Business

Pollution case settled by Anadarko

13:49 pm on 4 April 2014

Anadarko Petroleum Corp agreed on Thursday to pay more than $US5 billion to clean up polluted areas in the United States.

The agreement resolves a long-running lawsuit against the Kerr-McGee energy and chemical company, which Anadarko bought in 2006. The case was brought by a trust representing the U.S. government, 11 state governments, Indian tribes and individuals.

The trust was seeking cleanup costs at more than 2000 sites nationwide.

It was also seeking payment for claims from more than 8000 people who said their exposure to Kerr-McGee's wood treatment plants in Avoca, Pennsylvania and Manville, New Jersey caused cancer, which in some cases led to death.

Prior to the takeover, Kerr-McGee restructurings shifted its environmental liabilities into a separate chemical unit called Tronox.

A bankruptcy judge ruled last December the Tronox reorganisation was fraudulent and that Anadarko owed Tronox trustees billions of dollars.