Anadarko Pays Billions in Settling Toxics Case

"HOUSTON — A giant Texas oil company, Anadarko Petroleum, has agreed to pay $5.1 billion for a vast environmental cleanup, a sum the Justice Department said was the largest it had ever won in such a case.

The settlement, announced on Thursday, is aimed at restoring thousands of sites polluted by toxins and compensating thousands of people with personal injury claims.

The case stretches back almost a decade, originating with claims against Kerr-McGee, an Oklahoma energy and chemical company that is now a subsidiary of Anadarko, one of the country’s most successful oil and gas producers.

Anadarko had argued that it could not be held liable for pollution caused by Kerr-McGee, which had ostensibly passed the liabilities on to a spinoff company called Tronox, now bankrupt. But a bankruptcy judge said the reorganization was simply an attempt to dodge liability."

Clifford Krauss reports for the New York Times April 3, 2014.


"Company Agrees To Record Environmental Settlement" (Los Angeles Times)

"Anadarko Petroleum To Pay $5.15 Billion To Settle Pollution Case, Justice Dept. Says" (Washington Post)

Source: NY Times, 04/04/2014