Energy company Anadarko Petroleum Corp agreed on Thursday to pay more than $5 billion to clean up areas across the United States polluted by nuclear fuel, wood creosote and rocket fuel waste that caused cancer and other health problems.

 

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 2,000 sites nationwide. It was also seeking payment for claims from more than 8,000 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.

 

Despite the size of the settlement, investors cheered, boosting Anadarko's share price 14.5 percent to $99.02 per share. Analysts said the company was facing the possibility of having to pay a much higher price.

 

Anadarko had argued the environmental liabilities belonged to Tronox Ltd, a paint and chemicals company that was spun off from Kerr-McGee. The sale of Tronox, which ultimately fell into bankruptcy, happened before Anadarko's purchase.

 

Tronox, which makes titanium dioxide used in paints, said in a statement that the accord means "the cleanup of the Kerr-McGee legacy environmental damages can begin and people injured by those actions can finally be compensated."