Tronox bankruptcy - largest environmental cleanup settlement ever paid by Anadarko

The comment period will open soon for the largest environmental bankruptcy settlement in history: $5.15 billion dollars (http://time.com/49132/anadarko-petroleum-pollution-settlement).

Background: There was a company called Kerr-McGee, and in 1929 it started doing all kinds of toxic activities: uranium mining, wood treatment, thorium processing, but also oil and gas exploration.  By 2001, Kerr-McGee had figured out that its oil and gas businesses were very lucrative, and its mining and processing operations had billions in legacy liability under RCRA, TSCA, CERCLA, and pretty much every toxic tort theory imaginable at 2,700 sites in 47 states.  So, they decided to spin off the liability - they formed an entity called Tronox to hold all the toxic assets, and a new "Kerr-McGee" took all of the lucrative oil and gas assets.  Anadarko, made famous as one of the culpable parties in the Deepwater Horizon BP oil spill, bought the new Kerr-McGee.  After Tronox became subject to EPA environmental investigation and enforcement, and EPA revealed 85 years of chemical hazards, cancer claims, and other health impacts.  Tronox sued Anadarko, claiming that Kerr-McGee spun them off on purpose to shield assets (a fraudulent conveyance claim!) and didn't leave the new entity with enough funds to satisfy its liabilities (undercapitalized for the business - allows the piercing of the corporate veil!).

Tronox settled its bankruptcy claims with its debtors for $270 million and an 88% stake in its Anadarko litigation.  Anadarko has settled that litigation for $5.15 billion dollars.  The money will go to a litigation trust for distribution.  It will be used for past and future cleanup at contaminated Kerr-McGee sites, and to pay for Environmental Justice projects in and around the Navajo Nation, Florida, Illinois, and South Carolina.

I'm a huge fan of gigantic environmental settlements from these huge players that know they've screwed up over the years and don't want to do anything to make it right.  I'm glad Tronox sued Anadarko for fraudulent conveyance - Kerr-McGee thought it was going to be able to set up an entity just to take a fall, and the entity fought back.  If Kerr-McGee had given it enough assets to cover its liabilities, this lawsuit wouldn't have been necessary.

Summary: http://www2.epa.gov/enforcement/case-summary-settlement-agreement-anadarko-fraud-case-results-billions-environmental

Settlement draft and comment calendar: http://www.justice.gov/enrd/6377.htm