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More than a year after a Norfolk Southern train derailed and spilled a cocktail of hazardous chemicals in East Palestine, Ohio, the company has agreed to a settlement with the U.S. Department of Justice (DOJ).
Under the terms of the $310 million settlement, Norfolk Southern will pay $235 million to cover the costs of the Environmental Protection Agency’s (EPA) cleanup efforts, along with a slew of other charges. The company said it will spend a total of $1.7 billion on its response to the February 2023 derailment, which includes addressing harm to local communities and improving rail safety.
On Feb. 3, 2023, 38 rail cars operated by Norfolk Southern, which carried vinyl chloride, derailed in East Palestine, spilling 115,000 gallons of the chemical into the surrounding area and local water streams, killing 3,500 fish. The chemical also sparked a fire that raged for days. Eventually, the authorities and Norfolk Southern decided to perform a controlled burn, which in turn sent a massive plume of smoke over the town.
The DOJ sued Norfolk Southern in March 2023 for illegally polluting the environment because of the derailment. The settlement is subject to approval by a federal judge and will resolve almost all federal claims and inquiries into the company. The National Transportation Safety Board will continue to investigate the cause of the derailment.
“No community should have to experience the trauma inflicted upon the residents of East Palestine,” EPA Administrator Michael S. Regan said in a statement. “Today’s enforcement action delivers on this commitment, ensures the cleanup is paid for by the company, and helps prevent another disaster like this from happening again.”
As part of the settlement, Norfolk Southern will pay a $15 million civil penalty, the highest amount allowed under the Clean Water Act. However, that is unlikely to satisfy residents, many of whom were displaced by the derailment.
The company last month agreed to pay out $600 million in a class-action lawsuit settlement to individuals and businesses, although locals are concerned that not everyone affected will receive payment. On Tuesday, a federal judge approved the agreement, which will address all damage claims within a 20-mile radius and personal injury claims within a 10-mile radius of the site in East Palestine.
“From day one, it was important for Norfolk Southern to make things right for the residents of East Palestine and the surrounding areas,” Norfolk Southern CEO Alan Shaw said in a statement. “We are pleased we were able to reach a timely resolution of these investigations that recognizes our comprehensive response to the community’s needs.”
-Laura Bratton contributed to this story.