Norfolk Southern has agreed to pay a substantial $310 million to settle charges related to a toxic train derailment in East Palestine, Ohio, in February 2023. This significant sum includes $235 million designated for covering all past and future cleanup costs, as well as a $15 million civil penalty to address alleged violations of the Clean Water Act. The settlement follows a lawsuit filed in March 2023 by the EPA and the U.S. Department of Justice against Norfolk Southern for purportedly breaching the Clean Water Act due to a freight train derailment causing a lengthy fire, mandatory evacuations, and significant soil and water contamination.
In the settlement, Norfolk Southern has not only agreed to pay for cleanup costs but also committed to “take measures to improve rail safety.” Furthermore, the company will fund health monitoring and mental health services for the affected communities, including an estimated $7 million for remediation projects aimed at addressing pre-existing pollution and enhancing water quality in the region. Norfolk Southern’s president and CEO, Alan Shaw, expressed satisfaction with the resolution and affirmed the company’s dedication to safety within the industry.
EPA Administrator Michael Regan emphasized the importance of holding Norfolk Southern accountable for the unfortunate incident in East Palestine, stating, “No community should have to experience the trauma inflicted upon the residents.” The agreement not only ensures that the cleanup will be financed by the company but also includes provisions aimed at preventing similar disasters in the future. The EPA has highlighted the significance of this enforcement action in addressing the community’s needs and preventing future incidents of this nature.
Norfolk Southern has reportedly incurred costs totaling around $1.7 billion in connection with the derailment incident. Despite the $310 million settlement, the company asserts that this amount had already been allocated and anticipated, meaning it will not increase the overall cost associated with the incident. The cleanup efforts are expected to be completed by November 2024, although this timeline is subject to change, as indicated by EPA spokesman Remmington Belford. This resolution with the EPA comes shortly after Norfolk Southern’s agreement to pay $600 million in a class-action lawsuit settlement related to the same derailment incident.
Leave a Reply