Norfolk Southern agrees to $310 million settlement over derailment
From CNBC: 2024-05-23 15:40:11
Officials are inspecting the area after a train derailment in East Palestine, Ohio on February 17, 2023. Norfolk Southern agrees to pay $310 million to settle charges over the toxic derailment, including $235 million for cleanup costs and a $15 million civil penalty for Clean Water Act violations.
The agreement resolves a lawsuit filed by the EPA and DOJ against Norfolk Southern for violating the Clean Water Act after a train carrying hazardous substances derailed, causing a fire that forced evacuations and contaminated soil and waterways in East Palestine, Ohio.
The settlement, pending court approval, requires Norfolk Southern to improve rail safety, provide health monitoring, mental health services for communities, and fund remediation projects to improve water quality in the region, totaling approximately $7 million. EPA Administrator Michael Regan emphasized the importance of preventing similar disasters in the future.
Norfolk Southern has already spent about $1.7 billion on costs related to the incident. The company anticipates the cleanup effort to conclude around November 2024, with no additional costs from the settlement. This agreement with the EPA follows a $600 million settlement in a class-action lawsuit related to the 2023 derailment.
Read more: Norfolk Southern agrees to $310 million settlement over derailment