On Thursday, federal regulators said that they had reached a settlement with Anadarko Petroleum (APC) to fund the cleanup of hazardous waste at locations across the U.S. News of the deal sent APC stock surging more than 14% in Thursday trading.
Under the deal with the U.S. Department of Justice, Anadarko will pay $5.15 clean up radioactive waste at a number of former Kerr-McGee sites, including many located on the Navajo Nation. Anadarko acquired Kerr-McGee in 2006, the Los Angeles Times notes.
Prior to being purchased by Anadarko, Kerr-McGee spun off its chemical business into Tronox, which went bankrupt in 2009. A bankruptcy court found that Kerr-McGee has improperly transferred liability for the environmental cleanup to Tronox, which was unable to fund the remediation. A U.S. attorney described Kerr-McGee’s actions as a “corporate shell game.”
The government says that $2.2 billion of the settlement will be spent cleaning up contaminated sites across the South and Southwest, while another $985 million is earmarked for 50 inactive uranium mines on or near Navajo land.
APC stock climbed almost 3% in Friday morning trading.
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