EPA, DOJ settle with Norfolk Southern for $310 million over East Palestine derailment

Benjamin Duer, Canton Repository

Norfolk Southern has reached another settlement over the fiery train derailment last year in East Palestine. This time, the rail company struck a deal with the U.S. government.

The U.S. Department of Justice and the Environmental Protection Agency and Norfolk Southern on Thursday announced the Atlanta-based company agreed in principle to pay over $300 million to resolve federal claims from the Feb. 3, 2023, accident.

The settlement still needs to be approved by U.S. District Court.

In a news release, the department and EPA said the settlement would require Norfolk Southern to improve rail safety, fund long-term environmental monitoring, pay for health monitoring and mental health services for the surrounding communities and pay a $15 million civil penalty.

The company also would be required to take other actions to protect nearby waterways and drinking water resources.

“No community should have to experience the trauma inflicted upon the residents of East Palestine,” EPA Administrator Michael S. Regan said in a prepared statement. “... Because of this settlement, residents and first responders will have greater access to health services, trains will be safer, and waterways will be cleaner.”

In April, the lead attorneys representing the victims and Norfolk Southern agreed in principle to a $600 million, class-action lawsuit settlement, and earlier this week, U.S. District Court Judge Benita Pearson granted preliminary approval on the agreement.

Norfolk Southern also estimated that it will spend more than $1 billion to address the contamination and other harms caused by the East Palestine derailment and improve rail safety and operations.

"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 President and CEO Alan H. Shaw said in a prepared 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 and our mission to be the gold standard of safety in the rail industry. We will continue keeping our promises and are invested in the community's future for the long haul."

How the Norfolk Southern settlement money will be used

Under the settlement, Norfolk Southern has agreed to:

  • Spend an estimated $235 million for all past and future cleanup costs, so that cleanup efforts can continue and the company, rather than taxpayers, covers the cost.

  • Pay $25 million for a 20-year community health program that includes medical monitoring for qualified individuals, mental health services for individuals residing in affected counties as well as first responders who worked at the site and a community facilitation plan to assist community members in using the benefits of the program.

  • Spend $15 million to implement long-term monitoring of groundwater and surface water for a period of 10 years.

  • Pay $15 million for a private drinking water monitoring fund that will continue the existing private drinking water well monitoring program for 10 years.

  • Implement a “waterways remediation plan,” with an estimated budget of $6 million, for projects in Leslie Run and Sulphur Run that will prioritize addressing historical pollution, reducing non-point source pollution through infrastructure upgrades and stormwater management projects and restoring aquatic and riparian habitat.

  • Pay a $15 million civil penalty to resolve the alleged violations of the Clean Water Act

  • Pay $175,000 for natural resource damages, to be used by the United States to restore, rehabilitate, replace or acquire the equivalent of the natural resources injured as a result of the derailment.

The proposed settlement is subject to a minimum 30-day public comment period and final court approval. The details of the settlement are available on the Department of Justice's website at www.justice.gov/enrd/consent-decrees.

This article originally appeared on The Repository: Norfolk Southern, EPA agree to $310 million settlement

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