In Re Gollnitz, 456 B.R. 733

Debtors Wade and Trudy Gollnitz filed a Chapter 13 petition on August 28, 2009.
Property at S184 North Portage Street in Westfield formerly operated as a gasoline service station; NY DEC inspectors found petroleum bulk storage violations.
DEC issued a Notice of Violation in July 2009 and amended it August 20, 2009, listing seven deficiencies including failure to monitor for leaks.
The plan confirmed December 10, 2009 authorized surrender of the North Portage Street property to secured creditors and provided no environmental obligations.
The DEC did not receive notice due to debtors’ failure to include the agency on the mailing matrix.
Debtors argued the plan’s surrender to the county absolved them of environmental duties; the court held title revests in the debtor and environmental duties remain.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether § 959(b) imposes environmental duties on a Chapter 13 debtor.	DEC: applies to trustees/debtors acting as manager.	Gollnitz: surrender/ownership limits liability; statute not triggered here.	Yes; debtor revests with trustee-like duties to comply.
Appropriate remedy to enforce environmental obligations.	DEC seeks equitable relief to compel action.	No basis for compulsory action; remedy via state enforcement courts.	Bankruptcy court may impose adequate protection conditions; not grant broad injunction now.
Effect of plan surrender on ownership and environmental liability.	State may enforce environmental rules regardless of surrender.	County/plan surrender relieves debtors of obligations.	Surrender does not transfer title; revesting remains with debtor; DEC may pursue debtor.

Midlantic Nat. Bank v. New Jersey Department of Environmental Protection, 474 U.S. 494 (Supreme Court, 1986) (bankruptcy cannot be used to evade environmental health and safety laws)