the Midlantic decision, supra, is that because a Trustee could not abandon property pursuant to §554 of the Bankruptcy Code, a Trustee cannot reject a lease pursuant to §365(d) (4). Appellee cites no authority for said proposition but instead relies upon the argument that public policy should prohibit the Trustee or the debtor-in-possession from doing by, inaction what they cannot do by direct action. (CK-P5:9-16) The County of Kern fails to consider the nuances that separate §365(d) (4) regarding the rejection of a lease and §554 regarding abandonment by a, Trustee. In order for a Trustee to abandon under §554, the Trustee must make an affirmative act. Under §554 the Trustee must make a determination that property of the debtor is a burden to the estate and under §554 (a) give notice and have a hearing to abandon said property. If a trustee, or a debtor-in-possession desired to assume a lease in property, it would also require an affirmative act. Debtor-in-possession did not take the affirmative act of assuming this lease, nor did the Trustee and therefore, the property never entered into the Chapter 7 estate and the lease was deemed rejected. The only affirmative act which could have been taken regarding the assumption or rejection of the lease would have been done by the Phoenix Trust. If the Phoenix Trust desired to protect their rights to the property, than the Phoenix Trust had a duty to go to the Bankruptcy Court for an order preventing the debtor-in-possession from allowing the sixty day period to assume or reject the lease from lapsing. In the Midlantic case, the court would not allow the Trustee to abandon. In this case, the Phoenix Trust, the aggrieved party, failed to request that 4 1 2 :3 4 5 6 7 8 9 10 11 0: III "i 12 IJJ 0 )( 0 0 01 In ~ « 13 cìS j Z II: >- t- o « II. 14 IJJ ::¡ :.:: III II) > « 0 1&1 U z ai 15 u II: ~ 1&1 >= oJ 1&1 IJJ « C) 16 :.:: z II) « 0 (/) 17 u 9 18 19 20 21 22 23 24 25 26 27 28 WHT15/j2/0241Þ7:5 e the lease be deemed assumed. It is, therefore, the ¡:'hoenix Trusts inaction which allowed §365 (d) (4) to become operative and it is now the burden of the Phoenix Trust to clean up their own property. Accordingly, the Phoenix Trust had a duty to file a Proof of Claim for any damages they incurred which were not the resul t of their failure to mitigate the damages as unsecured claimant. IV. APPELLEES INTERPRETATION OF THE BANKRUPTCY CODE IS NOT CONSISTENT WITH LAW The County of Kern cites §348 (c) of the Bankruptcy Code regarding its application to §365 (d) (4) which provides for the assumption or rejection of a lease. Appellee misinterprets §348 (c) . §348 is designed to allow a full sixty days for the assumption or rejection of a lease by a Trustee. In the event that sixty days from the date that an Order for Relief is entered under Chapter 11 has not expired, a full sixty days is afforded a Chapter 7 Trustee in order to elect to assume or reject the lease. If the sixty days has already lapsed, it does not allow a Trustee a new opportunity to assume or reject a lease. Even if the Chapter 7 Trustee had the election to assume or reject the lease, no assumption was ever made. In the event the Trustee were to have assumed the lease, the Trustee would be liable for assuming a burdensome lease to the detriment of the creditors of the estate. IIII IIII 5 1 2 3 4 5 6 7 8 9 10 11 II:: III N 12 III 0 >< 0 0 01 m :: c( 13 ~ j Z II: >- I- 0 III c( I&. 14 ~ UI :¡ IJ) > c( 0 '" u z ui 15 u c: 0 '" >= I: ..I '" III c( CI 16 ~ z IJ) c( 0 UI 17 u 0 ..I 18 19 20 21 22 23 24 25 26 27 28 WHT15/j2/02~7:6 e v. CONCLUSION The goal of the County of Kern to protect the environment is commendable, the desire for such an outcome should not taint the decision of this Court regarding how the assets of the ~state should be distributed to the administrative claimants and· unsecured creditors. While there is no question that any potential health hazard should be cleaned, it would be improper to hold the corpus of unsecured creditors responsible for the clean-up and not hold the landlord responsible in any fashion. The asset, which formerly belonged to B.C. Chemicals are no longer the property of the debtor. They are now the property of all creditors. No reason has been cited by any Appellee which substantiates why the landlord should not bear responsibility along with all the other unsecured creditors for the damages which were caused by the debtor. The debtor caused the other unsecured creditors damages in an amount approximating $1,500,000. The assets of this estate should be equitably distributed so that no unsecured creditor would take a windfall from the assets remaining in the Bankruptcy estate. The Phoenix Trust abrogated its affirmative duty to attempt to prevent the rejection of the lease under §365(d) (4). It would be improper that the inaction of the Phoenix Trust would allow IIII / I I I III1 IIII I1II 6 1 2 3 4 5 6 7 8 9 10 11 II: IØ (II 12 LLI 0 >< 0 0 en ID ~ < 13 < z ð:S oJ II: >- .. 0 111 < ... 14 ~ CÐ :J III >- « 0 III U z ai 15 u II: 0 III >= : oJ III LLI < t!) 16 ~ z III c( 0 CÐ 17 u 9 18 19 20 21 22 23 24 25 26 27 28 WHT15/j2/0~;7:7 e of the majority of this estate. the Phoenix Trust as an unsecured creditor to garnish the assets Respectfully submitted, WILLIAM H. TOPKIS for COSKEY, COSKEY & BOXER Attorney for Appellant 7 1 2 3 4 5 6 7 8 9 10 11 ~ III C\I 12 III 0 X 0 0 0\ rn at ~ 13 ~ j Z II: >- t- o 0( II. 14 III J ~ 01 UI > 0( 0 III U z ai 15 o. II: ~ III >= ..I III III 0( ~ 16 ~ z UI 0( 0 en 17 0 9 18 19 20 21 22 23 24 25 26 27 28 WHTI5/j2/02e 7: 8 e PROOF OF SERVICE BY MAIL I am employed in the county of Los Angeles, State of California. I am over the age of 18 and not a party to the within action; my business address is 11601 Wilshire Boulevard, Suite 1960, Los Angeles, California 90025. On February 19, 1987, I served the foregoing document described as REPLY BRIEF TO THE PRINCIPLE BRIEF OF APPELLEE, COUNTY OF KERN on interested parties in this action by placing a true copy thereof enclosed in a sealed envelope addressed as follows: SEE ATTACHED SERVICE LIST I caused such envelope with postage thereon fully prepaid to be placed in the United States mail at Los Angeles, California. Federal I declare that I am employed in the office of a member of the bar of this court at whose direction the service was made. Executed this 19th day of February, 1987, at Los Angeles, California. ... 8 1 2 3 4 5 6 7 8 9 10 11 It: III 01 12 III 0 >< 0 0 CJI m ~ -< 13 j z cð II: >- I- 0 -< I/, 14 III ::¡ ~ 1/1 -< U) >- u 0 III Z ai 15 0 II: 0 III >= : .J III III -< CJ 16 ~ z U) c( 0 1/1 17 0 9 18 19 20 21 22 23 24 25 26 27 28 WHT15/j2/0~J7:9 SERVICE LIST Robert L. Williams WILLIAMS & WILLIAMS, INC. 1706 Chester Avenue Suite 404 Bakersfield, California 93301 Scott R. Baker KUHS & PARKER P.O. Box 2205 Bakersfield, California 93303 Kenneth H. Bates P.O. Box 2537 Bakersfield, California 93303 Department of Public Health 1700 Flower Street Bakersfield, California ATTN: Richard Casagrande UNITED STATES DISTRICT COURT Office of the Clerk 5408 Federal Building 1130 "0" Street Fresno, California 93721 B.C. BARMANN, COUNTY æUNSEL County of Kern, State of California By Mark L. Nations, Deputy Administration and Courts Building 1415 Truxtun Avenue, Fifth Floor Bakersfield, California 93301 9 e ~ e e ecology and environment, inc. 120 HOWARD STREET, SUITE 1640, SAN FRANCISCO, CALIFORNIA 94105, TEL 41~m·2811 International Specialists in the Environmental Sciences March 4, 1987 Richard Eglin B.C. Laboratories 4100 Pierce Road Bakersfield, CA 93308 Dear Mr. Eglin: As per out telephone conversation, enclosed is a sample letter of introduction identifying Ecology and Environment, Inc.'s (E&E) authorization to perform site inspections for the Environmental . Protection Agency (EPA). E&E is presently a contractor to the EPA working under EPA Contract No. 68-01-7347. Under our contractual . relationship with EPA, E&E is responsible for assisting EPA in . identifying and investigating potential hazardous waste site. .. In accordance with Section 105 of the Comprehensive Environmental Response, Compensation and liability Action of 1980 (CERCLA, or "Superfund") and Section 3007 of the Resource Conservation and Recovery Act of 1976 (RCRA), EPA is currently undertaking a nationwide inventory and screening of sites and facilities where hazardous substances have been disposed of or have otherwise come to be located. The B.C. Chemical Company has been identified on EPA's inventory of sites as being a potential hazardous waste site. Presently there is insufficient information available to determine what action to undertake next (i.e., additional investigation, remedial action, or no further action). The purpose of a site inspection is to gather information to assist us in this determination. This type of inspection generally consists of a meeting with company representatives followed by a tour of the facility. Following, is a list of the information we will want to be made available to us at the time of the inspection: o Overview of historical development of the site including operator and ownership history. o Types and dates of all activities that have occurred on-site including oil and fuel storage. recycled paper - SERVICE LIST WILLIAM H, TOPKIS, ESQ, Coskey, Coskey & Boxer 11601 Wilshire Boulevard, Suite 1960 Los Angeles, CA 90025 ROBERT L. WILLIAMS, ESQ. Williams & Williams, Inc. 1706 Chester Avenue, Suite 404 Bakersfield, CA 93301 SCOTT R, BAKER, Kuhs & Parker Post Office Box Bakersfield, CA ESQ, 2205 93303 KENNETH H, BATES, ESQ, Bates & Tutton Post Office Box 2537 Bakersfield, CA 93303 DEPARTMENT OF PUBLIC HEALTH 1700 Flower Street Bakersfield, CA 93305 Attention: Richard Casagrande UNITED STATES DISTRICT COURT Office of the Clerk 5408 Federal Building 1130 "0" Street Fresno, CA 93721 e ~ e e ecology and environment, inc. 120 HOWARD STREET, SUITE #640, SAN FRANCISCO, CALIFORNIA 94105, TEL 415-m-2811 International Specialists in the Environmental Sciences March 4, 1987 Richard Eg1 in B.C. Laboratories 4100 Pierce Road Bakersfield, CA 93308 Dear Mr. Eglin: As per out telephone conversation, enclosed is a sample letter of introduction identifying Ecology and Environment, Inc.'s (E&E) authorization to perform site inspections for the Environmental Protection Agency (EPA). E&E is presently a contractor to the EPA working under EPA Contract No. 68-01-7347. Under our contractual relationship with EPA, E&E is responsible for assisting EPA in identifying and investigating potential hazardous waste site. . In accordance with Section 105 of the Comprehensive Environmental Response, Compensation and Liability Action of 1980 (CERCLA, or "Superfund") and Section 3007 of the Resource Conservation and Recovery Act of 1976 (RCRA), EPA is currently undertaking a nationwide inventory and screening of sites and facilities where hazardous substances have been disposed of or have otherwise come to be located. The B.C. Chemical Company has been identified on EPA's inventory of sites as being a potential hazardous waste site. Presently there is insufficient information available to determine what action to undertake next (i.e., additional investigation, remedial action, or no further action). The purpose of a site inspection is to gather information to assist us in this determination. This type of inspection generally consists of a meeting with company representat i ves fo 11 owed by a tour of the facility. Following, is a list of the information we will want to be made available to us at the time of the inspection: o Overview of historical development of the site including operator and ownership history. o Types and dates of all activities that have occurred on-site including oil and fuel storage. .__.._,-~ - Richard Eglin March 4, 1987 Page Two e o Area of site and number of buildings. o Site plan map and historical aerial photographs. If possible, we would like copies of these documents. o Description of products manufactured and all processes used. o Types of all hazardous materials (toxic, corrosive, highly volatile, radioactive, persistent) that have been used as feedstocks, cleaning agents on-site. Include dates and amounts. o Types of all potentially hazardous wastes ever produced or stored on-site including those presently stored on-site. Include dates and amounts. o Description of past and present waste management practices includ- ing on-site treatment, storage and removal. o Location and size of all on-site waste storage/disposal areas including surface impoundments, sumps, tanks, landfills, drum storage, injection wells. Include dates and amounts. o Description of all past hazardous materials ~esponse activities such as contaminated soil removal, on-site burial, in-situ chemical treatment, sumps, oil separation. Include dates and the regulatory agency monitoring the activity. o Description of all Federal or State regulatory or enforcement action including soil or waste stream sampling, groundwater monitoring. Include dates, results and/or reports. o Description of all Federal, State and local permits held including permit number, date issued, and expiration date. o Information about on-site groundwater wells including location, bore logs, depth, and use. If possible, we would like to meet with you and Mr. Lewis in Bakersfield sometime in April. Although we would prefer to schedule the meeting and inspection on a weekday, if absolutely necessary a weekend meeting could be arranged. It may be difficult to include County Health or legal staff in a weekend meeting if their presence is desired. If you could confer with Mr. Lewis and provide us with possible dates for his participation in the site inspection, we will consult our 16 17 18 19 20 21 22 23 e , Ii f~ e~/ , ï ' [I ~~r - .'.. /l / ()~L< ~ 1 B,C, BAR MANN, COUNTY COUNSEL COUNTY OF KERN, STATE OF CALIFORNIA 2 By Mark L, Nations, Deputy Administration and Courts Building 3 1415 Truxtun Avenue, Fifth Floor Bakersfield, California 93301 4 Telephone: (805) 861-2326 5 Attorney for Appellee, COUNTY OF KERN 6 7 8 9 10 UNITED STATES DISTRICT COURT EASTERN DISTRICT OF CALIFORNIA 11 12 COSKEY, COSKEY & BOXER, 14 vs. ) ) Appellant, ) ) ) ) ) ) ) ) ) ) SUPPLEMENTAL BRIEF OF APPELLEE, COUNTY OF KERN CASE NO. CV F 86-638 REC 13 15 ROBERT L, WILLIAMS, CHAPTER 7 TRUSTEE FOR B, C. CHEMICALS, INC" et al., Appellees. In light of the case authorities cited by the Court in the hearing held February 23 , 1987 , i tis the on recommendation of Appellee, County of Kern, that the Court remand this matter to the Bankruptcy Court for further 24 can determine whether t~ere is a factual basis which would hearing and appropriate findings so that the Appellate Court 25 justify authorizing the Trustee to expend the sum of three 26 / / / / / - e 1 hundred and fifty thousand dollars ($350,000) to clean up the 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 2 site occupied by the Debtor, 3 4 5 6 7 8 9 Dated: March 4, 1987, 10 MLN:drb B'iiz~ By Mark L, Nations, Deputy Attorney for Appellee, COUNTY OF KERN 2 - e VERIFICATION STATE OF CALIFORNIA, COUNTY OF I have read the foregoing and know its contents. o o 181 CHECK APPLICABLE PARAGRAPH I am a party to this action. The matters stated in the foregoing document are true of my own knowledge except as to those matters which are stated on information and belief, and as to those matters I believe them to be true. I am 0 an Officer 0 a partner 0 a of -- o a party to this action, and am authorized to make this verification for and on its behalf, and I make this verification for that reason. 0 I am informed and believe and on that ground allege that the matters stated in the foregoing document are true. 0 The matters stated in the foregoing document are true of my own knowledge except as to those matters which are stated on information and belief, and as to those matters I believe them to be true. I am one of the attorneys for a party to this action. Such party is absent from the county of aforesaid where such attorneys have their offices, and I make this verification for and on behalf of that party for that reason. I am informed and believe and on that ground allege that the matters stated in the foregoing document are true. Executed on , 19-, at California, I declare under penalty of perjury under the laws of the State of California tha:t the foregoing is true and correct. Type or Print Name ACKNOWLEDGMENT OF RECEIPT OF DOCUMENT (other than summons and complaint) Signature Received copy of document described as on 19_, Type or Print Name Signature PROOF OF SERVICE KERN STATE OF CALIFORNIA, COUNTY OF I am employed in the county of I am over the age of 18 and not a party to the within action~ my business address is: 1415 T rux tun Avenue, Bake r s fie la, Cal i f ornia 9 330!...__~ On Mar c h 4 19 87, I sçrved the foregoing document described a- Supplemental Br~ef of Appèllee, County of Kern KERN , State of California. ------- ----.- --...- on In t ere s t e d par tie s in this action by placing a true copy thereof enclosed in a sealed envelope addressed as follows: SEE ATTACHED MAILING LIST [X] (BY MAIL) l ca,us,ed such envelope with postage thereon fully prepaid to be placed in the United State, mail Bakersf~e.Lá C I'c . at , a 110rma. 8 7 k f· ld Executed on March 4 ,19_, at Ba ers ~e . Callf<>rnla, (BY PERSONAL SERVICE) I caused such envelope to be delivered by hand to the offices of the addressee Executed on , 19~ at , CJIiornla. (State) I declare under penalty of perjury under the laws of the State of California that the above is true and l.:<1rr'xt. (Federal) I declare that I am employed in the office of a member of the bar of this court at whose direction the ,er\ 11.:<: .... as made, o o liJ Donna R. Barber ~"'-- ~ ~ \ \ ~~~ ~(,-~·,'\.-~v Type or Print Name Signature STUART'S EX BROOK TIMESAVER (REVISED 6/831 . ~ - ... -,... -- . .... ,". . - ... -.. ..~, ...... _A' It SERVICE LIST WILLIAM H, TOPKIS, ESQ. Coskey, Coskey & Boxer 11601 Wilshire Boulevard, Suite 1960 Los Angeles, CA 90025 ROBERT L. WILLIAMS, ESQ. Williams & Williams, Inc. 1706 Chester Avenue, Suite 404 Bakersfield, CA 93301 SCOTT R, BAKER, Kuhs & Parker Post Office Box Bakersfield, CA ESQ. 2205 93303 KENNETH H. BATES, ESQ, Bates & Tutton Post Office Box 2537 Bakersfield, CA 93303 DEPARTMENT OF PUBLIC HEALTH 1700 Flower Street Bakersfield, CA 93305 Attention: Richard Casagrande UNITED STATES DISTRICT COURT Office of the Clerk 5408 Federal Building 1130 "0" Street Fresno, CA 93721 e ~. - e ecology and environment, inc. 120 HOWARD STREET, SUITE #640, SAN FRANCISCO, CALIFORNIA 94105, TEL. 415-m-2811 International Specialists in the Environmental Sciences March 4, 1987 Richard Eglin B.C. Laboratories 4100 Pierce Road Bakersfield, CA 93308 Dear Mr. Eglin: As per out telephone conversation, enclosed is a sample letter of introduction identifying Ecology and Environment, Inc.'s (E&E) authorization to perform site inspections for the Environmental . Protection Agency (EPA). E&E is presently a contractor to the EPA 'working under EPA Contract No. 68-01-7347. Under our contractual relationship with EPA, E&E is responsible for assisting EPA in identifying and investigating potential hazardous waste site. -. In accordance with Section 105 of the Comprèhensive Environmental Response, Compensation and Liability Action of 1980 (CERCLA, or "Superfund") and Section 3007 of the Resource Conservation and Recovery Act of 1976 (RCRA), EPA is currently undertaking a nationwide inventory and screening of sites and facilities where hazardous substances have been disposed of or have otherwise come to be Tocated. The B.C. Chemical Company has been identified on EPA's inventory of sites as being a potential hazardous waste site. Presently there is insufficient information available to determine what action to undertake next (i.e., additional investigation, remedial action, or no further action). The purpose of a site inspection is to gather information to assist us in this determination. This type of inspection generally consists of a meeting wi th comp any representat i ves fo 11 owed by a tour of the facility. Following, is a list of the information we will want to be made available to us at the time of the inspection: o Overview of historical development of the site including operator and ownership history. o Types and dates of all activities that have occurred on-site including oil and fuel storage. rp.r.vr.lpn n~nø,. . Richard Eglin March 4, 1987 Page Two . o Area of site and number of buildings. o Site plan map and historical aerial photographs. If possible, we would like copies of these documents. o Description of products manufactured and all processes used. o Types of all hazardous materials (toxic, corrosive, highly volatile, radioactive, persistent) that have been used as feedstocks, cleaning agents on-site. Include dates and amounts. o Types of all potentially hazardous wastes ever produced or stored on-site including those presently stored on-site. Include dates and amounts. o Description of past and present waste management practices includ- ing on-site treatment, storage and removal. o Location and size of all on-site waste storage/disposal areas . including surface impoundments, sumps, tanks, landfills, drum storage, injection wells. Include dates and amounts. o Description of all past hazardous materials tesponse activities such as contaminated soil removal, on-site burial, in-situ chemical treatment, sumps, oil separation. Include dates and the regulatory agency monitoring the activity. o Description of all Federal or State regulatory or enforcement action including soil or waste stream sampling, groundwater monitoring. Include dates, results and/or reports. o Description of all Federal, State and local permits held including permit number, date issued, and expiration date. o Information about on-site groundwater wells including location, bore logs, depth, and use. If poššib1e, we would like to meet with you and Mr. Lewis in Bakersfield sometime in April. Although we would prefer to schedule the meeting and inspection on a weekday, if absolutely necessary a weekend meeting could be arranged. It may be difficult to include County Health or legal staff in a weekend meeting if their presence is desired. If you could confer with Mr. Lewis and provide us with possible dates for his participation in the site inspection, we will consult our . ",:'f ",~, ,1 ~ t. .. - . JUDICIAL COUNCIL OF THE NINTH CIRCUIT AME~IDED ORDER ESTABLISHING AND CONTINUING THE BANKRUPTCY APPELLATE PANEL í OF TBENINTH CIRCUIT ,. .. - 1. ESTABLISHMENT OF BANKRUPTCY APPELLATE PANEL (a) Pursuant to 28 U.S.C. S 158{b) (1), the judicial council hereby establishes and continues a bankruptcy appellate panel to hear and determine appeals:from judgments, orders, and decrees entered by bankruptcy judges from districts within the Ninth Circuit, subject to the limitations set forth in subparagraphs (b) -(e) . . (b) The bankruptcy appellate panel may hear and determine only those appeals arising from districts that have authorized such appeals to be decided by bankruptcy appellate panels pursuant to 28 U.S.C. S l58Cb) (2). (c) The bankruptcy appellate panel may hear and determine only those appeals in which all parties to the appeal consent thereto pursuant to paragraph (2) of this order. (d) The bankruptcy appellate panel may hear and determine appeals from final judgments, orders, and decrees entered by bankruptcy judges and, with leave of the district court or the bankruptcy appellate panel, appeals from interlocutory orders and decrees entered by bankruptcy judges. (e) The bankruptcy appellate panel may hear and determine appeals from judgments, orders, and decrees entered after the district from which the appeal arises has issued an order referring bankruptcy cases and proceedings to bankruptcy judges pursuant to 28 U.S.C. § l57(a); and appeals transferred to the district court from the previous Ninth Circuit bankruptcy appellate panel by sec. 115(b) of P.L. 98-353. The bankruptcy appellate panel may not hear and determine appeals from judgments, orders, and decrees entered by bankruptcy judges between Dece~ber 25, 1982 and July 10, 1984 under the Emergency Bankruptcy Rule. - ........ ...... ..; ,,- 2. FORM AND TIME OF CONSENT (a) When a notice of appeal is filed with the clerk of the bankruptcy court, the appeal ~hall be referred immediately to the bankruptcy appellate panel. All parties to the appeal shall be notified of the filing and reference within the time and in the manner provided for in Paragraph 3 of this order. Unless a party . -~ .. . . '.. e e to the appeal files a written objection with the clerk of the "bankruptcy appellate panel within twenty-one (21) days from the . date of the filing of the notice of appeal the parties will be deemed to have consented to the hearing and the disposition of the , appeal by the bankruptcy appellate panel pursuant to 28 U.S.C. S 158 (b) (1). 3. NOTICE OF IMMEDIATE REFERENCE TO BANKRUPTCY APELLATE PANEL (a) Within three days after the filing of a notice of appeal, the clerk of the bankruptcy court shall serve upon all paties to the appeal a copy of the notice of appeal and a copy of this order. A copy of the notice of appeal shall also be transmitted to the clerk o~the bankruptcy appellate panel. Upon receipt of the notice of appeal, the clerk of the bankruptcy appellate panel shall notify the parties of the procedures and requirements relating to practice before the bankruptcy appellate panel. (b) Upon timely receipt of a written objection to an appeal being heard and determined by the bankruptcy appellate panel, the clerk of the bankruptcy appellate panel shall forthwith transfer the case to the appropriate district court and shall notify all parties to the appeal and the clerk of the bankruptcy court of the transfer. Any question as to the timeliness of an objection shall be referred by the clerk to a bankruptcy appellate panel motions panel for determination. 4. MOTIONS DURING OBJECTION PERIOD ,All motions relating to the appeal shall be filed with the bankruptcy apellate panel unless the case has been transferred to a district court. The bankruptcy appellate panel may not dismiss or render a final disposition of an appeal within twenty-one days from the date of the filing of the notice of appeal but may otherwise fully consider and dispose of all motions. During these 21 days, any party may request of the bankruptcy appellate panel ~, r that a dispositive motion be transferred to the appropriate district court for consideration and disposition. 5. PANELS ~ Each a~~eal shall be heard and determined by a panel of three judges from among those listed pursuant to paragraph 5, provided however that a bankruptcy judge shall not participate in an appeal origi~ati~g in a district for which the judge is appointed or designateè under 28 U.S.C. § 152. ~ .....-. 2 .. ~ .~ e e 6. MEMBERSHIP OF BANKRUPTCY APPELLATE PANEL (a) The judicial council shall designate bankruptcy judges to serve on the bankruptcy appellate panel after considering the recommendation of the Bankruptcy Courts Advisory Committee of the judicial council. Before submitting its recommendations as to the number and identity of judges to be appointed, the committee shall survey the bankruptcy judges in the circuit and an appropriate selection of attorneys. (b) When a three-judge panel cannot be formed from the judges designated under subparagraph (a) to hear a case because judges from that list have"recused themselves, are disqualified from hearing the case becau~e it arises from their district, or are otherwise unable to participate, the Chief Judge of the Court of Appeals for the Ninth Circuit may designate one or more other bankruptcy judge(s) from the circuit to hear the case. 7. PRESIDING JUDGE The members of the bankruptcy appellate panel by majority vote shall select one of their nu~~er to serve as presiding judge. 8. RULES OF PROCEDURE (a) Practice before the bankruptcy appellate panel shall be governed by Part VIII of the Rules of Bankruptcy Procedure, except as provided in this order or by rule of the bankrutcy appellate panel adopted under subparagraph (b). Cb) The bankruptcy appellate panel may establish rules not inconsistent with the Rules of Bankruptcy Procedure governing practice and procedure before the panel. 9. PLACES OF HOLDING COURT -(a) The bankruptcy appellate panel may conduct hearings at such times and plõces as it determines to be appropriate. (b) The bankruptcy appellate panel is hereby authorized to use courtrooms of the United States Court of Appeals in San Francisco, Pasadena, and Portland, and courtrooms of the United States District Courts in all districts in the Ninth Circuit. ~ 3 L " ,~ " \ '. e 10. CLERK AND OTHER EMPLOYEES . The bankruptcy appellate panel shall select and hire the Clerk of the bankruptcy appellate panel, staff attorneys, and other necessary assistants. The bankruptcy appellate panel shall determine the location of the principal office of the Clerk. The Clerk of the bankruptcy appellate panel may hire necessary assistants. Each judge on the bankruptcy appellate panel may hire an additional law clerk. 11. EFFECTIVE DATE This amended order shall become effective on May 20, 1985, provided, however, that all prior actions of the bankruptcy appellate panel not inconsistent herewith are not affected by this order. IT IS SO ORDERED. DATED: - James R. Browning, Chief Judge for the Judicial Council ....., ", -: 4 e . DON'T LET THIS HAPPEN TOYOU ! .--.Vi ARNING :l THE IllEGAL DISPOSAL OF I TOXIC WASTES' WilL RESULT IN JAIL. WE SHOULD KNOW WE GOT CAUGHT! -~, -'..~- 'C'" :::;:..-.....~~.."I·,~t.Joi . to.:." '. .-,.:..-. _. >t::~ ;;.;::- Pot.Jtion of CAI .,..~ () .. . It nos become 0 aisiL ~r...lbd ~r;'.. oc:?5 of Jeoa ~ of hazadoul wOSTe, « "rT'Iá'ItgI'Ir du'nping" ore violent crimes ogOinsr me ' corrm..riry . CoY. ,.... pest :2 Y'" oImost . HZ" CJNef Ixoc- vtfy. Offlcen .f MttI larg. OM JI'IHIÜ corpoN'tionl baY. ~ -' to ¡.i.I by me L..A. TOJÚC W..... Strlk. ,- .~ They ncr.e ciIo been ~td to per; t'uge fr>es; pay for :, ~Ieonuøa; SQeak in publtc oboUT mft' misdftds; and in lOme r~ c:aMI pIoca ocS ~ ttw a-me a1d ~. ~ TH! .,SlCS ~ UING CAuGHT ....! TOO HIGH- ÄNO THE CONS!OU!NaS III CAuGHT ARE NOT WOUH m Ii .. " , W. __ p4rfI"l me M'iø. TOÞA r, whU. y_ ......'. , this 1M _ ~deftt and Vke "..aióeftt _ ...,1... tt.e . 1ft JA4 .... we ...... fwcM to ~ nul ......:, .. PlI!AS! TAIt! THE L!GAL ALTUNAnvl! AND '.OT!CT OUR " ~ !NV1ltONMINT. ' V.., TM, Y--. I ' ! American Caster Corporation " 1~1 WEST AVENU! 3A LOS ANG!L.!S. CA 90031 ,_.~ e . DATA BASE COMMUNICATIONS We are presently involved in data base communications research with such agencies as the U.S. Department of Environmental Protection agency, the New York State Department of Environmental Conservation, OSHA, TOSCA, Food and Drug Administration and the Defense Properties Disposal Ordinance.Our dealings with these agencies are on the issues of alternative technology, directing waste back into the flow of industry rather than landfills. Our Chern Tree data Qase is also available to industry giving firms commercially useful and business oriented information about industrial chemicals. The information is detailed, timely and accurate. You will receive actual data, our staff of chemist: are constantly extractin~: relevant data from trade journals, reference works, catalogues, technical data sheets and technical information from users and suppliers throughout the country. Our Chern Tree data base is beneficial to purchasing agents, and other chemical buyers. Firms are able to find new sources for their chemicals :,and can market their products to industries that have not been thought of before. Plant managers, hospitals and fire departments are finding Chem Tree useful for quick-spill response. When a chemical spills or contaminates a worker, you can . find out the~ principal hazards and how to handle them quickly and easily. Specialized service companies and consultants find a use for Chern Tree by listing their services under the exact chemical or product that is applies to. Chem Tree is also available to list your present surplus or obsolete chemicals or special in house projects such as machinery for sale, new services available, products and their availability and other applications can be accommodated. Chern Tree is simple to connect to: You need only an IBM-PC compatible computer with a modem. We will provide you with a diskette with special software. Insert the diskette, connect to the telephone line, dial our number, press a few keys ana away you go. e e ~ æ t ffil ü:I'i.1 ~ ~J JA~' 2 () 10Q'- 1'1 J 'J '"'v) UNITED STATES BANKRUPTCY COURT (rerl:, United States Bankru;Jt~¡ CQur1 EASTERN DISTRICT OF CALIFORNIA Easte!'!'!mstri!~afCd1f. Debtor(s). ) ) ) Case No. 185-01809" Chapter -2- In the Matter of B. E. CHEMICALS, INC., NOTICE OF SALE OF DEBTOR-JS-:' ASSETS TO THE CREDITORS OF THE ABOVE-NAMED DEBTOR(S), AND ALL OTHER PARTIES IN INTEREST: NOTICE IS HEREBY GIVEN that there will be offered for sale to the highest bidrl~r or bidders therefor, property of the above-named debtor(s) which is described as follows: . INVENTORY OF B. C. CHEMICALS,' INC., appraised in the sum of $40,000.00. The original cost of this inventory is $144,037.80, and the reduced appraisal by the Bankruptcy Court Appraiser is $40,000.00. Trustee is requesting bids for all said.assets with buyer to remove ~ inventory from B. C. Chemicals I premises. Trustee does not want to end up with inventory that he will have to pay to have removed from premises. T H1E: 11 :00 A.M., on Thursday, February 20, 1986 PLACE: Bankruptcy Court, Room 204, Federal Building, _ 800 Truxtun Avenue, Bakersfield, California INSPECTION: By appointment pr"ior to sale. TERMS OF SALE: Cash RIGHT RESERVED to ¡-ejr>ci: ;,'ny ;:¡nd all bids Jlld to continue or postpone the sale without assigning any reason therefor. FOR FURTHER PARTICULARS apply to: ROBERT L. WILLIAMS, Trustee 1706 Chester Avenue, Suite 404 Bakersfield, CA 93301 Phone: (805) 323-7933 ROBERT L. WILLIAMS, Trustee 1706 Chester Avenue, Suite 404 Bakersfield, CA 93301 Phone: (805) 323-7933 fa Office Memoranduf!Z · e KERN COUNTY PROM t CONCERNED PERSONNEL/AGENCIES ON ATTACHED DISTRIBUTION LIST DISTRICT ATTORNEY I S OFFI~_E;l /'"V' Howard Eddy , ~~ HEALTH DEP~~~MENT, ~, Richard CasaGrande c:; DATE: August 27, 1985 TO Telephonp. No. 861-2421 X~~)( Subject: EX EC UT I ON 0 F SEARCH WARRANTS As part of an effort to develop the IITask Forcell approach on this case, we would like you to be present at a planning meeting Wednesday, September ,L.J,1985 1530 hours to 1630 hours District Attorney's Training Room 1215 Truxtun Avenue Bakersfield, California .. We will hopefully be able to work out the details of coordination including; who will do what and where, site safety, and work out any expected problems. Please make every effort to attend this meeting. If you cannot be there, please call HOWARD EDDY at 805-861-2421 or RICHARD CASAGRANDE at 805-861-3636 as soon as possible to make other arrangements. - - - - - - - - - - - - PAS 580 1151 91-5005 tRev, 1-1141 e - PRE-MEETING - 9/4 S!W - 9/5 KCHD Taxies Section (3) Richard CasaGrande- ",.d'ohn Harris Claire Binder KCFD Fire Prevention & Training (4) Chief Steve Gage (2) Video Tech., Kat Davis (2) KCSO Haz-Mat Officer (1) Lt. Sparks . D.O.H.S. -- Taxies Div. (3) Bruce Butterfield Kalvin Yamata Jerry Prine D.O.H.S Audits & Inv. Div.\Z) Inv. Larry Fraley Inv. Ron Cain KCDA Criminal Div. l') Howard Eddy Steve Gildner, Deputy DA CHP Sgt. Wi 11 i am Ki nnett (Haz-Mat) (2) Motor Carrier Officers, Charlie Moore Jack Best e ! G,w, ~h~~ ~C-.. t ~--\lö I .-J \c/";).../~ S" ? :00 ~W'\, ~C- ~".e.m C c.. ~ ls ~ob \J~\\\~>- B~lrv~-\..~y\rv'ì:l\-~~ ~h~~ \\ ~ c.h~f.), CSc:.C)\t ~k~.... - ~e ~ ~ r~. ~hc;~'\)<'\Y'".d.; ~" c.. r u 2:. - ~ r"\ '-,"", - <:"'\e,ð0\ \) ~ C.c ~ ~~\\~~WI~.. ~~V\ \.4!. ~vb~+~~A\~{ ~ho\\~.$ ~v\~\~b\fL ~~'\-cr~JI'4-cr.s ~~p}y¡ , ~~Y.'tCi1J ~'('U "" r-e,VV\O\l ~\ \~ \>~~zQ.... ~VY\t\'"oV\V't\~\~\ \\~('o\J~J ~o,~ e - cZ" 3?- - I ,?bc> I 9 /::ß ~ <- c......~ .eM ~ <-.,) I ~ \> \-.~O it.. \ \\~ ~ '¡de. \.. .,k~ \,J<,s. -\- So c. r:'l"~ "f' Sc>; \ a-. ~ As~h..\+- "'" f\).. ,.-\-\ S'ìck l ce>"...r¢~ 1.1/3,1" ~.d) ~ dt'\)1V)5 <1b\- ~r~uc..t hGrì r\,l "\-'0 r4L ~/r..,-~vp --s-Q. J t c\ t"~ "\ ~'" ~3 l $",,,,~ ~r-..,..., ì..... ~...,.., CÞ...J..i- ,'. ..\ b .à r v ""~ \- Ð Ì::. ~ re..J..~ ì """J ~ r ¿e.~'" ç. h b tà;f,...lud-- n.::..I>~ c.. Y'\J s.~ L'J.. "'.. ìVl -a¡.d e.S ') , t^te-C.'fJ~- re<:.o11f~ -4-h&t\ Gt""J,~J ~ ~~~ W~s\-~S ~,~ ~4~<:..~'\-~d (d's~~) ~ 6')~(!U~c... ~ C\'1 à,-~~ ~d>~~ ~"n 50__e. ~(lJ1'''y _ çoJì¿;~y ) ð dr U~~ -\--a\ 'b~ te<..ycJeJ \ \ c:\ rv ~s '-\-0 b~ <::"'r"~s~e..J ~ \~ ~r\)W\.s \.~ 6~ <::..rùs.hd 1', -' e Office Memorandum · e KERN COUNTY TO Richard Casagrande, EHS IV Hazardous Materials Manager DATB: FROM C1ari Binder, EHS II T elephonp. No. 861-3636 SUBJECT: Investigation of BC Chemicals 1511 South Union Ave., Bakersfield, CA. October 11, 1985 On September 5, 1985 members of this staff along with other state and local agencies conducted an inspection of BC Chemicals, 1511 South Union Avenue, Bakersfield California. This inspection was th~ result of complaints received by this department regardin~ BC Chemicals and the possible illegal disposal of hazardous wastes by that company. The purpose of the inspection was to determine of BC Chemicals was indeed either intentionally or by negligence disposing or causing the disposal of hazardous chemicals on the property at 1511 South Union Avenue. Present during the ispection were staff from Kern County's Health, Fire, Sheriff's and District Attorny office, the California Department of Health Services (DOHS) and the California Highway Patrol. As representiative of the Kern County Health Department Hazardous Materials Management Section, I was present and involved in the investigation while the drums and soil were being sampled. It was my responsibility to observe the samples being taken and log each sample in the field notebook belonging to Bruce Butterfield of the DOHS. The following is a copy of the information that was written in the DOHS sampling log ún September 6, 1985: Liquid Sample Number Quantity BAB 11167 (1) 55 gallon drum (taken from black drum labeled (stenciled) Isopropy alcohol) BAB 11168 (1) 55 gallon drum (taken from blue drum labeled (stenciled) Triethylene Glycol) BAB 11169 (1) 55 gallon drum (taken from blue drum labeled Corrosive) BAB 11170 (1) 55 gallon drum (taken from a blue and white Penwalt drum-stenciled "Gas odorant"-strong odor) BAB 11171 (1) 55 gallon drum (taken from black drum with crystals around bung on pallet at west end of property) Discription Colorless Liquid Red Orange colored liquid Colorless Liquid Light Yellow Liquid The layer liquid, amber on top, grey middle and white thick bottom e Page Two Richard Casagrande Investigation of BC Chemicals Liquid Sample Number BAB fIl72 Soil Sample Number BAB #173 BAB fIl74 BAB 1/175 BAB III 7 6 BAB 11177 BAB #178 BAB 11179 CB:re e Quantity (1) 55 gallon drum (taken from black labeled (stencil) Solvent B plus at center of property) Discription White crusted soil from surface Dark black soil from surface to linch Dark brown soil from surface Dark brown soil from surface Black coal tar like clods Rust and black colored stained sludge White crusted soil Description Dark and Amber Liquid Location approximately 300 ft west of gate going to storage area approximately 15 ft west of sample #173 approximately 20 ft south of shop and 40 ft north of IT Tank approximately 5 ft south of sample 1117 5 approximately 15 ft east of the fire extinguisher at west fence of property Taken from front of poly tank labeleè DUST GUARD at the north west of proper in the poly tank area Taken from front of poly tank labeled FOAMER at the north west end of property in the poly tank area e Sent via Fee j Express ~ ~mcon ASSOCIATES Consultants in Wastes Management and Environmental Control November 22, 1985 Mr. Richard Casagrande Hazardous Substances Management Program Kern County Health Department 1700 Flower Street Bakersfield, California 93305-2231 Re: B.C. Chemicals Site Dear Mr. Casagrande: Enclosed please find a draft of the proposed Health and Safety Plan forwarded for your review and approval. We hope to start site activity in the near future, and I plan to touch base with you to ensure that the plan is acceptable. Very truly yours, EMCON Associates 4~ ~ " Henry Cruse, P.E. Regional Manager HC:jp cc: Mr. R. Williams Williams & Williams 445 W, Garfield Avenue, Glendale, California 91204, (818) 247-1260 _rm COUNTY HU,Uti ü[Pl\ldl'1EiH e " ENVIRONrvtENrAL 1¡[AUil UIVISJUN 1 NSPEC 1 J OrJ FORt,' PHONE # (805) 861-3636 FIRM: fi¿!éaA4~ EPA: ADDRESS: PHONE: EMPLOYEES: CONTACT: SR. MANAGEMENT: INSP. DATE: /6 -- t2S-- 2?~ TITLE:~~~ TITLE: ~~ alSPECTED BY: BASIC OPERATION: &~t1 . (jJ:<Ji:i~~~¿~«~' ~ ~~ ,/,.,t, __~ _~/~ _ ;'"J ~ Ä/~ .7Þ- C':; /#u.-k-z<-./Á.t:'-?D -~ /¿:f -4-; /£~/ 7 ,- ';¿h~" /~ ¿,~, f¿..¿¡rt " {~4-¡." ,~ '.J;: , - _' y" - L- (2 i£;-)~ I . /!-tJ ¿- , Þ 1.hLt-·, u::1ú,Á/~ ,/ Û ---í?", ; d-., k I -¿ ~/ 'k/? ~ I ;/ #~.';!¢¿t'£L, . /: . .£¿Là./ ./Y¿;;:, . (~~ ~(h '. ( ~ p-¿¿¿ê ;/, L ~ ,//1 /J {£ J " _) -;.( ,~ J r _ ó L~ ~SEf): ~ U.~J..~á.... '~:¡.eéj . ''?2-¿;Þv ~) /~v ~ ~ ~~ ,I, u' MSD - Available: No Yes Copies Attached: No Yes WASTE STREAMS GENERATING PROCESS: ------'--_.. ..-.-------------.- ---- --.--... ,----------,--- . ..--- ~-_._.- ------~-- --..-~--------.-________.___._._ 0- .._~,__ ______.___...,.. I >1~~ PH~T( Jl{ gECFIVED 13Y: e e United States Bankruptcy Appellate Panel of tbe Bintb Circuit . o. S. Court of Appeals Pederal Building 125 Soutb Grand Ave., P. O. Box 91510 Pasadena, California 91109 Telepbone: (818) 405-7906 "'S 961-7906 December 12, 1986 James R. Grindstaff Clerk, U. S. DISTRICT COURT ~546 U. S. Courthouse 650 Capitol Hall Sacramento, CA 95814 RE: BAP No. EC-86-2092 B. C. Chemicals, Inc. Bankruptcy No(s). 185-01809 Adversary No(s). A party to the appeal has timely filed an objection to the disposition of this matter by the Bankruptcy Appellate Panel. Consequently, this appeal is herewith transferred to your court pursuant to Paragraph 3(b) of the Judicial Council Order Establishing the Bankruptcy Appellate Panel. Sincerely, James E. Dunlevey Panel Clerk ~,~ Elvester Green Deputy Clerk Please acknowledge receipt of the case file listed above. Dated: Signed: District Court Deputy Encl: BAP Case cc: Bankruptcy Topkis Williams - Baker - -:: File Court Bates Casagrande Assigned District Court. No. SAP/4 Rev. 7/86 e e Dnited State. Bankruptcy Appellate Panel of tbe lintb Circuit o. 8. Court of Appeal. rederal 8uildiDC 125 Soutb Grand A.... P. o. Bo. '1510 P..aðeaa. California '110' Te1epbon.a (818) 405-7'0' December 5, 1986 "'8 '11-7'01 William H. Topkis COSKEY, COSKEY & BOXER Suite 1960 11601 Wilshire Blvd. Los Angeles, CA 90025 RE: In re B. C. Chemicals, Inc. Appellant Coskey, Coskey & Boxer vs. Robert L. Williams, Trustee Bankruptcy Court No(s). 185-01809 BAP No. EC-86-2092 Notice of appeal in this case has been received by the Bankruptcy Appellate Panel of the Ninth Circuit (BAP) and assigned the case number appearing above. The Clerk of the Bankruptcy Court has served a copy of the notice of appeal on all parties, with a copy of the Judicial Council of the Ninth Circuit's order establishing the BAP. That order explains the procedure by which any party may object to referral of the appeal to the BAP. If we receive an objection within 21 days from the date of the notice of appeal, we will transfer the appeal to the appropriate District Court for all further proceedings, and notify all parties of the transfer. If no objection is filed, the case remains with the SAP. We are enclosing the Rules of the SAP. Please note that appeals are also governed by Part VIII of the Bankruptcy Rules and some provisions of the Federal Rules of Appellate Procedure. If a reporter's transcript is required for purposes of this appeal, please order it pursuant to Bankruptcy Rules 8006 and 8007. Please give the 8AP case number to the reporter. If a transcript is not required, please file a statement to that effect with the Clerk of the 8ankruptcy Court. Bankruptcy Rule 8009(b) is reproduced in the margin for your information. Onder BAP Rul. 4, you .u.t furnish th. SAP with 5 copies of tb. escerpts of record wbich agat includ. tho.. pleading. listed in Bankruptcy Rule 800'(b). (over) e e In re: BAP No. EC-86-2092 B. C. Chemicals, Inc. Robert L. Williams WILLIAMS & WILLIAMS, INC. 1706 Chester Ave., Suite 404 Bakersfield, CA 93301 Scott R. Baker KUHS & PARKER P. O. Box 2205 Bakersfield, CA 93303 Kenneth H. Bates Attorney at Law P. O. Box 2537 Bakersfield, CA 93303 Richard Casagrnade DEPARTMENT OF PUBLIC HEALTH 1700 Flower St. Bakersfield, CA 93303 \ ' - e· e 1 F I I. I D 2 NOV 26 1986 :3 CIeri, ØâIt..ï Stattt ......., Ctart 4 ...... ØIttrkt of CIIIf. 5 UNITED STATES BANKRUPTCY COURT 6 EASTERN DISTRICT OF CALIFORNIA 7 8 9 10 11 12 13 14 15 16 17 In re ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) B. C. CHEMICALS, INC. Debtor(s) COSKEY, COSKEY & BOXER Appellants ~ v. B. C. CHEMICALS Appellees ~ 18 TO: ALL 'pARTIES 19 20 Case No. 185-01809 Adv'ersary No. None .;. NOTICE OF REFERRAL OF APPEAL TO BANKRUPTCY APPELLATE PANEL YOU AND EACH OF YOU are hereby 'notified that a notice ....~. '. 21 of appeal has been filed by Caskey. Caskey & Boxer with the Clerk 22 of the Bankruptcy Court. By virtue of orders;of the Judicial 23 Council of the Ninth Circuit and the District Court for this .- - 24 district, the above appeal has been referred to the United States 25 Bankruptcy Appellate Panels of the Ninth Circ~it (BAP). 26 Any party desiring to object'to such referral must do 27 so in confòrmity with the foregoing orders and their provisions 28 for reference to the BAP, a copy thereof being hereto attached. -QVER- - - IN THE UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF CALIFORNIA In the Matter of Debtor. ) ) ) ) ) ) ) ) ) ) BC- 185-01809 Chapter 7 B.C. Chemicals, Inc. CERTIFICATE OF MAILINGF I LID NOV 2 G 1986 a..... UIItttI Stltel '.khlþtCf c.rt East..... OIsttftt of c.n,. ' I, Ann Murdoch a regularly appointed and qualified clerk in the office of the Bankruptcy Court for the Eastern District of California at Fresno, hereby certify: That on November 26 , 19 86 I personally, pursuant to instructions from the court and in the performance of my duties as clerk, deposited in the U.S. Post Office in the City of Fresno true copies of NOTICE OF APPEAL - NOTICE OF REFERRAL OF APPEAL TO BANKRUPTCY APPELLATE PANEL ~'arid AMENDED ORDER ESTABLISHING AND CONTINUING THE BANKRUPTCY APPELLATE PANEL OF THE NINTH CIRCUIT in the said matter addressed to the following: Clerk, U. S. Bankruptcy Appellate Panels of the Ninth Circuit 1'.0. Box 91510 Pasadena, CA 91109-1510 Department of Public Health 1700 Flower Street Bakersfield, CA 93301 Attn: Richard Casagrande Kenneth H. Bates Attorney at Law P.O. Box 2537 Bakersfield, CA 93303 " .... Scott R. Baker Kuhs and Parker Attorneys at Law P.O. Box 2205 Bakersfield, CA 93303 Robert L. Williams Williams and Williams Attorneys at Law 1706 Chester Ave. 404 Haberfelde Building Bakersfi~ld, CA 93301 R.G. HELTZEL Cler of l3ankruptcy Court ,.......-1 By: /J!. / --t¿-t.-A"0::-i¿ Deputy Clerk Rev. 1/17/83 1 2 3 4 5 6 7 8 9 10 ~ III 11 (II iii 0 >< 0 0 ell III ~ ~ 12 ð:I j Z II: >- I- 0 13 0( II. iii :¡ ~ Q 0( 1/1 > U 0 iii 14 z u) 0 II: iii >= 0 ..J : iii 15 iii 0( CJ ~ Z 1/1 0( 0 UI 16 0 9 17 18 19 20 21 22 23 24 25 26 27 28 WHT14/k1/1~ J:1 - COSKEY, COSKEY & BOXER Attorneys at Law Suite 1960 11601 Wilshire Boulevard Los Angeles, California 90025 (213) 473-4583 Attorneys for Appellant, Coskey, Coskey & Boxer UNITED STATES BANKRUPTCY APPELLANT PANEL OF THE NINTH CIRCUIT In re BAP No. EC-86-2092 Bankrutpcy Court No. 185-01809 B.C. CHEMICALS, INC., Debtor. CHAPTER 7 OBJECTION TO HEARING AND DISPOSITION OF APPEAL BY THE BANKRUPTCY APPELLANT PANEL Appellant, pursuant to the Amended Order establishing and continuing the Bankruptcy Appellant Panel of the Ninth Circuit, paragraph 2, does hereby file its written objection with the Clerk of the Bankruptcy Appellant Panel to the hearing and the disposition of the appeal by the Bankruptcy Appellant Panel. Notice of Appeal was filed on November 19, 1986 and entered on or about November 24, 1986. Pursuant to this written objection, the above encaptioned appeal shall be transferred to the appropriate district court for all further proceedings. ¿/J 1I~ WILLIAM H. TOPKIS for COSKEY, COSKEY & BOXER Attorneys for Appellant WHT14/k1/1~ J:3 e 1 SERVICE LIST 2 3 Robert L. Williams WILLIAMS & WILLIAMS, INC. 4 1706 Chester Avenue Suite 404 5 Bakersfield, CA 93301 6 Scott R. Baker 7 KUHS & PARKER P.O. Box 2205 8 Bakersfield, CA 93303 9 Kenneth H. Bates 10 P.o. Box 2537 III Bakersfield, CA 93303 II:: « 11 iii 0 >< 0 0 GI III ~ :: 12 Department of Public Health dj j z 1700 Flower Street c:: >- t- o 13 Bakersfield, 93303 0( I&. CA iii :ï ~ III 0( (/) >- u 0 III 14 z ui 0 c:: 0 III >= oJ I: III 15 iii 0( C) :x:: z (/) 0( 0 III 16 0 0 oJ 17 18 19 20 21 22 23 24 25 26 27 28 3 1 2 3 4 5 6 7 8 9 10 II:: III 11 ~ 1&1 0 >< 0 0 01 m == ~ 12 elf j Z It: >- I- 0 13 < II. 1&1 J ~ III < It) >- u 0 11.1 14 z ui U a:: 11.1 >= ~ ..I 11.1 15 1&1 < CI ~ Z It) 0( 0 en 16 u 9 17 18 19 20 21 22 23 24 25 26 27 28 WHTI4/kl/l~_v:2 e PROOF OF SERVICE BY MAIL I am employed in the county of Los Angeles, State of California. I am over the age of 18 and not a party to the within action; my business address is 11601 Wilshire Boulevard, Suite 1960, Los Angeles, California 90025. On December 8, 1986, I served the foregoing document described as OBJECTION TO HEARING AND DISPOSITION OF APPEAL BY THE BANKRUPTCY APPELLANT PANEL on interested parties in this action by placing a true copy thereof enclosed in a sealed envelope addressed as follows: SEE ATTACHED SERVICE LIST I caused such envelope with postage thereon fully prepaid to be placed in the United States mail at Los Angeles, California. Federal I declare that I am employed in the office of a member of the bar of this court at whose direction the service was made. Executed this 8th day of December, 1986, at Los Angeles, California. e e VVILLIAMS & VVILLIAMS. INC. A PROFESSIONA~ CORPORATION ROBERT L, WILLIAMS ROBERT S, WILLIAMS ATTORNEYS AT LAW HABERFELDE BUILDING 1706 CHESTER AVENUE, SUITE 404 BAKERSFIELD, CALIFORNIA 93301 .805, 323,7933 November 12, 1986 Honorable Eckhart A. Thompson U. S. Bankruptcy Judge Federal Building 1130 ".0" street Fre~h6, CA 93721 ./ Re: B. C. CHEMICALS, INC., Chapter 7 Case No. 185-01809 Dear Sir: Enclosed is a substitute order for clean-up of toxic waste premises in the above-referenced matter. Trustee had a meeting with Henry Cruse of Emcon Associates and with the attorney for the landlord. The first order provided for expenditure of $350,000.00 for clean-up of the surface of 1511 South Union Avenue, Bakersfield, California, and the substitute order provides for expenditure of $350,000.00 for clean-up of 1511 South Union Avenue without limitation as to the surface or subsurface clean-up. Very truly yours, Robert L. Williams Trustee RLW:srl15 Enclosure ccs: Mr. Scott R. Baker, w/encl. Mr. William H. Topkis, w/encl. Mr. Kenneth H. Bates, w/encl. ,Mr. Richard Casaq_rande, w/encl. v' Mr. Rich Eglin, w/encl. Mr. Henry Cruse, w/encl. 1 2 3 4 5 6 7 8 9 10 II: III 11 ØI LLI 0 >< 0 0 (I ID ~ ~ 12 ~ j Z II:: >- ¡.. ~ 13 LLI 0( ::¡ ~ !II 0( II) >- u 0 iii 14 z r¡j U II:: iii >= 0 .J ~ 11/ 15 LLI 0( C) ~ z II) 0( 0 !II 16 u 9 17 18 19 20 21 22 23 24 25 26 27 28 WHT141 fl/11_ : 1 e COSKEY, COSKEY & BOXER Attorneys at Law Suite 1960 11601 Wilshire Boulevard Los Angeles, California 90025 (213) 473-4583 Attorneys for Appellant, Coskey, Coskey & Boxer UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF CALIFORNIA In re Case No. 185-01809 B.C. CHEMICALS, INC., CHAPTER 7 Debtor. REQUEST FOR RECORDER'S TRANSCRIPT ON APPEAL TO THE COURT RECORDER FOR BANKRUPTCY JUDGE ECKHART A. THOMPSON: Appellant and former Chapter 11 counsel for Creditor's Commi ttee, Coskey, Coskey & Boxer does hereby request that a recorder's transcript on appeal be prepared on the appeal filed on November 20, 1986 by appellants from the Order Granting Authority to Trustee to Clean up Premises formerly occupied by debtor. Said Order was entered on or about November 12, 1986. The dates of hearing to be transcribed is for the proceedings taken on August 28, 1986 at 10:00 a.m. in Room 204 of the Bankruptcy Court in Bakersfield, California and for the IIII IIII IIII IIII 1 2 3 4 5 6 7 8 9 10 II: ) 11 (II 1&1 0 >< 0 0 en m ~ :!: 12 liS z II: >- t- o 13 c( I&. 1&1 ::ï ~ CD « II) >- u 0 III 14 z ui U II: 0 III >= oJ : III 15 1&1 c( (! ~ z II) c( 0 en 16 u 0 oJ 17 18 19 20 21 22 23 24 25 26 27 28 WHT14/f1/112e ,2 e hearing on Wednesday, October 29, 1986 at 1:30 p.m. in the same courtroom of the Honorable Eckhart A. Thompson. :tti?;U WILLIAM H. TOPKIS for COSKEY, COSKEY & BOXER Attorneys for Appellant 2 e e LAW OF"F"ICES OF" KUHS & PARKER WILLIAM C, KUHS JAMES R, PARKER, JR, RALPH WM, WYATT TERI A, BJORN RICHARD A, MONJE C, M, STARR n SCOTT R, BAKER THERESA A, L<LOUIS 1200 TRUXTUN AVENUE, Su'TE 200 BAKERSFIELD, CALIFORNIA PLEASE REPLY TO p, 0, BOX 2205 BAKERSF"IELD. CA, 93303 IB051 322-40D4 OUR F"ILE NO, November 3, 1986 639.00 HAND-DELIVERED Robert L. Williams, Trustee Williams & Williams, Inc. 1706 Chester Avenue, Suite 404 Bakersfield, CA 93301 Re: B. C. Chemicals/Phoenix Trust Dear Mr. Williams: Enclosed is a proposed order I have prepared in the referenced matter. If this proposed order meets with your approval, please forward it to the Judge for his consideration and signature. Please note the language thst reflects your ability to utilize the funds for both surface and subsurface clean-up efforts. This language was added to address the concerns voiced by Richard Casagrande of the County Health Department at the time of the hearing. If this order is not acceptable to you for any reason, please contact me so that we may discuss it. Additionally, I have spoken to Mr. Casagrande about meeting with you, Henry Cruse of Emcon, the County Health Department and ourselves regarding initiating the clean-up effort. Obviously, it is in everyone's best interest that this effort be undertaken imme- diately. Please contact me at your earliest convenience so that we may set up such a meeting and, thereafter, get the clean-up effort underway. VJJery tr~U1Y ~ours, rdt' /:>(i~,-- ~ tt . Baker SRB/saw Enclosure cc: Mr. Ric O'Connell Mr. Brent Egbert Mr. Jack Rossman Mr. Richard Casagrande -:..... . 1 2 3 4 5 6 7 8 9 10 I 0:: II) 11 CII IIJ 0 >< 0 0 01 III ~ :: 12 cö :s z Q: >- I- 0 13 ¡¡. IIJ 0( J ~ \II 0( () >- u 0 ¡J 14 z cñ U Q: ¡J >= 0 .J I: ¡J 15 IIJ 00( ~ ~ z () 0( 0 en 16 u 9 17 18 19 20 21 22 23 24 25 26 27 28 HHT14/ww/lle. ~l . \ COSKEY, COSKEY & BOXER Attorneys at Law Suite 1960 11601 Wilshire Boulevard Los Angeles, California 90025 (213) 473-4583 rPœLID NOV 21 i986 Attorneys for Appellant, Coskey, Coskey & Boxer e'ert<, United States BankruptCtJ Court ~s~a'~ m5t.ri~ of Cë!lit UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF CALIFORNIA In re ) Case No. 185-01809 ) B.C. CHEMICALS, INC. , ) CHAPTER 7 ) Debtor. ) NOTICE OF APPEAL ) (No Hearing Date Set) The appellant, Coskey, Coskey & Boxer, appeals to the United States District Court from the final Order Granting Authority to Trustee to Clean up Premises formerly occupied by debtor. That Order of the Bankruptcy Court was entered on November 12, 1986. The parties to the Order appealed from and the names and addresses of their respective attorneys are as follows: 1. Coskey, Coskey & Boxer: Attorneys: Hal L. Coskey, William H. Topkis, Coskey, Coskey & Boxer, 11601 Wilshire Boulevard, Suite 1960, Los Angeles, California 90025 (213) 473-4583. 2. Robert L. Williams, Chapter 7 Trustee for B.C. Chemicals, Inc.: IIII 1 2 3 4 5 6 7 8 9 10 0:: III 11 (II \IJ 0 X 0 0 en ID 3t ~ 12 ~ j Z II: >- I- a 13 « t¡. ¡ ::¡ ~ ( « U) >- u 0 11.1 14 z ui U II: a 11.1 >= .J ~ III 15 ¡ « CJ ~ Z U) « 0 (J 16 u a .J 17 18 19 20 21 22 23 24 25 26 27 28 WHT14/ww/11e : 2 e Attorneys: Robert L. Williams, Williams & Williams, Inc. 1706 Chester Avenue, Suite 404, Bakersfield, California 93301 (805) 323-7933. 3. The Phoenix Trust: Attorneys: Scott R. Baker, Kuhs & Parker, P.O. Box 2205, Bakersfield, California 93303 (805) 322-4004. 4. B.C. Chemicals: Richard Eglin 650 Alfred Harrell Hwy. Bakersfield, California 93309 Attorneys: Kenneth H. Bates P.O. Box 2537 Bakersfield, California 93303 (805) 325-5717 5. Department of Public Health Richard Casagrande Department of Public Health 1700 Flower Street Bakersfield, California DATED: November 18, 1986 :!ÚY:U: WILLIAM H. TOPKIS for COSKEY, COSKEY & BOXER Attorneys for Appellant 2 e e VERIFICA nON STATE OF CALIFORNIA, COUNTY OF I have read the foregoing and know its contents. o o ~ CHECK APPLICABLE PARAGRAPH I am a party to this action. The matters stated in the foregoing document are true of my own knowledge except as to those matters which are stated on information and belief, and as to those matters I believe them to be true. I am 0 an Officer 0 a partner 0 a of o a party to this action, and am authorized to make this verification for and on its behalf, and I make this verification for that reason. 0 I am informed and believe and on that ground allege that the matters stated in the foregoing document are true. 0 The matters stated in the foregoing document are true of my own knowledge except as to those matters which are stated on information and belief, and as to those matters I believe them to be true. I am one of the attorneys for a party to this action. Such party is absent from the county of aforesaid where such attorneys have their offices, and I make this verification for and on behalf of that party for that reason. I am informed and believe and on that ground allege that the matters stated in the foregoing document are true. Executed on , 19-, at California. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Type or Print Name ACKNOWLEDGMENT OF RECEIPT OF DOCUMENT (other than summons and complaint) Signature Received copy of document described as on 19_. Type or Print Name Signature PROOF OF SERVICE STATE OF CALIFORNIA, COUNTY OF LOS ANGELES I am employed in the county of Los 2ln']eles , State of California. I am over the age of 18 and not a party to the within action; my business address is: 11 fiO 1 Wi 1 e:::h; re Rnllle\7ard Suite 1960, Los AngeJer:::, r.a1iforn;a 900?5 ortlovember 199.Jlfi, I served the foregoing document described a< CHAPTER 7 NO'l'Ir.F. OF APPF..iU. OD rhp ;~terested parties in this action by placing a true copy thereof enclosed in a sealed envelope addressed as follows: SEE ATTACHED LIST I[] (BY MAIL) I caused such envelope with postage thereon fully prepaid to be placed in the United States mail at T.ne::: An']E'les, California. Executed on November 1 g , , 1«8..6-, at Los An']eles , California. (BY PERSONAL SERVICE) I caused such envelope to be delivered by hand to the offices of the addressee. Executed 01' , 19----. at , California, (State) I declare under penalty of perjury under the laws of the State of California that the above is true and correct. (Federal) I declare that I am employed in the office of a member of the bar of this cfurt at whose direction the service was made, ,I /}, ~/ ;:/7 f/ jlll. o KJ o AN D'RF.A MARGOLIS Tr~ or Print Name STUAArs EXBAOOK TlMESAVER (REVISED 6183) 1 2 3 4 5 6 7 8 9 10 D: III 11 (II 11.1 0 >< 0 0 01 ID :: ~ 12 cö :5 z II: >- I- 0 13 « ¡. 11.1 ::¡ ~ CD « II) >- u 0 III 14 z ui 0 II: III >= 0 oJ I- III 15 I- 11.1 « CI ~ Z II) « 0 (II 16 0 9 17 18 19 20 21 22 23 24 25 26 27 28 e' SERVICE LIST Robert L. Williams Williams & Williams, Inc. 1706 Chester Avenue Suite 404 Bakersfield, California 93301 Scott R. Baker Kuhs & Parker P.o. Box 2205 Bakersfield, California 93303 Kenneth H. Bates P.O. Box 2537 Bakersfield, California 93303 Department of Public Heàlth 1700 Flower Street Bakersfield, California Attn: Richard Casagrande e c3 Z H of o Õ (j} of C'I .... oJ C'I ~ ~ ØI ~ ~ 5 0( .... 0( I/) z ~ ..J 'II: ~ ~ oJ 0 0( :J ... .... z _ ~ I/) oJ ..J )- > 0( oJ 0( U ~ ~ II: å o oJ ..J (j} ~ ~ oJ ~ I/) ¡¡: .... 0( oJ I/) ~ 1: II: ~ U oJ .... ID :.: ~ 0 0( ~ !:: ID .... ~ 10 I 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 e e 1 2 ROBERT L. WILLIAMS 1706 Chester Avenue, Suite 404 Bakersfield, CA 93301 3 Phone: (805) 323-7933 4 5 6 7 8 UNITED STATES BANKRUPTCY COURT Ð EASTERN DISTRICT OF CALIFORNIA In re ~~ Chapter 7 Case No. 185-01809 B. C. CHEMICALS, INC. ORDER ON PETITION FOR AUTHORITY TO CLEAN UP PREMISES Dehtor. At Fresno, California, in said District, this day of November, 1986. The petition of Robert L. Williams, Trustee, for Authority to Clean up Toxic Waste Premises at 1511 South Union Avenue, Bakersfield, California, having come on for hearing on August 28, 1986, and having been heard on October 29, 1986, Robert L. Williams, Trustee, appearing in person, Phoenix Trust, the landlord, appearing by Scott R. Baker of Kuhs & Parker, the Creditors' Committee appearing by William H. Topkis of Coskey, Coskey & Boxer, and Richard Casagrande of the Kern County Health Department, appearing in person, and Notice of and Application for Authorization to Clean Up Toxic Waste Premises having been sent to all creditors, and good cause appearing therefor, the court makes the fOllowing Findings of Fact: 1. That Robert L. Williams is Trustee in the above- 28 captioned debtor proceeding, duly qualified and acting. That -1- 2 3 4 5 6 7 8 Ð 10 cJ J1 % H ., - 12 o 0 ø ., 1'1 - III 1'1 13 ~ I- 0> ~ ~ 3 < .... < II) Z ,..:¡ -' 'II: 14 ,..:¡ I- III 0 < :¡ LL .... Z _ ~ II) III -' >- > < 15 ,.., III < U ~ ~ II: ci 0111-' 16 (f) I- I- III I- II) ;;: .... < III II) ~ J: II: ~ U III 17 .... IØ :.: ...J o < ,.. III ,..:¡ 18 .... ~ JÐ 20 21 22 23 24 25 26 27 28 e e Chapter 11 proceedings were filed herein on July 18, 1985, and those proceedings were converted to a Chapter 7 on or about September 26, 1985. 2. Thatpthe,;,court:"finds that Robert L. Williams ,,;,Trust'ee,-, ~ . . ;.."'~.....~ ,:;ii~, ..' .i.;,,;.,.,.., " i.<, may"expend"upto $350 ~ 000.00 for the clean-up of the! surfäc'e~~ibf,i:~~{ '. ,.,.:1.., ¡,,~.~,-,..;.1~.:; ,the,,,premises<at, l511i;:'south Union Avenue, Bakersfield, California. ,', ' , h....::. '~; ~:¡~.: That at such time as all substances are removed from the surface of said premises, the iTrústee will, return to court, for, further:' authorization to do subsurface testing and for authority to~~'.~ ~I clean up any subsurface toxic waste problems. o R D E R IT IS HEREBY ORDERED, ADJUDGED AND DECREED that Robert L. Williams, Trustee, is authorized to expend up to $350,000.00 for the clean-up of the toxic waste problems on the surface of the premises at 1511 South Union Avenue, Bakersfield, California. That at such time as the surface clean-up is complete, Trustee, Robert L. Williams, will ask the court for further authority to proceed with clean-up of any subsurface toxic waste problems. DATED: Bankruptcy Judge .. " -2- c.5 Z H ., o Õ r.JJ ., M ~ W M ... '" < ~ 3 < .... < UI Z ~ ..J . II: ~ ... w'o < :J ... .... z _ >.- UI W ..J >- > < ,., W < u ~ ~ II: 0 o W ..J r.JJ ... ... W ... UI ¡¡: ¡: < W UI J: II: < U W .... I) 10: ~ 0 < , !:: III """ .... ~ 1 2 3 4 5 6 7 8 9 10 1 ] 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 .,., .. .... e - PROOF OF SERVICE BY MAIL STATE' OF CALIFORNIA) ss. COUNTY OF KERN I am a resident of the aforesaid county; I am over the age of eighteen years and not a party to the within entitled action; my business address is 1706 Chester Avenue, Suite'404, Bakersfield, California 93301. On November 7, 1986, I served the within documents on the parties listed below by placing a true copy thereof, enclosed in a sealed envelope with postaqe thereon fully prepaid, in the United states' mail at Bakersfield, California, addressed as follows ::\ Mr. Scott 'R. Baker KUHS & PARKER P.O. BOx 2205 Bakersfield, CA 93303 Mr. William H. Topkis COKEY, COSKEY & BOXER 11601 Wilshire Blvd., #1960 Los Angeles, CA 90025 Mr. Richard Casagrande Dept. of Public Health 1700 Flower Street Mr. Rich Eglin 650 Alfred Harrell Hwy. Bakersfield, CA 93309 Mr. Kenneth H. Bates' BATES & TUTTON P. O. Box 2537 Bakersfield, CA 93303 Executed on November 7, 1986, at Bakersfield, California. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. S. Reynolds Name , sl S. REYNOLDS Signature e e Verß Reichard September 17, 1976 Should you have any questions or comments. please do not hesitate to contact me. Sincerely, EDWARD R. JAGELS District Atto~ney E!)W ARD R. JAGELS District Attorney e e CRIMINAL DIVISION Kern Co. Justice Building I 1215 Truxtun Avenue Bakersfield, California 93301 (805) 861-2421 -¡ j September 17, 1986 þ:/! ~ ~ :!..!, i..1 4;¡ 1i ;", I ,C¡· SEP11 ;/ ~/! i '~ERN ,~".. 8 1986 ~..;:~- \..VU'd' ivJ'( Hr_, , ViLTfj D£p- I. ,.. /i ~f Vern Reichard, Director Kern County Health Department Environmental Health Services 1700 Flower Street Bakersfield. CA 93305 ,< ..).; 'j Re: People v. B. C. Chemical. et. al. Dear Vern: This will serve to inform you that our office has filed misdemeanor criminal charges against Richard Eglin/B. C. Chemical/Bruin Chemical relative to disposal and storage of hazardous waste. These charges grow out of a search warrant served by your office in conjunction with Statè Department of Health Services in September. 1985. As I have expressed to Richard Casagrande in prior conversations. I have some trepidation with regard to this case based upon the fact that it took eleven months for the test results to be received by your office and ours from the State Department of Health Services' laboratory. However, we did not want to let this matter go by and have made the decision to proceed with the criminal charges. We will appreciate the continued assistance of your staff in preparing for court proceedings on this matter. As you are aware, the corporation. B. C. Chemical, has filed for bankruptcy and bankruptcy proceedings are going forward. I have spoken to the trustee. Robert Williams, Sr., who indicates to me that he agrees with our position that monies for clean up of the site should be allocated from the bankruptcy proceeds. However, it is the position of counsel for the creditors that the assets of the corporation should be used to payoff their debts rather than to pay for the clean up of the site. May I suggest that you or one of your representatives contact County Counsel with regard to their formally presenting the County's position before the Bankruptcy Court. e e LAW OF'F'ICES OF' KUHS & PARKER W'LLIAM C, KUHS .JAMES R, PARKER, .JR, RALPH WM, WYATT TERI A, S.JORN RICHARD A, MON.JE C, M, STARR II SCOTT R, SAKER 'THE.RE.SA Ä. L!:LOUIS 1200 TRUXTUN AVENUE:, SUITE: 200 BAKERSFIELD. CALIFORNIA PLEASE: RE:PLY TO P, 0, SOX 220S SAKERS"ELD, CA, 93303 IBOSI 322-4004 OUR F'lLE NO, October 9, 1986 Robert L. Williams, Esq. Williams & Williams, Inc. 1706 Chester Avenue, Suite 404 Bakersfield, California 93301 Re: B. C. Chemicals, Inc. Bankruptcy Case No. 185-01809 Dear Mr. Williams: Sometime ago I suggested to you that we schedule a meeting between Henry Cruse of EMCON, Richard Casagrande of the County Health Department, yourself and me so that we could discuss the implementation of EMCON's Remedial Action Plan, and the monitoring of that action. I realize that court approval for your clean-up of the premises has not yet been received, but I still feel that a meeting would be appropriate in anticipation of that court approval. I also feel that ongoing meetings of this nature throughout the clean-up effort would be helpful to keep the effort progressing in an efficient, cost-effective, manner. By copy of this letter I will suggest to the parties that such a meeting take place at our office during the week of October 20th. I will contact each of the parties during this next week and attempt to establish a firm time and date for that meeting. In the meantime, if you have any questions or comments please give me a call. Very ,tr, UlZYO,Urs, ' E ,----; ~~. §~ Sc tt R. Baker SRB/lmc cc: Henry Cruse ~ichard Casagrande ü Z ~ .., - o 0 rÎ1 .., '" ::g ~~ ~ ~ :; « ..... « UI Z ~ .... 'a: ~ I-WO ..... « ~ !!: ....... UI W .... ~ > > « ... W « u _>1 ~ a: C '-";J 0 W .... I- I- W (/) I- UI iL ... « W UI ~ 1: a: ~ U \II ..... ID:': ~ 0 « , ,.. m ..... ..... ~ e - 1 2 3 4 5 6 (a) Administrative expenses, including Trustee's Fees, attorneys' fees~ including the fees and costs of Caskey, Caskey & Boxer in the sum of $12,399.66. {b) Debts incurred during Chapter 11 proceedings from July 18, 1985 to September 26, 1985. (c) Costs of clean up of the surface of the leasehold 7 premises at 1511 South Union Avenue, Bakersfield, 8 California, in the approximate sum of $250,,000.00. 9 IT IS FURTHER ORDERED. ADJUDGED AND DECREED that at such 10 time as the surface of the debtor's premises is cleaned up, that Jl Trustee will make a further report to Bankruptcy Court and will 12 get further authorization for core drilling and the next phase of 13 cleanup under EMCON Remedial Action Plan. 14 DATED: 15 J6 17 18 19 20 21 22 23 24 25 26 27 28 -3- Bankruptcy Judge u Z ~ of o Õ lf1 of .... .... III .... ~ I- Ø> ~ ~ :; « .... « UI Ž ~ .J 'II: ~ I- III 0 « :J LL .... Z - ~ UI III ..J )0 > « III « U ~ ~ II: C o III ..J lf1 I- I- III I- UI ¡;: ~ « III UI 1: II: ~ U III .... <0 :.: ~ o « ~ !:: .... ~ - e 1 September 26, 1985. 2 2 . That there is a substantial toxic waste problem at the 3 leasehold premises of B. C. Chemicals at 1511 south Union Avenue, 4 Bakersfield, California. That there are claims filed during 5 Chapter 11 proceedings for debts incurred during Chapter 11 6 proceedings of approximately $51,730.49. That the court has 7 allowed claim of Coskey, coskey & Boxer" attorneys for the 8 Creditors' Committee, in the sum of $11,949.00, plus $450.66 9 costsJ for a total of $12J399.66. That Trustee has on hand as 10 of September 30, 1986, $534,634.97. 1 ] 3. That Remedial Action Plan prepared py EMCON Associates 12 and approved by the Health Department of the County of Kern, ]3 provides for the clean up of 1511 South Union AvenueJ Bakers- 14 field, California. That it is estimated that it will cost 15 approximately $250,000.00 to remove all material from the surface 16 of said premises. 17 4 . That the court finds that funds in the hands of Trustee 18 shall be paid first for administrative expensesJ including ]9 Trustee's fees, attorney fees and debts incurred during Chapter 20 11 proceedings. That thereafterJ Trustee is authorized to 21 proceed to remove all materials from the surface of the leasehold 22 premises. That thereafterJ Trustee will make a further report to 23 court and get further authorization for core drilling to deter- 24 mine the extent of below soil contamination. 25 0 R D E R 26 IT IS HEREBY ORDERED, ADJUDGED AND DECREED that Robert L. 27 WilliamsJ Trustee" pay the debts and claims of B. C. ChemicalsJ 28 Debtor No. 185-01809, in the following order: -2- 9 10 í.) II Z 12 H .., o - rJ) .., ~ ... IIJ .... 13 ~ I- 0\ ~ 3: 3 < .... < I/) Z ...:¡ ~ 'II: 14 ...:¡ I- IIJ 0 < :J I&. .... Z _ ~ I/) IIJ ~ 15 )0 > < IIJ < U ~ Z II: ' II: IIJ 0 o I- ¡j 16 rJ) I- I/) - .... I- IIJ I&. ~ < J: U1 ~ U II: 17 IIJ .... co :.: .J o < r- m ...:¡ 18 .... ~ 19 e e 1 2 ROBERT L. WILLIAMS 1706 Chester Avenue, Suite 404 Bakersfield, CA 93301 3 Phone: 4 5 6 7 8 (805) 323-7933 UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF CALIFORNIA In re Chapter 7 Case No. 185-01809 B. C. CHEMICALS, INC. ORDER ON PETITION FOR AUTHORITY TO CLEAN UP PREMISES Debtor. At Fresno, California, in said District, this ____ day of October, 1986. The petition of Robert L. Williams" Trustee, for Authority to Clean up Toxic Waste Premises having come on for hearing on August 28, 1986, and having been continued to Wednesday, October 29J 1986, at 1:30 p.m., Robert L. WilliamsJ Trustee, appearing in person, Scott R. Baker of Kuhs & Parker appearing for Phoenix 20 TrustJ William H. Topkis of Coskey, Coskey & Boxer appearing for 21 the Creditors' Committee, and Notice of and Application for 22 Authorization to Clean Up Toxic Waste Premises having been sent 23 to all creditors, and good cause appearing therefor, the court 24 makes the following Findings of Fact: 25 1. That Robert L. Williams is Trustee in the above- 26 captioned debtor proceeding, duly qualified and acting. That 27 Chapter 11 proceedings were filed herein on July 18, 1985, and 28 those proceedings were converted to a Chapter 7 on or about -1- e e WILLIAMS & WILLIAMS. INC. ROBERT L, WILLIAMS ROBERT S, WILLIAMS A PROFESSIONAL CORPORATION ATTORNEYS AT LAW HABER FELDE BUILDING 1706 CHESTER AVENUE, SUITE 404 BAKERSFIELD, CALIFORNIA 93301 .80S, 323·7933 October 10, 1986 R Baker ER P. o. x 2205 sfield. CA 93303 Mr. William H--;""Topkis CaSKEY. SKEY & BOXER 116 Wilshire Blvd., #1960 s Angeles. CA 90025 Re: B. C. CHEMICALS, INC.. Chapter 7 No. 185-01809 Gentlemen: I Enclosed is a proposed order which I have prepared in the above-referenced matter. I am also sending a copy of the proposed order to Judge Thompson for his information. Hopefully the order can be signed in court when this matter comes up for hearing, on Wednesday. October 29, 1986., at 1:30 P.M., or in the alternative, perhaps we can handle the matter with a conference call. v~r;ý/~;Jú1Y Ylurs ~/ N/ --- ",' /';;: Rob, rt' L.~liams Tr~stee ',~... RLW:srl15 Enclosure ccs: Honorable Eckhart A. Thompson, w/encl. ~rn County, Health Department, w/encl. EMCON Associates" w/encl. e' - LAW OFFICe:S OF KUHS & PARKER WILL'AM C, KUHS .JAMES R, PARKER, .JR, RALPH wM, WYATT TERI A, BJORN RICHARD A, MONJE C, "1, STARR n SCOTT R, BAKER THERESA A, L<LOU'S 1200 TRUXTUN AVENUE, SUITE 200 BAKERSFIELD. CALIFORNIA PLEASE REPLY TO P, 0, BOX 220S BAKERSF,ELD, CA, 93303 {SOSI 322-4004 OUR F'IL.E NO, October 15, 1986 -? h)~,t ~(ìJY '/ ( I ' ~~ G 1/ .I" I ,1 L , / I I I I ' I \ ,.- !j ~: Robert L. Williams, Esq. Williams & Williams, Inc. 1706 Chester Avenue, Suite 404 Bakersfield, California 93301 Re: B. C. Chemicals, Inc. Debtor No. 185-01809 Dear Mr. Williams: Pursuant to our telephone conversation of today this letter will confirm that resolution of your motion to expend funds to clean up the hazardous waste site should occur on or before October 30, 1986. In light of this, a meeting with Henry Cruse, the County Health Department, you and me would be appropriate the first week of November. Please notify me of times and dates which are convenient for you during that week. Hopefully, shortly thereafter, an expeditious clean-up of the site can begin. In the meantime, if you have any questions or cOIT~ents, please give me a call. Very" try.1y--?,ours , . 0~;:JfxL- (Scott R. Baker '-,,/ SRB/lmc cC:Richard Casagrande Henry Cruse Ric O'Connell Jack Rossman " ~RAIGHT BI~L OF LAOING-WRT FORM--Original-Not Negotiabe , . -;- '""\~. 27537 OPENCREST DRIVE. SAUGUS. CALIFORNIA 91350 Carrier at J111 p ;J. G J..I 2- c.¡ Tf.... 1936 from ENVIRONMENTAL RE£OVERY SYSTEMS RECEIVED, ..btoc! to I". cl....ficetion.1IICI tar,ff. in .ffocl on III. d.l. of I". '"U. 0' I"" Bill of l.Idi"9. ,,,. øroØ«tVdillCf,bld beI_ ,n ...__ VOOd _.._. not" 1_ ... _It ion of_, of DICk_ unknownl. m."'.d. co........... ancI d"t'..... .. ,"dic.tld 1111_ _"'" ..'d Clm.' It 111 ..ord c.",., 111,"9 under.toOCf t"'ClU9"Oul 11111 contrlCl . _... ...v .._ or __~ in __ ., t, pr~ under tll. cantrlClllC¡'_ to carry to It. u....1 ..I... of d....ery.1 ..od dl..'".t,on, ,f on ,u ,out.. 0111_'11 10 dtli... to .not"'" CIt".. on tll. ,out. to..iII dea,_ion. It ilIIIUNII1V"'-. io ~ of .11 or ."., of ..'" ..,o_tv 0'" .11 ,or IIIV pOrtlOll of lIid ,out. to d..tin.llon .nd .. to .ac",,1t1V .t .ny I'.... intlf.It" ¡n III at any of .u f01III'tV. tlllt -V -.rea to lie IIrfomIId ___ "'"" lie'" 10 llllIIe IIdI of 1111'''9 'erm. and COndItiO"' In till 9O...n,"9 cJ...oIiclllon on ,,,. d.l. of lIIiDm.nt, ...... ...... .....".. .... .. . ........ ... ... ... ..... ... _...t". .. ,.. .... ... .. ....... t___ __ .. ... .... ........ _ ..... ..... ....... .. ...... ........ .......... ... ....., __ .. .,. I. __ ... ____ ,. ......... .... ....... ShiPPM"s No. Agent's No. ......----- ~.._- Consigned to IntercheM Corporation (M.liI or _t __of ........--F... _ of notrf__ EPA I.D. ~ CAX 4000056143 Destination 1380 Knol1wood Circle StreetAnaheirn City Calif. County 92801 Sb Routing Delivering Carrier Tntor~hern Co~orat~on Vehicle or Car Initial No . - - - REMIT ICOD C.O.D....... Sll.- L- C.O,O, TO: ,. CD boo NÌII by ~ C AODRESS Amt:S Subject 10 SectIOn 7 of ....-. No. t11fII o W.oofu a~.. a.ó Iftll ",,_ .. to be dllNerwd CD _ OC PIdr_ Kind of P~ Oncriøtioa of Anideo. SøeciaI MMb. _ EJc~ons (Sub 10 Cor .I or Rat. Cðiumn Þ9I"" without recourse on (he ~ 'III ""'"- "..., ... me ........ J ,D i r E '{ AfJðL (^ ,~ "t ¡..J.~..,.. n.f1"""U~ \ -; SD tì. st........ta; :),~ The coo"i.. _I nor __ -. ' P.J.L,..'t)·,,,.tL; ,~ - lIIis "'¡_ wot_t _., ~ ~ ("':1 ..,n -< ^IOI. UQv;~ 15 c:c,l'& "'" II. or... lawful _..... u ;,/-. _ ,('(IV. 1171 / 600" :Jn1 ~ r::. L \1 r",../ I- Trt'E D G ~ CL:l1tB~r",H \.) .., DI. Y... .1 ......:AI 0 I' OAJ1r,..,¡I'(¿ vA) -z..4Q, ~ÐO:;tt ISiqnalu,. of Con_" If 111 '!7 ~;--,. " cn.,ges M. '0 be _10. __ ' 1/ ,;; Jt1~~{)lr{ III ~ (,:LAIr1I4RL~) f)~'#"Z o5~ 30~d sumo ".,.. '"To III PrlOlitl:· ! rH J7 Þ i¿u'j, Ie ~ 1J(i~ 18'Z3 ~G 4 I ~MO# ,. ,1.1 t Co '?- ; I' S /) D .4 r: /,.A-- k E' co..u. 'õ., I ) Ç¿ ; Roatved S 10__ __nt of me-.non _ ~ -- dftI:r'bId .....n. . , ~ , . , \ 7 " A9mt or c.v.... .. ~ . '~ :; " t ~ .. '. {The ._cure _. -......1eØ9B _ r , ' _m PfII)IId.1 < , ~, " ~Ad._: All'sa1es are final an ~ material remov ~d from B.C. Chemical Corporattin is to be test ed on site s beiore removal. In the event aft2 it:' material has b ~en taken from the 'Pr~se and is dee rned unsuit:3 b1e f ,r use by ~:-te ryurchaser of+- is the resryonsib i 1i t:"" of tr-e ry\!r ..haser -I.. ':0 disuose of this tr.aterial in ac cordance wi th al 3t~te, fedn-al and loc:!l laws and regulati,?r s:--þer t:ainin ~ to its disposa: ':;i~ned - . .-.----:'. . //'/,.-' ,',' J / (~ 1 Corporate of-" ..~,... / J-1' -....."-" -. , /~, .'. " " , ,. ,,' /' J Oil I". "'i_t mo... _ twO pom nv . camet by ...t;, 1111 1_ 'IOU"" III.; 'tll. bill of Ildi"9sh.lllt.n.._.. it ¡I,r'a""·¡at "'~"_"t:· NOTE·-W..... INI ,.t. II _ent on ....... 'I"_".re '1OU,,1d to st.1I ......Iicallv in _iti"'J 111.'-'" dId_ yalua of IIIe Pfooenvi , Tlsis i. to C8ftlfV 1M! tile Il1o.. n_ mill_I. _ pro......, clusolleel. dncnlled. ~ _eel and ';;¡'jn proper cond¡lIon for ',."søonallOf't ..:co,d,nll '0 ~icaDl. nlQula"onS of IIIe Oaøanmanl of T.-øonallon. The ..... .. ....... ...... 01 tIoe ..~ is ......, _ifiatl" _ by l1li ..... CD III not ..-,. _ ENVIRONMENTAL RE£OVERY SYSTEMS Shipper, Per P..m.nenll>Oslotl'C....ld'...ol.n'oør:r, 27537 OPENCREST DRIVE, SAUGUS, CALIFORNIA 91350 (thiS 8111 of LMllng II to be Slqned by tn. "'."øwr .nd ..,. of thl c~rrler IUUlng wme.l Agent. Per S~R~IGJ:'T BILL OF LADING--~RT FORM---Griginal--Not Negotiable .- . . Ship..,'s No. <\ Carrier Agent's No, ZJ537 OPENCREST DRivE. SAUGUS. CALIFORNIA 91350 at Y21,111 ¡2 (., -z L/ fA. 19 86 from ENVIRONMENTAL RECOVERY SYSTEXS RECEIVED. ..bilCl to III. ctluìliUtlOnl Ind ,-,ffl in Iff..t on tll. dlta 01 III. ,"sua 01 III.. Bill 01 Ladi"9. III. ørOll«tV d.....'bld ....ow ,n lall«...t QOCId _.1_ II noted 1_ _ COndition._ of a__ u'*_nl. mlrleod. co.....ftICI, and dfttlllld II indicatld below wit..., "'d ca",.r II,.. _d CI",.r bel"9 undlrstood IIIrouQl!out tlltl contrlCl II m_"" any _IOn.,. _n_ in _ øI to proøerrt under th. œfttrlCt) .... to carry 10 Itl USUI' D'ac. of d.hvØ'V It said dtltIMtIOft.I' on Its rout.. Ottletw,.. to d.liv., to .noll,.. att.., on th' rOUtl to ..td d.ftlftl1tor1. It it "'vtu...V..... II to -...,.. of III ør ...... of Slid lifO_tV..... III Of My oon_ of IIId rout. ta d.ninltlon Ind 1110 .ICII DOttV It Iny tI.... imorOUId in III Of MY af IIId øroøonv.1/IIt ""'V ....... to be ~ ..._ __ ...... ID III !lie IIi( of lod,"9 !lrml Ind canditioM In tll' va_n'''9 ,,"..dical,on on III. dll. 01 ....i""'.m, tM_ ....." ....m. .... _ .. ....., ... ... tM ........ _-.et.... .. ....... ..... ........-......... _ ....... .-.-eo _ ..... .... --.... _.......... ~ _ ~..__~ ... -... --... ......... aN ....... ..... Ie... ,.. .......... ____ ,. ___... ... ....... (~~ Of nr_ _'.01 _For_of notd____ I EPS I.D. # CAX 4000056143 Consigned to Interchem Cornoration Destination 1330 Knol1wood Circle Street Anaheim City Calif. County 92.g01 Sta Routing Delivering Carrier Interchem Corporation Vehicte or Car Initial No REMIT COD C.O.D,c/w1t ~ W c.o,o. TO: to be c*I bot ~ C ADDRESS Amr:S Subiect fa StetlOn 1 01 ~ No. . Wtictll a~.. 0ItCII Iftll ",,_t .. 10 lit d......, 1IJ :lilt "" Padr_ fttIII Kind af p~ o..::.;øc;a. of Artidts. SøtNf Iobrtrs, _ ~O"" (Sub '0 Cor .j or A~!I ~ \9'" Wltnoul recaurw Oft Ø'W ~' UN"" Ib2.';; tilt CDnllCnot .....,. SÌ9" !lie ...... -, &;J ðooJ:r Ø.I.....UI: ¿Ö D( IJ 1'"1 'Í (. .~ ¡) ., r i ( 5ro~ ~'-11.~€.. ""i¿O~RC-'ivt:.\ Tho ~... ",,"U no, mat --. l -,. A cs-ti ( ,4G;.o e c~!j. NItt ~ï ,"70) ,c;: ~ <oo~ III.. ....,_ .,thou, __ .. ... ') t)¡ :J I'd _ C. /f'" (' 0 t!.JZ c.5 , vE .nd aI. 01"" _ful ....'9IL 1 [/( :..J 11/ c.,,,<, 4e V, ð. T '-i~\JIJ) '-/6olÇ DI' '.,,'U1 UL - J DO r(::.,¡tt<c~; lie) AI A #z 5"'~~ I-qo~ ISÒCJN'Uro of ~, I I' c:tI,rgn Me (0 be Øf'I!OeIllL ...... I 1'1 filii "Z b ï '2.. , -z. Co~ _".... ""0 be Prooald,- ~ þ'; V/11 ,4 ,r1!t7 (> ,{) ; (/,11 ~"i)Rð"; ð P (oiiÃc.., it! e.. , þ¡ '\.' f'ì ~ i!. III H l D Q.j..{. "I D e.. tt.O n\SI·... ~~ J 11 ~ 3SþR! 7q f. ,4Q5 AJ í,q - ~A~ IV. t), r IORY)- '3 q ;50# ; i¥I G. - ^ J ,-ó, r( D R ,¡) L. 5DC# LIS SeD; VIII S u L.. ;:,. Té Rea""", $ ID_" ørooa.......... at tilt __ Oft ilia _ /0 I ~ ,4.4 · ,s, CD" IT/it N. ð. r D!.'f I, f) é) ê)...,lj/:" d......!>ed "....n. ~ V '-FATE. - , 'D )'H"I[1 b; 5c.Þ'- U m' 011 04y,.J)¡ A r(¿ N,Q r,l>A.v I ð 001% ~ ~ ¡.JCr f, I S(j,d Agent 0< C&sI\-. j k' ,: I "'Z..Â AI IU. () 1.1: 7")¡2.y I ,.;:,. , I ,:;, ~(',7>/uI1i D. OIC ¡'fI- #"'t ' ~ I f!oo-# r ,~ ;-:'/+'::;' '- ¡..J.,q"Ær~ AI A 1'-1 7 ~ , .... I 1"'\ :).1..; I S 1J " ~cÞ /urn Of¡~., ðJ. ~ r-€' Ú. Þ :;: /), (!Y 72~ (The ,_tuft _. ............... _. to ...., _m Prooald.1 I '. ~ Aduncld: ; , :3t~t2"'!!ent : .All sales are .. . , an :1 mater': a1 Iremo'" ,d f.-r':! .s !:1.na.... -, f"' Chcmical Cor;:,17Øa~ion is to b~ tastêd on site .....; ........ ~.=fore rer;::cval. In the event afte - mat~al has b en ~.:1 ~~en fro!'!l the urem';ge and is dee C1cd unsui!::l ble f. '!" use .,'. "'f,:' the purchaser it is the ::eSDon ibility OI the ' urcha er ::0 dispose of this material in ac þordance wi th aI" feåeral a~à local laws and re~.llatior. i ~ain:!.n '\ rf'/ ,.... '.I+-0 B/per ' '-~'--.. j.- - - ,- ':0 its disDosal . Si:~r:~E! Comorate Ofiicer~,,", /,:-,.'~" .,' >0 / // .n 1M \hiørNn'l n'IO'fft ~ two PO"' nv -. car...... bv w.t.. the taw riMIUw" that ~h. btU of l.oi", .s".U uatw whfttter II. tI c.atTiw"lor thtØCM1' "wwiqftt. ./ I NOTE.-Whlrw 1ft. '11_ II deoenctent: on vllt..,.. SI1lppen.... f.clulrea to' nit. ¡Diede.lv in wrttll'1CJ tn....., 01 .cMd.... ....ue o' t.... ØfOCMrtV. t This is 10 cart,f., 1"-1 IIIe .oave n_ It\IIteri..s _ aroperty clSSS,fled. dncnbed.,~ msrMcI and .,. in JIoper condition lor r....søon.lJon sccordlnQ ro _liCSD... nlQUISUons 01 rile Ot)sttment 01 T~.loon. '----, - .. / 'Tho ...- _ _ "uo of !lie ~ is Istnà¥ ' _sfictlly _ '"' tilt .,.... 1IJ be not ..-.. ,. /, ' - .' ...- . ( ,: , J ',-" ENVIRONMENTAL RECOVERY SYSTEMS Shipper. Per P..m.nen.OOSloff,c....'clr.ssof'"'oaer, 27537 OPENCREST DRIVE, SAUGUS, CALIFORNIA 91350 Agent. Per ITh., 8.n of l¡du'll) 1\ '0 be \1qNC:J¡ bv n'e V\'~ø.!' ...-.I .._..... ..., "'1_ r:ar..._ .eel"'" urn.. I -- ~RAIG!IT BILL OF LADING--~ r FORM--Original--Not Negotiable Shipper's No, 2]537 OPENCREST DRIVE. SAUGUS. CALIFORNIA 91350 at /11/..4 R. L µ Z '-/ T/... 19 86 from ENVIRONMENTAL RE£OVERY SYSTEMS RECEIVED. IUÞiICt to t'" el.uilicnion..nd wlIf. in .flect on I'" d.1I of III. '..... 01 11111 Sill of Udi"9. tll. øroøenv d_lbld bltowln .01*...1 000d ordIr..,,_. noted I_1ncI CllflditiOft"_ 01 0_" unknownl. mlrkld, COIIIIIIIIII. _ d...llned II ,ndicltld belOW _,ell Slid ..,.lIr IlIIe _rd c..... bel"9 und"ROod tIIrouQlloul tIIi. contrlCtM _"" MY _" or _ in __., II pr_u'- III. conlrllCtllQf_ to CllrVto 'I' u...al 011Cl of d......., It I.id d.lllnallon, ,Ion .11 'OUII,Otll.rwIIlIO deliver to .....,,,. ....... on III.rOUII to uid dHt'IIIt_. It ilm_ly"'- M iD_____ of III or .nv of Slid oro_1V ov.. .11 or any oon_ of Slid roull to daltln.llon.nd II 10 a"" Dirty II .nv lime 'n_ in III or Illy 01 Slid properly, t/IM...., tenrice 10 llll*iontIId ___er..... _... tD III tile bill of 1111'''9 lorm. _ COndilio". In ,lie oo-n'"9 d...dicl"on on III. dllo of lIIiomont. ...... ...... ....... '-' .. II ........ _.. .. ,. ......... ....,...... ,....~ ..... .......1_..... ___ _ ....... ....... _ ..". .. 1M .........~ _..... ___...... _, ~..__ .. -- MIMI __... .......... ... ....... ...... Ie ., ,.. ....... ... ...... ,. ..-.... ........ Carrier Agem's No. (M... or _t Iddreaof """"'-For ~ of nolrfa-._ EPA I.D. ~ CAX 4000056143 ConSigned to Interchem Co~oration Destination 1380 Kno11wood Circle Street Anaheim City Calif. County 92801 Sta Routing Delivering Carrier Interchem Corporation Vehicle or Car Initial No b 6 REMIT COD c. o. D. dIIrve Sll.- L; C,Q,D. TO: to III petti by ~ C AOORESS 4mt:S Subiocl 10 Sect_ 7 01 _ No. . w.." a.a o.a III.. .,,,_, .. '0 be del;"""¡ ,. ,. CD '""*- fHIIIII Kind 01 p~. Deoc:rigtion 01 ArticIn. SÞIr:III MIIb. _~ons (Sub 10 Cor .I or R.I. Column _ ...IIIOUI r_1I on tile _, tile con...... _ "" tile ",...... ,11Jí II (1 TI" c.. h I..d!0 8~N<.eNe. UlVll '5 'II --:J ~ðð7i' 0It.J't1- I- slac....,,,: )¡)/,.,., , -n. .."i.. shill "'" ..... ........... , I , ,:-l/p ¡/ 61.J I..J 50 5 rJ L IU 11 / Vly,' ~ I '1 ~ 3 .., ðQ~ tIUI lIIi_' .11_' _ . ... t t}I1fCv~7¡:¡;J. f _ .. otllor lawlul c/III9IL ~ ... ;;/j) C, S~, 1-, . U IY1 tn BT- 5c/$~ ^1.c.I.,L ;(;¡ui.D '~eO -z:r ~- ¡-.,~, uP ,tm~ Di 13 THANOLA/I1: N ~ Ic.~n' ft~~TABi..~) qbo..tl ISÍInIlure of Consio)nø ,J L. If d'I'f1JI'I .. to be Ø~IIL ....... t ...., Df' jI¡;J"'D\IL ÇA! Ç) 9 éD~ _ tier.. '1'0 III Pr-'d. ~ -<- ~.;// .. C. L. V u::: L. ^/,o.I 11'/)..;; ~ r; v',1r, , YN 1:11 ~ Rct. "7 þ, ,:Alt"1'ìíc PðTÆ-5 II J , é)O.!:J: ..... ~oLtIT, 011 C. ~iU!t"~ i u..( I ...., ; V ;, f ¡)J.. e"u1A,,¡¿;(' AciD 7.5 "IG V.~: ¡905 ~ ~ 7 50 Jr Cc. o''j'i II ~ I') ..." >{', ~.""J~r,'¿ ~n~ µ. ~,.., 1 el,3.R~ Sf ð ð z:t: 1), ~/..A.K'r: LG f.l...kC~"r' ) Roni_ S 111_., , IftI)IVnWrK 01 ""-'" on till III-' d.....'bId tier...... I D " JFr1 r-r:/"'TÇJ(V4 .4~-Yð 1 , ð ^ J..I A-z. AI!f)tI 1.15 L/tJ~ I .. 35o~ I Di! ) 111 r.s c Pt!.c.;-'A .-Û... - FlA/1'1 ñ~L'è u,.;7I /'1.1 ~ . I ~ C'I ~I Ii;"'" 111\ III" ' it JV,utt b t),...¡., t:i: "","I or Casnier ~/,¡../IfWJcl:'ftft1;)I/Ç> '/'A" ;<Oc,,'Ve. .., "'/0 , , S t:!tement:" All '- final material 7ed sa1ès are a :w remo' B.C. Chemical Corpo~ation is to be test ed site '" ::ro:n on IThe "_Nfl tier. _....~....., c _nt PreQIId,l , taken from premise and is dee~ed ~nsuitab1e for u e by ~Ad._: the ourchaser it is the rèsponsib ~lity of th e pu: ·chase ~ ':0 Q1.spose, 01: th1.S mater1.al in ac þoraanc~ wi th a 1.. s Jt:élte. federal and local laws anå regulation s per ainin~ to it's disuosal. I V , , , -- ! '-- 3ir:::ned C"~Or<1t2 ~...... " " / I ) ~¡,} Off{ c~~~.....-, / " " .' ,..,. \.~:r, ,",'I . /~' / /.1 L-' ." 'M >IIi_' mo.... _ two pom !IV . ....... by ..,.., IIIe 1_ rlQU"" III. 1110 bill 01 IlIIinr¡ ,>11.11 It.N _.. " i. "CI,,~·. or III~'I -ic¡nt:" NOTE·-W"'" the r.'I. "ØftMndent on VI''', sftlppel'S.... reQulrld to state SØKlficllllV in writing th...-ct or dectMWd w.ue of the øroøenv. t ThIs is 10 can,'y ,1Iat tile above named ....teri.,s ... øroøen., classllled. dncnbed. )KIt.sQed. _eel and ... in ptOØM' conáltion lor I....SI'Qn."on accordIng 10 -'icaOl. .-gut.tlons 01 llIe Oeøanmen, 01 T.-oon.toon. T1w ...- ... _ ...... of till D-'V is ,...., --'_., _ by _ .._ tD be _I 0.--" _ ENVIRONMENTAL RE£OVERV SYSTEMS Shipper, Per P...mIMn'øouottoe....u"...o,,"'OØef, 27537 OPENCREST DRIVE, SAUGUS, CALIFORNIA 91350 Agent, Per (Thl' Bdl 01 Udu'Q II to be 'l(lnecI bv en. sru.,04tf arw4 .-.,t "' ,,,. r.arl"_" ""'tU" ymt'.) STHAIGHT BILL OF LADING-e qT FORM--Qriginal--Not Negotiabe . . ~7537 OPENCREST DRIVE. SAUGUS CALIFORNIA 91350 ~-~S from ENVIRONMENTAL RECOVERY SYSTEMS ReCEIVED....bjICtIO I". .11...,ic:ltion. Ind IIF,fh in .fflCl on I". dll. of I". 'I"'. of ,,,,. Bill of Ladi"." I". øroP«tVdllCr'bld _ ,n IlllIIfenr gøød _. .._. noNd (_ _ CIIftIIltiOft__ of ø..... u....nownl. mlrited. =""tned. IncI d"I,necI "' ,nd""lod bel_ wII,CII "'d ca",., (IIIe word car,.., be,,,., und...1OOCI lII'OUQllOullII¡. CØIt,Ia II _,,,., ..v øer..rs Of _ irs _ .. r ør_ uncle, I". corst,lICtll9'_ 10 carry 10 ," U"'"I øl.... of d......., II IIId dllll""I'OII, ,f on '11 'out., 0111_'. 10 d.li_ to lnolll. car". on I". route 10 uld d.II'__. It iI ,"_Iv....- .. io _ ~ of III or I/IV of ..Id ø,aøer.., ov. III 0' 111'1' øortOOll of ..... ,aul.IO d...inIIlOll Ind "' 10 lie" oa,.., It I/IV ti.... 'n......1d in II' «..." of ..oci øroøertV.1fIat ....., ""UIO lie ~ __...,......... lID II. .... bill of lid."., f.,m. Ind condilion. ,n t". vo..rs,,,., .11..dical,on on I". dll. of lIIi"",.nt. .....- ...... .....ft.. .... .. .. f.... .... ... I" ,.... ... ......... .. ,.. .... ......................... _ .M .... ,...... .. ......... ......_~ _..... ___ ___- - ... ... ....... .......... ... .....,. ...... .. _. I" ..... ... ........ .. ...... ... ... ....... at 1936 ShipPM"s No. Carrier Agem's No. Consigned to ......, -- Interchem Corp~ation EPA I.D. CAX 40óùbOS6I4!31S10f---For_ofrsatifc-- Destination Stt Routing 1380 Knollwood Circle City Calif. County 92801 Street Anaheim Tnte~chem Co~oration COD Kind 01 P..--. o-lI(iaa ot AnicIft. Søec;aI Man<s. _~..... au 'Ktr1 flr-IIJ W 1+ 7'€~ TR.d'P.f N ö:r L" 6( ......-;. _II . UJ..jJ::24Q/ I R I ¡:: 711 Jl r) 0 LAIn ,¡'u~ ~ t.&o>;iJ e.. " ' UfU4'II"".ì1 "FoCt1JALÞf:ffýt)4? ~o,..,-~.~ -rAt>lp , ~/'Jt'r';L BL';'~D NO:;:' LiOVí1::J (j 1V11"t..7. 3 A"EA"t:::5&/fJP ¡C'¿/J"'4~/o /¡a ..¡ r:> V ItjÞt r.... '?..:3 :; 0 L U .P K/ ï p,t. -4 m rltS L I'G // ¡ À '" AI 0'" '-/G,4J.iJ::, I-S - C C' 0 L (..u- A- T~_ ~It I c?.oJ7' i¡i/j'c;t:"':1'1J ~ 6ð.:;!i l-Jo::T. t..../ is( (.J i ~ ,¡¡J,¡{c :\ " (\J ~ ^lrJT, L/ Q l" ;..1) ¡¿; .5o"b'-v' n-1 (j;',,~ c?1f"'~.t¿ )Jo:l JI!.V !J A12Ýð L if ¡t¡/1/¡ L;õ( Ulf¡¿Z3 n; ¡:: 7/-/:< IIJ ("~ c" ;.J/i ,.i tlJ p /,"/I)i:tJ~7 A ~I. fJ ._ .' ...rt~ ..4.'4.1" d..... c..I'Þ;um I> I" cf!4t/f..-rt n~,1-f"'T 1'f7-, ¡; r","ö i:u -¡- rJ tU ,It::' " Vehicle or Car Initial No C.O.D.~ j ~ ~ ID.......... ) ~ C Subìect 10 Sect..... 1 at _ III" 1II,_t is 10 be del_ to ",. ... \tqIIWe wu:nouc reCQune Oft the ~ IIIe comoo¡nor ."... ... 1M ~ ......-nil; .. "'...I:S . W"'t &b 10 Cor.1 a... or Aat. o.ó Column 7 I OCJÞ~ I ,,~ -.H:fo I ? Ct') ,Jb , I? 00:: Statem¿r.iI: All sales are final àn~ material remov~d -==om B :C. Chemical Coruorationis to be test~d on site s :)efore I'e~."al. In the E!"Jent -arèel::' material has b !en ~~ken from premise and is dee~ed unsuitable for u a by the ourchase~ it is the resuonsibility of tre QUI' haser '':0 disuose- of thi3 rnat2rial in accor¿anè~ wi th al.. - 3t.:J.ta, federa1. and loc.:J.l laws, and r3..::,ooualtior s per, a~ni!l~ ¿-/ :~ its disuosal":' Si~ned CnrnoratedOffic-e~,' /,,' > /':'/~/ j' "..:¿, ¿) Delivering Carrier REMIT C.O.D, TO: ADDRESS No. P"'- tttIIII 3 ~ c. :, I 11 ) DÆ :,.11 ~ F) ¡¿ ! /)7 "3 ..D Ir c: /J7.s D;:: U t JJ "Z. I J / /) Æ- V IJ-f z::;- 1) f:. 1.JI11 5 / pi!; 11/ J b?U n , -¡5 ",Þ,+.:;c; ~ r: V11) "1 ~ ,f'j, ~(1I11 I A, 1',:17 {J' '. " IL...:....A , . I ~O~ ¿ J t.y{Jo1t '2 .s t1 ..¡¿ Y oo"l/lt. 50#. o 0 1i;:. The ...,,¡.. ."... _ ..... ...... ' "'" 1II¡ømerst WII"""t __ _ .... Ind III 0_ lawful d\aI9IL (Signafure 01 eon.......I If CIIlrgn Ol. 10 be 0'_111. _ 11_ ....., "To" PrOØltd:' ., 5 ()O ;::¿. 6iJ ~ Jop~ Seo'" Roa...ø S 10 _ tr _ of nw-...ors t" ~ d......bo<I .......... Agent or CallI.. .. ('nIe 'IIJI'INre ..... ICànow.... _ r .......nt P~.I , ~Ad._: ~ ~, off t". lIIi_t mo... -.. IWO 110m hv I ....ier Þv wiler, I" 1_ rwqu".. !lilt I". bill of Ildi"., ,""K ..... w_.. it is "ca...ier's Ot "'~'. _¡o¡lS!." HOTE.-Whe... t1W rate IS øeø.ndent on value. sftlØØ8fI.... requlreå to Rata SØKlhc.Uv In WI"Itìng tn...-..a or dIId..... ..ue of the ØfOØØtV. t nUS is /0 .ently ,rwt ,lie aDo'" n_ mal';';". ... øroøenv clus,lIed. detlcnbed, )KIIaQed. rnaritllCl arscI ... ,rs ~ corsdllion 'Ot lrarssøon."on 8CCOfd.noa 10 -"<:aOI. "'9ulallon. 01 tile ~.....t 01 Tranaøonatlon. no. ...- ... _ ..... ... tile p~ is IIenII¥ .....ificaflv _ ..., tile III..... ID .. not ..-..,. , I: - ENVIRONMENTAL RECOVERY SYSTEMS Shipper, Per ,.,manen, 00" 0..'<....''''...0' ''''0_, 27537 OPENCREST DRIVE, SAUGUS, CALI FORNIA 91350 {nus Bill of L~ang I' to be Slqned by t!'le snlUPWf Agent, Per STR.~I!3.H1 BILL OF LADING--SiRT FORM·-Original·-Not Negotiabl_ 27537 OPENCREST DRIVE. SAUGUS. CALIFORNIA 91350 Carrier Shipper's No. Agent's No. at -q -,.:;2;; 1986 from ENVIRONMENTAL RECOVERY SYSTEMS IIECEIVED. ..bjtct to III. CJ.Uificnions.ncI uroth in .ffect on III. d.te of tll. "... 01 III" Bill of LldincJ. tll. øroIrtVallO"bed below In 101*_ 000d _.'11_. noted (_ _ CIOfIdilion f_ of peck.. u"nownl, m.rlllICI. COfIII9n11C1. IncI dest,ned ., ,ndie.tlel belOw wIIlc:h sa,a carr.... It lie word CII"" bllncJ und.ntoOCl m'OU\IlIOulllli. contrlCl. _"" any owen or _00.'-' in ~., It, I ør_ u_ III. cøntractlq_ to Qrry to 'II u"., pl_ of d.Ii...., II laid d.llln.llon, ,Ion ," 'OUte, OIll.MIM to allw. to .nom. car". on tll' route tø uod denlnation. It ÌlIIIU1UIIIy lINed. to___ 01 .11 or .nv 01 \lid Øt_tV 0\1., .11 Of anV _tÍOft 01 sa'" 'out. to d.stln.llon.nd ., to ..ell PattY ".nv II.... intet_ in .11 or...... of said øroø-tV. _ -V....ice tø lie PIrlonNd '*-1NII1Ie... tø all !lie bill 01 I.c..no I.,m, _ COnditions in tile voY.,nlncJ cI.ullatlGn on III. d.te 01 IIIipm.m. ....... ...... .....n. .... _ .. f...... ... ... ... ..... ... ........... .f ... .... .. .. ....... ........ _ _ ...... ....... .. ..... .. _ ~ .. ..... .... eM ......... .,. ....... ..... Ie ... ... ...__ .. ...... t. ............ _...... --------- bA-"__ IMall Of _t addrwII of -"--For_ of nolrfc.-_ Consigned to Argo Chemical Company Destination 100 Ouantico Street Bakersfield City Calif. County 93307 Sta- Routing Delivering Carrier Argo Chemical Vehicle or Car Initial No REMIT COD C.O.D....... J ~ W C.O.D, TO: 10 .. .... ... c:o.o..- 0 ADDRESS Amt:$ SuIljM:t 10 s.a_ 7 of c... J No.. . WØJht 0_ 0- 11111 "'_t is 10 beaet_"'__ Padr_ tMI Kind 01 Pecka90. DftaIØâoot of Anidø. SøeciaI Mates. and ~_ (Sub 10 Cor J or Rae. Column '- ...mOUI ,........ on !lie _ I'" .......,.... s/IaoI ... !lie ....... ?Ð7 (1,;"4 <j ~ /'):tt() A /.tJ'wit ðlJd }J.t),I /'}Ilv 5 ~ ðJt- "_..-nIl; /0 The ca... tIIaII _ ",*e ....... c ~J'\ ÞA~ 11. ( ...A ~ .... ...., A <:. : .b , mil 111_ wi_t PI'f'IWII .. .... ~ t:; /! 7f f2h. I 5ÐD 'N. Ind all 0_ lawful-...., I hi1:IIA;D '-' , .b(!)ð~ / q Z. r::;A DF'LC-L 7'2. ,PAC, S bR; II ,q. ;,"b PA '169 -:; 66tJ "# ISÑnaIUfW 01 eon.;qn. ,I 1/ c:hargn If. 10 be o,_Id. _ c }7... /)ARr~ AO·/IJ.....-reJ <:,qð/w f.Jo~ c.f 'd' () zr ___. "To blPrOl>lld." .ð ;:;'4 / 9 {, BA~ 5/1 l),'Vn1 ~AIf;b¡¿ S~. 10, 7 SlO ~ R"""¡ S 10 _.., __ 01 _....... on IIIe orw-t' deta,bed ..._. '- ~ " , " - , , \ : " '. "","lor c.n.. " ~catement: ALL sa~es are r:1.nal an t1' ma!:er1al Iremov ~d ==om B. C. 'Chemical"',Corporation is to be t;est ed site ;a., on tThe ....IU'. .... adrnowlecloJos _ If __ ........1 before removal. In the event afte .. 1Ilaterial has bl ~en ~-_: -:aken form premise '",' and is deemed msuitable for u ~e èy ::he purchaser it is the responsib I.lity of th e pur haser s ~,~ di c:-nnc:p n-F ~~i~ "'!'1J:t.,.~.,..':~1 in ac :ordance wi th all. '3 tate federal and lee al laws and ~egulations pert ininsz '':0 its dis'Oosal . ,,) igned Co~orate Officer: /--- f-..., " I I ! - ,; J ' ) ....- \ " /..~// t,,¡..'.- '"\1 ? // - - ~,- - i 0" III. "'i_t moyft _ IWO øom "., . carrier by w.t.., IIIe 1_ requ"" mat III. bill of ledino ,,,,.11 ,tie. _., ;1 i, "carrier', 01: III~', _ÌIJIIt." NOTE.-W"" rhe rile II ~ on ".iue. .,IØfMn.... r~UI'" to SUta IPCltic.ly in writing the......., 01 tied... .1111.... ot tM ØfoøertV. t This is 10 Cer1,ly 1"-1 1M eoo". nernec:I ""',...... ... øroøer1V classIfied. dncnbed, IIICUed. _eel and era in IfOpIIf condition '01' lranaøonation IIa:Ot'd.ng 10 ~'caÞI. reo¡¡ulatlons 01 1M ~men' 01 T_stlon. no. ..- « _ ...... ,., IIIe -'Y ÍII ...... _rf~., _ .... IIIe ...... . be _I ''-'' _ ENVIRONMENTAL RECOVERY SYSTEMS Shipper. Per P"""N!nl 00\1 oU,c. .«1<1""01 ,n'OØef, 27537 OPEN CREST DRIVE. SAUGUS, CALIFORNIA 91350 (Thll 8111 ot LxtlneJ II to be ,.qned bV tn_ sn'lJP'W ind.¡gent ot the CIf"'" "lUlng "'"t.t Agent. Per ST~AIGH1' BILL OF LADING-S_....T FORM---original--Not Negotiable Carrier Shipper's No. 27537 OPENCREST DRIVE. SAUGUS. CALIFORNIA 91350 Agent's No. . It /Jvl I) 12c ¡..¡ Z 6, TJ, 19 86 from ENVIRONMENTAL RECOVERY SYSTEMS RECEIVED, ...!Ii- to tho elludicet",n. and torllh in IfflCt on tho dltl 01 thl '..... of th,. Bill 01 l.Idi"9. tho propertY d....,bld below In 1IIIIInnt good order. ..celll II notld C_1IId CDndiliOft CII_ of 11...._ unknown I, mlrkld, c:oMI9lWd. and dlltlned II IndlCltld belOW whl'" IIld ..m.. Uh. _d ea"... bel"9 under.toOd thrOuvhOut thl, contrlCl II m"""9 lilY WlDn or __.,_ in _ ., to pr- undØ tho contrlCtlllf_ to carry to III UlUallIl_ 01 d.li...., It SlId dllllnltlon, ,Ion III rout',OIll.rw,SI to doli... to 'nolll" ea"... on tho rout. to laid d.nlNtlOn, It ilmutIMIly"- II iII_~ 01 III Of Iny 01 Slid oropertY 0'" III 0' lilY IOrt_ 01 laid rout. to dlltlnatlon and II to IICft oartY It Iny tlmo 'n","1Id in III 01 .ny of laid prolllf1V, 1/111 C'fIIV......a to be porformod ___."... lie.... to III the Þill of 11111"9 torm. and condition. in till ",_nl"9 da..,fi..tlon on tho Oltl of sltlllm.nt. ....... ~ .....,... ,... .. .. f....... .... ... ,.. ,... ... ......... .f ... .... .... .. .......1........ .- _ I..... .___'.... ..... a. I" ____ _.......... ___ _ ~.. __ .. -.... --... .......... eN .....,. ..,... Ie .. .. ...... ... ....... ,., ....... ... _........ Consigned to Argo Chemical Company (....d Of milt __ 01 CO......__FOl _ 01 ...tlle... .... Destination 100 Quantico Street Ba kers fie ld Calif. /!.¡J. k'£t2-'3 Fie.-L ~ City County 99307 Sb Routing "1 /' L L CA L L.. 6. (:, ~,4~_~ CA-L ~ F Delivering Carrier Argo Chemicà 1 Cern:Danv Vehicle or Car Initial No I REMIT COD c. o. 0.-'" ~ I- C.O,D, TO: to lie ...., .., ~ ï ADDRESS Amt:S ~ Subject fO Soc:tlon 1 01 _ No. . Wttqht a... Owdt III.. sltl_t i. to be d.h_ to _... Padr_ tHIIII Kind of Padta90. Deoøiørioaot Artidos. ~ Marits._ e.a.,OftI (Sub '0 Cor .I or Rat. Cðlumn ,.,.. withOut rltX)une on ttw ~ thl _ sltlll sicJn ttII ___ ?, ð,.. JI/,7.J AI, 0ì~' l)"y Ital.,.,.,,: t::;O 6A~Ç ~ £MA'-k ~ 'YJ¡J~Cf~-1 t5 éb. . no. co",.. shill ...t ...... -... ' , (On! ,go» r"!j(,e, I/N-d th.. slti_Ø1t WltfIout ~ ., ... Î ,:; ,J," . r. ! Ie;- ~ n,., " (j r>1 C, ( ¡ I ¡:".. r> e. '760 "'..:.0.. j R t..{q ~ ~OD :u and all 01.... lawlul ......... ,- b"'~ ...~~L::? --- -- ' ..-....- J o~..--~ -- ;1.'-\ ç, ... Ý Ø" I "Z. A 1\.) X cþ N,o,7 p~y I 7 :;;::t:. ISignoturl of Con_.I .. If ctlal1Jl'S ...e 10 be ør...". ..... . , 51_ ""e, "To be Pr_Id." " Rec....1d $ la_a: !n01_nt of 'hi ........._ _ __ descrIbed ""eon, ~ , '. , Agent or ea.n... Statement: AI! sales are finaL an! meterial --emov d Chemical'~~~oration test ... ::rorn B.C. is to' be ~d on gitew (The sognoNre ".,. -......i1d911 _ ~ _nt Pr..,..a.1 beðore removal . In the event aft ~r material has een .:bar9ft Ad._: taken from uremise and is dee!ned .1nsuitable fer u e bv :rlweDurchaser it is the responsib I..lity .of tb ~ pur hsser s ::0 dispose of th.is material in ac "ordance wi th. al state, federal and local l.3.'tŸs and rerolations -per ainin :. ':0 it's dis"osal. /--- "- ,- ': 1. ~~~d COMOr::1te Of::ic~2"'~ " ! ~~ I'-/' .~ ,{ "" ,:¿0 ¡,- ..(./ ' " ~.'¡ '. j f.; ." the '"iomen. moves _ .- oorts t1v I .....ier by wlter, till 1_ rlQUlres ilia thl bill 01 Ildi"9shall Slltlwhetller it is "..rrier'sOl sltítlper's_icJht:' NOTE.-WhonI me rate IS _.nt on .11.... sIt'lIIIef' a.. rOQUlrld 10 stat. SIIC,flCllly In _,tl"9 the qwd 01 __ _11...01 the prooenv. t This is to CIlft"Y ,run IIIe above n_ .....1.....1. .. properly classified. dncnbld, ~ 1fWI1If( _ .. in _ concIllion lor lranspon.llon accordln!! 10 .,pIlcaDle "'!Iul.llon. of IIIe Oeøart.......t of T.....I>Ol1.uon. TJoe ...- Of d_ AI. øI ttII I>"'-'Y is hlNÒ¥ _tficoHy _ .., _ sit.., . be ...t ..--.. ... ENVIRONMENTAL RECOVERY SYSTEMS Shipper, Per P..m.nen'po"olf,c....'d'...OI'n'ODel, 27537 OPENCREST DRIVE, SAUGUS, CALIFORNIA 91350 IThI' alii of lt1dlnq IS to be "Qned bv tn. SI"IIIJØWf ¡oo ,¡qent 01 the eat""'" IUUlnq wen..) Agent. Per ST~~!GHJ BILL OF LADING-~ T FORM--Original--Not Negotiable Shipper's No. 27537 OPENCREST DRIVE. SAUGUS, CALIFORNIA 91350 ,5 -- d ~ 19 86 Carrier Agent's No. .... . .. at ENVIRONMENTAL RECOVERY SYSTEMS from RECEIVED. JUbilCt fO fft. cl.uiliacio... Ind fIr,!fa ,n .ffec. on 1ft. dl.1 01 1ft. '..... 01 "'.. Bill 01 Lldi"9, 1ft. grO~ d_,bed bet_,n løDll'en. QOOd _.1_ II no'ed t_ _ CDIIdltiOft "'_ 01 ø_.. u'*nownl. mlrkld. co........,. Ind dlltlned IIlndica.ed bll_ wftlcll ,,'d CI"'.' ((". ward ca",., bill,,! ..nd....ood "',ouqfto... 1/111 contrlCllII m_""...., _n or ____ in _ "'. pr- under .ftl contrlCtllC'_'o carry to 'II UJUII øl_ 01 d......., I. IIld dntonatoon"f on 'II rou,". ollllrwl" 10 dl"_IO Il1O"'. car,i. on Iftl 'ault røllid dIIlIN._. It it mUIUIII.,.- II to_cwn of all or Iny of ..,d 0'_'" .... III ,or...., _._ of IIKI rou," 10 dllllnltoon Ind n 10.1d'I 0"'" "' Iny II"" in__ in III or...., 01 IIKI groI*tV, !IIIt....,....ica to bI ~ ___ _ III..... IØ III till bill of ledlnq I.rml Ind COndl"O... In I'" oo_n'"9 cllI.dica.,on on Iftl dl.. of lIIiom."" ....- ..... .....,.. ,... _ . ....... ... ... ,... ....... ...eft.....f ....... .... ........ ._..... _ _ ...... ....... ... ..,.. .... ........_~ _.... _....._ .. - - ....... ....... ... ....., __ Ie ., I......... ____ ,. ~ ... .......... b6.-"__ " (~j or _. lddtItIol ___For _of nollic.-_ Consigned to Ar~o Chemical Como any C-.A L L 8, L, C fie II ,,'C/! L Street'3akersfield City Calif. ß. ß kif!' Iá5 F ,. rc.L~ County 93307 Stz Destination 100 Quantico Routing IJ J ,. L L Ar~o Chemical (A L; F: Delivering Carrier Vehicle or Car Initial No ...., REMIT ICOD C.O.D,dW9I ~ l.... C.O,O. TO: '"' bI paid bot ~ C ADORESS "mr:S Subiecl 10 SIct_ 7 01 _ No.. . W"'I 0_ o-ä 111"111'_1 "10 be dll_ IØ _ <It PxIr_ tHfII Kind of ~ Oftcript;oooot AnidIo. 5øIciaI Uarf<s.1IId e.-;ons (Sub 10 Cor J 01 A.I. CðIoøm _ ....ftoul r......... on till _ ~~ r;r:.:.r:Aj/~ltt:¿;'::;' v~ ~ S¡<J IN conuqnor sfIIII ... till ......... ~ðD zr 1I...,..,ts: 6- -S ./ ~ ¿ :t,.. ¿.L L:. :'1l' ,. '/[.;;;-- . -, ~', _ ~ The ørri.. _ _ mIIIl --. /" ".- ,.,- mil 111'_1 ..imoul _ __ .... Ind iii 0_ IIwfuI -.... ISi9nalur. 01 eon.....I If cIIargn ... to be 0_111. __ 11_""'. "To bI Pr_id:' AICetYId S Ia_" PftOIVm'"'1 of .... -... on úw_ ~ " dncrd:Jed twreon. , \ , A9onlor c..nóer :) tate!!1ent: All sales are final an material t-emOVE d "" ::ro!:1 B.C. Chemical Cor-;,oration is to be t2St ed on site (The 'IINICU" ".,. -"""1IdIB -. , ...-nl P~.I ùef'ore re!:'1oval. In the event afte' - T.aterial 1as bE en ~M..nClIII: :aken fror:1 'Oremise and is deemed nsuitab1e ~or Uf e b.., ï,!:!:chase-:- it is the res'!')onsibili t: ., 0;:: t!:1e "u "'chasf r s a1 ..... - '·0 disuose of this material in ac ordance '{.1i th :.. ~ '5ta.te, fede~a1 and loc:!1 laws and -eg'.l1ations pert:. ining ':0 it's dis!\osal. : i~:!~d Cc~orate Offic~r:_ " ~ - \, I ,,/ '<" Li-- I , ~../.... " , \.... , '} .( h -' , ,----. r ~ ~ ;J .'f the ViiDlNnt may.. beCWØn two porn hy I carner by WI.er, the I.. reqUires thac the bin 0' '~ing.sh.1I rt'Nwtwther it it ··a"'..·.or shiøper',weiqtn:" NOTE·-Wtwfw me ,... II deCMnCI.nt on vlt..... shlØCMlfllre required to Itlt. IØKJficaUv In wflting tn....-ct 01 did.. ...ue of 1M Dl'0ØIrtV. t Th,. i. to cenlly that ,lie abo.. naomed m.II....I. are oroper1y classIfied. dncnÞed, pedtaQ«I. mAt1Ieá anti ... in I'O.-r ccndlllon lor lran_.'lon accordlno 10 ~ic:alll. I'IQUI...on8 01 IIIe Qeøan......1 01 T_"..on. TIre ...- or _ ...... at _ _ is ......., _Ifially _ bot ,ÚW "'... IØ bI no. ......... ... ENVIRONMENTAL RECOVERY SYSTEMS Shipper, Per P.,m.nen.OO\lo'c...."tr...ol.h'pger, 27537 OPENCREST DRIVE, SAUGUS. CALIFORNIA 91350 (This Bill of Lxllnq IS CO De s.qned bV U,@ Vuu«M' .1m oICIenl of CM c....rl., IISUlnq wm..J Agent, Per ST~AIGHT BILL OF LADING--se T FORM--.Qriginal--Not Negotiable Shipper's No. 27537 OPENCREST DRIVE. SAUGUS. CALIFORNIA 91350 It j,fl! ¡...tiJ ell? 7 19 86 from ENVIRONMENTAL RE(;OVERY SYS~ RECEIVED, IUbilCt to II.. CI....Iicatian.."" t.,fI. in .ffoct an th. d.t. of Ih. ...... 01 "". 8,11 of Led,n;. Ih. .,.0Ø«t'f dllO'lbed 1II1_,n .o_ent IOOd _.'x_. noted t_.... ~ __ of oaebO" unknown I. m'rlled. c:o""'9_. ''''' dm,,*, 1I1""'CIlId 1111_ wf't,dI ",d CI"'., It III wo,d CIf"" III,,,,, u""...toOØ th,ouOhOul tIIll c:ontrlCt.",..."", lilY I*tDn or ___ in _ oil! proøert'Y undef tr~. can'tfleU IIQ'HI to caffV to .ts UIU.~ pile' ot delivery U Illd d,Ulnltlon.,' on Its tOutl, ort1arwlM to dthvw to .nat"" car,.., on tIt. rout. to..ìd dlnuwtlOfl. It ÌI mucu.&ly........_earn of .11 or .ny 01 II'" o'O_ty a." .11 ,a' Ifty pOrtian of &lid 'aut. 10 d.llln.llon .1Id II '0 IIch a.rty 'I Iny II.... ,nt"."ed in.1I or Iny of Slid ØtOøenv. tllM tIfIIV ....ice to be __ __ _ _... to II. tile bIll A' 11111"'1 '..ml and c:olldlllonl In Ih. oo_nlng d,,,,liatlon on .h. dll' 0' "'iam'nI. ...... ....... ....... I'" ... .. f....... .... ... 'IM ,..... ... .._......... ... .... ...... ..................... ..... ,...... .. ..... ............... _.... _..--_ .. ,.. ... ....... .......... .te ....." ...... tit .., ,. ...__ ... ...... '. ........... ... ....... Carrier Agent's No. ---- 1M... 0' m..t odd,naof ~far _ot.-£ ._ Consigned to Ar~o Chemical Comuany Destination 100 Quantico Street Bakersfieldcity Calif County 93307 Stz Routing Delivering Carrier Argo Chemical Vehicle or Car Initial No REMIT COD c. o. D. dIIrge ~ ~ L C.O,D, TO: to ... NOd by c:- C ADORESS Aml:S Subtoct '0 SectIOn 1 01 -. No. . W";>t 0... o.d< tII.. "',_t " to III del_ __ex: Podt_ tMII Kind 0' PIdtIqe. o-iørioa at Artidø. SøeciII MIrics. _ ~_ (Suþ 10 Cor .I tM Rate ~ ÞCJnft wtthout rec:aw.. on eM:,..... tile can.....' I/I1II ... _ _ N.C,:¡: c¡ G"""~ Italernen.s; Iq~ G·.;, 5 (oj N -rOtJe.. 'ÍO..tl0a.., D;e.ý , -...... The """''' ""'II not _, -. . \ :;> ~ ~~~ . (i. ) Ú ) UfoJ7' / '''~ tt ''? 0 'iL "'.. ,11I_ent .,.-, _ _ n. - C:IJJ1.."7:7J Ù 1 fì 5 '( i C A IN:. i. (""^ ......." 1"\ ... ,'''' .,. 01.... IIwfuI dIIf1oL 2 , H'<J 1:) ¿o Q e;u ~ ' f10 -' VN,- .~\ 90o~ ~/l(.J., , '5 ~....."-'r':'-L 3'_* 6~, ~ I ?::.'¿¡2. r (1:; - ' ,1d-t o1:J.. ~""2A 1VrJ_ - Jj/dV ~ 900~ fSiq""Iu", 01 ~,' ~.; ...... ::;¡ c, ¡- ..I.Y ,,.,-J- II dllrgn ... to be __ _ .4q ~ ~ Þf2.J~S C~ 59 , '-f 50 'iZ. _ ...... "To IIIl'rel>llá. - ,~' .9 f".:, 5"0 #' .:1ð.. }..J O,:::r ./'o/:. ý --:( - B4~ 15 HtEC. ^LO. z:., D¡QY 35()# ¡ - i"'I ... - i¿~ A~ Ac',þ OJ11'<"":' 1.11..11:" 'I,ll ! .....- /~ :' I Q.ð..l ~ -~ p(j .ao~ ve· ..J RICI'VId S .-." IftOIv....nt 01 tile -... _ _ __ . tIeK:r,bed ....eon. '. " " Agent or c..n- " Statement: All sales are final a ,,,, :naterial remo' ed >or -:=O!'l B. c. C:1 etnic a 1 COr1)oration ~ to be tes ted O'~ site tThe ""NlUre ..... _~ _.. t ... ...-nt PreøIid.1 ~J ~fore removal. In the event aft .r !!!aterlal lias 1 'een .:hIr9n Ad._: '::1Ken trom pr2m~3e ana ~s dee!:led flnsuitable for u.; e by "::1e Durchaser it is t!1e resuonsib ,,"lity of t~ e Dur haser s .. ,:cciisncse of this T.aterial in acc þrdande ~rl t :1 all ,ta t e , , federal anå local la~oJs and r2g1l1ation 5 -oer ainin~ ... :;:, its disucsal. S:'~ed Coroor:lte Offic~r: <,' /1, } . , >~ I I , .. \--------" ~vl:..../! " ' f."f) v- , ....-' .U the v\'ørMnt mo"ft bmIWMn t-.o ØQrt, hv . ~"Wr by water. tM I... r~!-,.r.. ~hat t~. bill of IMjinq .sh.n st.N whftt'ler it is ·'carr"" or shiøøer', w.iqt'lt:- NOre,-Where m. nt. II dftMnOent on valua. stuØØ«l,re required to st.t'lØClfecalv In wrlUnq m. aqrMd 01 ded.-wå ..ue of tn. øroøenv. t rh,s is 10 cen,fy 'h" .IIe 800" n_ mater,.la ... proøenv class.lllId. deSCnbld. pec:IIIiQed. "",",lid _ ano in proer c:ondllion for 'rwtspon."on acco,ding to I)plc:aol. rllQul."ona 01 .IIe oeø.nrnenl 01 Transportallon. T1w ...- or d....... .elu. 01 .... _ is "-NII¥ _of..... _ by the ...... to III not .._me _ ENVIRONMENTAL RE(;OVERY SYSTEMS Shipper, Per l'..m.".nloo\toll,e....ul'...o"n'pØOt, 27537 OPENCREST DRIVE, SAUGUS, CALIFORNIA 91350 (This alII 0' Lading I' to De "qoed bv tne snl~ØIItf ¡nd ace". 0' tn, urrler ,SSUlnq wme.t Agent, Per STRAIGHT BILL OF LADING-SWT FORM---Original--Not Negotiablee Carrier Shipper's No. 27537 OPENCREST DRIVE,SAUGUS. CALIFORNIA 91350 .f?Î'1~~ _1/ Agent's No. 19fG from RECEIVED. ...biocr to Ih. cl...dicatlOns.nd r.',lh in .IIect on tII. ".t. 01 the 's.... ollhlS 8ill ollldi..... tn. øroøenv "IICI',bIc:I betow ,n aø_ens good _. .._. noted t_..., _It ion 01_ 01 øedl_ u,*nownl. mlrk.", COfIIIOned. .net ""t,nec II ,ndic.t'" below wII,eII ..'12 Clrroer Ithe ..Ofd c."'1t be,"9 und.,1UIOII tII,ougnout tillS cant,1ICI _ m....... eny _n 01_ in ~ .. .. 01- - the conttllClllIJf_ 10 c.a..., to .ts u...., øloca 01 "'I...erv It \I,d dIl1ln",on, il on tI' 'oulI, 0111_''''0 dtliv_ to __ c.m.. on th. 'ou,. to Uid d."I_ion, It iI mu1Ullly"'- ..10 ___ of 'II 01 .nv 01 ..od O'O_tV 0_ .11 0' any po,toon 0/ "od 'out. 10 d.st,n.tlon .nd II to .ICII DI'tV .1",., I,me ingrllled in.1I 01 eny of "Id øroøenv. INS -.......ce to be ~ ___ ....1..__ lit all tile þjll 0/ led."O !I'm, .nd conditions in the """,n,"9 .,....liCll,on on the O.t. 01 lIIipm.nt, ........ ....,. ....".. .... .. III f."" .... ... ,.. ,.... .... _......... ., ,... .... .... elf ....... '....... ... _ ... .... ,...... _ ..... .. ,. -"""'~.A- _..... _....._ .. -.. -- -- ......... 'N ......, ...... .. .. ,.. ........ ... ....... t. N_ ... ... ........ at 27 E~ONMENTALRE£OVERYSYSTEMS ~.,-- J.J 7) 1..) -,.., () . C !/ét11 /c.IIL A !LeJ.J ,'. tel I~ Of _sltldrftaol.......-For ...-ot nolita.c-_ Consigned to D··-79~/< estlnatlon --:- -.L- b Street '~~1c¡' 92-7) Cfl~·'.... City ,JI":C-r / COunty! ' ~ Sta1 . :. ' '.-/ . .'. , Routing Delivering Carrier Vehicle or Car Initial No REMIT , C.O.D......... ~ S/I"'-' U c.o,o, TO: COD IQ III ...., ..., ~ 0 ADDRESS Amr:S SuÞìect 10 SectIOn 7 of canør-. r No.. . WOOfIIt 0... 0IIc* tllII III,_S it to be dtlÍWltld to _ _ PIdr_ IMfII Kind 01 p~. OftcriørioM ot Artidn. SøeciII Marts. _ e.c-..... ISub 10 Cod Of Rate Coiumn _ WltllOUl ,........ "" tIIe_ tile _ I11III ... tile ,...... Q /)~¿I/)/.5 ~ F'. 'J)/ U /1 , S,'L /¿ 47"'e 4, ~c c'iz:. "......11: , ". ."n-,.. ""II _ ..... ....... '" ",, 11, T. L ,. G V ]) 7 ,- rhit 111'_' .,tIIou. _ 01 ..... I ON! III 0_ IIwful-..s., ALL 6,cLe t= ,'IV ¡-/ L I np lc ðA. ) ~ ¡',t=" ISiqna.ure 01 Con_, Â/.-L II ~~PE!..c.,T; o,r1 -r-O If ell.,.,.. M' 10 be _III, _ .. J1 ,U \/ 111 i N a J! ¿ p}-} l' t) £¿ }.., L ATE ,¿ ø_ _.. "To be Pr_Id:' AJ-Jþ I , ¡t-L ß.¿ Æ's ., r:22)µ 'p i ß;L;ìY . ,c- () I} A.J 'b U N 1J.5; A- ..6 i- e.. w . / .ç- ¡.JIJ fJ c)-/ A ~.€ ~\ if.. L G9ALI. Y ,"\ ---'I. £f, fir \! I ;-, " <., , 0 C; C. . R......... S to _... _1"'_-",,,,,__ , / /1 1(- I ,I {~/l I I" áetcr,Þed _..n. ~ r A t,-<".-. 1 J[ lilJ /í ! f' / U t ( ,[ - :/ /V ~ " \. AtJen< Of c..n... >w- ,,,. "'!"IN.. _. _now.... _ _ '""""" P,epøt.1 ~ AdyMC8d: , S .11 the 1/Ii_, moy" _ two portl hv . ...MI, by ...t." the 1_ '110'"'" IhlS Ih. 1»11 olllÓi"9,lh.II...r..._.. il iI....,.ier·'or lIIi_·,_io¡nl." NOTE·-Wherw me rite II ~ent on value. shlØØ-I.... required to IUm s.øcdlC.Uv 'n wrlll", th....-cs 01' dad..- ....ue 01 tnI Øfoø«tV. t TIll. i. to eMily llIaS IIIe aoowe named ",.ten.'. ant øroøerfY etaullled. dncnÞed, ~ mart..." _ ant in ~ condition IOf lranapon.t'on acco,(.nv 10 aøpli~. "'IIu~tron. 01 IIIe Oeøen"*" 01 T~ØOI1.tlon. n.. ..- ,. _ nlu. '" fIe ,,_ is IIenW ___" _Ià by .". 111__ . be nos ,.--.. II" ENVIRONMENTAL RECOVERY SYSTEMS Shipper, Per P...m.neruoollof"c,,,,,,',.noflh,ooer, 27537 OPENCREST DRIVE, SAUGUS. CALIFORNIA 91350 (TllII 8,11 of L¡d'ng os to beloqned þy ,n. Ih'''_ ¡"a ,¡qen1 oi tn. CM'''''' "WiN) ytC\e.' Agent. Per ~ STRAIGHT BI~L OF LADING--SIRT FORM---Qriginal--Not Negotiabl. 2ï537 'OPÉNCREST DRIVE. SAUGUS. CALIFORNIA 91350 Carrier J//)¡.Jk!( f-I. --.;, 1906 from RECEIVED. subject 10 Ih. cl.ullicftlOfI1.ne! Utllll in IfflCl on Ih. d.l. Ollh. ISSUI Ollhl' Bill 01 Udlnq. Ihl Ø<oøertY dltC'lbed betow In .ø.ent OOOCI order. .__ II noted Coom_ _ condition.,,_ of DICK.' u,*nownl. mlrkld. COftIIi9". and dt"St"'eG II IndICated below wtud'l IIld car"lr (the word car"I' beu"IiQ understood throuQhout U". contrtc! IS m.."", IftV _.:an or COI1IOtatlOft in ~ 01 C Øl"oøenv under th. contract' ¡qr... to Clrrv to Its usual ø...:. of d.tiverv It I,ld desun,tlon,.' on tU rout.. oth.rwlM to d.".... to Inorn. CU,,1t on tn. rout. to said dlnn'&lltlOft. It it mubM&lv..,e.:t . to__-.n 01 .11 Of '!IV Of said oraøerly 0.. .11 ,or MY _loon of said raulllO d.t!Inlllan .ne! II 10 .ICII ØlrtY .1 '!IV 11m. In_..led in .11 at .ny of Slid øraøer1V. I....t ...., ..me. IG III øerf_ .....ne!. _ . .... CO'" d'Ie 'If" of '.sIn; "r'"llnd condition, In.tIe 90"."'"9 ctll.lficatlon on the dltl of "'¡pm.nt. ...... ....... ....If_ ,... _ .. f....... ... ... 'M 1__. ... .......... .f ,.. .... ... .. ....... 1_..... .... _ t_ ... ........ ... ..". .. ... ........... _...... ........... .. .. - .. ___... ......... aN ......., ...- .. .., ,.. ..._ ... ....... .. ......... ... ...... Shipper's No. Agent's No. at ENVIRONMENTAL RECOVERY SYSTEMS ~.....- 1M.,. Of arllllÓdrltl of CDfIt'V.-Far _ of ...ut_ - Consågnedto Ar~o Chemical Co~an~ Destination 100 Quantico S Bakarsfi~ldc·ty Calif treet I County 93307 Sb Routing ,! ,. I. ,- ,4 L L .7 '" /j r r: ,il';: III : f"'.. .N- L Delivering Carrier Ar~o Chemic:!l Vehicle or Car Initial No REMIT COD C.D.D.d\InJI } ~ L C,D,D, TO: 10 be peod by ~ C ADDRESS AmI: S Subjecl to SocI..... 7 of ~ ~. . W.." C.u a-a IIIIt .I",,"*,I It 10 be dltn.-. . 1M ex: p..,.- ttwI Kind of p~ o..ø~ of Anidet. s.-;.¡ M-. _ ~ia... (Sub 10 Cor.1 Of R.II Column 1'" ....UhOUI: recourse on _ ~ IhI con"".... _ ... 1M ....... '~ "2. PAC,4 A' f) or .Þ~ y hPC'~ It.I.....I:I: .., , 'i 0-': ~ I ' (, 1:.' 5£Nl. --.. I The ",,"i. wll ...1 ....... ...... J--- , - ,- .,. f.: :Ä Ihlt .I,,_enl w,tIIOut _ .. n.., -- '¡ I I AIl"lT:'" hP,/ - I- CC· one! II' Olher IIwfuI c:ftInJIIL ¡. ......: .. ,- ,I (,.u...,.., ()..( L., \ ,A. \. (] ,r tdt.~y / , ...., :'-I:I;; ~") t'k. <; .~ (. , ¡'~ " .. ~ f-= .,,; l. J <:: 9na- '. , ¡ , I ISic¡no,ure 01 Con_ J : :"':I'ßI ,1,- -, , I '~(' l "-,, ,,.... r UQúil:) 4""'79.1t. "'~il/,-:-I(.. If durgn ar. (0 be P'..... ..... 51_ her', "To be PrOMj. ~ Ren,"" S ~-" PftII.y....nl of Itw cI\Ir9It on _ __ dttKtlbeå hereon. A4en1 ... em... All sales final tl material d 'or State~ent: are an tremov tTII. '_lUre __ ..,.....__ ønoy , omaum PrOMj.1 ~ro!:1 B. C. ChemicallCoruoration is to be tes ited 0 site ~Ad._: 1)efor,~ r~~~a1. In the event afte ,. matari~l has b en ~3ken .f=ro~ "remise and is deemed lnsuitable :for u e . DV s ::~e ~urchaser it is the resuonsib ·lit7 or t:-a 1)ur !-laser ;:0 tji~"cse of this :'1aterial in ac "~rdancs ~.1i th al ~ ..~.....~ =ede!:'31 and lcc.:Ü la,,:·¡s and re~lations Dert ~" . ,-,'-.¡,..¡,~-. ~n1.n:-! ~o 't di~'!JOSéll. :. :3 3 fbhed ~OrnOr:1tê ~f=:'cer: '-- i:"':'" ~ - ' ~ ~ J -, - .' ." ttl. shipment mo... between two øo"' hv . carr'" by wllter, 1:.... IMW rMJUI'" (hat th. bill of '8d;"9.1h.1I S11t1whfther il: is ..c:..rri...·IGr shiØØiff's....ei9ht:· NOTE··-Wherw Ihe rate II dftMnaent on "..h..... shlØCMf'I.re '~Ulred to date SOClfic.Uv in writing (h. ~ Of dKt__ ..ue of the ørOØØtV. t This 's locenlfy thaI lhe &Do.. named maleNIlS ... proøer!V classllled. descnÞeá. ~ mat1Ied .nd U8 in IftIØ8f condition fOl ,ransøon."OtI accord,nQ 10 ~Ic:ao. "'II1.I1."on. of lhe 0eøan~1 of Tranaøon."on, no. _ ... d_ ...... at _ o-'V iI ........, _dicay _ by l1li "'_ ... III _t "'--'" _ ENVIRONMENTAL RECOVERY SYSTEMS Shipper, Per P..mon~n,oo"ot'c~"""'~"ol.h'DDef, 27537 OPENCREST DRIVE, SAUGUS, CALIFORNIA 91350 Agent, Per (Thl\ Bill of La(hnq II (0 be Ilqned by (ne S/h",øcr .00 agent at rne CMffft Inulf1IJ s.&mt'.I STRAIGHT BILL OF LADING-.~ ....T FORM---Original--Not Negotiable Shippw's No. 27537 O~ENCREST DRIVE. SAUGUS. CALIFORNIA 91350 //11412[. II 5 I 198ó Carrier Agent's No. at from E~ONMENTALRE£OVERYSYSTEMS RECEIVEO. subject to tft. c....dic.nions.nd UFlfh In ."ect on tft. dlt. of tft. ,nu. of tft," Bill of Udin9. tft. ørolMftV d.....,bed below in IP_..1I 900d OId..,._. rIOted Ceon_ _ _itiotl of_ of PICk.. u,*nownl. mltked. co......., and dfttlned .1 Indielted bel_ ..!"CII IIld el",.r 11111 word el"'.' bel"9 underllOod l"rou9"oul lIIi. controct. m_...., IIIV _IOn or __It_ in ---. of 1:' øroøenv under t". contract. 19'''' to carry to It I "IU.I øta:e of dllivøv at ,aid destination. ., on Its rout., ort\erwlu to dltiver to .nother cartl., on the routl to ..Id deIIU,ntOft. It .. mu..-Iy...... . 10 eICft c:arra of In or Inv of lIod pro_tv...... In or anv ~_ of Slod rout. to d.lflnltlon Ind II 10 .lCft PlrtV II I"., II.... Int....ted in In or IIIV of Slod ørolltty. tlllt ""IIV IIMCI to be perlormId .....nd. ....1 be..... to III tile lIill of ledl"9 lerml_ conditions ,n till 9O-n'"9 dl..,licatlon on III. dill of "'iøm.nt, 11M... ~'f' ......... ,.t .. .. t...... .... ... ,.. ,.... ... .._It..... .f ... .... ..... .......1-..... .... _ ....... ......... eM ..... .. ... ........._a....- _..... __ ___ _,'" .......... __ .. ..... ........ .......... ... ...... ...... .. ., ,. ...... ... ....... t. ........ ... ...~ Consigned to Argo Chemical COm?any (MI,I or Itfftl _... of __for _ of rIOlrficlt_ onr C. Caiif ¡ty County 93307 Stz Routing :'., " L L é.Al..L S Baker:JfiC!ld treet L.,£/e;?I';~ 1'1- '- Destination 100 Quantico ~.c Delivering Carrier Argo Chemical Vehicle or Car Initial No REMIT COD c.o.o....... J ~ W C.Q,Q, TO: to ... .... by c--.- C ACCRESS Amt: S Subject (0 SectIOn 7 of condrtlOftL No. . WIÌlhI OUl o..a. 111ft ""_I II 10 be deliwwed 10 IfIICD Podr_ tHfIII Kind 01 p~. OesaoriDoo 01 Articles. SøecioI Marla."; ~0ftI (Sub to Cor .I Of Rate C<Murnn stqnft wltl'four recourse Oft tfte ~ till COftll<llOr "'"II sign tile fallø.w I ;¡)f,r.-t I-J""''' R, , ,1 --'V" "AJT:l '2.~ I '1 4~G' it stltBftlntl: ~ ..'/ j,'" !::;¡:; 1"J'l;",,=«,'" The 0"'" l1li11 nol ....... ...-., , I ~ 7 '2 0 J:i: lIIil "'iøment .II"""t ~ of "... - ~ ,~~ Ç"'Al~"'" ð )ÚI~~ ~'" 0, T L"¡- II; D .nd "I 01.... IIwful CIIIrgn. ....,. 1"" <... , , ..; ~ oJ:. 2Z0~ - 1": £ ') r }G14 ¡{\ <;'1\.p It 5 c,..:;¡¿ R('i"- ;)~ Ii 6V , ç. --,I , -~ ..... - ' c, ,.,.. "c4.. .. 'Þ'-: l'~ -' ~Ik'.= }yo. .L 70 r 7) r::: (SÎgNlure 01 Con_.I ,- ,;".¡ ,~., ,... , ./ ¡.,..' ", 'f) .: r.: 'to _~_. ,_ ,- ..:..;(' If d'lar9l'S .... (0 be P'...... M.. l I -'1,-17 Æ ~.o~~. n_ ....., '"To be Pr....id:· .:.'" ~ .... .j',.:.' ::'*'"..~..:..,~ ¡... , II i N,r.¡:" b ,¿ \1" c::, I 0 ol:t: R...,...s S IO~" -, cnølvrnent 01 till cn.vø on 1111 ør-" detCflbed hereon. - þ ~, . .. . . :. A<enl or c.s..¡., S t~t~e~ent: ":All sales a~o final a 1Y materia! reroo' red ...- B. c. ~lemical"Cor?oration is to be tes rted 0' sits '" -=-=O!!l (The slfNture ...... odrnowied.... 0",,, t: IIIQInt Pr....od,1 ~.::€fore removaL. In the event a.,:'- ~r rnatarial has )e~n ...... .::hIr9II Ad..nœá: ':.:llcem f1:'om premise and is deemed .1nsuitable for u e b-v :~:~ ~u=chaser ~... is the res'Donsib ·li t:, of tre pur haser s ...... ":,:') dis"ose of this material in ac :o::,dance 1;o1i th al '~'tat~ . federal and local la':vs and rebulatiorg ner ainir. ~ ':0 its ',H.sncsal. ~~ ''7nO¿ Co~orate Officer: -- , .. --",=.10. _ ,- ,/ \ ; I I - t " - L--" '¥ - I ." the \hiOl"Mftt moyn be'r¥Ifftn two øon, hv I carr"" by wlter, eM I.. rllQu.rll that the btll of 'MfÎ"9,shlll stltlwnethtr it ¡,"carr.'SOI' thiøøer',weigtu"· NOTE·-W....... rt'I. r.... 'S ~.nt on value. stuoøers.,. requlnld to stlitesøcl'icaUv in writinq the....., or ded-.d ..ue of the ørOØ«tV. t ThiS is '0 certIfy tllat tile aDo.. n_ malenalS .... properlv clus,lIed, desc:nbed. pacIoaQect. mulled and .... in ~ c:ondlhon IOf lransøonallon aceorOin 10 _.icall'e "'IUlallonS 01 ,lie o.ø.n......1 01 T.....øon.llors. T1Ie ...- 04' dedlnd ...... ... IfII P~ is ""'"'" _Ificallv __ by tile "'..... to be not ..--.. - ENVlRONMENT.4.L RECOVERY SYSTEMS Shipper, Per P..m.nen, øo.. ntl'c.....<I'...nhn'øoer, 27537 OPENCREST DRIVE, SAUGUS, CALIFORNIA 91350 Agent, Per (Tha, Bill of lading IS to be ~IQned bV the sr1lIJØWf I ¡nd aqent of the C~"I~' 'SWII'1q ym." STRAIGHT BILL OF LADING--SHORT FORM-·-Original--Not Negotiable. "e e 27537 OPÉNCREST DRIVE. SAUGUS. CALIFORNIA 91350 Carrier Shipper's No. Agent's No. L/ - ~ 1986 from RECEIVED. ..Oioct 10 I'" el....licatlO...1nO ,-"II ,n .flocl on I'" d.l. of I'" 'nul 01 1ft.. Bill 01 UdI"9. I'" oroø.nv d.....,bllll bat_In '1313'''''1 vood ørdaf. .x_.. nolllll lcom_ _ COfIitiOft of_ of øKå.. unKnown.. mark.d. COltllCJned. Ind destined '1 Indicated billow wttld'l Slid carr I" ItM WCHd earn,r blu'WJ und.rstood rt1rouQ"out tn., contract II m-."" MV øwton or COf"DOtatlGft in ~ '" ~ Pf'0Ø«t'V under thl contract I ac¡rftl to Clrrv' EO ItI UIU,I olea of d.hvef'V It slid dllll"'IIO". If on In rOut., Qtn.IWru to deliver to .notn. car,.er on tn. route to said d.nJf\lttOft. It is mutu."V ~ .. to MCft.... 01 .11 01 .nV 01 said prO_IV 0." .11 Ot any -'10ft of said roul. 10 d.stln.IIOn .nd II 10 ..eft parlV .1 .nv II.... Inl"'111III in III 01 MV of said IIfOpeny, IIIIt awry WVICIID be øarl_ "....nd. ....., be ..... 10 aU IN bill of Iadllnq r,rm,.nd COndition, În me to"'''"''9 dlSldiCltlon on th. dll' of shipm.nt. ...-- .....y....,... ,... .................. tM t__.... ...........f.....N ~.. ......1......._.. ,..... ,-.-I. _.......... .........~~ ............--_ ..... ~ ....... .......... ........., ..... '- .., ,............ ...... .. III....... .... ........ at ENVIRONMENTALRE~OVERYSYSTEMS b6-""_ (~iI or _I-"'ot __Før__ol nolofac-_ Consigned to Argo chemical eonman'V Destination 100 Ouantico Routing ;! 1 ; f. StreetBakersfield City Calif County 93307 ' Sta (' / tAL þ ( ;1 Delivering Carrier Ar2:o Chemical Vehicle or Car Initial No REMIT COD C.O.D....... ~ I- C.O.D. TO: 10 III NOlI by ~ ï ADDRESS Ami: S '- Subioct '0 SectIOn 7 01 .- 100. 'W"I C... e- !II.. ""_1 .. 10 be da4i_ 10 _ CC Pado_ ttW Kind 01 p~. o.-~ 01 Artidn. Sø.ciaf Mar1<s. _ ÚCiIIIt10ns (Sub 10 Cor J or Rate Column StCJI1ft Without recourse on tfte ~ ,,,. can""""r "'aU ... 1M ~ --- ,- ~ ,D".M .::; U N d. I?. <!;I 8 (_ ItJ,¡t;oit.. star..,..., rl: : '-..I 11,::".'1 ,-- ~/~ /f'\~'?1 p ., r; The 0"'. wll not rNIIke ........ I , iJf\)~("'f!.c"!1 /' Jz., ;!¿ II". ""_I WII!Q,I _ '" ... " ,'1,. /,. ,-/, .;..-'l'~ .." /- :0' .., -',,,,;,.J , r. ,t='C .no .1 01"'" lawful cftIr9n. ,- 4>.. ,,:',~ , / '" Nod 1<Yl.?, ~ ,:), I 11,1 .::-1 ...... .f':: ~e t. 1'1'0 <': Go t£ Tj/?:, M /'¡ -,:_",,1 ) /'JJ'I ï ~ Y :::l J.rtl¡e¡J1L I ,,", ,/7 t:f. tSiqNlur. 01 eo.._ J I /:~ If d1.rgn M. to Oil ør..ld. ...... ' ... --- ., J iJ^,h II!~ - 11_ liar" '"To III PrfDIid." -. --I) I ,It ... "7:b" }fì A 1"1, Z;;; Æ ... -, ,~. ~ "'" I,'", <....}..-.~ ~ - - -;!(.;~~j\Ílç.fJ S~~l~ ,1'~ r! -~ - - ð ':).JJ 1'1J1.JV~ 't' <.J :..¡~"rt ! t'11 \ 'J o~ ~ ,-,\.. , If ...,'> '( ~.'"'" a 'r1~ i 1" ~ ~ ..... ¡ I~ 5 () i1:.. ...... ,~ :~ -.1,.- 4' ""/1""/'''' ~.A/~' ~Æ#{ I...J I" T hi2~ I 2. "If L: ;.. R__S 10_11: - ¡ If , I _v_nl of me d\ar9II Oft I'" -" dl1Cflbed twreaft. '. -< , < ~ A4en1 01 c.sn_ , " r~s .. , r 'er ~ I.2t ~"'ent· All sa.leS' 2'!'~ final a.n '1 .,a. t e"'~a.l l"p-mcvI d (The '_lUre _. adonowle<l9n _ rr _m Preøøj.1 :::=om B.C. ,C11emica 1 Cor;,oration is,to be test, ed on site ~Ad._: ~~fo'!'p- !'e~'\1al Tn th~ ~"P-n t ~ft _r ..,1tr~",,';~l ha.s ll~.o" ,- , t3ken =ro!!1 "remise and is dee!l1èd msui tab Ie "or u~ e by $ -:'....,e "mrchaser it is t~e resuonsib lit.". ~f th~ rynr{ ~'1:HH~ !' " '-,... r1~<:!",,"'Q~ ~ t-M..\'~ ....~....o..,.~ ~, . ~,.. ,..... -1 ~ T'H~ "" . ".-, ~, ,...... ~.., ...,.., -~,",,!-4-""'\ ~o!"\~""''''' ..,... -1 ,r-,...., , ......,'" . ..""3,......." .,...:- ... _ð .....,.,~..,..: ,~ -... T '-,., ..: t- ~ ,-1~ <f~""-:!~' Si~~ed Camorate O£=~cer --- - .. .:... " \~ ~ "1"--- I , ..(...' .~/ - ,- ·'f the ihiømertt mowft bftwnn two porn ny I Cllnet' bv wlter, the I.. rea~.,n ~hlt the bill of 1.oi", ,hall stlN whether Ît II ·"cani.'. or shiøøer',weMjht.'· NOTE.-Wherw the r.te '1 oeø.ndent on vltue. sr"DCMfI.'" required to Ulte I,pIIClflCaflV In writing tn..IIfP'"d 01 DId... ..u. of tn. øroøenv· t This is 10 cenlly lhal IIIe abOve named malenals _ oroøenv classIfied. descnbed. I)KàaQed. _lid and ... in proper condition tor IransøonlllOfl Kcordlng 10 lQØI.caÐle regullllons 01 rile DeøanltMfll 01 Tr_øonlllOfl. nw ...- 0# d_ nlue of _ ..-.v it ~ _"_,, - by .... "'_ ... bit _. ..-.... _ ENVIRONMENTAL RE~OVERY SYSTEMS Shipper, Per P..m.n.nl00" ot!,eUltl,."ot.",oper, 27537 OPENCREST DRIVE, SAUGUS. CALIFORNIA 91350 Agent, Per (This a.1I of L~u1CJ II to t» tlQned by tM ""IJøø '00 .¡qenl of th, car'ler "suu'II SMl\fJ STRAIGHT BILL OF LADING--arlT FORM--original--Not Negotiabltt Shipper's No. 27537 OPENÇREST DRIVE. SAUGUS. CALIFORNIA 91350 Carrier Agent's No. .I ,LL I).:) t' I...... ~ 19 86 from RECEIVED. ...ci¡oa to I". .IIUlIÍCI1IOM anca w,lfl in .ffoct on t". dati of t". 11....01 t"'1 Bill 01 Ladi"9. t'" orOØ«1V dllØlbld bIt_ ,n ao.......t 000d _. .._. noted t__ _ _ition of_ of øadl:.. u,*ncwn.. mlrk.d, co,....,..... and dftl.Md II .ndíclltld below wntd'l said carr..r (the word cur.., belnIJ unøtrnood thrOU9t'10ut th.s contflCt. "'-''''' IftV _IOn or c:arøorMion in........._1t proøertV under ,1'1, contract. 19'''' to carrv to .11 ..."'.1 ØtKI of delivery It Ilad dlltlnatlon. " on It I rOut., O~.rwIM to d..;"" to lnolft. ear,.., on t"'. route to ..Id d.ftINtIOft~ It it mutultty....... II to _~ 01 aU Of any of SI,d prop.nv 0.... aU or any _t_ 01 SI,d rout. to dlStinatlon ancall to .ac:II PlrtY It Iny tI.... 'n__ ,n aU Of ...y of lIIod 0f0Ø«1V, tIIn -V....a to be ~ ___ _I ...... to aU me ÞiII at lad.nq t.rm.and conditions.n me 9O...n."9 dltl.ficat,on on thl d.t. of ",¡pm.nt. 11M..., ....,. .....1'.. ,... .. .. I..... .... ... .... ......... ............ ., 1M ..... ....... .......1............ _ ....... ,...... ... ..... .. ,.. _____ _..............._ .. ... ... --- .M .......... .... ...... ....- .. .,. ,.. ...... ... ....... r. N"'- ... .... ........ at ENVIRONMBNTALRE~OVERYSYSTEMS ~.,-- (Mad Of _ addrnI of ",",,-For _ of ...totea-_ Consigned to Argo Che~cal Comuany Destination 100 Ouantico Routing (r '\ I' L... L C,A L l. ß (' Street Bakers field City Calif CÁ-~' County 93307 , Sta Delivering Carrier Argo Chemical Vehicle or Car Initial No REMIT COD C.O,D.-.,e ~ W C.O,D, TO: to be tNOII .., c:o....- Q ADDRESS "'mt:S Subjoa to SectIOn 7 01 _ p.jo. . Wooght a~u 0- 11\.. ",,_, " to .. dll_ '0 _ CD PacIr_ tHIIII Kind of P-.. o-ot>âooo of Anidft. SøcW toIarb. _ e-_ (Sub to Cor J or Rat. ~ ,_ ...t"out recourse on _ --.ot S I\; Q,:!: Lc till ....._ ""'U ,., _ foIIoooor '=f '5' /bOØ! Slat.,..t,: .....,/, ,., ,1/ ~ C...... ~: " /'H . L. : I' >1-;-1= U ',1) The ..."'... ""'II not ..... cIIIioort r -Z I It! ~~____ f P 1)1 V¡.J /<-°8 t./ :--,ufj)C¡7 ~~ tit" tI"'......, w,thout __ of ,... - iJ<" S ~ 7 ~'" e(M..." At!"..; Inca all oilier _Iul chargn., (SÌCNIlur. 01 ConsioJnœ J It ctIarqn .. 10 be ørePltd. ..... ( _ _.. "To be PrIlSlÌd:' -- ROCOI.1d S to ..., 110 ~t of .". cI\orvII on till ~ dl!'lCl'lbed hlreon, . . Agent or ~.. -' < Statement: All sa'les are final an 11 material ¡remov d .. :r~T!1 B. C. Chemical Corn oration is to be tes ted 0 site IThe ,_turl _. _.....IId," ""'" t1 IIIQInt Preøaod.1 :.:-eiore r emO'J a 1. In the e'Jent art er !!laterial has een ~Ad._: takem from ,.,remise and i4 deemed .msui tab le for u e by ":!1e .,urchaser it is ~he res'Oonsib ....lity of tr.e haser s ":~ disuose of this :;,aterial in ac :ordance wi th al ':;t:::lte, federal and local la~'ls and re~latiors uer ainin~ ::) its di:mosal. 3i~ned Cort:orate Offic2r:--------... '... " "\ i ' , I , - -' / --;::,/, í ¿ f \...' ~ I -If th. stlíønwnt mown beIween two øom hv . c.rtn' bv 'Nllter, t.... I.. reQ~urft rh. th. bill 0' ledil'19.s".U stattwtwtt'ter it il "carrier'lar thiøP«f',we;ght:- NOTE,-Wfwrw rfte t.t. It deøendent on value. SftlpØØllre ,~uired to nat. SØKlhc.ly In Wfltlng tn..-..a 01 dedW'8d ..ue 0' the øroøertV. t TIlls ia 10 c"',f" ,"a, ,lie aco.. ~ matOflata a.. øroøerf¥ Classified. clescnOOd. ~ ","",ed and are in ~ --.clItion for IransponaUOft ac:c:oro,n9 10 aøpt,caole f89u,allona 01 I". Oeøanmetlt 01 TtMllpan.llon. Tho ...- or d_ ...... of _ P-'" is ......, _ot_1' _... by till ..._ 1D .. not ..-... - ENVIRONMENTAL RECOVERY SYSTEMS Shipper, Per P..m..-. ØQ" 0'''.' ,Mlllr...ol ''''0_, 27537 OPENCREST DRIVE, SAUGUS, CALIFORNIA 91350 Agent, Per IT....c RIll "f I .vi."" ., In r. "tOned bv ,rwt SftIUDØ , STRAIGHT BILL OF LADING-S_""T FORM·~riginal--Not Negotiable Carrier ShipPllr's No. 27537 OPENCREST DRIVE. SAUGUS. CALIFORNIA 91350 at \..;1;J P .' L Agent's No. Lf 19 86 from E~ONMENTALRECOVERYSYSTEMS RECEIVED. sûbject 10 Ih. cI.wficnian. and Wlltl in .ltocl an Ih. d.l. of Ih. 'ISU. of Ih'I Bill of Ud'"9. Ih. øroØ«tVd.....'bld beto. ,n 10__ IOOd _... ..CIOt II nolld (cant_1ftd condition of_ of 01Ck.. unKnown'. ml,k.d. CO""'nId. and dlll'nId II ,nd'Citld belOW whlcll ...,d ........, flhl WO<d CI"," bell'9 una.ntoOd Ih,ouQhOUI thll cantrlCt II m"""9 IftV _n or __It_ in ---. of tI'I ørOØWtV under .h. c:ontrlCt) 19'''' to carrv to 11:1 UIIII. øllCa at dellvery.t slid d..tln,tton,.' on tts rOut.. Ott1,FWIM to d.'i", to .nom_ C&trllf' on t". tOut. to uid dltllftl1ion. It it muhllllv........ to .øtC8l"ril- of .11 or Inv of ""d o,o_tv av.. III a' InV ~..... of IIId 'OUI, 10 d.lllnlllOft Ind 1110 .ICII Olrtv .1 IIIV 11m. ¡_1I11d in .11 or ...., of lid øroaonv. INt ...., ..",... to III PIrl- ".,...nd. _I III..... 111111 !lie !lill of 11111"9 'orml and COndilionl ,n me QO_nl"9 dllllfiallon an Ih. dll' of "'i_.m. ........ ......" ....If_ ,... ... .. f..... .... ... I" ..... .. _........ .. ... .... ...... ................ ... _ 1M ... ,...... _ ..... .. t.. ______ _..... ___..-- 1M ~.. __ .. ..... .... - .......... ... ....... .....- .. .., ... ...- ... ....... '. ........, ... - ......... (MliI or _I __of ___For_of notificn__ Consigned to Arzo Chemical COmDany 100 Quantico Routing I \ \: L L 1'___ A- l L Delivering Carrier Argo Chemical 1l.. Ir , Street Bakersfis1d City Calif. éJ-/P f)--1 " L .4. L County 93307 su· Destination r-: REMIT ICOD c. o. D. .-.. J Slt.- U C.o,o, TO: III III lid !Iv ~ 0 AQQRESS Amr:S Subject 10 SectIOn 7 of .-~ No. . WItQhI c.u o.ø. 11'1.. 11"_1 .. 10 be doli_ to !lie car Pac:Ir_ tHfII Kind of P~ O....oønan at Artadn. SøecWI M.u. md e.:..ans (Suþ 10 Cod or R.II Coiumn S19"" wttl'loul recourw on U. ~ ";, 15<J~ V fo)zi:j 12 I" . thl conÞnO' ",... sign tile foIloonn ....., () P U 111..5 4/ ~ stat........s; '~ j -r .;,... ~~r-r4Nð l.. ¢ I "" II ^ ,; ('\ 17 Tho ",,"i.. ",.11 nol ...... ....-.. 0 / ,....~C ~ . --r;: t'" ~CJiiJ 6:. tr .17<:: ~L rlL.. <í¿ mil sl"","ont wllhout _ of ~ ? I';r, r., M R<:.T; (' r¡;J;J r t'., I,)-r /1-""I~£-(),oL and 011 01"" l_ful cIIIrvn., { J ('. Îi /.'1 ;.; 1/111 . , '6 1 c r,4 v", l"'< r:¿ , I /"........,..¡) 7i /4' ¡: P J:':'~~() ...A'. I" /ð 0 ~ ~ J ISi<¡nllu,. 01 eon..-.I If d'tarqn al. to be ør...ld. wnw 0 11_ "".. "To be PrlDld." , RICefWd S ID ...... ID, aroalV"'lnl of IhI _.... an IhI ør~ . d.....'bed ""eon, , A40nl or c.sn.. :' , St3t:ement:: All sales are final a '7 '!!:aterial remo~ ed from B.C. Chemical Corporation i to be tes ted site >or 0 (Th. SllnllVrI "". ac:Irnawi1d911 anrv ~ ...-m P'lDIod,) cefore taken from premise and is eemed unsu ...tablE for ~IJI"IAd.~: bÿ the 'Otn"chaser it is the res'Oon ibi1ity of the urcha er to åispose or this material in ac oràanc2 'tvi th al stat ~ ::ederal and local lër:-7s and regula ions ?erta :'ning to "1 :7_t3 disposal. . - //Cc ~. d COrJorate Officer: L. '~ 1. <!:1e - --------- . --", ; i ' , / " I , , , ., --, L----- 1'- '~. '~1 r '"-, '.,' ; Vehicle or Car Initial No I '. elf tn. 'lhiøment mav... bI1'wMn ......, øorn I1v I carr.' by wlter, the I.. raaUl'ft th.. tne bill of Ildinq ,"III StlN wh.mer tt II ..ta"...·, « shipper', weight." NOTE.-W".,. me t.re " ~Mr on Y"~¿M. stuøø'f"I"" ,~u".a to SQI. spcIfN:.ly In .,Itlnq th....... or dKf:.m ...... of the property. t This IS to cen,f., t/\at lhe aDo.. ".",.,.¡ _t....,. .,. proaertv CI~Ied, descnbld. ~ mul<ed and .,. in proøer condition lor lransøon.uon KCQ,dlnv to -'i~l. rtlQul.uon8 of lhe [)epan..-.I of T.-ponauon, Tho ...- M d_ "uo .. me ~ is hi""", _rfially _... by 'hi .._ 10 III nol ...-..,. .... ENVlRONMLYrAL RECOVERY SYSTEMS Shipper, Per P..manenl DO" o,t'c....I<"e" 01 .n'DDef, 27537 OPENCREST DRIVE, SAUGUS. CALI FORNIA 91350 Agent, Per tThI' 8111 of L.Jdtnc} 11 to be "qned b¥ tn. sn.uøwr ¡no aqent of UW ca"l~ 'nulnq Wlne,1 STRAIGHT BILL OF LADING-aRT FORM..-original--Not Negotiabl_ ShipPM"s No. 27537 OPENCREST DRIVE SAUGUS. CALIFORNIA 91350 Carrier Agent's No. at LI / 6 198' 6 ENVIRONMENTAL REf;OVERY SYSTEMS from IIECEIVED.IU!ljoc:t 101ft. .11...ficollOns _ tor,f" ,n .ffocI on 1ft. a,l. of 1ft. 'I.... 01 1ft.. Bill 01 LlctltMJ, 1ft. øroP«tV a.....'bld below ,n oø_onl VOOd _..._. nond (__Iftd _It ion ",,_ of Pockl.... u,*nownl. m".Id, co......'*'. _ aftll'*' IIlndicllld below w,,,.., ..,a CI""r 11111 _ra CI"'" bI'tMJ und.rstood IftrouQftOUI 11101 contrlClII m_..... MV I*lOft fit _ in ~"" t 11"- unctef I'" COntrlCtllOr_ 10 carrv to 'II ulU.lpl... of a.h..,., II ..,a alll,nlllOn, il on 'II roulI, OIll'M'" 10 a.Ii... 10 lnol"" CIrri" on I'" raUI.to uicI dolll_lOft. II illllUtUlllv"'- II to _.-n of .11 tW Inv of ",a oro_tv 0." III tW IrIV øon_ of ...a roul' 10 a'"lnll'on Ind II 10 lI.n 0"'" It Inv I'.... ,ntorlllld in III tW InV 01 1I.a 01'0_, tIIat IVrt .......10 bel*formed _. ~ III .... CD ai' IN bill of IId'tMJ IIrm. Ind COndilions in 1111 VO_n1tMJ cj,...ficol,on on In. alII of "'iom.nl. ........ ...... ....... ,... .. . f...... ... ... ... ,.... ... .......... .. ,.. .... .. .. ""'" ......... _ _ I" ... t____. .. ...... _. .... ......... _ ..... ~ ___ - -.... ....... -....... aM ...." ...... .. .., I" ..._ ... ....... .. ...... ... ... ........ -Â- .. _ .... Consigned to P f< 0 (' ( 0 Destination LJ -¿ ð S cJ,1\ N e. fè, ,S ., CA /.L (þ, é, , Delivering Carrier ¡J 12 ZJ ;: t... C> (lbllor _I lddreDol--.-For...-ot nolliear-... City f5Afi...£~¡:/e ~nty C/1Lf F Stz Routing 1.1' ; L L - Street é../Á/'''H IC A L ) -- l / / REMIT COD C.D.D.en.., S/IIIIIr L.. c.o,o, TO: to 110 ..... by ~ r AODRESS Amt:$ '- Su!ljOCI 10 Soct_ 7 01 _ No. . W"'I a~.. o..ca II". ""_1 Ílto III aolÌVWld to _ CIC p-- tttIIII Kind of Package. Deocroønoa of Attidft. SøoociII MMb. _ ~ons (Sub 10 Cor .I or Rat. Coiumn _ ...tnouI rlCOUf.. Oft IN _ 1111 con_ ."... siQn IN ....... L ;J Cj ~\I'bKlJ Q f'L 'T fjl2ý / 2ðt)J:t. stIC.,..rs; , .A N. t, The CIOni.. _I _ ....... ........ ' -.. ' 1 J 'I ./ ]t/C h~V t. 5c ~ 11101 ""_1 w,thoul _ ... ... -, "- jJ .::. [¡¿. þ/?//'/ «; 7 A ÆJ / _ III 0_ lawful -.... r ',.:..2 H' ;1'7 "'? 7" 7J-;U _<' (:/ r¿ 'A ~ 7,1 ¡- M. 1/ So 0 7::l:. tf <) ~A :1'. /¿ A VC//,.e,,,.,~ LiG.lJi,ù fi7CrI ,- D/2,('7? 5(. o;;t::. ISiqNOlure 01 CGn_.I ¡VIe It ..,..Ift .,. 10 III or_G. __ <AI lr2V / o~ ø_ _e. ''''0 be Pr-.a:· 2. 1.../ r:. , ~ <: ~ 5 / n þf'tJ If A'q Iff I"" (V,o,r / DC ^ K / II ~ ¡:u2 17,''i;r::c.l'' I ^ 1\., G :r . LI !2~~« b V 2.0 0:;::= " , I ') ,r' /J-1 r: - ~ I NIOI ..D~X:: ~ C 00- 22::. /' ,.. ,~ 1':1- ( , -' R......aS tD_tc 1>"0_ of I"-__Oft __ a....'_ ""111ft. ALL 4At..F= ;::"/AJ-f1L 11 AI V /11 ¡<J ì -= 1"2 I ' A l- I R,c. -:1 . /'n r-: t? ð IY1 C /..¡¡¿ "YI 'c.,~ L ...,..,. tW c...n... ......t= ,/)vE b Ie'..", u..u~ r- ¡", -B ê. !..I ¡V A cce;J: /l.B J. e ¡, fi!...C/7/J.5¿- k ... I ~ f' F -< PCAl <:; ;f5.,):. /1 V ð¡::- rZ IThe '_lUre _. _now-..- _. I, _mP~.) , r ,L1 111 ^' -r - lJ -€. '2..A-;'.e L" ///VU< ,AJßA ~ ! r ~Ad._: .- ¡ í ¡..¡. ,,-'-- R)-- c¡ Æ ¡(,I;; ;JJ /'J.. /' 'ìY' - P u /-8 ...11;9:: ~/...z -< ') r- ,""'" ?--;- r.Q I'f~ / A- "ï ¡;- .^l b;S...:Jè 5~/..J s I I ",-... £ \.~/ // - ''¿~ /,/ /)', 1-iVl ---'v / Vehicle or Car Initial No !:" -' ." th. ",i......,1 mown bftwMn two oortl hv I camet" bv wlter, the I.. ,eqUltes ~.a t~. bitt of IldinIJ thallltltlwhm... it it uc.a",_"Gr lhiØØllf',..iqtlt:- HOTE·-W...... rtI. ,It. '1 c:MøIIndØ1t on V..W, sft'ØOIrIIIW 'lIqulflld to n.u IQClticallv In writing the.-a 0/1 eNd... ...ue ot the Pl'00IrtV. t Thl. is 10 c""fy ,,,. ,lie aoo.. ~ ....leri.l. ... proøertY Classified, descnbed. ~ mane"" an<I ... in IRICIef condlllOn IOf tnnsøon.llon acc:ora.no 10 -,'t:aO'e reoU..,lIon. 01 IIIe o.øanmenl 01 T.-pan.llon. ".. ...- or __ ...... of .... ~ i. .... _li~. _ by _ .... to be nal ..-.,. II" ENVIRONMENTAL REf;OVERY SYSTEMS Shipper, Per P..m.""n, øo'l oll'.u'lIreSlohn'ø_, 27537 OPENCREST DRIVE. SAUGUS, CALIFORNIA 91350 Agent, Per (Thit 8111 of LMltncJ II to œ t,qned by the sru",pcr STHAIGHT BILL OF LADING-··e ~T FORM-Original--Not Negotiab'e Carrier i "'. --. Shipper's No. 27537 OPENCREST DRIVE. SAUGUS. CALIFORNIA 91350 Agent's No. . ... ') / , -1-1 0 U 19 9 f from RECEIVEO: subieCt 10 1I,;ë..uìficn';M and ur,lts in .ltOCI on III. dill of III. II.... 01 tillS Bill olladi"", 1111 øroøenv d_,bed bel_,n eøperent 900d ~.I_. noted 1_ end CiOIIdItion.,_ of ø_*s u,*nownl. m..k.... COMl9..... and desllned IS Indiclted bel_ willi'" "'d carr... (I'" ward carrier bel"" understoOd tIIrou;lIOul lI'Iit __trlCl . m..."" IftVperlOft, or __atiOn in ....-- of T ør-.v under 1111 COntract! avr- 10 carry to III USUal ølaca 01 dl"."" II lAId dlllln.llon, ,Ion III rOUlI, Oll'llrw,.. 10 dati_to anotll.. car".. on "'I routl to said dHtlllftlOn. It . mut\IIIly"'- . 10 _.-r 01 all 01 .ny of "'d ørO_IY a... .11 or any DOnlOn of ..id raulllO dlstlnatlon and .s 10 lid! øarty It ."., lima lnur._ in all 01 any of Slid øropany, t/Iat -V *'"Ce to lie ØII'formed llareund. sNII ...... lit "I tile bill oIledi"" ,"rml and COnllitioM in I'" oov..n'"" d.s..licatlan an III. d.1I of sIIiom.ns. ...... ...... ...If_ .... .. II ........ _.. .. 1M ....... ........ ... ....... .. .. .............. _ _ ............... .......... ~ _.... __ ____ - -- .... __... ......... aN ..... ...... .. .... 'M ...... ... ___ .. ....... ... _....... at E~ONMKNTALRECOVERYSYSTEM5 ~.._~ Consigned t~ )'1-1 4 ~ If J 0 I ø ' . . -, - .....---. JAJé IM<liI 01 _ addrnI 01 .......-For ....-- 01 notlf_ _ Destination ~ r r.' Su /1'7 ftJ r;: {:J _<; r;- \ I>: L 5 I' !I~ (ftJ4..5·4/ J ILL C4 L-L Street City /14 ,;("~... ~~ ("t'ó~~ Le; J ! 1" 11 c.i<lj/I St Routing '1---,.;":' ,'\ 1-- - Delivering Carrier (\, -... -.... r , " , , ý'"'f- '-~ -' I ,..; ¡;-' C Vehicle or Car Initial r-:: ,(::. V ¡ '~ Iv '=' REMIT C.O.D.cfw9a ~ L C.O,D. TO: COD ; ID __ .... by ~ C ADDRESS . Amr:S Subiect '0 Sect..... 7 01 ~ No. " WIWI\t <4.. o..s III.. sIIl_t is 10 III datiweNd . _ c Ptdr_ tM/III Kind at P-=-- 0-__ of Anidn. $øciaI........ _ e.c-;ans (Sub 10 Cor .I Of R.II Column _ WIthout ,_.. on __ t'" """- -, ... tile ___ I ! ..... FA" ,ð'¡--;; ß?" cL ~~ 1.4- ¿ 5aC= 11M_IS; , ; ,- A~r; The corr. _, _ ....... ....., ( . I ./ I mit sIIi_ wit/laut _ ", .... ., .nII II' ot/llr lawlul c:Nr9n- , 'io \ . ,Signature at Con_,) , "Til cnlfgtS ... 10 be _III. __ , .r ø_ her.. "To be PrfINIld.- . . 'J , I R....",.¡ S " lit_' " - _at___on__ ',", dncrlbtd to.....n. -~ '\. '\ , \ \ ~ Agenl a< c.sIIitr -. : ?or \'"'- "'IN"'" her. _......-.,._y _ns PrttNId.1 ~ Ad.anced: S . ' No "If I'" sIIi_1 ma... _ two 110m IIy . carrier by W.I... I'" 1_ rwoUII" tIIat tll. bill at lading,IlIall n.tewn.tl'l.. it it """!Tier's or sIIi_'s_ÍCJIII." NOTE.-W..... ",. ,... IS _tnt an ..,..., sII'Ølltrs... requirOO 10 lUll IIIIC,toc"ly In wmlng tII..- or decI_ ...... 01",. øraøonv, t ThIs i. to c"",ty thai IIIe IIðOve ..- mal...... ... prolMflY clsss.lIsd. deKnÞed. ~ msrt<ed and ... in pttIgef condition tor ,¡ l.....søon.Uon accordInG 10 SØØ!IC8OIe regUlallOnS 01 111e Oeøan"*" 01 TI1U\S)CIIt'Uon. \, TIle ...- .. _ ..... '" ",. -"Y it IItnà¥ _Ifi..... _ by ilia "'W- to tit nol ...-... - j;- ..... " ~: ENVIRONMENTAL RECOVERY SYSTEMS Shipper, Per P..m.nen'DO..otl'c....""...ohh'o_, 27537 OPENCREST DRIVE, SAUGUS. CALIFORNIA 91350 (Thl' 8111 01 L«fIl'IQ " 10 be "qned bv tn. SI1'IJøw ¡nd ¡qent oC the CM'"er "WIN) \.ImItJ ,', \, Agent, Per STRAIGHT BILL OF LADING--SIRT FORM---Qriginal--Not Negotiabl. 27537 OPENCREST DRIVE. SAUGUS. CALIFORNIA 91350 Carrier '-, Shipper's No. Av.nt's No. at _) I !\)p., ~I 7A 194J(;. from ENVIRONMENTAL RECOVERY SYSTEMS RECEIVED. subject to tll. ."..dicltIOM Ind ta'llh in .IIoct on tII. dlt. 01 tll. "SU' 01 .11.. Bill 01 Udi"9. tll. proPWtV dltO'lbad bit_,n IOI*Ift1 eood _.._ MIIOt8d t_... eaosdition 01_ 01 0_.' unknow,,'. mlrl<.d, COfIII9"". and dntlnld .. Indicltad below wlUc:II ilKS ...".... Itlll word ..,,,., bei"9 und....tOOd throuQlIOut mil contrlClM _.......Y _10ft or-*, in tIIMIIioft., ~ ør_ under III. c:ontractlao¡r_ to c:anv to ,t. usulI 01... 01 dllivtI'Y It SlKS d..tlnltlon," on It. rOUII, otll_,.. to dlli_ to IIIOt"" ....".. on tII. rout. to said _,_iOn. It iI 1IIUtoMI1y.-. io___ 01111 (Jt IllY 01 SI,d oroo.rty ow.. III or lilY port_ of Slid rout. to d.ni"ltlo" Ind .. 10 .ICII DIrtY It IllY t,.... ¡n....tad in III 01 ...., 01 Slid property, Ø\It -V ....1Ce III be IIIrlormed --.rlllell_...... 10 III tile bill of 11d1"9 IIrm. Ind conditioM ,n tilt "'.""'''9 ......Iiatlo" on tll. dlt. 0' lIIiømlft1, ...... ....., SM'''' ,... .. .. ,.... .... ... I" ........ .....t....f ,.. .... .... .......'.......... _ ..... ....... _ .......... ____ _...... ~ ___ _ ~.. __ .. -......... ......... Me..... ...... .. " e................ ,. ...__... _.......... Destination 7.r; C (Mail 01 _ .....01 ~FOI_ of rootrfc.c-_, ~/' .2t I '.¿ ) , '/ City r3/.:; ~/=-I6,?;.~' - ~ L(J/ (" S;; Routing ,~, Å . (1:;;' ï r' L <7/ J rl'f It) P r ~ (Street J, I !. L S ,/ ,,-' ( ,L/' /J //4,) -::r tU~, Consigned to /Vll1 J? /1) ¡::: T Delivering Carrier I? , 'LL C4LL "'''It.5 1.5'" Vehicle or Car Initial IU C , ,- ).21:; No {U r..::.Æl6 REMIT C.O.O.chwge J ~ U C.Q,Q, TO: COD 10 be .... b¥ ~ 0 ADDRESS Amt'S Subject to SectIOll 7 01 __ No. . Weíqht c.a o.œ III.. 1II,_t .. to .. del_to__ tWIll Kind 01 '..uq.. o-iIstioso of Midn. SøeNi IibIb. _ ~ons _ ....lIout r........ Oft tile __ Pactr_ (Sub to Cor ,) Of A~t. Column till consqwn - ... tile ....." '-~r ~, Ld7J./ P?ì1J L r. /') '::J~.5 L/ 'oj IA. 2 c; (- .t::t st....."': '"" ",,"i.. "'"" not ..... .--., ( - ~ (/'""' tfti. "".....,,« wò_t ~ .. ~ _ "' 0'_ lawful___ " "- , (SÎCNtur. 01 ~,. II c:IIorgn ... 10 .. _... _ , If__'. '"To be Pr-'-.- , . < R..,.,..¡S tD_to _ of tile."........ \111-.- oHKr.bed _eon. - . , Agen' or Wshitr ?w (n.. ....tu.. tw. actr....fetIta _ II - ''''''''',1 ~Ad._: S '. .U t"'. Ihiønwnt mov.. bInrNen twO øom hV I carrier by w.I:ft'. the I.. reQ~ir.. ~Nt t~. þjll of f8(ting,sh.U ttatewtMdt. it ,,'-carr.'sor shipper',weiqt'tt:- NOTE.__ .". tIt. "dIøWIO.nt on vii..., shloo,,, "" roquirad to Itlt. _,IIC..lv .n _,t,"'l tII..- or dId_ ...... 01 tho øroøertV. t This ¡a to certlly 111M the aDo.. IIIIIMCI ....t.".,. ... øroøer1V class. lied. described. pecUged. _ed and ... ill ~ COftdllion lot trW'IS)On.uon accordlnQ 10 1D)I,ca.Þle regulations 01 Ihe Depart",..,t 01 T.....part.tlon. '"" ...- GO d_ "UO 01 _ -.... is herwò¥ ,-, _rf...." _ .... till III..... ID .. no. '''--' -,' - , ' _';~.7 ENVIRONMENTAL RECOVERY SYSTEMS Shipper, Per P...mlne,"pouo'hc..,""."of,n,ooo<, 27537 OPENCREST DRIVE, SAUGUS, CALIFORNIA 91350 (thiS 8111 of L.adU"tq IS fa be stQned bv rn. sruuØWf ¡nd qnt at thl canter ISSUing urn,,) ,7 'f ~ Agent, Per STRAIGHT BILL OF LADING--S.qT FORM--Original--Not Negotiabl1Þ Carrier Shipper's No. 27537 OPENCREST DRIVE. SAUGUS. CALIFORNIA 91350 ,~ I) !1} "'- If 19 ,~f-. from RECEIVED. "Þ;ec:I to tII. cllulficftòonslnd tlrlff. in .ffect on tll. dlt. of III. I..... 01 III" 8ill 01 Udi"9. III. øroPØt'(dncrlbed bet_In IØøer_ good _.._ II nond (_end condition tIII_ of plCklOll unk_nl. mlrlllCl, co...._. II1II _,ned II ,ndiCltld bel_ wnlc:ll Slid COm.r (tile WOld COtrier bei"9 und,,"tood tIIrOU4/lout thil contrlClII _"" MV IrOOn or _ in _., 1r' pr- undlf tn. contrlCtllll'HI to corry to III U..I. øl..:. 01 d.Ii..", It Slid dlltollltlon,ll on ,ts rOUI., om.rw'.. to dlli_ to lnotll. CIrri. On tII. rout.1D 1IICI_,nat_. It ie mutuel!y...... io__ of III Of I"., of SI,d pro_tv 0'" III or lilY ~_ 01 Slid ,out. to d.ttinltlOft Ind II 10.1CII Ølrty It."., tl.... intenlnd in.1I Of MY of said øroØllt'l. tfIet -. tIfVicII to" ....,......,.".,.IfIeII....... ID ell the bill of 11d1"9 I.,ml II1II conditions in tile oo_nl"9 CllUlliclltlon on III. dill of "'iom.nt. ....._ ....... ....n. ,.... .. .. ..... .... ... 1M ..... ... ......... .. ....... .... ............... _.. ...... ...... _ ..... .. _......... _.... _..--_ .. ..... ....... .......... ... ........ ....... Ie .. I. ...__ ... ........ ,. ....... ... .. ....__ Atent's No. at ENVIRONMENTAL RE£OVERY SYSTEMS ~.._- Consigned to ^ 7 A 2. ILl e T , c,/.,/// .{1"C/(" S ~treet \}~,~L~('t~' \flA~I'9"'1 '- L L;1LL J/ 111) L (Mill Of _ oodrWIIof -.-For _of noufa.-_ -"7 r Destination ~ r 1-) A ~- Jc...::J' t- (. () City ;....:>-^ c:r-: ~(.;Qùnty .... ,-" ,..'/ ~ ~ I....../~ Sta- Routi~ ì-) ;r,! , -;-- '-'1- \' Delivering Carrier \ I ? I '11!7 , I ~ ' ,\ S Air 'ehlcle or Car I~ftî'at' ¡:!. ¿ J I.) /211.) 5 No ,.' REMIT COD C.O.o.en... ~ w C.O,D. TO: : tit be .... by ~ C! ADDRESS AmI'S SuÞ;ct 10 Seo:tICll'l 1 of _ No. . WoiQht 0_ ~ mlS ""__ il 10 be d"~ 10 _ CD< PIdlIOII tttfII Kind of p..... Oncripaooo of AnicIeo. SøeciIi Mllb.1IId ~ons (Sub 10 Cor J 01 R~IW ~ "..... wunaut reaJUfW on c:ne ~ tile COftIICftOf ",... ... tile ,....", / t~ ~11 .1'7',/ D?01. r 4~:¿- .5 UVL <;>~ st......,'I: The o..i.. lllall not _. .-.-.. c I ,¡ I ..... tillS ",,_..t .,thoul _ ., ~ Ind II' otftlf IIwlul cIIo__ : , , ... fSiqnalu,. 01 Con.....i 4 If chatgn .r. to be ør...... .... c ___. ''''obel'r_id.~ . '; ~ ¡. . ;, , . , , .. . , R__S 111_" ~ of tile -..."" tIIe-'" d....,bed ,..,....n. ~ . \ , ,. Agenl Of cø.... ; . >or {The '_Nfl ,..,.. Idlnowied9B _., t' ........m PfOIIIid.1 .::Iw9n Ad._: S elf tft. shiØftWt"lt moves Mtwøn two øortS h¥ I c.arn.r by w.,.... the I.. rllQUlrft that tne bill of Ilding.sh.U stltewh.-ttl.. it ts ucarr"'lor stliøptr"wei9ht:' NOTE.-WlWre rtW ratl I. øeøenolnt on value. stlrøø.",re ,~ujred to Itate IOKIfic.ly in writing thl..... or did.... ".&Ie of the øropøty. t This i. 10 cen,'Y tllat tile aDo.. ..- mat....,. IN proøenv closallled. dncnbed. ~ ",,"",ecf _ IN in proIer c:ondlllon I~ IrMsøon.flon OCCOIdlno to ~ic:alll. "';¡UI4IIIOnS 01 tile Deøon~t 01 T~.IIOn. TJIe ...- ... _ ...... 01 tile D-'Y is ,.....,. _ificoll" _ by tile "'.... tit be ... I...... - ..-- I I " --~---./ ENVIRONMENTAL RE£OVERY SYSTEMS Shipper. Per P..m.nen'oo"o'..culd....o'.n.øøer, 27537 OPENCREST DRIVE, SAUGUS, CALIFORNIA 91350 (ThIS 8111 01 Lid'"9 " to be IIqnICI by ,". sn,.._ .nd .nl of thee.,.... 'IlUlnq wm~.) Agent, Per ~ ¡MAluM I ÞILL U~ LAUINl.:i-·~HUH T FORM-·-Qriginal--Not Negotiable. 27537 OPENéREST DRIVE SAUGUS, C!FORNIA 91350 cller .. ~ . at ,~;) u ,.2.. f.-{...'. 19 ~6 from ENVIRONMENTAL RECOVERY SYSTEMS RECEIVED. 1Ul!i1Ct.0 1ft. '::1....fiarooM one! torlf" in .ffoc. on ,II. dl" of .n. "IU. of '"" 8ill of UdI"9. .n. øroØØtV dOlCl'lbocl bo4ow ,n 'lI_en. 900d ord..,..cacn. no,od t_ _ _itioft of_ of lIocIc_ u'*nownl. _,kid. COftII9nod, ond d"tlnod .. Indicltld belOW W'"'" ",d comer UM _,d Cot"" beIng undor,tood '"'OU9"OU' till' contrlClOl -1nIJ MV I*lOn OIl ___ in _ ., 1 cwaoenv under 11'11 cantrlC1) IqrHl to carry to .11 UIU.. ølce of dlllwerv It .Iad dl.tln.tlon, If on It I rOutl, Orh,IWIM to d'liver to anot"" car,.. on the rout. to ...., dlnlNtIOn. It it I'I'Iua.lly.... . io ..:ftC8'r" of In or Inv of ..,d II'O_'V 0." III ,or MV por,ion of ..id 'OU" '0 dl'tlnl"on Ind .. '0 ..cfllllttV It Iny ".... Int.llted in In or any of ..lei 1II'01lOttV. t/Io1 ...., ""'!CO to lie I*'f_ _.1I\o 1Ie_ III oil tile Dill of ¡.:lIng 'orm. ond conditIon. .n 'M 9O-n'"9 ctlu,ficotlon on In. d... of ",,Ift.nt. --- ...... ........ .... .. .. f...... .... .. 'M ........ _........ .. ... .... ... .. ....... ........ .__ _ .... .... ._._f. ... ..... .. I" ____ _ ......... ____ -.... __ _ _Mltte.. aN ...... ...... Ie .. ... ........._ __ ,. ...... ... _........ Shipper's No. Agent·s No. ~....-- (Mo.. or _, _... of OOftII9_for _ Of no'lficatøt_ Consigned to Argo Chemical Company Destination //'." ~. 1 o o--C;u antf-c 0 ",.;' "... ':,~ .z-..:>. ;':'¡-('~t'~eet Bakersfield City Calif. County 93307 St; Routing D " . C . Argo Chemical e Ivermg arrler REMIT COD C.O.D."","" } ~ - C.Q,D, TO: to be MId by ~ .... ADDRESS Amr:S - SubjlCt '0 Sect..... 7 of conø-. No.. . WOICJh· a~.. C-* "'.. ""_, " 10 lie dot_ '0 II1II... PIdr_ fttfII Kind of p~ Doocriøtiolo of Anidft. SøocioIM_. _ ~..... (Sub '0 Cor J 01 Rat. Coiumn SIfJ"ft Without teœwM on dW ~ 1110 CDMItI1Of _I '.. tile ~ '-' - stat.,.."s: : .' ~, ~ . ' " ."\ ~,.., .. . : . .... ~ ~ .... ,-. '- ,< ,...It. '/ ~ ._#.... The """,.. ""'II no, ...... -... '. .... ...J . - I ,"" "'1I1"'en, Wlrnou, _ of ~ ,_, '- í ' . -r .~ ! , .' - ." .- ~. ,..; .:...:... l : ,. - r' - and ... o,lIer _'ul _..... ',v.: r , --.. ' .. - ..' CSiqno,.... of Con.... J II d1.rqos ... '0 be 1I,_IeI, _. ø_ _.. "To be PI_lei," . RICO..... S to_~ cno_nc of _-...on '110_ . dMCr'Þed hereon. " .. AIJen. II< CMhior State~ent: All Salcs ar:: final an V mater:'al remov ,.d >or ==om B.C. Chemical Ccrnoartion is to be test :d on site eThe ,_turo -. -.....iod4It _ . _nt ProøoICI.1 before -re~oval. In the event afte ... material has b ßen ~""'._: taken from premise and is deemed Ilnsuitable for u ~e by , . ~rchaser it is the responsib lility of tr e Dur ~haser ':~e s ':0 di.s"Dose of this I:".aterial in ac Icordance ",.¡i th a 1... 9t~te,federal and local laws and ~egu1ations pert aining :0 ; ..... disryosal. -...... Signed corpo:mt~ C:J:=ic~r: " --'.- '. Vehicle or Car Initial No "f ,". "'i_t mo." _ two !XI", nv I cortier bv WI'., 1110 low roqu.." ,". ,h. bill of Ildil1lJ ",.11 'UfOwlIetII.. i, i, "COtTier'"" "'¡_"-"Jftt," NOTE·-WhefW m. rat. II de1Mnamt on v.lue. shroøerl I" ,~uired to suta SØlClfic.ly In writing thl..... or ded.... ..u. of the øroøertV. t ThIS is 10 c8ftlfy ,,,., Ifill alia.. NmeCt mat...... _ øroøeny ClassIfied, dncnÞed. pecIWQed. mulled and .. in ~ condillon for 11WI~.fon according 10 aøt)liCaOla raoul.'lons of Ifill Oepan....... of Trana)OI1.uan. 1"'- ...- or d_ ...... of tile _ it honòIr _d~v _ by _ ....... .. be _t ..--. _ ENVIRONMENTAL RECOVERY SYSTEMS Shipper, Per P..m.nen'øo..otf,c....'c/'...of.n,OIlft', 27537 OPENCREST DRIVE, SAUGUS, CALIFORNIA 91350 (Thl' a.1I of L~lnq ''5 to be slqned bV "'e sntµQef .nd .nt ot thl car'''~f ISSUing wme,l Agent. Per @ ~mcon ASSOCIATES Consultants in Wastes Management and Environmental Control e e , .~.k.:.. -:~ .~ Ll: v OCT 3J. íJ;)í':; ¡.......\".Ju ':Er~':\j ~;~ ;_;~"~ ~ : "'Date: :...October 30, 1986 Project 773-01.02 " To: Mr. John Harris Environmental Specialist Kern County Department of Public Health 1700 Flower Street Bakersfield, California 93305 We are enclosing Copies 1 Description Bills of Lading from Environmental Recovery Systems (Regarding B.C~ Chemical). For your X Use Approval Information Sent by X First Class/Air Mail Special Delivery Other Comments: Per our telephone conversation of October 29, 1986. HVDB: 11 )bdJße f1 r k~rry Van Den Berg Project Engineer 445 W, Garfield Avenue, Glendale, California 91204, (818) 247-1260 ~ ,. ~ ~ ,ç ~ b,"/ Jl/~ e _ a. . -P' /, h"~ /\~,!' . ~ ..bÓ~~1~~1~~/ , " ,ß / {)~S ,/ 'ð~_--A~ /J .//~_¿ - /. ì ~ ~ ~P' D~JrÞ~ ¡;J~rrt7-- '1ß9;" d~ ~~~ &7v ./. _-ff 1i1~ ) & Ie¡ ~6- ~ ~,""",l./ / ' ;;(,.jJ :Á~J/w.- 4J~ ,t)~ /J-A-13~æ~ új ,Ç; ~kJ~ ~ ~~ (J~ßdJ~/~(~~~~ 'ð¡:¡-I3"'/ø,ç fl) S-"'~ ~ 4J.A::f'/l47" ~/~ _ ('/~r·~~/Wdd~)~J~/ fýtJ-13 16'1(,) 55' r c:J~ .~,w ~ . (~p~ ~ CÚ4-..,...,) L~ y...Á#d~ ) !3,q-t3 17ð (~) ¿-ç¡dÞ'~) ~ ;t.p ¡r#~ ~ I ,( / ~~ ~~~ c- þf,w ~/ ~, I J-nMh~;t/ c:ß~r,) - ~ ~ \\(,;¡s --d..iI~?"'t'1I ~ s.-T~~\\~J ~':~d1 ¡- -,~ ð'¿.J) 1 , ~iT f6 171 OJ.Ç.Ç ~ d~ ~,)r~';",.J+)h ~ &-vJ ~ ~,¿~) {" TcJ2¿~¡:;Zr, ~6 c:t~ ~ µ,~wr3~ ~~? ,} éh ), ~~ d ~ß,.J ¿0' ~ûlrl'.Þ-~) 1'- -:;;; ~, ~J v r BA-0 /r¡d- (j) f.Ç:J~ d~ tJ¿z/l~ ~-¡j ~ (Y¿¿/..-5~ ~ ~~~ ~.f~ (!¿~~7~ ) e . ~Jz~~~ ~ 6lt-ß 1?3 ,~~~fí7'(l-UJ ~"43.h'r ~7jJ~h~~~ 6ft 6 /7'/ )~ ~ ~r7~ 6 ~ ~ /.qPw f~#/7¿ ~46 17$' ~ ~/ ~p 7~ ~ 7:': 7+ ~y ~7JT4.,.ß 81ft Ip ð~--'~,<U-dr~ ~ød.u7:f tf'¡Þ':~f 4a~ -:ß- ~N- &11-/3 111 l.3¿j¿cAJ &-a¿;i!d~ß dh ~ /T"b4T;YÁ r'~;Y¿7~7 v ~rüJ- ß¡yt3 176 rJ413 / ÎC¡ ~éh~4~{}ðé!ne/,d¡:¿iù/~ ~rrýrl ~~ÁJ Uy (}u// CVð:O ~,~ ~ .~,./ ~~ ~-:V' ~,.; ~d/1ffm~P ~.~ ~~~ ~~~~~J~ J=ðffnt~/¿ ¡; a/ $. ß!~~~j'" :f-~~u'~M~?V~' · .q.- ~ ¡r¿7' Ú : /2h£:~ ¿do=r~) ~,'~~ -JJ~ . /' J ¿Ç" ' ~ ;, ¿ e ~ /..5//'~~~~ - / ~d,u cØpv ~ d;/'7ð"S ~7 ::':1/~ . ~ø# . ~~~~~ ÚY'~ á'-.)~)ý ¿ ¿ c:¥~~/ /.Ç/r ~~ ß?o~,f-æ.¿jaA~~~~< -J ~- .....--/ ~ V¿(~ ~J Þ'~-c? .uW ¿,L,;U.,:.L!t.--r 7' ~ /,u...t ß¿<,¿-t~.ß,Air P0 '1í'tV~ ,4Lr~ ¿f C!... '- (J/E~I/~L' d.-n~ dv ~~ µØý d?JJ 7 ~(f,uL~ 4ç-~<? /~ ßd '777' ~~7~~~Þ\=~~~; ;/ ß(! &~~ ~~~/~~d/) ¿J--)} ~ /~t¿U dit~Î ~ i?~ a'h ~ ~ ~ð/7__A~~ dÞht/Ä¿ ,IÒ. -d ~~ -/ Æ~.....¢~,:yr) v:r.-Z, e e ~~~ .~ ~ ~ a../ /$/1' ~~~~ /,~~·-'.a-J7 ~ ~ ;júw ~~ -+~;;~"~7~- # ~t3 /~;;;JdY~¡ti.!¿ 1~~ ~<Y'~, ~~~~~ /f:k ~ .§jI"~7 ~ ¿h-~~ ¿~J ~h v~. .¿:¿; -- ~~:7~~~7~ ~ycP~~ w~m~ ~~ ¿,~<rr T"/ ~,)-' Jd ~ ~;l.ß",1l/1d ~-w:I' ./~r 'dN-'zLkf' ~~ ~ ~~~ ~ ~.Ä-é ~I þ'-44/ ~ .~7~øt: *q;ß~'-,JJ/~ v ~/~Ú> - /?7 /~ '" ~ ~-I1Ú.~~ ~~I ~~ Á~~a.-uß~~ "';. ÎÞ /l'~~A ~ d/d77 I " 1 2 3 4 5 6 7 8 9 10 ~ It) 11 CI/ III 0 >< 0 0 CJI m ~ :!: 12 cö j Z II: >- I- 0 13 III < I/. ~ III ..I < II) >- 0 0 1&1 14 z cti U II: 1&1 >= 0 ..I ~ 1&1 15 III < CI ~ Z II) < 0 01 16 u 0 ..I 17 18 19 20 21 22 23 24 25 26 27 28 WHT14/g1/112~J:1 e COSKEY, COSKEY & BOXER Attorneys at Law Suite 1960 11601 Wilshire Boulevard Los Angeles, California 90025 (213) 473-4583 Attorneys for Appellant, Coskey, Coskey & Boxer UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF CALIFORNIA In re Case No. 185-01809 B.C. CHEMICALS, INC., CHAPTER 7 Debtor. DESIGNATION OF ITEMS TO BE INCLUDED IN THE RECORD ON APPEAL AND STATEMENT OF ISSUES TO BE PRESENTED (No Hearing Date Set) Appellant, pursuant to Rule 8006, does hereby designate the following items to be included in the record on appeal and a statement of the issues to be presented with respect to the appeal from the Order of the Bankruptcy Court entered on November 12, 1986 granting authority to the Trustee to clean up premises formerly occupied by the debtor. A. DESIGNATION OF ITEMS TO BE INCLUDED IN RECORD: 1. Notice of Appeal. 2. Order on Petition for Authority to Clean Up Premises. Transcript of hearing of August 28, 1986. Transcript of hearing of October 29, 1986. 3. 4. 5. Petition of Chapter 11 filed by debtor. 1 2 3 4 5 6 7 8 9 10 D: III 11 CII LLI 0 >< 0 0 01 IIJ :: « 12 dS j z c:: )0- I- 0 13 0( \I. LLI ::ï ::.::: ( 0( () >- u 0 I¡ 14 z rñ U c:: I¡ >= 0 .J ... I¡ 15 ... LLI 0( CJ ::.::: z () 0( 0 CD 16 u 0 .J 17 18 19 20 21 22 23 24 25 26 27 28 WHT14/g1/11~~6:2 e 6. Notice of an Application for Authorization to Clean Up Toxic Waste Premises. 7. Petition for Authority to Clean Up Toxic Waste Premises. 8. Objection to Application for Authorization to Clean Up Toxic Waste Premises. 9. Opposition Objection to Application for to Authorization to Clean Up Toxic Waste Premises. 10. Reply to Opposition to Objection to Application for Authorization to Clean Up Toxic Waste Premises. 11. Supplemental Opposition to Objection to Application for Authorization to Clean Up Toxic Waste Premises. B. STATEMENT OF ISSUES TO BE PRESENTED: 1. Was the entry of the Order from which this appeal is taken an abuse of discretion. 2. Was the entry of the Order from which this appeal is taken authorized by the Bankruptcy Code. 3. Did the Bankruptcy Court err by the entry of the Order re clean up of toxic waste where the original interest of the debtor in the property was a leasehold interest and said property could be abandoned? 4. Did the Bankruptcy Court err by the entry of the Order re clean up of toxic waste where the original interest of the debtor in the property was a leasehold interest and when the Trustee has not assumed said burdensome lease? 5. Diã the Bankruptcy Court err by the entry of the Order re clean up of toxic waste when pursuant to Bankruptcy Code §365 (d) (4) a debtor who fails to assume or reject an unexpired 2 1 2 ;3 4 5 6 7 8 9 10 0:: III 11 CII I.LI 0 >< 0 0 ( Q ::: ~ 12 dS j Z II: >- I- 0 13 0( IL I.LI ::ï ~ CD 0( () >- 0 0 III 14 z iii U II: III >= 0 .J ~ III 15 I.LI 0( CI ~ Z () 0( 0 CD 16 u 9 17 18 19 20 21 22 23 24 25 26 27 28 WHT14/g1/111lÞJ:3 e lease of nonresidential real property under which the debtor is the lessee within sixty (60) days after the date of the Order said lease would be deemed rejected and therefore no funds should be expended for the clean up of toxic wastes? 6. Did the Bankruptcy Court err by the entry of the Order re clean up of toxic waste when the entire benefit of said order' is for the Phoenix Trust, the lessor of the subject property, and should the Phoenix Trust, be in the pos i tion 0 f an unsecured creditor and thereby receive its pro rata share of damages as an unsecured creditor? 7. Did the Bankruptcy Court err by the entry of the Order re clean up of toxic waste when the entire benefit of said order is for the Phoenix Trust, the lessor of the subject property, where the Phoenix Trust failed to file its petition prior to the expiration of the sixty (60) day period in which the Phoenix Trust could make application of this Court to prevent the statutory rejection of said lease? 8. Did the Bankruptcy Court err by the entry of the Order re clean up of toxic waste when the entire benefit of said order is for the Phoenix Trust, the lessor of the subject property, where the Phoenix Trust, and its subject property, should be treated no different than the damages sustained by the other creditors of B.C. Chemical? The Phoenix Trust, like the unsecured creditors, incurred its damages prior to the filing of debtor's Chapter 11 petition. 9. Did the Bankruptcy Court err by the entry of the Order re clean up of toxic waste where the Phoenix Trust had an affirmative duty, as landlord, and lessor of said subject 3 1 2 3 4 5 6 7 8 9 10 0: III 11 (II iii 0 >< 0 0 en ID == ~ 12 ciS :5 z II: >- I- 0 13 0( ¡¡, iii ::i ~ UI 0( III >- 0 0 III 14 z ui 0 II: III >= 0 ..I I: III 15 iii 0( C) ~ z III 0( 0 I/) 16 0 9 17 18 19 20 21 22 23 24 25 26 27 28 WHTI4/g1/112f1Þ_:4 e property to insure that said property was maintained in conformity with state and federal environmental standards. 10. Did the Bankruptcy Court err by the entry of the Order re clean up of toxic waste effectively give to the Phoenix Trust a priority over the damage sustained by any of the other creditors of debtor and a priority over Chapter 11 administrative claims. ;Uø'~ WILLIAM H. TOPKIS for CaSKEY, CaSKEY & BOXER Attorneys for Appellant 4 1 2 3 4 5 6 7 8 9 ]0 " ] ] '...; z ~ .., 12 o õ :J: .., M .... III M 13 ~ f- 01 ~ 3: :5 0( .... 0( VI Z ..¡ ..J 'II: 14 ...:¡ f- III 0 0( :J u. .... Z - >- VI III ..J >- > 0( ]5 ..... III 0( U ~ ~ II: ri o III ..J 16 (j) f- I- III f- VI ;;: .... 0( III VI ~ J: II: ... U III 17 " - 10 :.: ...:¡ o 0( , ,... m .... 18 .... >- ..... ]9 20 21 22 23 24 25 26 27 28 e e ROBERT L.WILLIAMS 1706 Chester Avenue, Suite 404 Bakersfield, CA 93301 Phone: (805) 323-7933 UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF CALIFORNIA In re: Chapter 7 Case No. 185-01809 ) B. C. CHEMICALS, INC., a California corporation, NOTICE OF AND APPLICATION FOR AUTHORIZATION TO CLEAN UP TOXIC WASTE PREMISES ) ) Date: Time: Place: Court, August 28, 1986 10:00 A.M. Room 204, Bankruptcy Bakersfield, CA Debtor. ) TO ALL CREDITORS AND PARTIES IN INTEREST: Please take notice that on August 28, 1986, at 10:00 A.M., in Bankruptcy Court, Federal Building, 800 Truxtun Avenue, Room 204, Bakersfield, California, Robert L. Williams, Trustee will ask the court for authority to clean up toxic waste premises of the above-captioned debtor corporation and to disburse funds as necessary to clean up said toxic waste problem at 1511 South Union Avenue, Bakersfield, California, pursuant to remedial action plan of Emcom Associates. That Trustee has on hand $528,865.72. That estimated costs of cleanup are over $1,500,000.00 to be paid ahead of creditors, including taxes. That Trustee will also offer for sale remaining tanks on premises. Any creditor wishing to object may file a written objection with the Clerk of the U. S. Bankruptcy Court, 1130 "0" Street, Fresno, California 93721, and send a copy to Robert L. Williams, Trustee, at the address above or' may appear at the time and place set forth above. DATED: July 29, 1986. R08ERT L \".-'lLLlAMS Robert L. Williams, Trustee · " 1 2 3 4 5 6 7 8 9 10 0: III 11 1'1 1.11 0 >< 0 0 (I In ~ ~ 12 ciS :! z 0: >- .. 0 13 0( II. III :¡ ~ CD 0( (/) >- u 0 III 14 z ui U 0: III >= 0 .J : III 15 III 0( C) ~ z (/) 0( 0 01 16 u 0 .J 17 18 19 20 21 22 23 24 25 26 27 28 HLC18/n/081~:1 e COSKEY, COSKEY & BOXER Attorneys at Law 11601 Wilshire Boulevard Suite 1960 Los Angeles, California (213) 473-4583 90025 Counsel for Official Creditors' Committee UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF CALIFORNIA In re: ) ) ) ) ) ) ) ) ) Date: Time: Place: Court: August 28, 1986 10:00 a.m. Room 204, Bankruptcy Bakersfield, CA B. C. CHEMICALS, INC., a California corporation, Chapter 7 Case No. 185-01809 OBJECTION TO APPLICATION FOR AUTHORIZATION TO CLEAN UP TOXIC WASTE PREMISES Debtor. Coskey, Coskey & Boxer, objects to the Petition of the Trustee for Authority to Clean Up Toxic Waste Premises anå alleges as follows: 1. Coskey, Coskey & Boxer, Objectors, are counsel to the official Creditors I COIT~ittee in the Chapter 11 proceedings which proceeded this proceeding. are Coskey Coskey, & Boxer administrative creditors of this estate and have applied for fees for their services to the official Creditors' Committee. 2. Objector did not receive notice of said Petition until August 15, 1986 and therefore notice was not timely. 3. The failure to timely serve objector with notice of the Petition of the Trustee, constitutes denial of procedural and 1 2 3 4 5 6 7 8 9 10 10 11 0: OJ I1J 0 X 0 0 01 In ~ :5 12 d j Z II: >- I- 0 13 ... I1J < :¡ ~ en < (/ >- () 0 \IJ 14 z f/Î 0 II: \IJ 0 .J >- ~ \IJ 15 I1J < C) ~ z (/ < 0 Q 16 0 0 .J 17 18 19 20 21 22 23 24 25 26 27 28 HLC18/n/081~.2 e substant due process of law to objector. 3. The Petition fails to comply with Rule 21 of the local rules of this court in that among other things no factual contentions supported by affidavits, declarations or are otherwise. 4. The Petition is contrary to law. The Petition, without, citation, states that the United States Supreme Court has ruled that a Trustee in Bankruptcy cannot abandon toxic waste premises and must clean those premises (Petition, Page 2, lines 23-26). Presumably, the Petition refers to Midlantic National Bank vs. New Jersey Department of Environmental Protection, 88 L. E.D.2d 859 (1986) . In the Midlantic case, the debtor owned the real property. That property had become property of the estate and the Trustee was attempting to abandon it. In the case at bench, it appears from the Petition that the Trustee has no interest in the property which has the toxic waste problem and upon which he plans to expend over one-half million dollars. The original interest of the estate in the property was a leasehold interest. That interest terminated as a matter of law pursuant to §365(d) (4) 60 days after the date of the Order for Relief. It would appear that the only way in which this estate could have become responsible for obligations to clean toxic waste would have been an affirmative act of the Trustee assuming a burdensome lease. Objector is unaware that the Trustee undertook such action. In his dissent, Justice Rehnquist points out that conduct such as that which the Trustee proposes to undertake would place the fiscal interests of the municipality involved ahead of the 2 1 2 3 4 5 6 7 8 9 10 ~ m 11 ~ ~ 0 x 0 0 ~ m ~ < 12 ~ ~ z = > ~ 0 13 < ~ ~ J ~ ø < ~ > u 0 ~ 14 z m u ~ 0 ~ > ~ ~ ~ 15 ~ < 0 ~ z ~ < 0 ø 16 u 9 17 18 19 20 21 22 23 24 25 26 27 28 HLC18/n/081~;3 e claims of other creditors in this estate. There is no authority for such a proposition (Midlantic Page 875) . 5. There is no evidence before the court of the nature of the toxic waste on the premises or the requirements of any agency requiring a clean up of those premises. CONCLUSION It is respectfully submitted that the Petition of the Trustee be denied. At best, any claim for toxic waste clean up would be an unsecured claim which would participate in the funds available for creditors along with all other creditors. There is no basis for giving that claim an administrative priority over the other creditors of this estate. 3 - VERIFICA TION e D o STATE OF CALIFORNIA, COUNTY OF I have read the foregoing '---' , ______'and know its contents, r&I CHECK APPLICABLE PARAGRAPH I am a party to this action. The matters stated in the foregoing document are true of my own knowlcdge except as to those matters which are stated on information and belief, and as to those matters I believe them to be true. I am 0 an Officer 0 a partner 0 a of o a party to this action, and am authorized to make this verification for and on its behalf, and I make this verification for that reason. 0 I am informed and believe and on that ground allege that the matters stated in the foregoing document are true. 0 The matters stated in the foregoing document are true of my own knowledge except as to those matters which are stated on information and belief, and as to those matters I believe them to be true. I am one of the attorneys for ,__,_. a party to this action. Such party is absent from the county of aforesaid where such attorneys have their offices, and I make this verification for and on behalf of that party for that reason. I am informed and believe and on that ground allege that the matters stated in the foregoing document are true. Executed on . 19-, at California. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Type or Print Name ACKNOWLEDGMENT OF RECEIPT OF DOCUMENT (other than summons and complaint) Signature Received copy of document described as on 19_. Type or Print Name Signature PROOF OF SERVICE STATE OF CALIFORNIA, COUNTY OF LOS ANGELES I am employed in the county of Los Anqeles , State of California. I am over the age of 18 and not a party to the within action; my business address is: 11601 Wilshire Boulevard, Suite 1960, Los Angeles~~. 90025-1781 On A uq. 20 19-ª-9 I served the foregoing document described as OBJECTION TO APPLICATION FOR AUTHORIZATION TO CLEAN UP TOXIC WASTE PREMISES on in this action by placing a true copy thereof enclosed in a sealed envelope addressed as follows: Trustee Robert L. Williams, Esq. 1706 Chester Avenue, Suite 404 Bakersfield,Ca. 93301 KI (BY MAIL) I caused such envelope with postage thereon fully prepaid to be placed in the United States mail at Los lmqeles, California. Executed on August 20 , 19 86, at Los Angeles ., California. o (BY PERSONAL SERVICE) I caused such envelope to be delivered by hand to the offices of the addressee. Executed on . 19_. at . California, D (State) I declare under penalty of perjury under the laws of the State of California that the above is true and correct. Ell (Federal) I declare th:lt I am employed in the office of a member of the bar of this court at whose direction the service was made. / BETTY HOLDEN ,___ .....c::;7~, ~¿-=-_._ Type or Print Name Signature STUARrs EX8ROOK T''''ESAVER rREVISED $/831 .,. _ .., ..4'_ ....a..._._I.. 1f'O-... ..~ C'....._~..I "'__, e e WILLIAMS & WILLIAMS. INC. ROBERT L, WILLIAMS ROBERT S, WILLIAMS A PROFESSIONAL CORPORATION ATTORNEYS AT LAW HABERFELDE BUILDING 1706 CHESTER AVENUE, SUITE 404 BAKERSFIELD, CALIFORNIA 93301 1805, 323,7933 August 27, 1986 Emcon Associates 445 W. Garfield Avenue Glendale, CA 91204 Re: B. C. Chemicals, Inc. Debtor #185-01809 Gentlemen: Enclosed is letter from National Resources, Inc. dated August 22, 1986 in regard to cleanup at 1511 South Union Avenue, Bakersfield, CA. You will note that National Resources, Inc. proposes to recycle most of the remaining waste on a time and material basis. Your cooperation is very much appreciated. Encl. RLW: jah cc: Kuhs & Parker (w/encl.) Rich Eglin (wi encl.) Kenneth Bates (w/encl.) vRichard Casagrande (w/encl.) ,::.ì..,. ":'''=- ~ . ~-":-",,.~."~~ '~,';; c\'Ú-J) :(ë)í:;\\~\.<;1(, ,:' ~':5:;{< ~ I: ~j-'1-··;:)( c;> :{~~.:)~' __ (¡'~~ >-:('2 .,.....- ;,...~._,.__~'i.. u·,,-.,r.,_.:~__,-._,~~ t..'-_.JL...,"-J'_ ,_ -'...},_.....':......_.~ .~: \.JL.'..,\.....:JO e ,".,. ; ~ '?~~~.. :~:; . '~ ~-~-' -:,,'- .~ -', ":/-" "'...., '''''':-'. .:...... :..:.......'..:...JI.,~~,......:..; ...J:''':',,/ .T\{'('~'lll\ti,,~, ,-"X C"""'{'~r'ë,,,dt'~H,-": T l''It\iIH,1 /\~\I\c¡,:¡ l).,-, !,OO(¡¡ L~,s T\"~lL·k':51 C;,\ <)0051 August 22, 1986 Mr. Robèrt L. Williams Williams & Williams, Inc. 1706 Chester Ave. Bakersfield, CA 93301 Reference: Proposal for treatment,recycling and disposal of hazardous waste at B.C. Chemical Company site. Dear Mr. Williams, Enclosed is a proposal of Natio~3l Resources, Inc. to carry out the remedial action plan originally prepared by Emean & Asso:iates in association with National Resources dated Octo~er 8th 1985 and approved by County Health De~artm2nt. Natio~al Resources as consultant to B.C. Chamical Co., recommended ~he best engineerin~ firm available-Emcon-to be the prime co~tractor to 8verS8e the site clean-up operation. National Resources was also instrumental in Chern Sources, Inc. successfully bidding O~ all the go oj industrial chemicals left on site, thus saving several hundred thousand dollars {if those chemicals had been disposed of as hazardous waste}. National Resources originally entered into a contract with B·C., Chemical Co., befo~e and during bankruptcy to segregate and identify nearly 5,250 drums of chemicals which made it possible for Emeon to draw up a viable Remedial Action and Safety Plan. Based on our knowledge of the site, the following cost reducing steps will be taken before any actual disposal of waste materials. - Among the drums surveyed in our study there are several hundred plastic drums which can be triple rinsed and sold. - There are also 3 few hu~dred steel drums, many of which can be triple rinsed and sold for scrap steel. The bala~cE will be crushed and disposed of at class one la~dfill. 1= 'I··L·.... -. 1:>2S) \\I¡lIvw Sf. · L"s 7'\"~~!"SI C.7'\ 900'1:-: C\CI II kS. -. - I ~ 1 's L \ I C \ ))))'-.. ß6:):, ,:-,,'ld , /\/1(.\11\ _ t.. ('s;t "'lC <'S. ;f S Lll.~, e e - In the warehouse there are consid2rable quantities of powder products like media, soda ash, phosphates and etc. that can be used in solidification of drums of waste. Other articles that can be sold will be repacked in DOT approved containers. - There a~e several hundred drums{partial} of liquid caustic soda which can be utilized to neutralize other waste items. - Segregation will be used in cases that quantities of similar chemicals can bE pumped from partial drums into tanks for composit testing and 2valuation. Many of the spent chemicals like chlorinated solvents, Alcohols and ketones can be segregat~d and transfered in bulk to proper off~site recycling facilities for credit. To ensure maximum recycling of good chemicals we have retained Mr. Ray Rozen the president of Chern Sources, Inc. as our marketing expert for recycled chemicals. - ThOse chemicals that can not be recycled will be evaluated for possible treatment at an approved TSD Facility to further reduce the disposal cost. Our major trust in ensuring effective cost reduction plan is through Resource recovery, Treatment ,and Recycling of waste materials and to the extent possible, avoiding any land disposal of hazardous waste. Having done co~siderable work on the site already and being familiar with all the hazardous materials found thereon we feel confident that our proposal will be the mast cost effective method for complete clean-up of the site. National Resources would like to ~ave a reimbursment schedule based upon each week's services performed, payable the first of each week following invoicing, at our regular rate schedule attached, for time and materials. Our estimate for the entire job of removing the hazardous materials and hazardous waste is $285,000.00. We appreciate the opp~rtunity you have given us to submit this proposal. Resp2ctfully, / ,'-", '.", / \,j,. /' . ¿ \, \.-/" - : ¡..... .'., '. .J. Bezad Cohen, President BC:nc eiCHEDULE OF CHARI~ES - --~--_._--_._._._--- EQUIPMENTS HOURLY RATE ------ All tank trucks: -stainless steel -black iron -ri.Jbber lined $65.00 All trucks: -roll-off -40 foot flatbed - 40 foot tra i 12!~ 60.00 Delivery trucks and other mobile units {office, laboratory and etc.} no chargl: PERSONNEL ----- - Safety supervisor - Skilled labol~ 25.00 20.00 10.00 45.00 65.00 - Gener'a I labor' - Chemist - Chemical and Enviro~mental englneer OTHERS - Subcontract work - Special equipment - Other materials cost plus 10% cost plus 5% cost plus 10% -All hourly charges are calculated an portal to portal basis. ~ -National Reso~rces will provid~ a 24 hour emergency service at no additional cost, during the life of the project. -All treatment,recycling and disposal feGs are paid by National Resources and billed on weekly basis plus 5% h~ndling charg~s. Tri.Jstee can avoid the 5% fee by paying the disposal facility direct. -All truck charges are subject to 5% insura~ce surcharg~. -All credits as the result of actual sales of saleable chemicals are mad~ directly to the tri.Jstei. e e WILLIAMS & 'VILLIAMS, INC. ROBERT L, WILLIAMS ROBERT 5, WILLIAMS A PROFESSIONAL CORPORATION ATTORNEYS AT LAW HABER FELDE BUILDING 1706 CHESTER AVENUE. SUITE 404 BAKERSFIELD. CALIFORNIA 93301 .805, 323·7933 August 22, 1986 Law Off es of PARKER Box 2205 ersfield, CA 93303 /' Re: B. C. CHEMICALS, INC., Case No. 185-01809 Gentlemen: I just received the enclosed letter from Caskey, Caskey & Boxer, dated August 20, 1986, together with Objection to Applica- tion for Authorization to Clean Up Toxic Waste Premises at 1511 South Union Avenue, Bakersfield, California. Trustee was certainly relying on the Midlant1c case wherein the supreme Court ruled that the Trustee could not abandon premises, but must clean up toxic waste problems to the best of his ability. Coskey, Coskey & Boxer take the position that those facts do not apply here since B. C. Chemicals was the lessee and not the owner of the premises. Under their theory, the lease expired as a matter of law sixty days after adjudication, and Trustee has no further obligation as to said property. It would appear that this matter is going to have to be briefed, and I am sure Judge Thompson, on August 28, 1986, is going to give all parties additional time to file briefs. I thinks the facts are pretty clear and we can probably stipulate to the facts. You should certainly be in court on August 28, 1986, at 10:00 A.M. I am also sending a copy of this letter to Kern County Health Department and to EMCON Associates, Rich Eglin and Ken Bates. RLW:sr125 Enclosures:3 ccs: v.Kern County Health Department, w/encl. EMCON Associates, w/encls. Mr. Rich Eglin Mr. Kenneth Bates , w/encls. e e WILLIAMS & WILLIAMS, INC. ROBERT L, WILLIAMS ROBERT S, WILLIAMS A PROFESSIONAL CORPORATION ATTORNEYS AT LAW HABERFELDE BUILDING 1706 CHESTER AVENUE, SUITE 404 BAKERSFIELD, CALIFORNIA 93301 ,8051 323·7933 August 20, 1986 Emcon Associates 445 W. Garfield Avenue Glendale, CA 91204 f' Re: B. C. Chemicals, Inc. Debtor #185-01809 ~~~~ 1\ ð,!-1' ;:rl'l.. Gentlemen: Enclosed is a copy of letter of Chern-Tech Systems, Inc. dated August 15, 1986 ,in regard to cleanup of the B. C. Chemicals, Inc. prémises at 1511 South Union Avenue, Bakersfield, CA. We have had a number of companies look at the premise~r/but 6hem-Tech Systems, Inc. is the first one that wouldrtreat and recycle toxic waste material rather than haul it to a toxic waste dump. I am also sending a copy of this letter to the Kern County Health Department for their information. ,." ; , I \ YOU, J;S .7v.e¡r:~ tr,lY, ,; ( " , "fl" , t I' c::/Ix:,-'" 'f,V . ¡ ¡C,_ .1 \ ,I , V ) ~,'~ ...,V~_~~-. ROBERT L. WILLIAMS Encl. RLW: jah cc: Kuhs & Parker Rich Eglin 'Jkern County Health Department (w/encl.) e' e Chem- Tech Systems, Inc. 3650 East 26th Street Vernon, California 90023 (21 3) 268-5056 August 15, 1986 Triple J Treatment Center EPA #CAT-080033681 Mr. Robert L. WilUams, Esq. Williams & Williams, Inc. 404 Haberfeld Building 1706 Chester Avenue Bakersfield, CA 93301 RE: Proposal for Environmental Clean-up, Recycling and Disposal of Toxic Waste at the B£. Chemical Site Dear Mr. Williams: Chern-Tech Systems, Inc. would like the opportunity to pro- vide environmental clean-up, recycling and transportation ser- vices for the B.C. Chemical site for which you're now acting as bankruptcy trustee. Our preliminary inspection and evaluation Jndicates that clean-up and removal of all above ground chemi- cal waste and contamination can be performed for approximately $350,000.00. Actual cost would be determined on a time and ma- terial basis incorporating Chern-Tech Systems, Inc. customary charges for man hours and equipment. A schedule of these time and material charges are attached to this proposal as Exhi- bit A. Chern-Tech Systems, Inc. is an environmentally oriented company which emphasizes treatment and recycling of hazardous waste, as opposed to the archaic and outdated technology of landfilling. Chern-Tech Systems, Inc. currently operates a Title 22, Part B permitted TSDF centralized waste treatment plant in Vernon, Cali forni a.' Chem- Tech Systems, Inc. began planning and construction of the centralized waste treatment facility in 1981, when it had the foresight to recognize that alternatives to landfill disposal of hazardous waste would be required in California as the number of hazardous waste dispo- sal sites gradually diminished, and prices at remaining sites escalated. Chern-Tech Systems, Inc. is a leader with proven experence in the technology of treating and recycling hazardous waste materials. Chern-Tech Systems, Inc. believes that an emphasis on employing man hours to achieve maximum recycling potential resulæ in substantial savings over the cost of dispo- sal of hazardous materials at landfills. Chern-Tech Systems, Inc. maintains a permitted laboratory on its premises, fully staffed with experienced chemists and chemical engineers. Chem-Tech's field staff have all been DOT trained, and have extensive experience in working in highly contaminated areas. -1- e e Mr. Robert L. Williams, Esq~ Williams & Williams, Inc. August 15, 1986 Chem-Tech's employees are skilled in re-drumming, and drum transfer which ¿an result in substantial savings in disposal costs ,for partial drums of chemicals. For example, the contents of partially full 55 gallon drum containers can be transfered to five gallon pails which become comercially practical for sale and recycling. Chem-Tech's personnel are skilled in providing on- site testing procedures that can establish the existence of like chemical maleriàl such that compatible chemicals may be bulked for composite sampling, rather than employing the more expensive alternative of individual drum sampling. Chem-Tech would propose Lo use.the existing bulk storage tanks to combine the contents of multiple compatible chemical drums. One test could then be performed on the bulk sample to determine the mar k eta b i 1 i t Y 0 f L h e c hem i c a Is for r e c y c 1 i n g . C hem - T e c h w 0 u I d use test results to locate acceptable recycling sources æ end users who would be able to use the chemicals in their pro- cess "As Is." Chemical drums which are in good condition are marketable, and when triple cleaned can be sold with no dispo- sal fee incurred. Chemical drums which are not saleable, would be crushed and disposed on a cubic yard basis. Drum crushing reduces the cost of drum disposal as disposal cost are normally based on volume. Metal recyclers normally accept crushed drums which have been triple washed to remove contamination. There are large quantities of bagged chemicals which can be repackaged on-site into suitable DOT containers and recycled inlo industry use. The man hours expended in repackaging chem- ical material can save thousands of dollars of cost over land- fill disposal. Some materials on site can be used for solidi- fication and stabilization of chemicals minimizing the hazards of certain liquid toxics, and eliminating the expense of the separate disposal of the solidi fication material. Chem-Tech would propose to use existing drums on-site for repackaging Lorn chemical bags and recycling chemicals to end users rather than disposing of the empty drums and chemicals separately at exorbitant costs. Chem- Tech believes that its own treatment faci Ii ty can recycle certain of the chemicals which can be used in its treatment process. Other chemicals on-site unmarketable in drum quantities can be bulked to create marketable quantities for end users. Tœ B.C. Chemical site has plastic drums which are costly to saw, cut and d ism ant Ie, but can be r e c y c led i f s u c ke d em p t Y , and triple cleaned. The B. C. Chemical site has numerous tanks existing on site which can store the triple wash solution. -2- - - Mr. Robert L. Williams, Esq. Williams & Williams, Inc. Au,gust 15,1986 Chern-Tech Systems, Inc. has experlence with every chemical known to exist on-site. For example, Chern-Tech Systems has vas t k now 1 e d g e i nth e h a u 1 i n g 0 f Mer cap tan, learæd Wlen for a tv.o year period of time hearly one hundred drums a day were handled. Chern-Tech Systems expertise in waste treatment has been recog- nized by the Water Pollution Control Federation in, that its centralized waste treatment plant has been selected as a site for the WPCF inspection tour program designed to cover the finest municipal and industrial treatment facilities in South- ern California. Chern-Tech Systems, Inc. believes that its innovative and resourceful technology striving to achieve the maximum in re- cycling effort would achieve cost savings of 40-60% over envi- ronmental clean-up efforts which relied heavily on landfilling of hazardous materials. On any given chemical waste, Chern-Tech would be pleased to provide cost comparisons showing the sav- ings achieved by employing man hours to recycle chemir.als, rather than landfill disposal. Chern-Tech Systems, Inc. would propose to invoice weekly on a time and materials basis. Weekly payment would be expected. Chern-Tech would require that all large plastic bulk tanks re- main on site until recycling efforts are completed. Fork lifts and required laboratory and site equipment will be furnished by Chern-Tech. Chern-Tech would of course cooperate fully with EMCON & Associates in establishing compliance with existing safety and operating rules. To insure environmental integrity in the recycling process Chern-Tech will maintain records documenting where each chemical waste is taken for industrial use. Chern-Tech Systems, Inc. be- lieves that it can provide an environmentally safe and sound clean-up of existing problems at B.C. Chemicals at substantial cost savings over conventional remedial action and disposal techniques. I would be more than pleased to meet with you to discuss this matter further, or to answer any questions you may have. Sincere 1 y yours, I/ ~ ~~¿~ onald C. Stock President RCS:iva Attachment -3- (E-XHI3IT A) Ct4llÞn-Tech SystemS.',1C. 3650 East 26th Street Vernon. California 90023 (213) 268-5056 RATE SHEET Effective June 1, 1986 Triple J' Treatment Center EPA #CAT-080033681 SERVICE TANK CAPACITY Rubber lined Tank Stainless Steel Tank Up to 5100 gallons 6500 gallons 2600 gallons 4200-4500 gallons 1700 gallons 1 Ton stake-bed with lift gate (Hazardous Waste) Single Double 40 foot 1 Ton stake-bed (Material/Supplies) as needed for Special Chemical handling Black Iron Tank Black Iron Tank Barrel Truck Roll-Off Truck Flatbed Truck Flatbed Truck Safety Compliance Supervisor General laborer Solidi fication as needed for Special Chemical handling and Confined Space to be negotiated at time of use Sample + Chemical Analysis Special problems Actual cost plus 20% for handling Administrative Expense Skilled laborer Specialized Equipment Laboratory Personnel Chemical Engineer Subcontract services HOURl Y RATE * $75.'00 70.00 70.00 65.00 65.00 65.00 65.00 80.00 65.00 17.50 45.00 ') 20.00 26.75 65.00 75.00 Jobs requIrIng special procedures or equipment other than standard items may be sub- ject to additional charges,. All hourly rates, inclusive of personnel, shall be com- puted from the time of departure from terminal until the return thereto and are sub- ject to 24 HOUR call without charge for overtime, except when services are rendered on the following holidays for which there shall be an additional charge of $15.00 per each man-hour. New Year's Day Washington's Birthday Memorial Day Fourth of July Good Friday Veterans Day labor Day Thanksgiving Day after Thanksgiving December 24th Christmas n __ _ _ '" _ r '"' e e RA TE SHEET Effective June 1, 1986 DISPOSAL & RECYCLING Unless instructed by the customer to the company, all waste materials shall be evaluated and researched for recycling potential and disposed in the most economical manner available, taking into consideration labor, packaging and transportation costs. Where landfill disposal is required, fee charges, availability and proximity determine site selection. As a result of the rapid escalation in landfill disposal costs, it has become In- creasingly difficult for this company to economically advance disposal costs on be- half of our customers. We therefore reserve the right to require customers to es- tablish jirect billing accounts with each landfill as a condition to our willing- ness to perform transportation or other services. In the event that our company pays disposal costs on behalf of customers, such customers shall be billed disposal and washout fees at actual cost plus five percent (5%). INSURANCE SURCHARGE All trucking charges are subject to an additional seven percent (7%) Insurance sur- charge. Thank you for your interest in our company. Should you require additional informa- tion or have any questions, plese feel free to callan us. THANK YOU, 5/86 Page 2 of 2 e e L.AW OFFICE:S CaSKEY, CaSKEY & BOXER A PARTNtR$HIP INCLUOING A PRO"CS$IONAL. CORPORATION SUITE: 19,eo WORL.D SAVINGS CE:NTE:R lIeOI WILSHIRE: BOULEVARD L.OS ANGE:L.ES, CAL.IFORNIA 90025-1781 TOBIAS COSKEY (1896-1974) HAl. L. COSKEY A PRO"CSSIONAL CORPORATION SANDOR T, BOXER MARY El.LEN BAl.DRIDGE WILl.IAM H, TOPKI5 DAVID G. .JUSTl. August 20, 1986 TEl.EPHONE 12131 473-4583 - 879-9558 TEl.ECOPIER (213) 478-3623 Robert L. Williams, Esq. Williams & Williams, Inc. 1706 Chester Avenue, Suite 404 Bakersfield, California 93301 Re: B. C. Chemicals, Inc. Dear Mr. Williams: Pursuant to your request of August 13, 1986, I am enclosing a copy of our fee application. I am also enclosing our opposition to your Petition for Authorization to Cleanup Toxic Waste. As indicated in the opposition, it would appea,r to us that if you are relying on the Midlantic National Bank case for your conduct, that reliance is misplaced. The debtor in the Midlantic case owned the real property, and the issue was a voluntary abandonment. In the case at bench, your interest terminated 60 days after the Order for Relief upon a failure to assume the lease. I would appreciate your calling mJ after you have had a chance to review the enclosed. L\ \ l' sf relY, ~clš~~~K~;SKEY & BOXER HLC/bh/9 Enclosure - e WILLIAMS & \VILLIAMS. INC. ill, I ,'I Vlr:~ ),\(1 ~ U· I ¡, /1 II Kuhs & Parker Attorneys at Law P.o. Box 2205 Bakersfield, CA 93303 A PROFESSIONAL CORPORATION ATTORNEYS AT LAW HABERFELDE BUILDING 1706 CHESTER AVENUE. SUITE 404 BAKERSFIELD, CALIFORNIA 93301 .805. 323,7933 ROBERT L, WILLIAMS ROBERT S, WILLIAMS August 5, 1986 Re: B. C. Chemicals, Inc. - Debtor #185-01809 Gentlemen: Enclosed is a copy of Notice and Petition for Authorization to Clean Up Toxic Waste Premises which is set for hearing on August 28, 1986 in Bankruptcy Court at Bakersfield, California. As per the Petition and Notice, Trustee has on hand about $528,000.00. The County estimates costs of cleanup to be over $1,500,000.00. Trustee is requesting that he be allowed to disburse funds as necessary for the cleanup with the costs to be paid ahead of creditors. I am sure we will have some creditors object, but under the latest Supreme Court decision Trustee can- not abandon the premises and pay money to creditors. Todate we have disposed of a large amount of material at a small cost. Trustee believes that if we had hired someone to haul inventory as waste, the cost would be over $500,000.00. Trustee is requesting authorization to proceed with Emcom Associates' remedial action plan which provides for disposal of all material on the premises and for later drilling to see the extent of ground contamination. Trustee has talked to a number of companies which would like to be hired to do the cleanup and Trustee pre- sently believes that the proposal of Chern-Tech Systems, Inc. to proceed with cleanup on a time and material basis is probably the best plan received thus far. Chern-Tech Systems, Inc. would dispose of a large part of the material on the premises by delivering to users and also would pump out barrels into bulk storage which would save the cost of testing individual barrels. Trustee has been quoted a price of $100.00 per barrel for test- ing only. Enclosed is a copy of the brochure from Chern-Tech Systems, Inc. for your information. It appears that Trustee's funds will not be sufficient to take care of the cleanup and I believe the landlord will be next in line for the costs thereof. Your thoughts will be very much appreciated. e e Kuhs & Parker August 5, 1986 Page 2 Also enclosed is a copy of the Statements of Disbursement showing all receipts and disbursement . / / You /' S Encls. RLW: jah cc: u.s. Bankruptcy Court Mr. Rich Eglin v~ern County Health Dept. 1700 Flower Street Bakersfield, California 93305 Telephone (805) 861-3636 ~RN COUNTY HEALTH DEPARTME" HEALTH OFFICER Leon M Hebertson, M.D, ENVIRONMENTAL HEALTH DIVISION DIRECTOR OF ENVIRONMENTAL HEALTH Vernon S, Reichard July 21. 1986 United States Bankruptcy Court Federal Building 800 Truxtun Avenue Bakersfield, CA 93301 Re: B.C. Chemicals, Inc. Case No. 185-01809, Chapter 7 The Kern County Health Department has reviewed and approved Emcon Associates Remedial Investigation plan for B.C. Chemicals, 1511 South Union Avenue, Bakersfield, California. With this approval and authorization of funds by the Court, Emcon can begin to assess the soil contamination resulting from B.C. Chemicals hazardous waste storage practices. As a matter of public health and safety, it is critical that funds be authorized as soon as possible for Emcon to start this work. especially before this years rainy season begins. Therefore, this Department hereby requests that adequate funds be disbursed to Emcon Associates so that work may begin. If there is any reason why funds cannot or will not be, provided for work to be initiated by Emcon within 30 days, please advise this Department in care of Richard Casagrande, Program Manager. Thank you for your consideration in this matter. ~~~~ Environmental Health Specialist II Hazardous Materials Management Program RC:JH:aa cc: Robert Williams Henry Cruse Jeri Voge Gerry White 1700 Flower Street 9akerltleid, California 93305 Telephone (805) 861·3636 K.\I COUNTY HEALTH DEPARTME_ HEALTH OFFICER Leon M Hebertlon, M.D. ENVIRONMENTAL HEALTH DIVISION DIRECTOR OF ENVIRONMENTAL HEALTH Vernon S. Reichard July 18, 1986 Mr. Henry Cruse Emcon Associates 445 W. Garfield Ave. Glendale, CA 91204 Dear Mr. Cruse: John Harris and I have reviewed your responses to our comments in your letter dated July 17. You have satisfactorily addressed the concerns we re- layed to you. We share your opinion that it is of upmost importance to complete field work involved prior to the next rainy season. Please accept this letter as a notification of our approval of the work plan as ammended by your letter of July 17, 1986. Please advise the Bank- ruptcy Court of our approval so that the required expenditures may be author- ized. If there is any questions please feel free to contact John Harris or myself at (805) 861-3636. Sincerely, N~~ ~~~ Environmental Health Specialist II Hazardous Materials Management Program cc: Robert Williams Sr. ABJ : dk DISTRICT OFFICES - Sent via Federal Express e @ I:mcon ASSOCIATES Consultants in Wastes Management and Environmental Control July 17, 1986 Project: 773-01.01 Ms. Nancy Johannesmeyer Kern County Health Department Hazardous Substances Management Program 1700 Flower Street Bakersfield, California 93305-2231 Re: B.C. Chemicals Dear Ms. Johannesmeyer: Since we have had some problems getting together by phone, I thought I would respond to your questions regarding the B.C. Chemicals Remedial Investigation (RI) Plan in writing. My answers are referenced to your questions which are attached for reference. 1. Agreed. The referenced documents will be completed prior to commencement of the field work. 2. EPA Method 601. 3. The reference to the 11133011 program is incorrect. It should have been the 11130811 program. Under SB 1308, water purveyors were requi red to make a one-time survey of thei r water suppl ies for contamination by priority pollutants. The purpose of obtaining this data would be to correctly interpret specific on-site data. 4. EMCON has an approved list of experienced drilling contractors. Typically, all the drilling and well installation is sub-contracted, but the work is conducted under the direction of an EMCON registered geologist. . Layne-Western Co., Inc. P.O. Box 3216 Bakersfield, CA 93385 . Donis Drilling Company 212 Pil ot Bakersfield, CA 93308 445 W, Garfield Avenue, Glendale, California 91204, (818) 247-1260 /' Ms. Nancy JOhanne~yer July 17, 1986 Page 2 e 5. EMCON typically uses three bore volumes when purging a well prior to sampling. 6. The following EPA analytical methods will be used for ground-water samples: Chlorinated hydrocarbons: Priority pollutants: BTX: EPA 601/8010 EPA 625/8270 Modified EPA 8015 using capillary GC-FID 7. The basic thought behind the ground-water sampling plan was to maximize the quantity of information obtained, while keeping costs within reason. Shallow wells will be tested for chlorinated hydro- carbons and BTX as a screening process to establish whether they are present or absent. Assumi ng all are found, the deeper wells wi 11 only be tested for chlorinated hydrocarbons as surrogates for all pollutants. It is our experience that TCE, for example, is a very conservative parameter, and can often be used to define a plume of m; xed contami nants. Once a plume is defi ned, BTX or other para- meters can be measured. 8. Pump and trip blanks are routinely carried out on all sampling trips as part of EMCON's routine QA/QC program. 9. Agree with comment, but suggest that the RI pl an not be mod; fi ed, since that will introduce delays into the program. 10. Initially, to establish site conditions, only a single sampling of each source is planned. Repetitive sampling might be needed later, but cannot be addressed now. If the above commentary sat i sfi es your questi ons, perhaps you coul d issue a letter approving the plan. If possible, we would like to have the majority of the work completed before the next rainy season, but the Bankruptcy Court will not authori ze expenditures without written approval. If you have any questions, please feel free to call me at (818)247-1260. Very truly yours, EMCON Associates ~ ~ /J/J Henry Cruse, P.E. Regional Manager HC:jp cc: Bob Williams, Williams & Williams e e ATTACHMENT 2 QUESTIONS RECEIVED FROM VCHD ON B.C. CHEMICALS' REMEDIAL ACTION PLAN 1. It is expected that the following documents will be complete prior to on-site field work as was stated in the work plan. (p.8) (p.8) (p.lO) (p.12) (p.l3) (1) A narrative of subsurface & surface geology. (2) An interview with the former B.C. Chemicals owner con- cerni ng the hi story of operat ions and chemi ca 1 spi 11 s at the plant. (3) QA/QC plan. (4) Revisions to Site Safety Plan. (5) Community Relations Plan. 2. (p.17) What test method will be used to analyze for chlorinated hydrocarbons in soil samples? 3. (p.20) r~entions the 1330 program; what is it? Deep aquifer wells should be analyzed regardless of water quality data in the area. 4. (p.18) Will EMCON perform the drilling well completion tasks or wi 11 thi s be sub-contracted out? If thi s is to be sub- contracted, a firm should be chosen that is experienced in hazardous waste work. This firm should be subject to the approval of this department. 5. (p.20) Purge volumes for existing wells should be discussed in the QA/QC plan when casing volume and void volumes are unknown. 6. (p.25) Method numbers for the analysis of chlorinated hydrocarbons, priority pollutants and BTX in ground water should be stated. 7. The work plan states that newly constructed shallow wells will be tested for chlorinated hydrocarbons and BTX (p.15). The new deep well will be sampled and analyzed for chlorinated hydrocarbons only (p.25). Existing wells in the area are to be sampled and tested for chlorinated hydrocarbons and priority pollutants (p.20). What is the objective of these differences in analyses among various well types? Table 2 should be corrected to reflect these differences. 8. (p.23) It is~t clear as to whether pump b~KS will be obtained for just newly constructed wells or existing wells also. 9. (p.26) Paragraph 2 of thi s page states that if contami nati on is detected in ground water, further monitoring will take place and alternative water supplies will be developed. This paragraph should also mention that remedial action will need to be taken on the contaminated ground water. 10. Appendix B, Section V.D.5 states that the posed frequency of ground- water sampling should be included in the sampling plan. This is not mentioned in the sampling portion of the work plan. e e July 8, 1986 JUltlc. Building 1215 Truxtun Av.nu. Ø.k....'I.ld. C.llfornl. 93301 EDWARD R. JAGELS Dlltrlct Attorney Telephone 861-2421 Howard Okamoto State Hazardous Materials Laboratory 2151 Berkeley Way Berkeley, CA 94704 In re: B. C. Chemicals Dear Howard: I have met with John Harris, Chemist from the Kern County Health Department relative to the test results received on the above- specified matter and reviewing sam~. He informs me that there are still some tests which have not been performed on some samples. As I previously indicated to you, we are approaching one year since the search warrant was issued and samples were taken. As you are aware, the Statute of Limitations for certain criminal filings is one year. We are requesting a complete set of results to date to be forwarded to our office. As well, I shall appreciate receiving your considered opinion as to whether we may expect complete results by July 31, 1986. In addition, because the samples were forwarded to McKesson Lab, we will need copies of the pertinent chain of custody documents pertaining to the transfer to McKesson. Thank you for your anticipated cooperation in this regard. you have any questions or comments, please contact me, Should Sincerely, EDWARD R. JAGELS District Attor ey ,cc: Gerry Whit - DOHS Richard Casagrande - KCHD e . Mr. Richard Ross, Coordinator April 30, 1986 Page 2 complete the further inquiry necessary to determine how this matter should be filed. In other words, unless we receive these tests results by the specified date, it is unlikely that we will be able to file this matter at all. I would find it regrettable if the extensive efforts on the part of all agencies involved were to cesult in what would basically be a moot ~case~ because of the fact that the test results were not pecformed and provided in the necessary period of time. Without elabocating further, we ace again cequesting whatever assistance you can pcovide in this mattec. Thank you for your anticipated coopecation in this cegacd. Sincerely, EDWARD R. JAGELS District A/9'~~~ý By ~~i ,~ /JeCi'G~'1ï1LG "þo~e'- t)( '~pu DistriC¡ ttorney JGV:J ' J '- cc: Geccy White Depactment of Health Services Vern Reichacd Keen County Health Department · ~.. e e 11(1) lIU1l1ûN 71U1á SWIiu 500 Bbl Portable Tanks Mail-175 Ray Street loc-3400 N, Manor Street Bakersfield. CA 93308 (805) 393-1151 Vacuum & Pump Trucks June 24, 1987 Kuhs & Parker 1200 Truxtun Ave. Bakersfield, Calif. 93301 Attn: Scott Baker RE: BC Chemicals Gentlemen: M.P. Vacuum Truck Service proposes to conduct a precise inventory of hazardous wastes contained in drums, pails, bags, and tanks located on property identified as BC Chemicals, 1511 South Union Ave., Bakers- field, California. The following is an outline of work to be performed: 1. Prepare inventory Each waste container will be numbered, and a written inventory prepared. This inventory will contain a description of the container including; a. Size of container b. Condition of container c. Volume contained d. External markings ( if any ) 2. Sampling of containers Containers with unknown or uncertain contents will be sampled. This sampling will be accomplished in accordance with the procedures, including quality control, in E.P.A. 's "Test Methods For Evaluating Solid Waste, SW-846". 3. Hazcat analyses The samples that are collected will be tested for hazardous characteristics. The tests will include: a. pH test b. Flashpoint test c. Cyanide test d. Sulfide test e. Halogenated organic test f. Physical properties ( visual) A secondary purpose of this testing is to determine which wastes 'may be safely combined for disposal. .,. e e Pg.2 4. Written report A report will be prepared which will include the waste inventory, hazcat results, and a plan to process, trans- port, and dispose of the wastes. All work will be accomplished under the direction and supervision of a qualified chemist and safety engineer. Personnel protection and safety will be accomplished by means of appropriate protective clothing and respiratory protection. This work will be conducted on a time and materials basis using the following rates: Chemist Safety Engineer Service Truck (operated) Labor Hazcat Testing Materials - $65.00/Hr. - $36.00/Hr. - $55.00/Hr. - $25.00/Hr. $20.00/Sample - Cost plus 15% Progress reports will be submitted weekly. These reports will itemize the total cost incurred to date. Invoices will be mailed monthly with payment due thirty (30) days from invoice date. All work will be accomplished with the approval of the Kern County Health Department and in basic compliance with the Emcon plan. Work will begin within three weeks and be completed, with the exception of the final report, in approximately ten (10) working days. If you have any questions, please feel free to call me. Sincerely; dth7J fLd Tom Pruitt Chief Chemist L e e April 30, 1986 CRIMINAL DIVISION Kern Co. Justice Building 1215 Truxtun Avenue B~ker.fleld, California 93301 '" (805) 861-2421 EDWARD R. JAGELS District Attorney Mr. Richard Ross, Coordinator Hazardous Waste Enforcement Department of Health Services 714/744 P Street Sacramento, CA 95814 " Re: B. C. Chemical Dear Mr. Ross: A coordinated effort between the Kern County Health Department, the Kern County District Attorney's Office and the State Department of Health Services was carried out on September 5, 1985. At that time samples were taken at the B. C. Chemical site, with said samples' being transported to the State Department of Health Services Hazardous Materials Laboratory section on September 6, 1985. We have, to date, received only the Ph analysis of the test samples taken. I am informed by our local Health Department representatives that the laboratory has yet to test for the vol~tiles and base extractables. All of these test results were requested at the time these samples were forwarded to your laboratory. We appreciate the fact that the State Laboratory is backlogged. However, this would appear to be an inordinately long period of time to await said test results. I am enclosing a copy of a January 27, 1986 letter directed to Gerry White's attention requesting any assistance that he and/or any of his representatives could render relative to expediting the test results. We shall appreciate any assistance which you may provide relative to having these tests run and the test results provided to our office and the Kern County Health Department. The initial test results indicate that there may be some chargeable counts relative to the Ph. If the remaining test results are not indicative of appropriate levels of hazardous waste, it is likely that we would elact to charge this matter as a misdemeanor. As you are aware, the statute for charging misdemeanors is one year. We are concerned that unless we receive the additional test results by June 9, 1986, we will have insufficient time to review same with the representatives from the DOHS Laboratory and to e e ~, Richard M. Casagrande Environmental Health Specialist IV I have been an Environmental Health Specialist for the past 16 years, the last six years in the Hazardous Materials Management Program for the Kern County Health Department. I am currently the Program Manager for the Hazardous Materials Program, with a staff of 10 Environmental Health Specialists. The following are a sample of the courses I have attended relating to this field (refer to lists on separate sheet). I graduated from Long Beach State in 1968 with a B. A. degree in Biology; I .continued another year of graduate work and received a Secondary Teaching Credential in 1969. I started work for the Kern County Health Department in 1969. Recently, I was seated as an expert witness in Superior Court in the case "Kern County et al vs. State of California, D.O.H.S.", in the matter of the McColl Waste Transportation to Kern County; I have been a witness in other court and appellant proceedings involving other cases. I had been retained as an instructor for the Department of Health Services in 1980, to travel throughout the State with other health professionals to provide training in all aspects of Hazardous Waste Management and Toxic Substances Control. The section I taught was "Local Agency Response to Toxic Spills." One day seminars were held in Los Angeles, Oakland, and Redding in 1980. I have been an instructor at Taft College and Bakersfield College. The subjects I have taught are "What is Industry I s Responsibility for Hazardous Materials Management in Emergency Response" and "Local Health Departments Programs in Hazardous Waste Management." I have attended the "Hazardous Waste Training Course" sponsored by the Department of Health Services in 1983; two days per month for five months, April to August, 1983. Topics were: Toxicology, Lab Analysis and Sampl ing, Personnel Protection and Safety. Inspections and Enforcement of Hazardous Waste Laws, and Local Response to Chemical Incidents. I am currently California Environmental Health Association Section Chairman for hazardous waste and assist the Association in policy review and Bill Analysis in this subject. I have attended throughout the state, toxic substances. and have been a specifically in guest speaker at other seminars the area of hazardous waste and In the scope of my job responsibilities, I review Draft Remedial Action Plans, Contingency Plans for Emergencies, E.I.R. IS, C.U.P. 's, Hazardous Waste Site Assessment Plans, and conduct specific investigations relating to hazardous waste management as lead Emergency Response Coordinator, I am responsible for the Department I s response to chemical emergencies per the plan adopted by the Board of Supervisors. e e There are currently 1.450 underground storage of hazardous materials facilities that have "Interim Permits to Operate" issued by the Department, of which 170 have had new construction permits also. These facilites are currently under Department review for their "Conditional Permits" issuance, and the permit operators are being trained by staff in ongoing seminars. There has beeen 280 underground tank facility abandonments for which permits have been issued and environmental assessments completed. Below is a list of the emergency incidents and complaints/referrals that our office has investigated: Incidents Complaints Off Road On Road 1979 15 33 22 1980 17 24 12 1981 19 12 30 1982 25 29 26 1983 20 59 36 1984 47 22 42 1985 -ª.! Æ 94 224 261 262 TE ril 23-25, 1986 I cember 14, 1984 vember 5-9, 1984 ly 10-12, 1984 ,y 2, 1984 ~rch 5-8, 1984 !bruary 10, 1984 iY, 1983 ,rll - July, 1983 ~cember 13-17, 1982 ~ptember 15, 1981 lnuary-March, 1981 ~tober 19, 1979 e SPONSOR U.S. ENVIRONMENTAL PROTECTION AGENCY (OFFICE OF EMERGENCY AND REMEDIAL RESPONSE) DISTRICT ATTORNEY U.S. ENVIRONMENTAL PROTECTION AGENCY (OFFICE OF EMERGENCY AND REMEDIAL RESPONSE) U.S. ENVIRONMENTAL PROTECTION AGENCY (OFFICE OF EMERGENCY AND REMEDIAL RESPONSE) CALIFORNIA HIGHWAY PATROL CALIFORNIA FIRE SERVICES U.S. ENVIRONMENTAL PROTECTION AGENCY (OFFICE OF EMERGENCY AND REMEDIAL RESPONSE) CALIFORNIA DISTRICT ATTORNEYS ASSOCIATION IT CORPORATION - WILMINGTON DEPARTMENT OF HEALTH SERVICES U,S. ENVIRONMENTAL PROTECTION AGENCY STATE FIRE MARSHAL AND CHP DEPARTMENT OF HEALTH SERVICES CALIFORNIA SPECIALIZED TRAINING INSTITUTE, CAMP SAN LUIS OBISPO e COURSE CONTINUING EDUCATION UN ITS OR HOURS RESPONSE SAFETY-----------4.1 Units DECISION-MAKING-----------40 Hours WORKSHOP 9165.8) HAZARDOUS WASTE HAULER ENFORCEMENT--------6 Hours TRAINING AIR SURVEILLANCE FOR HAZARDOUS MATERIALS--------2.7 Units (165.4) 30 Hours SAMPLING AT HAZARDOUS MATERIALS INCIDENT---------2.0 Hours (165.9) 30 Hours HAZARDOUS MATERIALS--------6 Hours TRAINING HAZARD EVALUATION AND 2.3 Units ENVIRONMENTAL ASSESSMENT---40 Hours (165.6) HAZARDOUS SUBSTANCES-------8 Hours SEMINAR HAZARD CATEGORIZATION------8 Hours HAZARDOUS WASTE MANAGEMENT FOR-------------64 Hours ENFORCEMENT PERSONNEL PERSONNEL PROTECTION AND 2.3 Units SAFETY (165.2)-------------40 Hours HAZARDOUS MATERIALS--------8 Hours AWARENESS EMERGENCY ISSUES IN TOXICOLOGY AND-------------32 Hours ENVIRONMENTAL HEALTH CONTINGENCY PLANNING-------36 Hours FOR HAZARDOUS MATERIALS COURSE e e 1700 Flower Street Baker.field. California 93305 Telephone (8051861-3636 KERN COUNTY HEALTH DEPARTMENT HEALTH OFFICER Leon M Hebert.on, M.D, ENVIRONMENTAL HEALTH DIVISION . DIRECTOR OF ENVIRONMENTAL HEALTH Vernon S. Reichard J( {5JJ1J ;f r March 19, 1986 Richard Eglin c/o B.C. Laboratory 4100 P~ierce Road Bakersfield, California 93308 Dear Mr. Eglin: As owner of B.C. Chemicals, YOU ARE HEREBY ORDERED to take immediate steps to prevent the off-site migration of storm water from the B.C. Chemicals facility, 1511 South Union Avenue, Bakersfield, California. Recent rains have flooded an area along the south property line of B.C. Chemicals and flowed off-site into the premises of Clifton's \-lelding, 1601 South Union Avenue. The potential for this and other problems to occur was detailed in a letter to Robert Williams Sr. dated December 26, 1985, from Henry Cruse of Emcon Associates (a copy of which is attached). It was this Department's belief that he would, in good faith, go before thp Bankruptcy Court and request that funds be approved to carry out the necessary mitigation procedures. His failure to do so has allowed potentially hazardous waste to enter Clifton's Welding, and poses an immediate threat to employees working with arc welding or other electrical equipment All mitigation work must be first approved by the Kern County Health Department, and supervised by Emcon Associates. In addition to preventing rainwater from flowing from B.C Chemicals into Clifton's Welding, YOU ARE ALSO ORDERED to remove standing water from the premises of Clifton's Welding and to clean any equipment that may have been contaminated by the runoff. Any water and dirt o· mud removed from Clifton's is to be considered as haz~rdous waste, unless proven otherwise according to Article 'I of Title 22, of the California Administrative Cod~. e e Richard Eglin March 19, 1986 Page Two All communications and orders for work to procede must be made through John Harris of this office at (805) 861-3636. Mitigation measures to prevent runoff from B.C. Chemicals into,Clifton's Welding must be completed no later than 5:00 p.m.;on Friday, March 21, 1986. Removal of water and dirt from-' Clifton's Welding. is to be completed no later than 5; 00 p.m. on Wednesday, March 26, 1986. Sin,erely, , l!Æ?}1l!. {/l~~ctor Environmental Health Division VSR:JH:aa cc: Jeri Voge Bruce Butterfield U.S. Bankruptcy Court -- - RULES OP THE UNITED STATES BANKRUPTPCY APPELLATB PANEL OP THB NIHTB CIRCUIT PREAMBLE These rules of the United States Bankruptcy Appellate Panel of the Ninth Circuit are promulgated under the authority of Bankruptcy Rule 8018 and under authority of Section 8(b) of the May 3, 1985, Order of the Judicial Council of the Ninth Circuit entitled Amended Order Establishing and Continuing the Bankruptcy Appellate Panel of the Ninth Circuit. Adopted November 15, 1984. Amended June 21, 1985; November 21, 1985; March 19, 1986. e . R~Bl DBPIRI~IORS (a) The words "PANEL CLERK- as used in these rules mean the Clerk of the United States Bankruptcy Appellate Panel of_~he Ninth Circuit. (b) The word "JUDGE" as used in these rules, unless otherwise designated, means a judge of the United States Bankruptcy Appellate Panel of the Ninth Circuit. (c) The word "PANEL" as used in these rules means a panel of judges of the United States Bankruptcy Appellate Panel of the Ninth Circuit. (d) The acronym "BAP" as used in these rules means Bankruptcy Appellate Panel of the Ninth Circuit. R~E 2 CLERK OP THB BAHlRUPTCY APPELLATB PANEL; COMMURICATIOHS (a) The principal office of the clerk of the BAP shall be in the United States Court of Appeals Federal Building, 125 South Grand Avenue, Pasadena, California 91105. (b) All communications to the BAP shall be addressed to the Clerk of the United States Bankruptcy Appellate Panel of the Ninth Circuit, P.o. Box 91510, Pasadena, California 91109. When it is intended that a communication come to the attention of a certain judge or judges, an original and three copies shall be supplied to the panel clerk, who will furnish a copy to each judge. e e RULE 4 RECORD Olf APPEAL AIm EXCERPt'S OP RECORD (a) When the record, including any transcript, is complete -- for the purposes of appeal, the clerk of the Bankruptcy Court shall transmit a certificate of record to the panel clerk. The panel clerk shall forthwith notify the parties of the date of filing of the certificate of record, and this date shall constitute the date of entry on the docket for purposes of Bankruptcy Rule 8009. The record shall be retained by the clerk of the Bankruptcy Court until requested by the panel clerk. (b) Excerpts of record shall be filed in accordance with Bankruptcy Rule 8009(b). A party filing excerpts of record shall file five (5) copies to be bound separately from the briefs. Each copy shall be reproduced on white paper by any duplicating process capable of producing a clearly legible image. Each copy shall have a cover styled as described by Rule 32(a) of the Federal Rules of Appellate Procedure. (Amended June 21, 1985) ROLE 5 BRIEFS (a) FORM AND NUMBER OF BRIEFS. Parties shall file an original and four (4) copies of their briefs. At the direction of a panel, the parties may be required to furnish additional copies of the briefs. Briefs shall be submitted in general conformance with Bankruptcy Rule 8010 and Rule 32{a) of the Federal Rules of Appellate Procedure. e e Cd) C~IFICATIOR OF RELATED CASES. The appellant shall attach to the inside back cover of each co~y of the opening brief, a statement of all known related cases before the United States Court of Appeals, the United States District Court, or the BAP. A related case is defined as one which involves substantially the same litigants, or one which involves substantially the same factual pattern or legal issues. -- (e) TIME POR PILING BRIEFS. Briefs shall be filed in accor- dance with the time limits specified in Bankruptcy Rule 8009(a). (f) ~ION POR EXTENSION OP TIME POR PILING BRIEF. A motion for an extension of time for filing a brief shall be made within the time limit prescribed by these rules for the filing of such brief and shall be accompanied by proof of service as prescribed in Rule 25(d) of the Federal Rules of Appellate Procedure. The motion shall be supported by a declaration stating the time when the brief is due, how many extensions of time, if any, have been granted, when the brief was first due and whether any previous requests for extensions of time have been denied or denied in part. The motion shall also recite the reasons why such an extension is necessary and the amount of time requested. A motion for such an extension shall also state the position of the opponentes) in respect to the motion or state why the moving party ha~ been unable to obtain a statement of such position(s). If such motion is not opposed and the requested extension is not more than thirty (30) days, the panel clerk or deputy panel clerk is authorized to grant the requested extension under the direction and guidelines of the panel. e e filed in the trial court included in the excerpts of record. Either party may file a supplemental brief in the form required by BAP Rule Sea) but not to exceed ten (10) pages in length. -. Unless otherwise ordered, both appellant's and appellee's brief must be filed within 15 days from the filing of the certificate of record on appeal or from the order directing an expedited appeal, whichever is later. Unless a party requests oral argument, the appeal shall be submitted for decision without argument. However, upon request of one panel member, the appeal will be set for oral argument. (Amended June 21, 1985) RULE 7 COSTS ON APPEAL (Repealed March 19, 1986) RULE 8 ADMISSION OP ATTORNEYS Any attorney admitted to practice before a District Court of the Ninth Circuit or the Court of Appeals for the Ninth Circuit and who is in good standing before such court, shall be deemed admitted to practice before the SAP. A motion by an attorney not so admitted tJ appear for the purpose of a particular case shall be addressed to the panel. e e the appeal. The order disposing of the motion is expressly subject to reconsideration by a judge of the panel if exception is received within ten (10) days of the entry of the order. ROLE 11 " FORM AND PUBLICATION OF DISPOSITION OF CASES (a) OPINIONS. MEMORANDA. ORDERS~ PUBLICATIOR. Each written disposition of a matter before these panels shall bear under the number in the caption an appropriate label, that is, OPINION, MEMORANDUM, or ORDER. A written reasoned disposition of the case which is intended for publication is an OPINION of the panel. It may be an authored opinion or a per curiam opinion. A written reasoned disposition of a case which is not intended for publication is a MEMORANDUM. Any other disposition of a matter before the panel is an ORDER. An ORDER or MEMORANDUM shall not reveal its author, nor shall its authorship be designated "Per Curiam." PUBLICATION means making available for reporting by legal publishing companies, or for distribution to regular subscribers, written dispositions which have been printed as slip opinions, or copies of which have been prepared by other means. Publication as a matter of course shall apply only to opinions. (b) WHEN DISPOSITION TO BE BY OPINION. Subject to subsection Cd) hereof, a case shall not be disposed of by written opinion for publication unless it: e e disposition is made without oral argument, before it is filed with the panel clerk. (f) RBOOR~ .OR POBLI~IOR. Publication of any unpublished disposition may be requested by letter addressed to the panel clerk, stating concisely the reasons for publication. Such a request will not be entertained unless received within &0 days of the issuance of the panel's disposition. (g) PERIODIC NOTE TO POBLISRIHG COMPUIES. A list of all cases that have been decided by unpublished disposition will be made available periodically to legal publishing companies for publication. The list shall include a notation as to the concluding disposition in each case, such as, e.g., ·Affirmed,· 'Reversed,· or -Dismissed." RULE 12 COURTROOM PBOTOGRAPBY TELEVISION AND RADIO BROADCASTS For the purposes of the resolution of March 1979 of the Judicial Conference of the United States, which prohibits the taking of photographs in the courtroom or its environs in connection with any judicial proceedings, the environs of the courtrooms of the Bankruptcy Appellate Panel shall include the courtrooms utilized by the panel as well as the panel clerk's office and any hallways in the immediate vicinity of such courtrooms and office. The use of radio, television or other means for live or delayed broadcasting is forbidden within areas from which photography is excluded. e e (c) Unless otherwise ordered by the panel, oral argument in person, or by telephone conference call, or in such other form as may be required by the panel, shall be arranged by the BAP clerk. (d) Emergency motions shall be heard by at least two members of the motions panel unless the lead motions judge, in his or her discretion, concludes that the e~ergency motion may be disposed of by a single judge. (Adopted June 21, 1985) 1700 Flower Street Bakersfield, California 93305 Telephone (805) 861-3636 e _ KERN COUNTY HEALTH DEPARTMENT HEALTH OFFICER Leon M Hebertson, M,D, ENVIRONMENTAL HEALTH DIVISION DIRECTOR OF ENVIRONMENTAL HEALTH Vernon S. Reichard t1arch 18,1986 Rob e r t L. Will i am s, Sr. \Hlliams & Williams, Thc. 404 Haberfelde Building 1706 Chester Avenue Bakersfield, California 93301 Dear Mr. Williams: As Trustee for B.C. Chemicals, YOU ARE HEREBY ORDERED to take immediate steps to prevent the off-site migration of storm water from the B.C. Chemicals facility, 1511 South Union Avenue, Bakersfield, California. Recent rains have flooded an area along the south property line of B.C. Chemicals and flowed off-site into the premises of Clifton's \1 e 1 din g, 1 6 0 1 Sou t h U n ion A v e n u e . The potential for this and other problems to occur was detailed in a letter to you dated December 26, 1985, from Henry Cruse of Emcon Associates (a copy of which is attached). It was this Department's belief that you would, in good faith, go before the Bankruptcy Court and request that funds be approved to carry out the necessary mitigation procedures. Your failure to do so has allowed pot,entially hazardous waste to enter r:ifton's Welding, and po~es an immediate threat to employees working with arc weldi' or' other electrical equipme~t All mitigation work must bp first approved by the v~rn County Health Department, an1 supervi~ed by Emcon Asso ~Les. In addition to preventin5 ralnwater from flowing from B.C Chemicals into Clifton's ijelding, YOU ARE ALSO ORDERED to remove standing water from the premises of Clifton's Welding and to clean any equipment that may have been contaminated by the runoff. Any water and dir~ or mud removed from Clifton's is to be considered as ~¡az; dous waste, unless proven otherwise according to Artic~è 11 of Title 22, of the California Administrative Code. e - Robert L. Itlilliams, Sr. March 18, 1986 P age Two All communications and orders for work to procede must be made through John Harris of this office at (805) 861-3636. Mitigation measures to prevent runoff from B.C. Chemicals into Clifton's Welding must be completed ~o later than 5:00 p.m. on Friday, March 21, 1986. Removal 'of water and dirt from Clifton's Welding' is to be completed no later than 5:00 p.m. on Wednesday, March 26, 1986. Sincerely, . tiÍt;í'1/l /l2dtá1tb Vernon S. Rer~ard, Director Environmental Health Division VSR:JH:aa cc: Jeri Voge Bruce Butterfield U. S. Bankruptcy Court 1700 Flower Street Bakersfield, California 93305 Telephone (805) 861-3636 e e KERN COUNTY HEALTH DEPARTMENT HEALTH OFFICER Leon M Hebertson, M.D. ENVIRONMENTAL HEALTH DIVISION DIRECTOR OF ENVIRONMENTAL HEALTH Vernon S, Reichard March 18, 1986 Rob e r t L. Will i am s, Sr. Williams & Williams, Inc. 404 Haberfelde Building 1706 Chester Avenue Bakersfield, California 93301 Dear Mr. Williams: As Trustee for B.C. Chemicals, YOU ARE HEREBY ORDERED to take immediate steps to prevent the off-site migration of storm water from the B.C. Chemicals facility, 1511 South Union Avenue, Bakersfield, California. Recent rains have flooded an area along the s0uth property line of B.C. Chemicals and flowed off-site into the premises of Clifton's Welding, 1601 South Union Avenue. The potential for this and other aroblems to occur was detailed in a letter to you dated De~ember 26, 1985, from Henry Cruse of Emcon Associates (a copy of which is attached). It was this Department's belief that you would, in good faith, go before the Bankruptcy Court and request that funds be approved to carry out the necessary mitigation procedures. Your failure to~) so has allowed potentially hazardous waste to enter:~~fton's Welding, and poses an immediate threat to employe~:. working with arc welding or other electrical equipment All mitigation work must be first approved by the Kern County Health Department, and supervised by Emcon Associates. In addition to preventing rai'1water from flowing from B.C Chemicals into Clifton's Weld:ng, YOU ARE ALSO ORDERED to remove standing water f. ùm the premises of Clifton's Welding and to clean any equipment that may have been contaminated by the runoff. Any water and di':, or mud removed from Clifton's is to be considered a~ ~az3'1ous waste, unless proven otherwise according to Är" P l' ùf Title 22, of the C a 1 i for n i a Adm i n i s t rat i v .~ C _' d e _ Robert L. 'Hlliams, Sr. March 18, 1986 P age Two All communications and orders for work to procede must be made through John Harris of this office at (805) 861-3636. Mitigation measures to prevent runoff from B.C. Chemicals into Clifton's Welding must be completed ~o later than 5:00 p.m. on Friday, March 21, 1986. Removal of water and dirt from Clifton's Welding' is to be completed no later than 5:00 p.m. on Wednesday. March 26. 1986. Sincerely, / ~ ' ¡!tj;'í III ~ ¡ ictCI/lt/; Vernon s. Re' chard, Director Environmental Health Division VSR:JH:aa cc: Jeri Voge Bruce Butterfield U.S. Bankruptcy Court e - 1700 Flower Street Bakersfield. California 93305 Telephone (805) 861-3636 KERN COUNTY HEALTH DEPARTMENT HEALTH OFFICER Leon M Hebert50n. M,Q, ENVIRONMENTAL HtõALTH DIVISION DIRECTOR OF ENVIRONMENTAL HEALTH Vernon S, Reichard March 18, 1986 R\c:..'n~l""d ~¡)L"" cjD \'~IC" ~~bc,('Jc¡r\~s F ';'\00 ~Y~"~"c.,y \~ \1 b~\.-...~í';'~: ¿,'\t1, j c...~ ' ~ 1 E Sr .' Itlc. ing ':,"2.."2,"'9, ;, _ .J>V .') ~"--~~\ .~~~ nia 93301 Dear Mr. ·Williams-+ I"" C> "", \'\ .¿ .~ C'~ As T~ustce ~ B.C. Chemicals, YOU ARE HEREBY ORDERED to take immediate steps to prevent the off-site migration of storm water from the B.C. Chemicals facility, 1511 South Union Avenue, Bakersfield, California. Recent rains have flooded an area along the south property line of B.C. Chemicals and flowed off-site into the premises of Clifton's Welding, 1601 South Union Avenue. ~c h .;. i-~ \\) " \\ ~{I'I; The potential 1\ £'.,. problems to occur was detailed in a letto::r LO ~'Ü dated December 26, 1985, from Henry Cruse of Emcon Associates (a copy of which is attached). It was this Department's belief that~~~ would, in good faith, go before the Bankruptcy Court and request that funds be approved to carry out the necessary mitigation procedures. "úxft~;~failure to do so has allowed potentially hazardous waste to enter Clifton's Welding, and poses an i m m e d i ate t h rea t to em p lo y e e s w 0 r kin g wit h arc w e 1 din g 0 r other electrical equipment All mitigation work m~st be first approved by the Ker~ County Health Department, and supervised by Emcon Associates. In addition to preventing rainwater from flowing from B. C Chemicals into Clifton's Welding, YOU ARE ALSO ORDERfr to remove standing water from the premises of Clifton's W~~!ng and to clean any equipment that may have been contamina~:"; hy the run 0 f f . Any w é1 t era n d d i r tor mud rem 0 v e d fro m C ~ 1 r., "\s is to be considered as hazardous waste, unless .;; \~n otherwise according to 'I.-ti(;le l' of Title 22, (,-~~ California Administrativp CJde. e e Robert L. Itlilliams, Sr. March 18, 1986 P age Two All communications and orders for work to procede must be made through John Harris of this office at (805) 861-3636. Mitigation measures to prevent runoff from B.C. Chemicals into Clifton's Welding must be completed no later than 5:00 p.m. on Friday, March 21, 1986. Removål of water and dirt from Clifton's Welding' is to be completed no later than 5:00 p.m. on Wednesday, March 26, 1986. Sincerely, /~ ," ¡ijj¡í (ill /t . ("//It/; Vernon S. Re'chard, Director Environmental Health Division VSR:JH:aa cc: Jeri Voge Bruce Butterfield U.S. Bankruptcy Court e 'lYa,.Iß CALIFO~NIA DEFARTM~NT OF HEALTH SERVICES H~ZARDCUS NATE~rALS LABGRATJRY SECTiON HML#BZ<$/i.j',.. ~a . b H!-iL#.¡>-Zt.\...7t: B2B 10 828+ LASOfÚHOR¡' R~PORT FOR TOTAL i'ÍETHL ANAL'¡"SIS CDLLECTOR'S NAME: SUTTERFIELD SAMPLE LOCATION B C CHEMICAL CD BAt,ERSFIELû COLLECTOR'S SA~?~E NO. aAB-i73 ACT!VITY : ENFGR:~XENT DATE RECEI~ED : 5-5-85 . ANALYTICAL SAriPLES ARE DIGESTED WITh caNCENT~HïED NITRIC ACID OV:R A ~üT PROCEDURE PLATE. THE DIGESTED S~hFLE5A~æ FIL7ERED ~ND M~DE TO 100 ML W:TH 5% NITRIC AC!D IN D:3TILLED ~E¡ON!2ED W~TER. ~ETAL ANALYSIS OF. THE DIGEST IS BY ICPhE3. ~E5ULT5 ARE REFJRTED AS UG/G~AM. HML NUì-1BER 8281 -?""'? 8293 8284 8286 ~_o_ COLLECT SHtiP if: BAB-j,73 BAB-1Î4 BAò-ii5 BAS--l ì5 BAE-lí8 3A/'iPí:.E TYPE SOIL SOIL SOIL SOIL SLUDGE AG-S 1 L 1,Ii::ri < 0.02 < 0.02 { 0.02 < 0.02 < 0.02 A5-~ìR3EN!C < 0.35 < 0.35 < 0.35 < 0.35 < 0.35 e.A-E,~IR ¡ UN 200 91.5 283 :i.04 iL7 BE -8ER ~'LL rUM < 0.01 < O.Oi ",' 0.01' < O.Oi < 0.01 , CD-CAÐ¡'Ì r Wi 2.28 2.3i 1. 76 2.70 1.48 CO-C02,HL. -:- 1.58 2.70 2.57 3.54- 0.21 CR-C:iRO;{: I Uir; is .1 p:¡ iOS ¡55 33.8 -- CU-C:JF':;E~ 219 90.9 31.5 , 132 '2.48 ríû-friúL YB :)=~lU~ < 0.08 < 0.(16 < 0.08 < (¡.OB " 0.06 NI-NICKEL 6.34 8.78 8.5,9 12.4 1.47 P8-lEAü 11.-1 36.S' 15.2 225 2.83 S8-i4Nïljl'jONY < 0.34 < 0.34 "- 0.34 0.34- < 0.34 SE-SELENI j;,; 1. 41 0.7S / 0.51 < 0.51 6.48 , TL - n-iALLI û:'í <- 1.9 < 1.9 < 1.9 < 1.9 < 1.9 ~I -VANAJIUi'i 7.60 14.2 12.5 21.4- 4.2~ ZN-ZINC 138 1ï3 84.0 6"'~ 66.S ' , -. '( 2.18 3.Sa 3.26 4.35 0.83 NOTE: < :: 8ELO¡.¡ nETECT ION LIMIT OF I NSTRU!':ENT {Y'ir-t-)=NOT DEïE~¡'¡INE!) B'{ IC? ¥i yqt~ 12t:s. d //'?C/rs (JOvp-4 ~ ß" çy/Y£at ----------- ---------. --- --- ~J..------ -------- ANAL ';'S: '5 3! G~«\ ~·UP ¿ SUP ::21JI ~.J~ 5ICiNHT~R:: DtHE I - 'e CALIFO~NrA DEPARTMENT OF HEALTH 5~~VICE5 HAZARDGUS MATERIALS LA80RATQRŸ SECTION HKL'..........TO HMl.. . . . . . . . . . . lABORATORY RE?ORT FOR TOTAL METAL ANALYS:S COLLECTOR'S NHME: BUTTERFIELD SAMPLE LDCATION : 8 C CnEHrCAL CD BAKERSF!ELD CDLLECTOR'S SAMPLE ND. : BA8-173 "ACTIVITY : ENFD~CEMENT DATE RECEIVED : 9-5-85 ANALYT¡C~L SAMPLES ARE DIGESTED WITH CONCENTRATED NITRIC ACID aVER A HOT FROC¿DU~E PLATE. THE DIGESTED SAMPLES AR~ FILTERED AND ~ADE TO 100 ~L WITH 5% NIT~IC ACID IN DISTILLED DEIONIZED WATER. METAL ANALYSIS OF THE DIGEST IS BY rCPAES. RESULTS ARE REPORTE~ AS UG!GRAM. NOTE: < = aELOW DETECTION LIMIT OF INSTRUMENT (***>=NOT lPß~_gL~ ·Wpf!Ç' ~~,:: ANALY5T'~ 5¡G~ArU~~ uAT~ SUf~~~r5u~ j¡~~HiL~~ " HI'iL NUI'i2.ER COLLECT SAÎ1? iI: StinPLE TYPE AG-SIL~ER AS-itRSEN!C SA-BAR :{jj<¡ BE-a::RYLLIUì1 CD-CADMIUM CD-CGEHLT CR-CHR¡::¡~IUX , Cu-cc P FER r.O-/"iOLYSIi£NiJM NI-NICK£L FB-LEA!) SB-ANT ¡ Ì"¡ONY SE-SELENIU:f; TL-THALLIUi1 V -VANADï:UM ZN-ZINC y 8287 BAB-179 SOIL ( 0.02 , ( , O. 3S 28.3 < O.O! 2.20 1.82 t01" 11.3 < 0.08 5.94 12.5 < 0.34 1. 75 < 1.9 13.5 217 2.61 . ~¡.. , \ DEïERMINED BY IC? jþC/?5 -------- DATE . e· e California Dcp~rtment of Health Services Hazardous ~hterials Laboratory HML# E? 2 :.¡~ to 829B :.J J LABORATORY REPORT Collectòr's Name Eo ttc'1 ·Sampling Location P" -. "", æ !!!..t+~;'¡t!1i- Co.) ~ KéTsÇ~ e\d~ j C...~ Q33ù::f Analytical Procedures Used:~i4 A.ùAL'l S. ç Date' Received /' / by Laboratory 9 ¿, 135~ . Collector's Sample# ~Aß lfer to 'ßAß IßO . Reference: \--\ 1M. L. Meihcds HML NO. , COLLECTOR'S TYPE OF (Lab only) SAHPLE NO. , SAr,IPLE* DIL.FACTOR ··ß"2 :¡.S- pll B4t; f 61- 1.1 tpOt D ' =+= g.gO ß ;}=J-(p: ßAß J (of;. Á j ø {)(D 5.~o Bë;>=J-7- Bn8 !b9. ).JQUlþ J I. q ßo1~ BA ß It!) .ivJ l¥ Ol,() q,oo ß~n¡ åfrB Irl )../ f¥ Uti"> ' .¿ 0",. lO ß~BO: Y Aß /?2 ÀJ tpU¡ I) ro.2L/ ß3.bt ßA-ß 113 $01/ , 1-7~ 13e"Z ß 28-¿ ßPß 17t¡ Sc> J } 7f..Qo' -p~~ ß 'A-'B J i:Ç" SO) } ~3v5 , !ß;¿8Lj ßA 0J ¡ ':¡b C' I 7-/GI <;.)0 J I ßd~~ ßp,ß J1-7 ~ol,d 1..(,0 ß~~~ ßA617'8 C' I . Tø2'D . ,) uclðe -B ?-8=t- ßA-B Ii? .sD1 I q ., -:¡. :) ß :;t <è:?~ ßA01eo - Sð , { d.. 13.:> Anlllystf;1 Signatures:. 1. (}ftðllÌ£ð g I irruttu' q /f6/f;Ç- date ChemiGt Note: < = Below detect if .1 J imi t of in str1.L~ent, 9/20//¿; date 2. date e e \V 1 LLIAi\IS & \V ILLIAl\-IS. INC. " PROFESSIONAL. CORPORATION ROBERT I., WII.I.IAMS ROBERT S WII.I.IAMS ATTORNEYS AT I.AW HABERFEI.DE BUII.DING 1706 CHESTER AVENUE, SUITE 404 BAKERSFIEI.O. CAI.IFORNIA 93301 ,805,323·7933 February 4, 1986 TO WHOM IT MAY CONCERN: Re: B. C. CHEMICALS, INC., Chapter 7 Case ~185-0l809 Gentlemen: I am Trustee for the above-named debtor corporation. Enclosed is a copy of appraisal of assets for your information. The wholesale cost of said assets if $144,037.80 and the Bankruptcy Court Appraiser has reduced the appraisal thereon to $40,000.00. It is also noted that certain assets, including blended material, have been inventoried but no value has been placed thereon. Trustee is requesting bids for all said assets remove al~ inventory from B. C. Chemicals premises. does not want to end up with inventory that he will to have removed from premises. with buyer to Trustee have to pay If you are interested in making a bid on said assets, please contact me at (805) 323-7933. r will also arrange for you to look at the assets at your convenience. Your cooperation herein is very much appreciated. Very truly yours, ii, '- , 'J ' , ",.,' ;.:,:0" :;.1 ,\,,;.,.;'¡ /); ç',,-: 'l~ /'/1 l: :'" ,,'_i ,'~~ 1'/ Î "J { {i.... :"''"1, ra.;';" ~,.i '1 t f J,~~, >-... -'-', ..:'~ '-'-" .; /~ ". ^-='> .S ,......~.... ,., ~'W '..,,, :f. ;~" '-Rdbê-t t:'''' r.. . ~'i 11 iams ... Trustee RLW:sr89 Enclosure e e~~ ~ ~ ~ ~ ~) JAI~J C) ,1 '10,)- I h .: .., _'J UNITED STATES BANKRUPTCY COURT (!err., United States Bal'!kru;1tC"J Court EASTERN DISTRICT OF CÞ.LIFORNIA E35t/!!'~~':!tri!:tdC::~:t In the ~Îatter of Case No. 185-01809 . Chapter ...1..- ) ) Debtor(s). ) TO THE CREDITORS OF THE ABOVE-N/\ì1ED DEBTOR(S), AND ALL OTHER PARTIES IN INTEREST: B. h CHEMICALS, INC., NOTICE OF SALE OF DEBTOR-,! S- ASSETS NOTICE IS HEREBY GIVEN that there will be offered for sale to the highest bidder or bidders therefor, property of the above-named debtor(s) which is described as follows: INVENTORY OF B. C. CHEMICALS,' INC., appraised in the sum of $40,000.00. The original cost of this inventory is $144,037.80, and the reduèed appraisal by the Bankruptcy Court Appraiser is $40,000.00. Trustee is requesting bids for all said,assets with buyer to remove ~ inventory from B. C. Chemicals' premises. Trustee does not want to end up with inventory that he will have to pay to have removed from premises. TIr~E : 11 :00 A.M., on Thursday, February 20, 1986 PLACE: Bankruptcy Court, Room 204, Federal Building, _ 800 Truxtun Avenue, Bakersfield, California INSPECTION: By appointment pr"ior to sale. TERMS OF SALE: Cash RIGHT RESERVED to reject any and all bids Jnd to continue or postpone the sale without assigning any reason therefor. FOR FURTHER r^RTICULARS apply to: ROBERT L. WILLIAMS, Trustee 1706 Chester Avenue, Suite 404 Bakersfield, CA 93301 Phone: (805) 323-7933 ROBERT L. WILLIAMS, Trustee 1706 Chester Avenue, Suite 404 Bakersfield, CA 93301 Phone: (80S) 323-7933 ,e .' WILLIAMS & WILLIAMS, INC. ROBERT l, WilLIAMS ROBERT S, WllL.IAMS A PROFESSIONAL. CORPORATION ATTORNEYS AT lAW HABERFEL.DE BUilDING 1706 CHESTER AVENUE, SUITE 404 BAKERSFIELD, CALIFORNIA 93301 (805, 323,7933 January 31, 1986 Mr. Richard Casagrande, R.S. Department of Public Health 1700 Flower street Bakersfield, CA 93305 Re: B.C. CHEMICALS, INC., Chapter 7 Case No. 185-01809 Dear Mr. Casagrande: Enclosed is copy of Notice of Sale of the inventory of B. C. Chemicals, which is set for Thursday, February 20, 1986, at 11:00 A.M., in Bankruptcy Court, Room 204, Federal Building, 800 Truxtun Avenue, Bakersfield, California. As per the notice, Trustee is requesting that the buyer remove all inventory from the premises as part of his bid. The removal of inventory would be under the supervision of Encom Associates. Trustee will keep you advised as to the buyer of the B. C. Chemicals inventory. The cooperation of everyone herein is very much appreciated. ./) ,// r ::f(r ítJt~. J . {¡J ~ Rob~rt L. Williams -- Trustee RLW:sr95 Enclosure cc: Mr. Rich Eglin Emcon Associates .~ .' January 27, 1986 -ø~//"'/_"'____ ,¡It \ I I-~ rI' \ '/ _ ,tf'~~~í\ ~I '-" ~ .,'. '- "'~~" ~, - -. ~ , ~, . '... "~'" j, ~, \ ¡''it ')-... ¿~I:::,~, ' -:C_" .. /, ~ II, '. ---',", ·--r, .. /, '. I' '\, \ ...." " ,I -::::.I/"~ :,'- ,1, l\=::. / 'C=: \ \ " ~ (1/' t \\ 1111" ~~';"-~""'no'''.I~!/~ ellUI.rlA&. Dt"'.-oN ICeIft Co. ........ ..._ 1211 T....... A...... 1IIII_..nI." f::tf1..... .... C-) 1I1-1Q1 EDWARD R. JAGELS District Attorney Mr. Gerry ~'¡hi te Region Director Department of Health Services 5545 East Shields Avenue Fresno, CA 93727 Re: People v. E. C. Chemical ''-------- ,-,-,.---. / Dear Gerry: As I indicated to you in our meeting of January 15, 1996, we are most anxious to ascertain the status of the above specified matter. A warrant was is~ued and executed upon in Kern County in August, 1985. we have received no test results, status reports, or any further information whatsoever on this matter. I am aware that the State DOHS laboratory is backlogged. this seem an inordinate/alOng ~eriod of time to await test Thank you for your antici~dted cooperation in this regard. However, resul ts. Sincerely, EDWARD R. JAGELS~ District Attorn~y JGV: j s ~;?;~i:~~~:.'t"'~?. " , .. .. ,,#-tf,.rj;. ',-, ' '. " -'~ ':',~'~.;::~":. ~:-~. .:. ., <~:.~þ~~:~- ' ,:_4':: , 88LEd2d Jncurring in the uring in part. , m of the Court's . in the judgment. ,8 Court that both fect of Washing- d to handicapped ùar. . As Justice opinion persua- ::Ourt's opinion in 63 US 388, 77 L Ct 3062 (1983), "state programs ~utra1 in offering ~ce to a class de- rence to religion 'econd part of the an test, because results from the of beneficiaries." ..., 88 L Ed 2d :curring) (footnote ) religion at issue t of petitioner's ) reasonable ob- :'8W from the facts :lce that the state religious practice ,1 v Donnelly, 465 Ed 2d 604, 104 S (O'Connor, J., xen euch aD approech. .-ion. 397 US &64, 26 "409 (1970); EveI'lOJl v o US 1. 16, 91 L Ed '-..J'. '"," ", ..;..:,......., ¡jt1A.Jc/,¡1 C;; MIDLANTIC NATIONAL BANK, Petitioner t;(e v NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECl'ION (No. ' 84-8(1) THOMAS J. O'NEILL, Trustee in Bankruptcy of QUANTA RESOURCES CORPORATION, Debtor, Petitioner ¡ t v CITY OF NEW YORK et aI. (No. 84-805) 474 US -, 88 L Ed 2d 859, 106 S Ct - [Nos. 84-801 and 84-805] Argued October 16, 1985. Decided January2?, 1986. Decision: Bankruptcy trustee held not empowered under 11 uses § 554(a) to abandon toxic wastes in contravention of state environmental protec- tion laws. ' t1li' 'SUMMARY A corporation engaged in processing waste oil filed for bankruptcy after it was discovered that it had illegally stored oil contaminated with a carcino- gen at a' New Jersey site, which state environmental protection officials ordered cleaned up, and similar waste was subsequently discovered in deteriorating and leaking containers at a site in, New York. The trustee in bankruptcy proposed to abandon both sites under 11 uses § 554(a) on the grounds that they were burdensome and of inconsequential value to the estate, and the United States Bankruptcy Court for the District of New Jersey approved the abandonment, over the states' objections ,that abandon- ment would threaten the public health and safety and that the bankruptcy estate should be required to pay for a clean-up. The United States District Court for the District of New Jersey affirmed. The United States Court of Appeals for the Third Circuit reversed, holding that Congress, in enacting § 554, did not intend to permit the abandonment of property of a bankrupt J ~ I t i 't ~ ; 859 i . ;, ~ { ... '.,*' , ¡tt _ ... . ,......_/S~I&.~¿:~ _-_:::;"~:~_~~~~:--~ ., ' ' _ '." ' .~.' -...' .u, 1_ ' .... <~t';~!I~<'-'r~;jS'" " ....\ " , '''\ " .. U.S. SUPREME COURT REPORTS 88LEd2d estate in contravention of state environmental protection laws (739 F2d 912; 739 F2d 927). On certiQrari, the United States Supreme Court affirmed. In an opinion by POWELL, J., joined by BRENNAN, MARsHAIJ.., BLACKMUN, and 8TEvBNs, JJ., it was held that a bankruptcy trustee may not abandon property in contraven- tion of a state statute or regulation that is reasonably designed to protect the public health or safety from identified hazards. RmNQt1I8T, J., joined by BURGER, Ch. J., andWIDTB and O'CoNNOR, JJ., dissented, expressing the view that the broad abandonment power conferred on the trustee by § 554 was not intended to be qualiñed in such a manner, though abandonment might be barred under narrower conditions where it might create a genuine emergency that the trustee would be uniquely able to guard against. t,:e BEADNOTES CIaøIüIed to u.s. Supreme Court Dipøt, Lawyen' Edition Bankruptcy § SOl - abandon- public health or safety from identi- ment - violation of state law fied hazards; this exception to the 1a-1c. A trustee in bankruptcy abandonment power does not encom- may not abandon property under 11 pass a speculative or indeterminate USCS§ 554(a) in contravention of a future violation of such laws that state statute or regulation that is may stem from abandonment; thus, reasonably designed to protect the the trustee for a bankrupt, corpora- TOTAL CLIENT-SERVICE LIBRARYs REFERENCES 9 Am Jur 2d, Bankruptcy 1126, 253-257 5 Federal Procedure, L Ed, Bankruptcy If 9:333-9:336 4 Federal Procedural Forms, L Ed, Bankruptcy §§ 9:751-9:758 4 Am Jur PI & Pr Forms (Rev), Bankruptcy, Forms 257, 258 11 uscs If 554(a), 959(b) 1 Bankruptcy Service, LEd, I§ 4:17-4:21; 3 Bankruptcy Ser- vice, L Ed, I§ 23:110-23:115; 8 Bankruptcy Service, L Ed, 1171:139.7-71:141.5 (Supp.) US L Ed Digest, Bankruptcy II 15, 305; Statutes I 87 L Ed Index to Ann08, Bankruptcy; Pollution ALR Quick Index, Bankruptcy or Insolvency; Pollution; Waste Materials Federal Quick Index, Bankruptcy; Pollution Auto-CiteS: Any case citation herein can be checked for form, parallel references, later history and annotation ref- erences through the Auto-Cite computer research system. e 860 1 j, :.~ -..-- , ''"'..::~.~'. . ',',:' .~~,( tk ti: t6: eìa u. qfa (I, w: ,. a t, t4 ~ tà iI\I ~ cI Bà (I: 1 p.- eat ~ cCt i ~ Jet for or2t N.{1 iDì acti wid thê ,thai' 1arl The and inte und Cod 88LEd2d MIDLANTIC NAT. BANK v New Jersey D.E.P. 88 L Ed 2d 859 tion may not abandon facilities con- not intended to pre-empt all state tAining waste oil contaminated with laws which otherwise constrain' the toxic chemicals, in violation of state exercise of the powers of a trustee in environmental laws and adminiRtra- banki-uptcy and § 554(a) of the Code tive orders thereunder, which re- (11 uses § 554(a» which authorizes quired t~t the sites be cleaned up. a trustee to ~don any of the (Re~quist, J~ Burger, Ch~ .J., and estate's property which is burden- White ~d 0 ~nnor, JJ., dissented some to the estate or which is of from this holding.) inconsequential value to the estate, Statutes§ 87 - construction - is not intended to pre-empt a1lstate law at time of passage and loca1laws. ' 2.- The normal rule of statutory construction is that ü Congress in- Bankruptcy § 30ð - abandon- tends for legislation to change the ment - protection of public interpretation of a judicially created health and safety , concept, it makes that intent S~4. The bankruPtcy court does not ci1ìc. have the power to authorize an Bankruptcy § 15 - pre-emption of abandonment without formulating &tate laws conditions that will adequately pro- Sa, 3b. The Ba.nkrqptcy Code is teet the public's health and safety. SYU.ABUS BY REPORTER OF DECISIONS . Quanta Resources Corp. (Quanta) "abandon any property of the estate processed waste oil at facilities 10- that is burdensome to the estate or cated in New York and 'New Jersey. that is of inconsequential value to The New Jersey Department of En- the estate." The City and, the State vironmental Protection (NJDEP) dis- of New York objected, contending covered that Quanta had violated a that abandonment would threaten provision of the operating permit for the public's health and safety, and the New Jersey facility by accepting would violate state and federal envi- oil contAminated with a toxic carci- ronmental law. The Bankruptcy nogen. During negotiations with Court, approved the abandonment, NJDEP for the cleanup of the New and after the District Court affirmed Jersey site, Quanta filed a petition an appeal was taken to the Court of for reorganization under Chapter 11 Appeals for the Third Circuit. Mean- of the Bankruptcy Code, and after while, the Bankruptcy Court also NJDEP had issued an order requir- approved the trustee's proposed ing cleanup, Quanta converted the abandonment of the New Jersey fa- action to a liquidation proceeding cility' over NJDEP's objection, and under Chapter 7. An investigation of NJDEP took a direct appeal to the the New York facility then revealed Court of Appeals. In separate judg- that Quanta had also accepted simi- ments, the Court of Appeals re- larly contaminated oil at that site. versed, holding that the Bankruptcy The trustee notified the creditors Court erred in permitting abandon- and the Bankruptcy Court that he ment. intended to abandon the property Held: A trustee in bankruptcy under § 554(a) of the Bankruptcy may not abandon property in contra- Code, which authorizes a trustee to vention of ,a state statute or regula- 861 n laws (739 F2d 912; led. In an opinion by and 8TBvBNs, JJ., it 'Operty in contraven- , designed' to protect and O'CoNNOR, JJ., lent power conferred d in such a manner, , conditions where it uld be uniquely able e ?clition . safety from identi- .is exception to the ¡wer does not encom- ve or indeterminate of such laws that abandonment; thus, ~ bankrupt, corpora- :'ERENCES ~:336 § 9:751-9:758 ms 257, 258 ,.' e lkruptcy Ser- 'ervice, LEd, §87 i.lution; Waste checked for :motation ref- rch system. . f '" . ,~ t '~ ..' ',~., .,' ..... , u.s. SUPREME COURT REPORTS 88LEd2d ',..I tion that is reasOnably designed to has expressly' provided ,that the protect the public health or safety trustee's efforts to marshal and dis- from identified hazards. Congress did tribute the estate's asøets must yield not intend for § '554(a) to pre-empt to governmental interests in public all state and local laws. A bank- health and safety., It cannot be as- ruptcy court does not have ,the sumed that CoDgre88,having placed power to authorize an abandonment such limitations upon other aspects without formulating conditions that of trustees' operations, intended to will adequately protect the public's discard the well~lished judicial health and safety. 'restriction' on the abandonment (a) Before the 1978 revisions of the power. Moreover, 28 use § 959(b) Bankruptcy Code, which codified in [28 uses § 959(b)], which commands f 5M the judicially developed rule of the trustee to "manage and operate abandonment, the trustee's abandon- the . L:_ .- had bee limi·ted b ' 'property m lUll P988e&81OD . . . ' ment power n y a according to the requirements of the judicially developed doctrine in· valid laws of the State,"provjdes tended to protect legitimate state additional evidence that Congress and federal interests. hi codifying did not intend for the Bankruptcy the rule of abandonment, Congress Code to pre-empt all state laws. also presumably included the corol· (c) Additional SUpport for restrict- 1ary that a trustee could not exercise his abandonment' power, in violation ing the abandonment power is found of certain state and federal laws. in repeated congressional emphasis, (b) Neither this Court's decisions in other statutes, on the goal of nor Congress has granted a trustee protecting the environment against in bankruptcy powers that would toxic pollution. lend support to a right to abandon 739 F2d 912 and 139 F2d 927, property in contravention of state or affirmed. local laws designed to protect public Powell, J., delivered the opinion of health or safety. Where the Bank· the Court, in which Brennan, Mar- ruptcy Code has conferred other ape- shall, éBlackmun, and Stevens, JJ., cial powers upon the trustee and joined. Rehnquist, J., filed a dissent- where there was no common-law' ing opinion, in which Burger, C. -J., limitation on such powers, Congress and White and O'Connor, JJ., joined. APPEARANCES OF roUNSEL A. Dennis Terrell argued the cause for petitioner in No. 84-801. William F. McEnroe argued the cause for petitioner in No. 84- 805. Mary Carol Jacobson argued the cause for respondent in No. 84-801. , Robert Hermann argued the cause for respondents in No. 84- 805. , e .. .. -.-......--. _.. . pO -...---- --.. --------- ----- " , OPINION OF THE COURT Justice Powell delivered the opin- arising out of the same bankruptcy ion of the Court. proceeding, present the question (1.] These petitions for certiorari, whether § 554(a) of the Bankruptcy 862 ;. ~. 1654(8 , bankn Còntra· lations toþl'( øafe~. '. ..1. i. . ,'.QúÍJ (Quant facilitM New y. ter, Nt ¡acilitr~ suantg mit~ ~ tion {)l 801.: 1m tional'· , 801, 'pI' 000 108: tory,,'. tam '811 NJDEP vio1atea , operatiI than·C) nated. nogen.'; cease "0] the two ingthe . site. Bu the COJ Quanta zation ., Bankru¡ NJDEP der requ site. Qw mained 1. Sec:tio "After ! , may aban< is burdeDl inconøequt .!RTS .1-- I ! sly provided d&_ I 'orte to JD81'8ha1 ..¡.. I estate's assets .....!iIii ental intereøtl . ~ ! safety.' It· caDDII - .. Coqreøø. haVÍIII ~ tions upon other...- operations, ¡,.. -'. well-establisbeð jIÏiIiIi on the eblll" reaver, 28 use ~ 959(b)1 which . . to "manage aDII...- :y in his poB8 - n_ O the requiremtB5~ f th Sta.... " . , I 0 e......-- evidence that .. _- r.end for the ~....I.. _ . --empt all state løL ional support (or :&.. IIldonment power --- i congressional ~ ~ . Jtatuteø, on the --' ~ the environment ..... ion. . 912 and 139 .... ~ ¡., delivered the ",' - fI,~- in which BreDD8a. ~ ,.' :kmun, and S~ a,.:.; , mquist, J., filed . r ~"': 1, in which Btu'gK. c: ~ ~ , and O'Connor, J.J..~": ':¥ l U. -1t?, , itioner in No. 84-8J1.. ' _~~~ r petitioner in No. 81- .~,~' :=71-," for respondent in .. " 'espondents in No. ... .t of the same baDL~ ';'1 ;, present the ~.>' j 554(a) of the ~2"-, - .. .. . '.; ~. " ,', ,......~, .-. ~~-, .,...- -.- .-. '.. ., MIDLANTIC NAT.'BANK v New Jerøey D.E-P. 88 L Ed 2d 8ð9 Code, 11 use § 554(a) (11 uses following month, it converted' the f 654(&)],1 authorizes a trustee inàction to 'a liquidation p~ing bankruptcY to abandon property in under Chapter 7. Thomas J. O'Neill, contravention of state laws or regu- petitioner in No. 84-81>5, W81 ap- lations that are reasonably designed pointed trustee in bankruptcy, and : to protect the public's health or subsequently oversaw' abandonment eafety.- - , of both facilities. I After Quanta filed for bankruptCy, , an investigation of the Long Ieland Quanta Resources Corporation ' City facility reveaJed that Quanta (Quanta) proceøøed waste oil at two had accepted and .tored there over facilities, one in Long Island City, 70,000 gallons of tosic. PCB-contami- New York, and the other in Edgewa- nated . oil in deteriorating and leak- ter, New Jersey. At the Edgewater ing containers. Since the mortgages facility, Quanta Þandled the oil pur- on that facility'. real property ex- suant to a temporary operating per- ceeded the property'. value, the esti- mit issued by the New Jersey De- ' mated cost of dispoøiDg of the waste pertment of Environmental Protec- oil pl8inly rendered the property a tiOD (NJDEP), respondent in No. 84- net burden:to the eøtat;e. After try- 801. In June 1981, Midlantic Na- ing without succeeø to sell. the Long tional Bank, petitioner in No. 84- Island City property for the benefit 801, provided Quanta with a $600,- of Quanta's crediton, thetru&tee 000 loan øecured by Quanta's inven- ,notified the creditoø and the Bank- tory. accounts receivable. and cer-ruptcy Court for the Di8trict of .New tain equipment. The same month, Jersey that he inteIJ.dM to abandon NJDEP diøc:overeci that Quanta had the property purøuaøt to f 654(a)~ violated a specific prohibition in ita No party to thebanJuuptcy proceed- , operating permit by accepting more ing disputed the truM;ee'. allegation than 400,000 gallons of oil contami- that the site was "burdensome" and nated with PCB, a highly toxic c8rci- of "inconsequential value to the es- nogen. NJDEP ordered Quanta to tate" within the m-nil\l of § 554. cease operations at Edgewater, and the two began negotiations concern- The City and the State of New ing the cleanup of the Edgewater York (collectively New York), re- 'site. But On October 6, 1981. before spondents in No. 84-805, neverthe- the conclusion of negotiations, less objected. conteøcting that ~- Quanta filed a petition for reorgani- donment would threaten the p~blic s zation, under Chapter 11 of the health and safety, aød would ViOlate Bankruptcy Code. ,The next day, state and federal eD~nt:allaw. NJDEP is8ued an edminiAtrative or- New York rested ita obJectlon on der requiring Quanta to clean up the "public policy" ccmmderations re- site. Quanta's financial condition re- ßected in applicable Iøœllaws, and mained perilOWl, however, and the on the requirement of 28 use 1. Section 5ð4(a) reads: ..After notice and a hearing, the trustee may abandon any property of the estate that Ja burdenøometo the estate or that is of inCOD88quential value to the estate." Technical alnendmenUl ÍD the Bankruptcy Amendments and Feder8I .Judgeship Act of 1984 added the worda -.- benetìt" after "value" in '554(a). Pub. L 9S-353. Tit m. f 468(a), 98 Stat 380. 883 \ \. ·~·~·t~!"'?,~~:--:..:~ . :--;..:~:,'::-'~~ ' " , :... ..,; ~ , ·~~;;~~W~; ." '.::..'-~~:j: :":'r_~::( , < ~. "". . ,,:::¡~if~~~>,., ,,' . .~·¡i&~~f -:~~i: -,' ":,--, - ,~..~;.~, '.. ',}~:~>!~, ,,"~ . :....~~.~:~.~~~~' .:.. :~ :..'.: ~<":; .. '_.."" - . -¡ ., , u.s. SUPREME COURT REPORTS 88LEd2d : J 959(b) [28 uses § 959(b)], that a the District ,Court had approved trustee "manage and operate", the abandonment of the New York site, . property of the estate "according to ,the trustee gave notice of; ~ inf;en- the requirements of the valid laws of tionto ,Bbandon ,the ,personal 'prop- , the State in which such property is, erty at the Edgewateraite,' consist- aituated." New York, asked the ing principally of the contaminated Bankruptcy Court to order that the oil. The Bankruptcy Court approved assets of the estate be used to bring the abandonment on May' 20, over the facility into compliance with ap- NJDEP's objection that the estate p1icable law. After briefing and argu- had sufficient funds to protect the . ment, the court approved the aban- public from the dangers posed by the donment, noting that "[tJhe City and hazardous waste.' ' ,State are in a better position in every respect than either the Trustee or debtor's creditors to do what needs to be done to protect the 'public against the dangers posed by the PCJ3.<:onf,JIminAted facility." The District Court for the District of New Jersey affirmed, and New York, appealed to the Court of Appeals for , the Third Circuit. Upon abandonment, the trustee 'removed the U-hour guard service and shut down the fire.øuppreesion system. It became necessary for New York to decontAminAte the facility, - 'with the exception of the polluted ';øubsoil, at a cost of about, $2.5 mil- e lion.' On April 23, 1983, shOrtly after 2. The .ole ieøue preøented by th_ peti- tiona ÍI whether a trustee may abandon prop.' erty under ,554 in contravention of local laWl designed to protect the public'. health and aafety. New York ÍI claiming reimblU'lle- ment for ita expendituree u an administra- tive expenae. That question, however, like the question of the ultimate diapoøition of the property, is not before UII. " a. The trustee' waa DOt required to take even relatively minor steps to reduce immi· nent danger, such u eecurity fencing, drain· age and diking repairB, aea1ing deteriorating tanka, and removing explosive agents. More- over, the trustee', abandonment at both Bites aggravated already existing dangers by halt- ing øecurity measures that prevented public entry, vandalism, and fire. Joint Appendix in No. 83-õ142 (CA3), pp. 11-12 (a1Iidavit of Rich- 864 Because the abandonments of ,the New Jersey and New York 'facilities presented identical issues, the par- ties in the New Jersey 'litigation consented to NJDEP's taking a di- rect 'appeal from the Bankruptcy Court to the Court of Appeals pursu- ant to § 405(cXl)(B) of' the Bank- ruptcy Act of 1978. ' , A divided panel of the Court of Appeals' for . the Third' Circuit re- versed. In 1'8" Quanta Resources Corp., ,139 F2d 912 (1984); In 1'8 "Quanta Resources Corp., 789 F2d 927. Although the court found little guidance in the legislative history, of § 554" it concluded that Congress had intended to codify the judg~ ani Docyk, Deguty Chief Inøpec:tor for N. Y. City Fire Department); id., at 26 (transcript of p~i"gI' before De Vito, J.). The 470,000 gallons of highly toxic and carcinogenic waste oil in unguarded, deteriorating containers '''preBent riab of explosion, fire, contamina- tion of water supplies, destruction of natural re8OU1"C8I, and injury, genetic damage, or death through personal contact." , Brief for United Statee as Amicus Curiae ',23; lee Joint Appendix. supra, at 17 (70,000 gallons at New York Bite); Appendix in No. 83-õ730 (CA3), p. A7 (400,000 gallons at New Jersey site); id.. at A46 (deteriorating containers); Joint Appendix, ,upra, at 11 (deteriorating tanks); id., at 26 (guard service); id., at 12 (risk of fire); id., at 11 (contamination of adja· cent areas); id., at 20 (health effects of expel- lure to PCBs and their derivatives). ,.- .-J: -,- ¡ í ~ i- t: ~, . ,~. t 1 ! ~ .. , -. j j '4 ;. .. rz.l' ht 'Ht -?~ .. i$ . 1. J. ~- $ "2! ·éó ~ -CO: '. .c¡fk " .- - , -.4 .... C8f aut the -rah iDg 88LEd2d Jurt had approved the New York site. notice' of; his inten- the ;personal pro~ ewatersite, consist- ! )f the conwminated ptcy Court approved .It on May' 20, over ion that the estate · \lDds to protect the :iangers posed by the . ' tbandonments of the , New York facilities ical issues, the par- ~w Jersey litigation · JDEP's taking a di- Jm the Bankruptcy n1; of Appeals pursu- ! (1)(B) of the Bank- :78. " .. nel of the Court of ,e Third Circuit re- Quanta Resources 1 912 (1984); In, re '-ces Corp., 739 F2d · ;he court found ,little legislative history of ,uded that Congress to codify the judp Chief IDapec:tor for N. Y. nt); ilL, at 26 (tnmac:ript of · De Vito, J.). Tbe .70.000 xic and caidnogenic waste I deteriorating containers ~xpI08ÌOD, fire, contiuDiÌ1a- ü.. destruction of natural I jury, genetic damage, or rsonal contact." Brief for AmicuI Curiae' 4, 23; lee Ipra. at 17 (70,000 gallons ; AppencWI: in No. 83-6730 )()() gallons at New Jerøey (deteriorating containerø); upra. at 11 (deteriorating (guard service); id.. at 12 : 11 (contamination of 1IIlja- 20 (health e1f'ectø of expo- heir derívativeø). e <::0:::=",. ...' ' ~~-"'-'':...'.~ :"."i ,.' ___.~__.~~;';'~'·~'i~~~.t..~, " ' " "'-_ "-4,'" ". "-.j:. -, ~ MIDLANTIC NAT. BANK v New.Jersey D.E.P. 88 LEd 2d 8ð9 made abandonment practice cleVel- : passage in violation of federal law. oped under the previous Bankruptcy The court stated:' , Act. Under that law, where state . . , ' . ' , law or general equitable principles ,'The JU~made [aband~nment] protected certain public interests,!"Ùe must: glVf! way when It comes those interests were not overridden ~to conflict WIth a statute enacted ,by the judge-made abandonment m ~rdE7 to ensure the' safety. of power. The court also found evidence Dl!-V1gation; for ~e are not dealing in other provisions of the Bank- WIth a burden. lDlposed upon the ruptcy Code that Congress did not bankrupt or his property by con- intend to pre-empt all state regula_ ~ but a duty and a burden . b nl . lDlposed upon an owner of vessels ~on, ut o. Y that grounded on poli- by an Act of Congress in the pub- Cles ou~ighed by the ~levant fed- lie interest.", Iel, at 290. era! mterests. Accordingly, the ' ' , Court of Appeals 'held that the ' ,In In re Chicago' Rapid Transit Bankruptcy Court erred in permit- Co., 129 F2d 1 (CA 7), cert denied, ting abandonment, and remanded 317 US 683, 87 L Ed 547, 63 S Ct both cases for further prrv-Jings. 4 205 (1942), the Court of Appeals held , that the trustee of a debtor transit We granted certiorari and consoli- company could not cease its' opera- dated these caøes to determine tion of a branch railway line when whether the Court of Appeals pro~ local law required, continued opera- erly construed § 554,469 US -,84 tion.While the court did not forbid ,L Ed 2d 319,105 S Ct'l168. We now the'trustee to abandon property (i. affirm. e., to reject an unexpired lease), it , conditioned his actions to ensure . compliance 'with state law., Simi- clarly, in In re Lewis Jones, Inc., 1 BCD m (Bkrtcy Ct ED Pa 1974), the bankruptcy court invoked its eq- uitable power to "safeguard the pub- lic interest" by requiring the 'debtor public utilities to seal underground steam lines before abandoning them. [2] Thus, when Congress enacted § 554, there were well-recognized re- strictions on a trustee's abandon- ment power. In codifying the judi- cially developed rule of abandon- ment; Congress also presumably in- cluded the established corollary that a trustee could not exercise his n Before the 1978 revisions of the Bankruptcy Code, the trustee's aban- donment power had been limited by a judicially developed doctrine in- tended to protect legitimate state or federal interests. This 'was made clear by the few relevant caøes. In 'Ottenheimer v Whitaker, 198 F2d 289 (CA4 1952), the Court of Appeals concluded that a bankruptcy trustee, in liquidating the estate of a barge company, could not abandon several barges when the abandonment would have obstruc:ted a navigable 4. Judge GibboDS œ-nted. arguing that 1554 permits abandonment without any g- ception analogous to that provided to the automatic stay. The dissent further contended that the ~rity'B interpretation of t 564 raised suhøtantial qUeøtiODS under the Tak- ÍDgB Clause by potentially destroyiDg the in- tereet of secured crediton. see United States v Security Industrial Bank, 469 US 70, 70 L Ed 2d 235, 103 S Ct 407 (1982). and that the ~rity bad {ailed to addreøø the important underlying iøøue of the priority of the States' c1aimø for reimbursement. 865 , I u.s. SUPREME OOURT REPORTS 88LEd2d abandonment power in violation of · tion for cleaning the' toxic waste site certain state and federal laws. The ',of a bankrupt corporation: normal rule of statutory construe- ' , tion is that ü .Congress intends for ,''Finally, we do not question that legislation to change the interpreta- ~' anyone ~ ~ion of. the si~ tion of a judicially created concept, whe~r It 18 [the debtor]. or 11!1- it makes that intent speci1ìc. Ed- '- ?th~r I;D the event the receIvership monds v Compagnie Generale Trans- ,18 liqwdated and the trustee aban- atlantique, 443 US 256, 25267, 61 dons the pro~rty, or ,a vendee ,L Ed 2d521, 99 S Ct2753 (1979). from the receIver or the ~- 'Th Court bas, f¡ 11 wed this rule ruptcy ~ust comply WIth . e . ,0 0 . . the enVU'Onmental laws of, the W1thpartlcu1ar care m co~ State of Ohio. Plainly, that ,pel'8On ~e scope of ~ptcy codifica- or firm may not maintain a .nui- tions. If Congress ~es to grant, sance, pollute the waters of the ~e trustee an extraordinary ex~mP" State, or refuse to ,remove "the tion from nop-bankrup~ law, 'the source of such conditions." Ohio v intention would be clearly expresded, Kovacs, 469 US _, __~, not left. to be coll~ or ~erred 83 L Ed 2d 649, 105 S Ct 705 from ~u~le C?~de~tions of (1985) (emphasis added). ' ' convemence m ednnnJAtenng the eø- , tate of the bankrupt." Swarts v Congress bas repeatedlý expreøøed Hammer, 194 US 441, 444, 48 L Ed its legislative determination that the 1060, 24 S Ct 695 (1904); see Palmer trustee is not to have carte blanche v Massachusetts, 308 US 79, 85, 84 L to ignore nonbankruptcy law. Where Ed 93, 60 S Ct 34 (1939) ("If, this old the Bankruptcy Code has conferred and fAmiliAP power of the states special powers upon the trustee and [over local railroad service], was where therew8.s no common-law Withdrawn when Congreøs gave dis- limitation on that power, Congresø triet courts bankruptcy powers over .has expressly provided that the ef- railroads, we ought to find language ,forts of the trustee 'to marshal and fitting for so drastic a change").Al- ,distriDùte the assets of the estate though these cases do not define for ,must yield to governmental interest us the exact contours of the trustee's in public health and safety. Post, at abandonment power, they do make ---, 88 L Ed 2d 867. One clear that this power was subject to ~ot assume that Congress, having certain restrictions when Congress plaœd these limitations upon' other 'enacted § 554(a). . aspects of trustees' operations, in- ,tended to discard a well-established judicial restriction on the abandon- ment power. As'we held nearly two years ago in' the context of the National Labor Relations Act, "[T]he debtor-in-possession is not relieved of all obligations under the [Act] simply by filing a petition for bankruptcy." NLRB v Bildisco & Bildisco, 465 US .513, 534, 79 L Ed 2d 482, 104 S Ct 1188 (1984). It e m Neither the Court nor Congress has granted a trustee in bankruptcy powers that would lend support to a right to abandon property in 'contra- vention of state or local laws de- signed to protect public health or safety. As we held last Term when the State of Ohio sought compensa- 866 The autOm tbe~ been deøcribef mental debt.o: by the bankn 95-989, p ~:~ &95, p 340 (18 tance of § 3Ø: debtor's estate several 'cat.étÞ the stay that, to commencé' ceedings. ' lòì permits ~b(Ç "nonmOD~ debtor's estaif legislative h.ii p~ ,of iÍ1 tæ public ~ .... ..4, " :-n~ w1ìêf J8 sWDga' stop violatk mental prœ tection, .-fez c, regu1atory,lI fix damagea law, the" not stayed, stay." HR B I. Section SQ.) ""(a) Ezœpt .. f this 1CICtion. . ,. '302, or 803 ol &àÎI under I8CtiOD 5<.- Protection Act of. ~ uses I 78eee(aXa¡ cable to all entitie "(1) the COIIUD including the ÌIIUt I œøø, of a judicia proc:eediDg .,.me could have œen , menœment of the recover a claim ~ before the comme this title; "(2) the enforceI apinst property 0 obtained before t cue under this tit! ['S 88LEd2d tlg the tone waste site corporation: ) do not question that . œsession of the site- is [the debtor] or an- event the receivership and the trustee &ban- roperty, or a vendee eceiver or the bank- ee-.must comply with lIDental laws of the o. Plainly, that person , not maintain a ·nui- ,te the waters of the 'eÍU8e to remove the ,ch conditions." Ohio v , US -, ---, d 649, 105 S Ct 705 UI8ÍS added). B repeatedly expressed determination that the to have carte blanche JaDkruptcy law. Where ! :y Code has conferred ,J upon the trustee and was no common-law I that power, Congreøs provided that the ef- rustee·to marshal and ~ assets of the estate governmental interest ,th and safety. Post, at 8 L ,Ed 2d 867. One ~ that Congress, having limitations upon other ustees' operations, in- ~ a well-established ction on the abandon- As' we held nearly two 1 'the context of the Jr Relations Act, "[T]he esøion is not relieved of ¡ under the [Act] simply tition for bankruptcy." .sea & Bildisco, 465 US Ed 2d 482, 104 S Ct 1188 e e " MIDLANTIC NAT. BANK v NeW ~ersey D.E.P. 88 L Ed 2d 869 The automatic stay provision of ' the Bankruptcy CQde, § 362(a),' ,has been deøcribed 88 "one ol the funda- mental debtor protections provided by the bankruptcy laws." S Rep No. 95-989, p ð4 (1978); HR Rep No. 95- 695, p 340 (1977). Despite the impor- tance of f 362(a) in preserving the debtor's estate, Congreøa has enacted several categories of exceptions to the stay that allow the Government to commence or continue legal pro- ceedings. For eumple, § 362(bX5) "permi1B the Government to enforce "nonmonetary" judgments against a debtor's estate. It is clear from the legislative history, that one of the p1,lrpo&eØ of this exception is to pro- tect public health and safety: "Thus, where a' gove~ental unit . is suing a debtor to prevent or , stop violation of fraud, environ- mental protection, œnsumer pro- tection, .safety, or similar police or " 'regulatory laws, or attempting to fix damages, for violation of such a law, 'the action or p~ing is , ,not stayed under the automatic 'stay." HR Rep No. 95-595, supra, 5. Section ~a) provides: ''(a) Except .. provided in lUheection (b) of thia leCtÏoD, a petition 1iled UDder eec:tion 801. 802. or 803 of tbiI title. or an application 1iled under -=tÎon 5(8)(3) of the Sec:uritieøInveøtor Protection Act of 1970 (15 use 7S-<a)(3) [15 uses I 78eee(a)(3»). operatell .. a atay. appli- cable to all entitiM, of- "(1) the commencement or continuation. including the ÎlBUabce or employment of pro- c:eøø, of a judicial. administrative, or other proceeding against the debtor that was or could have lIMn commenced before the c0m- mencement of the cue under this title. or to recover a claim against the debtor that aroøe before the commencement of the cue under thiø title; "(2) the enforœment, againøt the debtor or againøt property of the estate. of 8 judgment obtained before the commencement of the c:ase under this title; ,at 343 (emphasis ~ded); .8 Rep No. 95-989, supra, at 62 (emphaiis . added). ¡ " "Petitioners ,have 8uggestedthat the existence of an express exception to the automatic stay undèrmineø the inference of a similar exception to the abandonment powér: had Con- gress sought to restrict similarly' the scope of I 554, it would have ,enacted Iimilar limiting provisions. This ar- gument, however, fails to acknowl- edge the di1ference& between the pre- decessors of II 554 and 362. As we have noted, the exceptions to the judicially created abandonment power were firmly established. But in enacting f 362 in 1978, Congress signiñcantly broadened the scope of the automatic stay, see 1 W. Norton, Bankruptcy Law and Practice § 20.03, pp 6-6 (1981), an: expansion that had begun' olÙY ð:ve yeárs ear- lier with,. the adoption of the Bank- ruptcy Rules in 1973, see id., I 20.02, at 4-5. Between 1973 and 1978, some courts had stretched the expanded automatic stay to foreclose States' efforts to enforce their antipollution ''(3) any act to obtain pœøeEon of property of the estate or of property from the eøtate; "(4) any act to create, perfect, or enforce any lien against property of the eatate; "(5) any act to create, perfect, orenf'orœ againøt property of the debtor any lien to the Ut.ent that such lien ~ 8 claim that aroøe before the couUnenœment oCthe cue under this title; "(6) any act to collect, -. or recover 8 claim against the debtor that 8f'OII8 before the commencement of the cue under this title; "(7) the setoff' of any debt owing to the debtor that aroøe before the commencement of the case under this title against any claim against the debtor; and ' "(8) the commencement or continuation of 8 proceeding before the United States Tu' Court concerning the debtor." 867 ~::: .'~.' r '" u.s. SUPREME COURT REPORTS .. Jaws,' and Congress wanted to over-' rule these interpretations in its 1978 revision. See HR Rep 95-595, supra, at 174-175. In thé face of the greatly increased scope of 1362, it W88 nec- essary for Congress to limit this new power ezpresaly_ [38] Title 28 use f959(b)' [28 uses § 959(b)] provides additional evidence that Congress did not in- tend for the Bankruptcy Code, to preempt all state laws.' Section 959(b) commands the trustee to "manage' and operate the property in hia possession . . . according to the requirements of the valid laws of the State." The petitioners have con- tended that f 959(b) is relevant only when the trustee is actually -operat- ing the buRiness of the debtor, and not when he is liquidatiDg it. Even though § 959(b) does not directly ap- ply to an abandonmeDt under l554(a) of the Bankruptcy Code- and 'therefore, does not delimit the precise conditions on an abandon- ment-the section nevertheless sup- ports our conclusion' that Congress did not intend for the Bankruptcy Code to pre-empt all state Jaws that otherwise constrain the ,esercise of a trustee's powers. I. See, e. g.. Hill8da1e FouucIr1 Co. v Michi- gan ex re1. Kelly, 1 BCD 195 (Bkrtcy CtWD Mich 1974) (action by Ni....1pn Attorney General to enforce State'l antipollution laws held 1lUbjec:t to automatic ltay). The HoUle Report also referred to an umeported cue from Texu where a ltay preveatecl the State of Maine from closing down a debtor'l plant that WIllI polluting a river in .øation of the State'l environmental protec:tiøa laws. HR Rep No. 95-ð9ð, pp 174-175. 7. Section 959(b) provideø: "&c:ept u provided in eec:tiøa 1166 of, title 11, a trustee, receiver or manager appo1Dted in any caUle pending in any court of the United Statel, including a debtor in pœøeø- sion, aha1l manage and operate the property 868 " . ..~, . ", 88LEd2d ,IV Although the reasons elaborated above suffice for Us to conclude that Congress did 'DOt intend for' the abandonment power to abrogate cer- tain state and local "laws, we 1ind additional support for restricting that power in repeated congressional emphasis on its "goal of protecting the environment against toxic pollu- tion." Chemical Manufacturers Assn.,lnc. v Natural' Resources De- fense Council, Inc., 470 US ~, ---.,., 84 L Ed 2d 90, 105 S Ct 1102 (1985). Congress has enacted, ~ Re- source Qmservation and RecoVery Act, '4.2 use II 6901-6987 [42 uses §§ 6901-6987], to fegulate the treat- ment, storage, and disposal of haz- ardous waøteø by monitoring wasteš from their creation until after their Permanent disposal. That Act autho- rizes the United States to seek judi- cial or ed",iniAtrative, restraint of' activities involving hazardous wastes that "may present an imminènt and aubøtantial endangerment to. health or the environment. n 4.2 use "f 6973 [42 uses 16973]; see also S Rep No. 98-284, p 68 (1983). Congress broad- ened the scope of the statute and tightened the regulatory restraints· in 1984.' In the Comprehensive En- in his pUI . _ IUCh tnJaiee, receiver or manager acCaIding to the requirements of the valid laWl of tile State in which IUch property ÍI IÍtuated, ÍD the aame manner that the ' owner or pi u. thereof would be bound to. do if in pOll '. thereof.", . " i. Congreeø .......in.þod the IJD&1l generator e:ueption and _jected many more faciliti81 to the regulatiaaL Pub L 98-616, 98 Stat 3221, 324S-3272 (codified at 42 USCA f 6921(d) (Supp 1985) [42 uses f 692l(d)D. Another provilion aut--n....lly broadens the Act'. coverage by anbwft..ri...lly .-igning a hazard- ,ous rating to ..matanceII that the EPA does not classify by a _ deadline. 98 Stat 3227· 3231 (codified at 42 USCA If 6924<d), (e), (f)(3), (1)(6) (Supp 1985) (42 uses f 6924<d), (e), (f)(3), ....- ----.- -.': .1 ðb " - VÎ1'oDD1eDtI 'tion, anciriJ ,by Pub IAI eøtablisW 'of ,80me~' reøpoDBiblã ther 't.he,,~ paid:£or ... im1powena~JI to' secure,,, , eøsary to.- stantiaI _ health· ot ~ ment beca1ÎI ened releÌl stance." , .- 19606].·In~ disputed :ooi the im~ hazardous.. are unwilUl enactinent 4: plicitly " strictiODl 011 donment.~ I . , ..-:-! ,., 'L~!¡. " (1":~J!] " ¡il--)-, . .,' 4 Justïcë~ Chief Ju8dc JustiœO'ÇoJ The Còutt (ÀDgI'8IIIcüB donment'pi'; ruptcy Code, uses 1554i state and iot of a surprise (g)(6)D. .AmeDdeI low more citiJ:en ified at 42 USCA f 6973D, andaul or IUits to camp leak haø occ:urr& at 42 USCA I~ I 6928(b)D· t. [1C) 'Ibia e: " 88LEd2d ',IV' 'l reasons elaborated . Us to conclude that 10t . intend for the )wer to abrogate œr- local :laws, we find . JOrt for, restricting )peated congressional J "goal of protecting t against toxic poIlu- :al Manufacturers ltura1' Resources De- i Inc., 470 US ~, :d 90, 105 S Ct 1102 J 'has enacted a Ré- ation and Recovery 6901.æ87 [42 uses ) regulate the treat- I and dispoøa1of haz- )y monitoring waøteØ don until after their )881 That Act auth~ i States to eeek judi- rtrative ~ reStraint of ing hazardous wastes ~nt an imminent and mgerment to health . lent." 42 use 16973 . J); see also S Rep No. }83). CongreIIJ broad- of the' statute, and regulatOry restraints· ~ Comprehensive En- lUeb truIItee, receift!' or to the requiremeDtI or the lte in which aucb property ;, same JDaJUIØI' that the ' thereof would be bound to 3ereof." : '"' ..., nated the mW1 pDerator JCted many more facilitiee >ub L 98-616. 98 Stat 3221, at 42 USCA . 6921(d) JSŒ . 6921(d)]). Another cally broadelUl the Act', .tically aaøigniog a hazard· :aJ1ceø that the EP A does 3t deadline. 98 Stat 3227- USCA II 6924<d), (e), (tX3), 2 uses I 6924<d), (e), (tX3), r~ ~..' _. :' ',..,'\. '.. ,~ . ' . MIDLANTIC NAT~ BANK V New Jersey D.E.P. 88 L Ed 2d 8ð9 _ V .', "[1Þ, 3Þ, 4] In the light of the Bank- , SEPARATE OPINION Justice Rehnquist, with whom The its the class of laws that can prevent Chief Justice, Justice White and an otherwise authorized' "abandon- Justice O'Connor join, dissenting. ' ment by a trustee to those "reason- The Court today concludes that ably designed to pro~ ~ public Çongress did not intend the aban- hea1t,~ or ~ety. ~m. Id~ntified haz- donment provision of the Bank- ards. While this limitation ~uces ruptcy Code 11 use § 554(a) [11 somewhat the scope of my disagree- uses § 554(~)] to- preempt "certain ment with the result reached, it ren- state and locai laws."In something ders both the ratio decidendi and the of a surprise ending, the Court lim- import of the Court's opinion quite ,vironmental Response,', Compensa- .tion, and Liability Act, 88 amended ,by Pub L 98-80, f 2(c)(2)(B),Congresø established a fund to finance cleanup :of ,some sites and required certain responsible parties to reimburse ei- ther the fund or the parties who paid for the cleanup. The Act also empowers the Federal Government to'secure such relief as may be nee> eøsary to avert "imminent and ~ stantial endangerment to the public health' or welfare oÌ'the environ- ment because of an actual or threat- ened release of a hazardous sub- stance." 42 use § 9606 [42 uses § 9606]. In the face of Congress' un- disputed conceni over the risks· of the improper storage and disposal of hazardous and toxic substances, we are unwilling to presume that by enactment of § 554(a), Congress im- plicitly overturned long-standing re- ~ctions on the common-law aban- donment power. (gX6)]). Amended enforcement provisions ale low more citizen suitB, 98 Stat 3271-3272 (cod· ified at 42 USCA . 6973 (Supp 1985) [42 uses . 6973]), and authorize administrative orders or suits to compel "corrective action" after a leak has occurred. 98 Stat 3257-3258 (codi1ìed at 42 USCA . 6928(b) (Supp 1985) [42 uses . 6928(b)]). 9. [1C] This eueption to the abandonment ,ruptcy trustee'S restricted pre-1978 abandonment power, and the limited scope of other Bankruptcy Code pro- :visions, we conclude. that 'Congress did not intend for' § 554(a) to pre- empt all state, and local, laws. The -Bankruptcy Court does not have the power to authorize an abandonment without 'formulating conditions that will adequately p,otectthe public's þealth and safety. Accordingly, with- out re&l!hing the question whether certain state laws impqøing condi- tions 'on abandonment may, be so onerous 88 to ií1terfere with the bankruptcy, adjudication itself, we hold that a trustee may not abandon propertY in contravention 9Í a state Statute or regulation that is reason- ably designed to p~. the public health qr sa(ety from identified haz- ards.' Accordingly, we affirm the judgments of the Court of. Appeals for the Third Circuit. ' It is so ordered. .,. '-" :~', " ' power vested in the trustee by . 5ð4 is a narrow one. It does not encompa18 a specula· tive or indeterminate future violation of BUch laws that may stem from abandonment. The abandonment power ill not to be fettered by laws or regulatioDB not reaøonably calculated to protect the public health or safety from imminent and identifiable harm. 889 \ , ~ \ >, " " '.. ...'. ~,. ~ :... .'~' .,~~::- '. . "..j"i::~':~" :.~ :;:'. :,':. '. ~:, :,::~: '.'~ ': - ' "t::~:'~~\~:,.:':~, _ ~:ít~r '.~.~ ::-~, : ~:..,~. '::~;~t:~t~ ,c." . :;t:~·~,:!~·~ ." .'- .. ...... ; . :"~'1"" ''':' . u.s. ,SUPREME COURT REPORTS; : Unclear. More important, 'I remain unconvinced by the Court's argu- ments supporting -state power to bar .be11dnnment. . The 'principal ,and only independent ground oft'efed.;- .that Congress oodi1ìed "well-recog- nized restrictions of a trustee's aban- donment power" -is particularly un- persuasive. It rests ona misreading of three p~e cases, the eleva- tion of that misreading into a "well- ~i,.ed" exception to the aban- donment power. and ,the unsup- ported assertion that Congress must have meant to codify the exception '(or something ,like it). These øpeci1ìc shortcomings in the Court's analysis, which are addressed in greater de- tail below, stem at least in part from the Court's failUl'é to discuss even in pøll8ing either the nature of aban- donment or its role in federal bank- ruptcy. " Abandonment is "there1eaøe from ,the'debtor's estate of property previ- ,ously included in that eøtate." 2 W. Norton, Bankruptcy Law and Prac- tice § 39.01 (1984), citing Brown v O'Keefe, 300 US 598. 602-603. 81 L ' Ed 827, 57 S Ct ~1937). Prior to enActment, of the Bankruptcy Code in 1978, there was no statutory p~ vision øpeci1ìcally authorizing aban- donment in liquidation cases. By analogy to the trustee's statutory power to reject executory contracts, courts had developed a rule permit- ~ the trustee ,to abandon property L Under the former BaDJuuptcy Act., title to the debtor'. property vested in the trustee. Abandonment divested the trustee of title and rnested it in the debtor. .. Collier 1 554.02{2~ Under the Code. the truatee no lODger takes title to the debtor'l property. and he Íllimply cIíveøted of control over the property by the abandonment. Ibid. Although f 554 doeø not IpeCiCy to whom the property ÍI abandoned, the legislative history suggeøtø that it iø to the person having a poøøeøøory interest in the 870 88LEd2d -that waS 'worthless or not expected 'to ,8811 for '8þrice ~cient1y in ez- œøs 'of 'encumbrances to oft'øet the ,(Dtø" Of Adminilltration. . 'L.King, " Collier on Bankruptcy W 554.01 (15th eel 1985) (hereinafter Collier).· 'This judge-made rule served theoverrid- ing purpose of bankruptcy liquida- tion: the expeditious reduction of the debtors property to money. for equi- table distribution to creditors, Kothe v R. C. Taylor Trust, 280 US 224, 22:1. 74 L,Ed 382, ðO S Ct 142 (1930). 4 Collier U 554.01. Forcing 'the trustee ,to administer burdensome property, would contradict this, pur- pose, slowing the adminietrationof the estate and draining ita aisetø. ' . The"BankruptCy Code ezPreøsly incorporates the' power of abandon- ment, into federal bimkruptcy legiø- lation ,for the first, time. The rele- vant provision bears repeating: , "(a) After noticè and a hearing. the, trustee may abandon àny property of the' estate that is bur- densome to the estate or that is of . r inconsequential value to the es- tate." 11 use § 554(a) [11 uses 1 554(a)] (amended 1984). . This language, absolute in itS terms, suggests that a trustee's pOwer to abandon is limited only by consider- ations of the property's value to the estate. It makes no mention of other factorøto be balanced, or weighed and permits no easy inference ,that Congress was concerned about state environmental regulations.· Indeed, property. S Rap No. ~, p 92 (1978); Ohio y Kovacø, 469 US -, -, n 12, 83 L Ed 2d 649. 106 S Ct 706 (1986). ' 2. Lut Term in Ohio v Kovacs, supra, which involved the diøchargeability of certain environmental injunctiODl in bankruptcy. we brieðy addreseed the abandonment of hazard- OUl waøte lite&: "After notice and hearing. the trustee many '. '" ~ · · 'à I I I · - .. I I I C :, I , · ~ .. J .£ ~ 1 I It ¡ , , t' t i " t ,/~ ,,,) .. j;,F'-~:,:;;'\~nJ;f:{\:):;«:i ~;~'¡;,-":~c';~~:,~'.;>< ,::1--',. .;..:;t,,~;}t,1:: ;;:~~,~£~ . ice :. <jr;::~ i>:'/;i:.f:..'~V ~:;,,;::,,.~:g:Ì>,~:.'/~".,:::.;;;:~r;:'~~_~JH! -': ,:ü';;';\~~';'i-~'~\';'j--,;:,,~Pi~"'~';' ,,",:,,:;:~~¡~~"í;1M'" ~i1;;::::-~.,'",~ "~I"- ·;~"'i· .I'~' J:<,:,,:-,".:"~ 'f":1:..::",,, _ ~£.~, '~:' ;'fc"'" . ': ,: ';!.j .,' :~ ~.~:,k~{,~,¡ ~-"~:::~:.;¥ ~ ':.: [;I~:-~ ;~' ~ ;\f;¿E1.f%'" ~~~~~l?~_~ ,~'"i' ~:,~"S'(f1."'!'._ ~~;f.{I'.," '. ~,',', '.' , .' ,,1=í, ':Z;.." ~-T- ".~, ~"""""'~'9""''''''-'';:''.''' ..."~, c,·",~,;-" ,.j,"'" .,~='---~~""~""~'r~,:-. .,;<' ,..." ..,~: TS ..~ ',' '88 L Ed 2d thleøø or not expected ; >rice øu1Iìciently in, ex- Ì1bra:ac:e8 to oftBet the lni8tration. 4 L. King,' · .1kruptcy I 654.01 (15th -einafter Collier ).1 This lle served the overrid- of bankruptcy üquida- ditious reduction of the !rty to money, for ecìui- :ion to creditors, Kothe Jr Trust, 280 US 224, 382, 50 S Ct 142 (1930). 554.01. Forcing" the dminister burdensome · Id contradict this pur- the .aftm;n;Atration .of 1 draining its asøeta. " l1ptcy Code expressly ~he power of abandon-' I feral bankruptcy legis- ~ first time. The rele- , 1 bears repeating: , · . notice' and a hearing, ~ may' abandon any the estate that is bur- I the estate or that is of ltialvalue to ,the ee- rsc § 554(a) [11 uses 1ended 1984). . ~, absolute in itis terms, a trustee's Power to :nited only by consider- property's valué to the i :es no ~ention of other , hAJAn~ or weighed no easy: inference that , concerned about state Ù regu.l8tions.· Indeed, , No. ~, p 92 (1978); Ohio 3 -. --:-. n 12, 83 L Ed 2d j (1985). ÎD Ohio " Kovaœ, supra, he diøc:bargeability of certain 1junctiOD8 ÎD bankruptcy. we the abandonment of hazard- d hearing, the trustee many :':, ~:: ,} '. MIDLANTICNAT.BÁNK,,~jè~D.E.P. 88 L Ed 2d 8ð9 lis the CòWtnoteå, whënCoD,n. tions based upon legislative history W8B IJO ,concerned it expresSed' itself uD1esø that legi$tive history dem- el_Ii; Çecific8l1ý exempting some onstrateø -with extraordinary 'clarity êÖvironmenta11njunctiona from the that ~W88, indeed':the intent' of áutomatícstay 'provisions 'Of § 362 of J Co~E;' g.;' \9arciav ':Vnited the' Code, 11 USC§§ 362(bX4), (5) Stàtes, "469 US ,~, '~,' '83 L Ed f1982 éd and,ßùpp m [11 uses 2d 472,-105 S Cf 479 (1984). I think ,f§ 362<bX4),(5)]. Seè Ohio v Kovacs, that upOn analjBis the ""legislative 469 US ~..83 L Ed 2d iJ49, l05'S history" relied upon by the Court Ct 105 (1985)." ' ",,·;t·:-·, here falls far short of this standard. . ;;... '. ~ ' , ,', ' (. r" - ' ',,' Nor d~ the øœnt l~tive m; The Court;' relies on jUst three tory, of f 554 support thsCourt's c8ses. for" its claimed "established interpretation. Nowhere does that ~rollary" to the pre-Code abandon- legislative history suggest ,that Con- ment power. A close ,reading of those greøø b1tended to limit the trustee's ca8eø, hoWèver~ ,reveals ,'that none authOrity. to ',abandon, burdensome iuppoÌ1i the rulé,announced tod8y. property where abandonment might In Ottenheimer'v''\Vhitaker, J98 F2d be opposed by those charged.with _ (CA4 1952), thè Court of AppØa)s the exercis8 of state police or regula- held that Ii trustee' QOuld not aban- tory powers. ,.", ' .". ' don- wortlµesø ,b8rgèøobetructing ':', ' ,...." ,'0," tra1Iicin BáltUnon;-Harbor when the , ,The: Court seeks to turn the seem- abandonment woUid have Violated ingly.:UDqua1i1ìed language and the federal law. Thè'Coult ConcludecI absence of helpful 1egis1ative, history tþt the ·judge.~ ru1e'[of'aban~ ~.ita advantage. Adopting ,the ra- donm!!Dt] must giv~WIU'" t.ò"an ACt, IIOI1ing of 'the Court of Appeals, the of Çongress in the' puþlicinterest." Çœrt argues that in light of Om,: Id.', at '290. Otteì1heUner, thus .ß&.: ireøø'· failure to elaborate, § 554 Pended em',-the need It:.oteconciIe' a , ~uøtbàve been intended to codify oon1lict b8tween &. JUdicÜi1 'gl088 , on prior, !'abandonment":case law, and 1;he Bankruptcy Act ai1d the 'com- that under prior 'law.'...a ¡,trÛSí;ee mands of another federal ,statùte. could not ezercise his abandonment We implicitly conñrmed, the validity' power in ,violation of ,certain state of such an approach ~o TenDs ago and federallawa," ante, at -:-; 88 L in NLRB v Bildisco & Bildisco, 465 Ed 2d 865-866. I disagree. We have US 513, 523-524, 79 L Ed 2d 482. 104 previously.expressed our unwilling- S Ct 1188 (1984). Here, by còntrast, ness to read 'into unqualified statu- ' the "con1iict'~ is ,with the uncertain tory 'language 'exceptions or limita- commands of ·staœ ¡lan that the ~ .,.' ,property of the'eøtate that ia would UJIdoubtedly øeIl itf'or ita riet value. burðeDllOlDe to the estate or that is of incoDlle- and the buyer would clean up the property, ÎD quential value to the estate. 11 use t 5S4 [11 which event whateverob1igation [the debtor] uses t 5S4~ Such abandonment ia to the might have had to clean up the property penon having the ~ry ÎDtereøt ÎD the would have been satisfied. If 'the property property. SRep No. 95-989, p 92 (1978), . . . If were worth lea than the cost of cleanup, the the øite at ÍlBue were [the debtor's) property, trustee would likely abandon it to its prior the tnøtee wouJd Ihortly determine whether owner, who would have to comply with the it ... of value to the estate. If the property state environmental law to the extent of his 111'88 worth more than the cœtø of bringing it or its ability." Id.. at -, n 12, 83 L Ed 2d ÎDto compliance with state law. the trustee 649. lOS S Ct 70s, 871 .... ..~.,4, - ..... .;...' ¡". ? ,. Q.8. SUPREME COURT REPORTS.,·:; , t 88L Ed 2d Coµrt declines to identify.- In addi- tion, the Court of ,Appea1a relied heavily on'the fact that the p~e law ,of' ,abandoDDÌent W88 judge- ~ ,which in turn raises the some- what Delphic inquiry 88 to whether that court would have decided the ëaøe the same way ~der the preøent COde. . In re Lewis Jones, Inc. 1 Bankr Ct Dee (CRR) Z17 (ED Pa 1974>, W88 a Bankruptcy Court decision conclud- ing that the principle of Otten- heimer did not apply beca1Ì8e there W88 no conBicting, ~tute. 'But be- cause the, right to abandon was baaed on judge-made law, the court nonetheless found itself free to pro- tect the public interest by requiring a trustee seeking, abandonment to first spend funds of the estate to seal manholes and vents in an under- ¡round pipe network. While this case admittedly comes clOlier to 1Up- Porting the Court's position than does Ottènheimer, it too turns on the jud¡e-made nature of the aban- c10mnent power. Moreover, I do not believe that the isolated decision of a ·.ïngle bankruptcy court rises to the level of "eltabliøhed law"that we œn fairly assume Congreøø intended to incorporate. See Merrill Lynch, Pierce, Fenner Ie Smith, IDe. v Cur.: , ran, 456 US 353, 379-382, 72 L Ed 2d 182, 102 S Ct 1825 (1982). In In re Chicago Rapid Transit Co. 129 F2d 1 (CA7), cert denied sub nom Chicago Junction R. Co. v Spra- lUe,317 US 683, 87 LEd 547, 63 S Ct 205 (1942), the District Court sit- I. The Court findl "additional support" Cor ita reøtriction or the abandonment power in recent Cederal statutes concerned with p~ tec:tiøg the environment. IC theøe statutes operated to bar abfandonment here-eome- thing neither n8JIOndente nor the Court 1Ug- ~n thiI might be a diJl'erent cue. See 872 tin¡ in bankruptq had a\1thorized the bankrupt to abandon a lease of a rail line, and a lessor appealed. The bankrupt did not apPeal the DiStrict Court's imposition', of .Conditions, on . the abandonmen~ the propriety. of thOle conditiana thus W88 not before 'the Court of Appeals, ,which affirmed the District Court's authorization of abandonment. So while there may be dicta in the Court of Appea1s' opinion that, would support" IOme limitation on the power of abandon- ment, the holding. of the case cer- tainly does not. In 'short, Done of these C88e8 supporta the Court's view tþat f 554(a) contains an implicit esception for "certain state and local la,ra.'", , ,. ,,' ,,;, Even ~ 'these ~ stand for the proposition ascribed to them in the Court's opinion, that opinion's brief discussion of the caøes, antè,-at ------, 88 L Ed 2d 865-866, certainly does not support the claim: that they reftect an "established c0r- ollary" to pr&Code, abandonment làw. Generally apeaking, three rather isolated cases do not consti- tute the -aort of settled law that we can fairly 8811WDe CoDgrt!88 intended to codify absent some expression of its intent to do so. Perhaps rec0gniz- ing this, respondents placeøubøtai1- tial reliance for their view that the exception was "well settled" on the fQllowing statement in the (pre-Code) 14th edition' of Collier on ,Bank';' ruptcy, accompanying a citation to Ottenheimer and Chicago Rapid Transit: "Recent cases illuStrate, NLRB v Bildilco .. Bildiøco, 465 US 613, 79 L Ed 2d 482, 104 S Ct 1188 (1984). But the statute. do not bar abandonment, and the møjority'l reference to their obvious concern over the riøU or 1toriD¡ hazardous IUbøtancee ialittle more than a make-weight. .~Je.s, however. till èrciøe of,. eubject,r1io. regu1atiàD8- ,. Moore,"\~ ',70.~21Tpp (lee ,also '1"', Corp. 789·" ing same:_ øpondentB ':ffi: =d~ an'~!iY'·'" of the,. 1973,; " "81, re .: ' }Vypyøki, ,='t Of 1978: .,A;,,;¡' No. 22 (lm4 , .rgWJ~H~DU'. ·',Thê'&db{ei. , of the Cóàè.'t: áDy mëá1it-;.Îl Board' of GèM JÍancial ~ r,:'Ed 2clJ~l. And'the:; , " ' cl section 'Ú1 -;. . ~1~ y¡ew ",;" !Dent ÍI"'" ""'wer' '-l:ut : .rv ,.,,., ..~ remarUbleÆ:' çoliœptóf ~ ognizediJî ttii µer U 70.~~ that the',JtatJ.(t ~ the Prò~ ditioned QJi.,&- police Po~~¡~"' a Senator, or, ' merely hav~:. .- lativeh.iØqq, J Code, but," lead the seven cited in that ( tory. , , ".', ., Neither the the Court' nor ,). 88LEd2d ptcy had authorized abandon a lease of a leøøorappealed. The It ap~ ,the District lon ,of conditions on nt; the propriety of ; thus was not before peals, which affirmed ut's authorization of 30 while there may , 3 Court of Appeals' 70uld support some te power of abandon- ing- of the case cer- ;. In short, none of JOrts the Court's view ontains an implicit artain state and local <" , 19 these èaseø stand I ion ascribed to them , ?inion, that opinion's of the cases, ante, at L Ed 2d 865-866, 'ot support the claim : an "established cor- --Code, abandonment y speaking, three cases do not consti- , settled law that we 1e Congress intended I t some èzpresøion of so. Perhaps recogniz- ;dents place substan- . their view that the 'well settled" on the I lent in' the (pre-Code) ,f Collier onBank~ anying' a citation to lI1d Chicago Rapid nt cases illustrate, BiJdiøco. 466 US 613. 79 L Ct 1188 (1984). But the r abandonment, aDd the ) to their obvious concern ring hazardous IUbatancee , make-weight. JßI1I.....Jft'lC NAT.BANK ~ New Jemey D.E.P. 88 LEd 2d 8ð9 however, that the ..~ in the a-ence to the8ÏDee ~penededv8rBion ërcise of the ,.,.... Û) abandon.is of Collier sUpports the inference that subject 'to the....~ tW)n of, general Congress" while' writmg § ~ in 'UD- reiulatiOlJ8 of. ,... Dat~." 4A J. , qualified tenDs, mtended to incor¡)õ. Moore,' :Collier - Bankruptcy rate -80 Ul-defined -sndimcertaiI1 'an , 70.42[21 pp 602.-N Q4th ed 1978); uception to the, øbandomnent; 1iU- lee a1ao In re' Q# ~ Reøouroeø thorityof the trustee. Afterøuøest- Corp. 789 F2d 912,. tn6 (1984) (quo~ ing 'that "'ifCongreøø intends -for ing same laDguaøIe...... Collier). Re- legislation to change the ,interprets- Ipondents further ...... y6 that the tion ot a judicially' created concept" øection of t.hï. t.__~ addressing it should do ',so aPreøsIy, ante-at abandonment .... cited in a note to ~, 88 L 'Ed 2d'866, the Court an earlyprecuø« - 1554,1 +611, concedes that' thèøe caseø "do; not öf the propoted a.,.¿.",ptcy Act, of define for Us the ,exact contours" Of 1973,HRDoc .. _137,. Part D, the ,trustee'sahruidonmentþower," J81, reprinted ÍD A. Beønick &:, E. antè, at --.,;.:., 88' L Ed 2d 866. The Wypyski,2 Bønkna!I*7 Reform Act Court' never identi1iea' the sourCe Öf ,1978: A ~1.-m- History, ,Doc from which it draws the'ttez:ãct'con- No. 22 (1979). While .-aurœ~ this touni"óf, the 'n1!e Jt :announœe; to- , ~ent iI wboI1y ......U88lve. :, c1åy¡ congressional intent does not w'Thê reference to 0rE-r is' Dot Part appear to ~ 'a likely candidate. ,Con- of the COde'. .. ~~ history' in J!888 kne,! bow '~" ~ an, 'e~p- any m~njngfuJ ___ 01 the term," ~~n"'~rmg''thè .exemseof ,eer- Board' of Goveruøøø .. Dimension, Fi- ta:in.,police powers 1ri,1en it ~ted Î18Dcial Corp. - Œ -,~~ 88 (O. See 11 u~ If 362(bX4), (~H1982 t'Ed 2d 691, !OS S a ~ (1986). èd and~pp ;U){U. ,; u~pS And the propo.¡~ "'which the t.f 362(bX4), (5J);:supra,at¡~. :It ieCtion iD Collier . éiIIed is, not the ~ kne1V how ~ dpU\ a, q~ed ýiew that ~_ far abandon- abandonment:)Pfovï.ion,.S~~, ment is q'1,Ii6M ~ åate poliee 1.1170(aX2) .(aband~t~f~ power, but m.tn'" 6e much leSs ~es penm~ ,.:only '~, ,consisten~ ' remarkable ~.c- that "[t]he ~th the public ~terest ). ço~ Q.ODC8pt of abø~'IT ..-.ot is well r~ failure to so qualify 1554 indicates ÓgnjzecI in the ~ n.-. See 4ACoI- that it intended thè i'elevant inquiry lier U 70.42[3]." 1a ___ to divine 8;t ~ abandonment hearing' to. ~ that the, statutory ~ to abandon limited to whether the property 18 in the propoøed Cøie __ to be con- burdensome and of inco~e~tial ditioned on CØlDpV;'- with state value to the estate. ," ' '-, ~" '.,' police power ,.v~. therefore, ,I find the Court's ~"¡;f28 a Senator or eonv- "'n would not use § 959(b) [28' uses t 959(b)] merely have bad . ... at the legis- somewhat difficult to fathom. After lative history øl die pecursor to the suggesting that § 959(b) J'provides Code, but also waaûIi have had to additional evidence" for the self~vi- read the seve~ ~tise section d · tha Co, did CJ·ted in that e:arIiar~ftlative IUs- ent proposition' t ngress --- not intend for the Bankruptcy Code tory. to preempt all state laws," ante, at Neither the tbnre-1ase8 cited by -. 88 L Ed 2d 868, the Court the Court nor the ÆlØll!muated refer- concedes that the provision "does 873 .._--'.*' ~ '.. ."", . ~\5~": . ·~:~f·: ::: ':'~'. ~ ,"~' ..¡.< ...:~, ~ , ": :: , ' , .::~:' r,'" ,,:~~:<~/:::y .' ~: . ,b}tt~~ . . .-:t....,:~;. ~,-.... ". ' ~ Æ~I ..~':~ ~,~'''':: ',;,,' ---~.~,- I ;'·";~'-·_';':":.:l;'.-- ~ .:.~·?~2:;;;., , :~:<- ,:E~~:/~j - , ' """ . ." ,.~ '::..' ,'" .,..;.. ,', '. '.' õ...: ,..."~ ..... .... (.. ..' " '.,..- .':' ·...:r.......L-.' ''<', ~',~' , . ... ~ ,~ U.8:,SUPREME COURT REPORTS 88LEd2d b~; b.i,'¡ not directly apply to an abandon- ment under f 554(a) of the Bank- ruptcy Code," ibid. (emphasis added). The precise natureol its indirect application, however" _ left unclear. Respondents, œntend that f959(b) operates ,to bar, abandonment, in these cases. ~ that tempo- rary management or operation of a facility during liquidation is gov- erned by §959(b), I believe that a trustee's filing of a petition to aban- don, as opposed to continued opera- tion of, a site pending a decision to abandon, does not constitute "man- age[ment]" or "opera[tion]" under that provision. Not only would a contrary reading strain the language of f 959(b), d. In re Adelphi Hospital èorp. 579 F2d 726, 729, n 6 (CA2 1978) (per curiam) (in pre-Code liqui- dation proceeding trustee "is in 'no sense a manager of, an institution's operations"), it also would create an exCeption to the abandonment power Without a shred of eyidence that Congress intended onè: As one com- mentator bai noted; f 554(a) "is among the few provisions in the Bankiuptcy Code that do not contain explicit exceptions:" Note, 85 Colum L Rev 870, 883 (1985). I would not read 28 use § 959(b) [28 uses § 959(b)] as creatiug an implicit ex- Ception. _, , , Ci&g SEe v United Realty & Improvement Co. 310 US 434, 455, 84 L Ed 1293, 60 S Ct, 1044 (1~), respondents argue that the Bank- ruptcy Court's equitable powers su~ port the result reached below. I dis- agree. While the Bankruptcy Court is a court of equity, the Bankruptcy Code "does not authorize freewheel- ing consideration of every conceiva- ble equity." Bildisco & Bildisco, 465 US, at 527, 79 L Ed 2d 482, 104 S Ct 1188. The Bankruptcy Court may not, in the exercise of its equitable, 814 :n;t abaDdOJ might ~c that tb abletÁÞ stàteø :i suggeetl , llinita 0 to aba!D furnace, house. 'J tiOD8 in to ab8II c:ircumIt that I ':~ e~ What is that ÍI ~~ caseøn'" ,'. c, , , .. \>' Protec:tim 805; bet( forts,t sought.b firSt Jiet t~ , ,~ &itA! úifP local1a'li the' Coui roceecf p. cept f9r ~ BOW pl'eJ ment. 19 should ;¡I abandon Departm tection,4.L seeka to , force tb£ tate's rèt powers, enforce, ita view of, lOund public policy at the expense of the interests the· Code is designed to protect. In these cases, it is undis- puted that the properties in question were burdensome and' of inconse- quential value to the estate. ·Forcing the trustee to expend estate asøetø to clean up, the sites would plainly be contrary to the purposes of the Code. See supra, at ~.. " I fully appreciate the Court's con- cern that abandonment may ~~aggra- vat[e] already existing dangers by halting security measures that"pre- ven(t] public entry, vandalism, and fire." Ante, at -, n 3, 88 L Ed 2d 864. But in' almost all caøe., requir- ing the trustee to notify the relevant authorities before abandoning will give those authorities adequate' o~ portunity to step in arid provide needed security. As the Bankruptcy Court noted in No.84-8Oð: "The City and State are ina better position in ,every respect than either~e Trustee or ,debtor's creditors to do what needs to be done to ,protect the public 'against the dangers posed by the PCB-contAminated facility." App to Pet for Cert 73a. And requiring notice before abandonment in appro- priate cases is perfectly consistent with the Code. It advances the State's interest in protecting the public health and safety, and, unlike the rather uncertain' exception to the abandonment power propounded by the Court, at the same time al- lows for the orderly liquidation and distribution of the estate's assets. Here, of co~, the trustee provided such notice and the relevant author- ities were afforded an opportunity to take appropriate preventative and remedial measures. I likewise would not exclude the possibility that there may be a far narrower condition on the abandon- e 4. NJDEl including a lantic'. II8C øeta to com, I. 1 woul , ' : ..~ ~. ,..... .- "-" ' .....¡I.,~,., . .. " ' . . ' . .. .: ~.. . ~ 4'<. _ -.. ': ~ - -' . ........ . ...', , ~.': '. .. . :~.. ' ,..... \~~. ~ . ....'-'. ,88LEd2d t:, :·1·... :'t MIDLANTIC NÁT. BANK v New Jerøeý D.E.P. 88 L Ed 2d 859 :s view of IOUDd I 1e expenie of the e is deøiped to :aøeø, 'it . is undis- , pertieø in question and _ of "inconøe- :he estate. Forcing ! nd estate assets to would plainly be , 1JOØM of the Code. me~t pOwer than that announced by the Court today, such 88 where abandonment by the trustee itself might create a genuine emergency that thetrust.ee would be uniquely ab.e to guard against. The United States in its brief 88 amicus curiae suggests, for eumple, that there are , limits on the authority of a trustee to abandon dynamite sitting on a furnace in the basement of a school- house. Although I know of no situa- tions in which trustees have sought to abandon dynamite under such circumstances, the narrow exception that I would reserve surely would embrace that situation. What the Court fails to appreciate is that respondents' interest in these cases lies not just in protecting p~ fie he8lth and iafety but also in protecting the public fisc. In No. 84- 805, before undertaking cleanup ef- forts, New Yark unsuccessfully sought from the Bankruptcy Court a first lien on the Long Island City property tò the extent of any expen- ditures it Diightmake to bring the site into compliance with state and local law. New York did not appeal the Court'B denial of a first lien, and proceeded to clean up the site (ex- cept for the contSllminsted subsoil). It now presses a, claim for reimburse- ment, maintSllining that the trustee should not have been allowed to abandon the site. The New Jersey Department of Environmental Pr0- tection, in No. 84-801" apparently seeks to undo the abandonment and force the trustee to expend the es- tate's remAining assets cleaning up e the Court's con- ment may '~aggra- sting 'dangers, by le88Ures that' pre- I, vandalism, and -, n 3. 88 L Ed 2d , ~ all C8MW, requir- 10tify the relevan:t abandoning will ¡ties adequate opo in and provide .B the Bankruptcy 84-805: "The City better position in han ,either the 'B creditOrs to do :one to .prøtect the dangers posed by lted facility." App 3a. And requiring :lonment in appro- ~rfectly cOnsistent It advances the n protecting the 38fety, and, unlike t.ain . exception to power propounded ..he same time al- ly liquidation and ;e estate's assets. e trustee provided e relevant author- an opportunity to preventative and e e i not exclude the ere may be a far 1 on the abandon- 4. NJDEP does not contend that the estate, including any 888eta otherwise subject to Mid· lantic's secured claim, contains sufficient 88- sets to complete the cleanup. S. I would think that this command quali- 'thesit.e~: thereby redùcing', the ''Cleanup eOøtø that' must' ultiniät.ëly be bome by the State.· The Cowt states that the 1'aban_ donment power is not to be fettered by laws or regUlations not reason- ably calculated to protect the public health or safety from imininent and identifiable harm." Ante at -, n 11, 88 L Ed 2d, 869. Because the' Court declines to identify those laws that its deemS so "reasonably calcu- lated," I can only Bpeculate about its View of respondents' claim that abandonment can be conditioned on a total cleanup. One might 888ume, however, that since it affirms the judgments below the Court means to adopt respondents' position. The, Court of Appeals, 88 I read their opinions in these cases, 'apparently , would ,require the trustee to expend all of Quanta's available asøets to clean up the sites.' But barring ,abandonment and "forcing Ii cleanup would eft"ectively place respondents' interest in protecting the public fisc ahead of the claims of other "credi- tors. Congress simply did not intend that § 554 abandonment heiuings would be used to establish ~ prior- ity of Particular' claims in .bank- ruptcy. While States retain consider- , able latitude to ensure that priority status is allotted to their cleanup claims, see Ohio v Kovacs, 469 US, at -, 83 L Ed 2d 649, 105 S Ct 705 (O'Connor, J., concurring), I believe that the Court errs by permitting them to impose conditions on ,the abandonment power that Congress fieø, in the words of the Court, 81 a' "condi· tio(n] on abandonment 80 onerous 81 to inter- fere with the bankruptcy adjudication it.telf," ante, at -, 88 L Ed 2d 869. ......;;-. -:' ,~ " . @ :~r~~ i~ :I~~ ~~ '';r. 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'" \" "" \\ ~,1';" 5- >o~ '\-:' ,~..~)'''-' ~" c..-L-__ " ._,~,~ "&(ol- ~C:3(-~~ ~:~.~>~~:u~'hl.s.,-e~R--¥\"\-"#~ ~ e '" 1> r-~ ~\', \ '~1> ~~" ", rr."~ ,y,,->, -\: '" 't('~'~ ~V\+ N '" ð+~ . ~ ~ "\' _\ C" (\ , : \ , 1\ \ .\ , ,~\è>M ~.:~", C-h~~'\G~> \n""'\C!J,\''''''-\-oY'\ Ç-. \J\J~\o;l"q M,' ,j~\" , . '~\J)\";)'\ ~... "-' ~" ",j , " ' :'t"'~" ""' \-', IV \. - "'\ \ ~ . ._h,:¿, ç,c "" ~\~\~cl ,:) , (.: º ~j'Y'... ~ ì"'.__.,f"_IJ~,!" :\_,' .) r......-\~ ,~. \ ~ \.'1. ~6, K i 1'\ \.. " ~ ~ ,,\ I , ,\ ~' /'-~ ' " '\, _.. e\y)C\J&\ ð~ \,$ð\~.-r ~à ~~'("', ,_,-C'l"l-\ '~\, \:\--C"'::; \"'->e.\dln"i" , '~ . ~ '\ ~ ' ' \ \. ," -- , \ ! ' IS \a ,<. ~c.: \""~ " ~~-(~ , Y; Q ~.¡,.r "\-\,~ \"\ ~ \ I';> 0 ~' M , ~ 1"'\ ',"H, d.1'\. €->(l~ \\\ \ "\ / - \ D. a b , . \ 'c) '\ <.·/r\ ?""\, \D) ", \~:> ,/ ~' . Sj 1-'\ C~ ('~~'Y _ n_ \' G· \) \ i\ ~, \ , -t'.1-~c.:- V\':::>" ~ ~ \ C ~':;¡;'.... ~ >¡....r¿ <:::."'\- ~ ' 'V1~:~~~,' c¡>~ \) ! '- ,~~- Q.~'" . ' .\' \ \: ' , '\' , \ ~ \=. \\ V ,\-~ V\. M.~:&-;»\ \\-.~ ~\ '\0 '''\. ; v' <.. ¡ ~I"\ .n ~ I~\\<:,(",,~ 0.::... ' \ '-.. ".... ~''K ~;\ ~i 1 ~~ ",'" .....". ,\. 1"»...... ' \ ' ~IJ, cç. ...~<.r I)Jt.:1, ~r... '-0. ' ,I; -r-,c. {ç.~)ol.~~ j~ I-';:¿' ,.~")~-L-"è\)~~ý¡?:\~Jd I ~~t\s,-~rA->A&, ' Ü, (~ B."", \.. T' \,C": \- r '... ~"-\H ,.:.\ , -. - - e e 1700 Flower Street Bakersfield, Cali'ornia 93305 Telephone (8051861·3636 KERN COUNTY HEALTH DEPARTMENT HEALTH OffiCER Leon M Heber/son, M,O, ENVIRONMENTAL HEALTH DIVISION DIRECTOR OF ENVIRONMENTAL HEALTH Vernon S. Reichard March 18, 1986 Rob e r t L. Will i am s , Sr.' \Ii 11 i am oS & Wi 11 i am oS , 111 c . 404 Haberfelde Building 1706 Chester Avenue Bakersfield, California 93301 Dear Mr. Williams: As Trustee for B.C. Chemicals, YOU ARE HEREBY ORDERED to take immediate steps to prevent the off-site migration of storm water from the B.C. Chemicals facility, 1511 South Union Avenue, Bakersfield, California. Recent rains have flooded an area alon~ the south property line of B.C. Chemicals and flowed off-site into the premises of Clifton's \-lelding, 1601 South Union Avenue. The potential for this and other problems to occur was detailed in a letter to you dated December 26, 1985, from Henry Cruse of Emcon Associates (a copy of which is attached). It was this Department's belief that you would, in good faith, go before the Bankruptcy Court and request that funds be approved to carry out the necessary mitigation procedures. Your failure to do so has allowed potentially hazardous waste to enter Clifton's Welding, and poses an immediate threat to emp:oyee~ working with arc welding or other electrical equipment All mitigation work mU5~ be first approved by the Kern County Health Department, and supervised by Emcon Associates. In addition to preventini, t, lnwater from flowing from B. C Chemicals into Clifton's Weld lng, YOU ARE ALSO ORDERED to remove standing water frùm the premises of Clifton's Welding and to clean any equipment that may have been contaminate~ by the runoff. Any water and dirt or mud removed from Clifton's is to be 00nsidered ~5 hazardous waste, unless pr~ven otherwise according to 4rti~lp l' of Title 22, of the California Administrativ~ Code. - . Robert L. Williams, Sr. March 18, 1986 P age Two All communications and orders for work to procede must be made through John Harris of this office at (805) 861-3636. Mitigation measures to prevent runoff from B.C. Chemicals into Clifton's Welding must be completed no later than 5:00 p.m. on Friday, March 21, 1986. Removal of water and dirt from Clifton's Welding' is to be comple~ed no later than 5:00 p.m. on Wednesday, March 26, 1986. Sincerely, /~ . '¡lit!!?l /& ·~wt Vernon S. Re'chard, Director Environmental Health Division VSR:JH:aa cc: Jeri Voge Bruce Butterfield U.S. Bankruptcy Court 1700 Flower Street aakerstleid, California 93305 Telephone (805) øa1-3838 1t_,'II COUNTY HEALTH DEPARTME. HEALTH OFFICER Leon M Htbertson. M.D. ENVIRONMENTAL HEALTH DIVISION DIRECTOR OF ENVIRONMENTAL HEALTH Vernon S. Relcherd Februæ y 27, 1986 Eroc:on Associates 445 W. GaI'field Avenue Glendale, CA 91204 AT1'N: Henry Cruse Dear Mr. Cruse: The following are our comments on the draft Remedial Investigation Plan for the B.è. Chemicals site. As discussed in our phone conversations, the final determination of EPA methods of analysis were undecided at the time that the draft proposal was submitted. we understand that these methods will be finalized and includEd in the final draft of the Remedial Investigation Plan. PAGE SæTION PARAGRAPH COMMENTS 16 2.5.1.1 2 Brass sleeves are acceptable, al though stainless steel might be necessary if soil pH con- ditions warrent them. 16 2.5.1.1 3 Chromium (both total and hex- avalent) should be included in list of metals to be analyzed for. 19 2.5.2 2 Composjte samples are acceptable for initial purpcses, provided that enough material is retained to allow for additional analysis of each discrete sawple if necessary. DISTRICT OFFICES e e Eroc:on Associates February 27, 1986 Page 2 PAGE SECTION PARAGRAPH cæMENTS 19 2.5.2 2 SaIrples not imnediately submitted for analysis must remain under Eroc:on's control 25 2.5.3 1 In addition to analyzing ground- water saI'lples for chlorinated hydrocarbons, Benzene Toluene, Xylene should be included in the analysis as a general indicator of contamination. If you have any questions reguarding these cornnents please contact rre at (805) 861-3~36. ~~~~ ~~~ Environmental Health Specialist II Hazardous Material Management Program JH:lf ~ê>,\ ~ _ élii' /(0 -¡...,.- -:J lif e ~ t:,.,t.ð~ Assø..J·<!§ , 44~ 'N , G?1~~~ ~d A~~ . Glt~~';;)l~1 c~ ~'~o4 ~~V\I: \-\~~'l C¡vS,(t... ~Q,~(" ~(. c..."'\Jsc.: - ~p6¡k 6 '¿", ,0..1" "\ \.,Q. ~è \\"W ¡"'l ;) rC. ~ <) r "-,,, "'''''.~ """\\.~ ~,..~~'\- . R ~ ~,b. \ ':t" \/. ,-t ;!;.\ ..h"" ~ II...., ~"',... ~"- ~. c. . c:.. n Q~ ~CÀ Is. s ~'"~. J. \ " , I , \\ , -\~Q.. ~I; 1\..( (J fo\s. ~'Sc...¡)5>~ IV\ ~\)r- ~"C':.'t\<L- c..QV'\"4<"S:~,"\OY\s J ~"'V'_1~\ d~e.~""" ;"'};.\-~o""~ 0. ~ t:..N\ M~-\~"c1.~ oQ ~l1<'; ~ $ ",...'Ii!. \.)"d~c.:d"d ~,,~<.. I -\-\ ""... "'""- »-\- ì\-L dr-~ 4- ~r,,~os~( Wi> s. ~vb ....:\-\-~J ,\¡e. \Jhd<rsb." -\-~~t. 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