Norfolk Southern settles $310M with EPA, DOJ for Ohio train derailment cleanup

Norfolk Southern Railway Company has reached a $310 million settlement with the U.S. Environmental Protection Agency (EPA) and the Department of Justice over the 2023 train derailment in East Palestine, Ohio. The agreement includes a $15 million civil penalty and covers costs related to cleanup, health monitoring, and rail safety enhancements. The settlement will address damages caused by the derailment, which released hazardous chemicals into the environment, affecting the local soil, water, and air.

As part of the settlement, Norfolk Southern will allocate an estimated $235 million for cleanup efforts and contribute $25 million towards a 20-year community health program. This program will include health monitoring and mental health services for residents within a 2-mile radius of the accident site or those near affected waterways. Additionally, the company has committed to spending over $200 million on rail safety improvements. The EPA estimates that the total cost for Norfolk Southern to address the contamination and enhance safety measures will exceed $1 billion.

The settlement is pending court approval and is part of a broader effort to ensure Norfolk Southern addresses both immediate and long-term impacts of the derailment. This includes funding for long-term environmental monitoring and measures to protect local waterways and drinking water resources. The company has also agreed to a tentative $600 million settlement to resolve lawsuits from thousands of residents within a 20-mile radius of the derailment site.