In a significant development, Norfolk Southern has agreed to pay over $1.1 billion in settlements related to the February 2023 train derailment in East Palestine, Ohio. The derailment led to environmental contamination and forced hundreds of residents to evacuate their homes.
The largest portion of the settlement, $600 million, was reached with residents affected by the incident through a class-action lawsuit. Norfolk Southern will pay an additional $310 million to cover cleanup costs and penalties from the US government for Clean Water Act violations.
The derailment occurred when an overheating bearing on one of the cars went undetected by Norfolk Southern's network of detectors along the tracks. Eleven cars carrying hazardous materials, including vinyl chloride, derailed and caused a massive fire that released toxic fumes into the air.
The settlement still needs to be approved by a federal judge. Residents have expressed concerns about the amount they will receive from the settlement and are seeking more information on how it will be distributed.
Norfolk Southern has estimated that it will spend over $1 billion in total for contamination fixes, rail safety improvements, and compensation to affected individuals and businesses.
The derailment had a significant impact on the community of East Palestine. Approximately 2,000 residents were forced to evacuate their homes due to hazardous conditions. Environmental officials estimated that nearly 45,000 animals died within a 5 mile radius of the derailment site.
The settlement includes provisions for long-term environmental monitoring and rail safety upgrades. Norfolk Southern has also agreed to pay for mental health services for residents affected by the incident.
EPA Administrator Michael Regan stated, “No community should have to experience the trauma inflicted upon the residents of East Palestine.” The settlement aims to address this issue and ensure that Norfolk Southern is held accountable for its role in the derailment.
The incident highlighted concerns about rail safety and prompted calls for improvements. The National Transportation Safety Board (NTSB) is currently investigating the cause of the derailment.