Finance
Norfolk Southern agrees to $310 million settlement over derailment
Officials continue to conduct operations and inspect the area following the train derailment in East Palestine, Ohio, United States on February 17, 2023.
EPA | Anadolu | Getty Images
Norfolk Southern has agreed to pay $310 million to settle charges stemming from a toxic train derailment in East Palestine, Ohio, in February 2023. announced on Thursday.
The bulk of the settlement is an estimated $235 million, to cover all past and future cleanup costs. Under the agreement, the company will also pay a $15 million civil penalty to resolve alleged violations of the Clean Water Act.
The agreement resolves a lawsuit filed by the EPA and the U.S. Department of Justice against Norfolk Southern in March 2023 for allegedly violating the Clean Water Act after the derailment of a freight train carrying hazardous materials sparked a days-long fire that burned local residents forced evacuations and contaminated soil and waterways.
“We are pleased that we were able to reach a timely resolution to these investigations that recognizes our comprehensive response to community needs and our mission to be the gold standard of safety in the rail industry,” said Alan Shaw, president and CEO of Norfolk Southern. said in a statement. “We will continue to deliver on our commitments and invest in the community’s long-term future.”
Smoke rises from a derailed freight train in East Palestine, Ohio, on February 4, 2023.
Dustin Franz | Episode | Getty Images
If the settlement is approved by the U.S. District Court for the Northern District of Ohio, Norfolk Southern would not only “take steps to improve railroad safety,” but also “pay for health monitoring and mental health services for the surrounding communities,” among other actions , the EPA said Thursday. That includes paying an estimated $7 million for cleanup projects to combat pre-existing pollution and improve water quality in the region.
“No community should have to experience the trauma inflicted on the residents of East Palestine,” EPA Administrator Michael Regan said in a statement. “Today’s enforcement action delivers on this promise, ensures the cleanup is paid for by the company and helps prevent another disaster like this from happening again.”
US President Joe Biden receives an operational briefing from officials on the ongoing response and recovery efforts at the site of a train derailment that leaked hazardous chemicals a year ago on February 16, 2024 in East Palestine, Ohio.
Mandel Ngan | Episode | Getty Images
Norfolk Southern is estimated to have spent approximately $1.7 billion on total costs associated with the incident. The company said Thursday’s settlement will not add to that total because it had already set aside money and anticipated the costs.
Currently, the entire cleanup effort is expected to be completed on or around November 2024, but that “could change,” according to EPA spokesperson Remmington Belford.
The resolution with the EPA comes a month after the company agreed to pay $600 million in a class action lawsuit related to the 2023 derailment.
