Norfolk Southern To Pay $310 Million In Landmark East Palestine Settlement With Federal Government

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 Norfolk Southern has agreed to pay a settlement valued at $310 million and will make additional rail safety improvements in response to its 2023 train derailment in East Palestine, Ohio, which sparked environmental concerns due to a resulting chemical spill.


 The settlement includes roughly $235 million worth of past and future cleanup costs, $20 million for a 20-year community health program that includes physical health and mental health monitoring, water monitoring programs and a $15 million civil penalty, among other things, according to the Department of Justice and Environmental Protection Agency.

Norfolk Southern is also required to carry out projects that will make it safer to transport hazardous materials through rails under the terms of the agreement—bringing the company's total estimated spending on rail safety enhancements since the crash beyond $200 million.

The settlement still needs court approval to take effect.

Company president Alan Shaw said in a press statement the company will “continue keeping our promises and are invested in the community’s future for the long-haul.”


A Norfolk Southern-operated train derailed in East Palestine in February 2023, causing a fire and sparking environmental concerns due to the presence of toxic chemicals like vinyl chloride on several rail cars. Images of a dark black cloud rising over the area—the result of a controlled burn—went viral on social media. There were no casualties and local and federal officials have maintained residents were in no danger—but residents have disputed that, reporting illnesses and other symptoms they attribute to chemical exposure. Most recently, residents protested President Joe Biden’s visit to the state earlier this year, claiming the federal response to the derailment had been lackluster. Thursday’s settlement is the result of the U.S. government’s 2023 lawsuit against the company. Norfolk Southern settled another lawsuit earlier this year from residents who claimed they’d been adversely affected by the incident—that one totaled $600 million.

BIG NUMBER
$1.7 billion. That’s how much in total Norfolk Southern estimates it will spend in response to the crash, including both settlements and around $780 million in environmental response and remediation costs.

An National Traffic Safety Board investigation into the crash is ongoing, and the final results are expected to be released at the board’s next meeting on June 25.

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