Federal settlement reached with Norfolk Southern over $310 million payment for Ohio derailment
- Norfolk Southern to pay $310 million in federal settlement for East Palestine derailment in Ohio.
- Federal government agrees to the settlement for last year's train derailment.
- The $310 million payment represents the largest sum in the settlement.
The Environmental Protection Agency and the Department of Justice settled with Norfolk Southern for $310 million due to a train derailment in East Palestine, Ohio. Norfolk Southern will spend $235 million on clean-up, $25 million on a community health program, $30 million on water quality monitoring, and $6 million on a waterways remediation plan. This settlement aims to help the affected residents and improve safety. In February 2023, a Norfolk Southern freight train derailed in East Palestine, causing harm to the residents. The company estimates spending over $1 billion to address the contamination and improve safety. The settlement includes measures to enhance rail safety, provide medical services, and clean up the environment. The settlement is pending approval by the U.S. District Court for the Northern District of Ohio. Norfolk Southern will pay a $15 million civil penalty for Clean Water Act violations. The settlement does not admit liability but holds the company accountable for the derailment. The federal government filed a complaint against Norfolk Southern for discharging pollutants due to the derailment. The company agreed to pay $600 million to settle class-action claims. Residents have mixed feelings about the settlement, with some feeling it is insufficient given the company's profits. Norfolk Southern will also reimburse the EPA $57 million for response costs and set up a $25 million health care fund. The company will pay for medical exams, water monitoring, and groundwater protection. Safety improvements include adding trackside detectors. The settlement is seen as a step towards addressing the damage caused in East Palestine. Residents hope for further actions to make the community whole. Norfolk Southern believes the settlement reflects its efforts in response to the incident. CEO Alan Shaw expressed satisfaction with the resolution.