Norfolk Southern has agreed to pay $310 million to settle charges over a toxic train derailment in East Palestine, Ohio, in February 2023. The majority of the settlement, estimated at $235 million, will cover all past and future cleanup costs. In addition, the company will pay a $15 million civil penalty to resolve alleged violations of the Clean Water Act. The settlement resolves a lawsuit filed by the EPA and the U.S. Department of Justice against Norfolk Southern for allegedly violating the Clean Water Act after a freight train carrying hazardous substances derailed, causing a dayslong fire that forced local residents to evacuate and contaminated soil and waterways.
Norfolk Southern’s president and CEO, Alan Shaw, expressed satisfaction with the resolution of the investigations, noting the company’s comprehensive response to the community’s needs and its commitment to safety in the rail industry. The settlement, which still requires approval by the U.S. District Court for the Northern District of Ohio, will not only require Norfolk Southern to take measures to improve rail safety but also to pay for health monitoring and mental health services for surrounding communities. Additionally, the company will provide an estimated $7 million for remediation projects to address pre-existing pollution and enhance water quality in the region.
EPA Administrator Michael Regan emphasized the importance of ensuring that no community should have to go through the trauma experienced by the residents of East Palestine. He noted that the enforcement action delivers on this commitment by holding the company accountable for the cleanup costs and taking steps to prevent such disasters from happening again. Norfolk Southern has already spent approximately $1.7 billion in total costs related to the incident, and the settlement will not add to that figure as the company had already set aside funds and anticipated the costs.
The cleanup effort in East Palestine is expected to be completed by November 2024, although this timeline is subject to change. The settlement with the EPA comes after Norfolk Southern agreed to a $600 million class-action lawsuit settlement related to the 2023 derailment. The company’s commitment to safety and accountability in addressing the environmental impact of the derailment demonstrates its dedication to the community and its responsibility as a leading company in the rail industry. The settlement serves as a step towards restoring the affected area to its previous state and preventing similar incidents from occurring in the future.
