United States v. LTV Steel Co., Inc.

269 B.R. 576, 2001 U.S. Dist. LEXIS 18367, 2001 WL 1410442
CourtDistrict Court, W.D. Pennsylvania
DecidedNovember 7, 2001
DocketCiv.A. 98-570
StatusPublished
Cited by9 cases

This text of 269 B.R. 576 (United States v. LTV Steel Co., Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. LTV Steel Co., Inc., 269 B.R. 576, 2001 U.S. Dist. LEXIS 18367, 2001 WL 1410442 (W.D. Pa. 2001).

Opinion

MEMORANDUM ORDER

CINDRICH, District Judge.

The United States of America filed the instant civil action for penalties against defendant LTV Steel Company, Inc. (“LTV”) for its alleged violations of certain Allegheny County Health Department (“ACHD”) Rules and Regulations governing air emissions from coke oven batteries within Allegheny County. Pending before the court are several motions which we address below.

I. Background

The facts as alleged in the complaint are as follows. LTV owns, and until February 28, 1998, operated, a coke production plant located in the Hazelwood Section of Pittsburgh, Pennsylvania (the “Pittsburgh Coke Works”). Air emissions from the Pittsburgh Coke Works were subject to Article XXI, Sections 2105.21(e) and 2105.21(f), and Article XX, Sections 520.F and 520.G of the ACHD Rules and Regulations. Article XXI governs emissions that occurred on or after July 12, 1996, and Article XX governs emissions that occurred before July 12,1996. 1

ACHD has been responsible at the local level for monitoring LTV’s compliance with Sections 520 and 2105.21 at the Pittsburgh Coke Works, in coordination with the United States Environmental Protection Agency (“EPA”). Sections 520 and 2105.21 of the ACHD Rules and Regulations are part of Pennsylvania’s State Implementation Plan (the “Pennsylvania SIP”) which is a program designed to implement the Federal Clean Air Act (the “CAA”). See 40 C.F.R. Section 52.2020. Thus, Sections 520 and 2105.21 are federally enforceable under the CAA. 42 U.S.C. Sections 7413(a)(1) and (b)(1).

In the last quarter of 1994, ACHD inspectors detected a few pushing emissions *579 violations. Such violations continued through 1995 and early 1996. In November 1996, EPA inspectors also observed numerous pushing emissions violations. In 1995, ACHD inspectors detected sporadic combustion stack emissions violations. In October and November 1996, EPA inspectors also observed combustion stack emissions violations.

EPA issued a Notice of Violation (“NOV”) on March 6, 1997, informing LTV that it was in violation of Sections 520.F and 520.G. A revised NOV was issued by U.S. EPA on September 21, 1998, clarifying that the violations occurring before July 12, 1996 were governed by Sections 520.F and 520.G and that the violations on or after July 12, 1996 were governed by Sections 2105.21(e) and (f).

LTV permanently shut down all coke oven batteries at the Pittsburgh Coke Works on February 28, 1998. The United States commenced the instant suit under the CAA on March 25, 1998, to recover a civil penalty for the alleged air emission violations that occurred at the Pittsburgh Coke Works over the past few years.

On December 29, 2000, LTV, its parent company, and other related companies filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code in the Northern District of Ohio, Eastern Division. The bankruptcy cases are being jointly administered as In re: The LTV Corporation, et at, No. 00-43866. LTV has taken the position that the bankruptcy automatic stay extends to the instant action. On January 8, 2001, the Official Committee of Unsecured Creditors of LTV TV (the “Committee”) was appointed pursuant to Section 1102 of the Bankruptcy Code. The Committee has moved to intervene in the instant action seeking to be heard on all matters and issues raised in the case.

II. Outstanding Motions

A. Committee’s Motion to Intervene

The Committee argues that it has a right to intervene in the instant action pursuant to Fed.R.Civ.P. 24(a)(1), which provides that “anyone shall be permitted to intervene in an action ... when a statute of the United States confers an unconditional right to intervene.” The Committee contends that the statutory right to intervene in this case is conferred by Section 1109(b) of the Bankruptcy Code, 11 U.S.C. Section 1109(b), which states that “[a] party in interest, including ...' a creditor’s committee, ... may raise and may appear and be heard on any issue in a case under this chapter.” 11 U.S.C. Section 1109(b) (emphasis added).

The United States argues in response that Section 1109(b) does not provide the Committee with an unconditional right to intervene because the instant CAA enforcement action is not “a case under [Chapter 11].” The United States also argues that even if the Committee had a right to intervene such right would be limited by the countervailing statutory federal interest involved here of enforcing the CAA.

A plain reading of Section 1109(b) supports the United States’ argument that such section does not provide the Committee with an unconditional right to intervene because this environmental action is not a case “under this chapter” as referenced therein. As the Court of Appeals recognized in In re Marin Motor Oil, Inc., 689 F.2d 445, 449-50 (3d Cir.1982), “[t]he words ‘this chapter’ in section 1109(b) denote Chapter 11 of the Bankruptcy Code, the Chapter which deals specifically with reorganizations.” United States v. Nicolet, Inc., 84 B.R. 30, 31 (E.D.Pa.1988) (“Nicolet II ”). In Nicolet II, therefore, a case involving a suit brought by the United *580 States under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), 42 U.S.C. Section 9607(a), to recover certain response costs, the court held that a bankruptcy creditors committee did not have a right of intervention under Rule 24(a)(1). Id. The court explained that “[t]he litigation presently pending before this Court is not a case ‘under’ Chapter 11 of the Code, but, rather, involves a CERCLA claim which ... is exempt from the stay provisions of the Bankruptcy Code.” Id. (citation omitted). This CAA claim, like the CERCLA action in Nicolet II, is not a case under Chapter 11.

We also note that the Court of Appeals more recently stated, albeit in dicta, that the district court’s decision in Nicolet II “suggests that the right to intervene under Section 1109(b) will not turn on whether a case is ‘related to’ or ‘under’ Chapter 11, but on whether there is an independent federal right which overrides the interests of creditors to intervene.” Phar-Mor, Inc. v. Coopers & Lybrand, 22 F.3d 1228, 1241 n. 21 (3d Cir.1994). The Court of Appeals explained that “[s]uch an overriding federal interest existed in Nicolet II because ...

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269 B.R. 576, 2001 U.S. Dist. LEXIS 18367, 2001 WL 1410442, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-ltv-steel-co-inc-pawd-2001.