A Louisiana federal judge has granted preliminary approval to a $3.5 million settlement resolving claims against Occidental Petroleum Corp. and Anadarko Petroleum Corp. over alleged contamination from creosoting facilities. The settlement, which benefits a class of local residents, was approved despite objections from co-defendants BNSF Railway Co. and International Paper Co.

Oil Cos $3.5M Settlement : Background of the Case

The lawsuit was initially filed in January 2020 by Larry W. Ashworth, a DeRidder, Louisiana property owner who claimed to have encountered a "dark-colored thick liquid" on his property, which he linked to former creosote treatment sites. These sites allegedly caused contamination through surface runoff and groundwater that traveled miles to reach his land. Ashworth's claims, including negligence, strict liability, and nuisance, targeted several companies, including Shreveport Creosoting Co. and International Paper, with Anadarko and Occidental named as successors to Shreveport.

Settlement Details and Objections

Under the terms of the settlement, Anadarko and Occidental will pay $3.5 million into an escrow account to cover the "hard costs" of continuing litigation against the remaining defendants, with no funds allocated for attorney fees. Any leftover money will be distributed to class members. Additionally, Anadarko and Occidental agreed to drop their appeal to the Second Circuit as part of the settlement, and U.S. District Judge James D. Cain Jr. denied their pending motion to dismiss as moot.

BNSF and International Paper objected to the settlement, arguing that the certification of the settlement class might impact the certification of a litigation class against them. However, Judge Cain ruled that the companies lacked standing to object, as the settlement did not affect their concrete legal rights.

Oil Cos $3.5M Settlement : Judicial Approval and Class Certification

Judge Cain found that the settlement class met the criteria for certification, noting that the claims shared common questions and facts. He also determined that the settlement appeared fair, offering a clear benefit to the class without attorney payments and was reached with all parties recognizing the complexities of ongoing litigation.

The case will continue against the remaining defendants, with the settlement providing crucial financial resources for the plaintiffs as they pursue their claims.