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IN RE AMERICAN COASTAL ENERGY INC.

No. 08-33160.

399 B.R. 805 (2009)

In re AMERICAN COASTAL ENERGY INC, Debtor(s).

United States Bankruptcy Court, S.D. Texas, Houston Division.

January 15, 2009.

Attorney(s) appearing for the Case

Matthew Hoffman, Law Offices of Matthew Hoffman, P.C., Houston, TX, for Debtor.

Hal F. Morris (argued), Ashley Bartram, Asst. Attys. Gen., Austin, TX, for Texas Railroad Com'n.

MEMORANDUM OPINION

MARVIN ISGUR, Bankruptcy Judge.

Summary

Immediately after American Coastal Energy Inc. ("American Coastal") filed a chapter 11 bankruptcy petition, the Texas Railroad Commission (the "Commission") spent state funds to remediate environmental risks for which American Coastal had ongoing responsibility. The Commission contends that these post-petition expenditures are entitled to administrative expense priority under §...

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