Mont. Tries To Kill Flying J Enviro Liability Releases

Law360, New York (June 29, 2010, 1:25 PM EDT) -- Flying J Inc.’s Chapter 11 reorganization plan is facing criticism from Montana's environmental regulator, which claims the plan whitewashes the oil company’s environmental liabilities to the state.

The Montana Department of Environmental Quality urged Judge Mary Walrath of the U.S. Bankruptcy Court for the District of Delaware on Monday to reject Flying J's reorganization plan, arguing that it contradicts a proposed settlement with the agency and releases the debtor from environmental claims at numerous sites in the state, including a closed refinery.

The MDEQ expects to...
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