Norfolk Southern agrees to $310 million settlement over derailment

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Norfolk Southern agrees to $310 million settlement over derailment
Norfolk Southern agrees to $310 million settlement over derailment



Officials continue operations and inspect the area following the train derailment in East Palestine, Ohio, USA, 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, the company announced Thursday.

The bulk of the settlement is estimated at $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 in March 2023 by the EPA and the U.S. Department of Justice against Norfolk Southern for alleged violations of the Clean Water Act after the derailment of a freight train carrying hazardous materials sparked a day-long fire that left residents in distress Evacuation forced and contaminated soil and water.

“We are pleased that we were able to reach a timely resolution of these investigations that recognizes our comprehensive response to the needs of the community and our mission to be the gold standard for safety in the rail industry,” said Alan Shaw, Norfolk president and CEO Southern. said in a statement. “We will continue to deliver on our promises and are invested in the future of the community for the long term.”

Smoke rises from a derailed freight train in East Palestine, Ohio, on February 4, 2023.

Dustin Franz | Afp | Getty Images

If the settlement is approved by the U.S. District Court for the Northern District of Ohio, Norfolk Southern would not only have to “take measures to improve railroad safety,” but also “pay for health monitoring and mental health services for surrounding communities,” among other things. other measures, the EPA said Thursday. This includes paying an estimated $7 million for cleanup projects to curb existing pollution and improve water quality in the area.

“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 fulfills that commitment, ensures the cleanup effort is paid for by the company, and helps ensure such a disaster does not occur again.”

U.S. President Joe Biden receives an operational briefing from officials on ongoing response and recovery efforts at the site of a train derailment that spilled dangerous chemicals a year ago in East Palestine, Ohio, on February 16, 2024.

Almond Ngan | Afp | Getty Images

It is estimated that Norfolk Southern incurred approximately $1.7 billion in total costs related to the incident. The company said Thursday’s settlement would not add to that total because it had already set aside money and anticipated the costs.

The entire cleanup is currently expected to be completed in November 2024, but that “could change,” according to EPA spokesman Remmington Belford.

The settlement with the EPA comes a month after the company agreed to pay $600 million as part of a class-action lawsuit related to the 2023 derailment.



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2024-05-23 19:40:11

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