Norfolk Southern To Pay $600 Million As Part of Settlement Over Ohio Derailment

By FrumNews.com 

The Environmental Protection Agency (EPA) and Justice Department agreed to a $15 million fine for Norfolk Southern over last year’s disastrous derailment in East Palestine, Ohio, which led to a leak of toxic chemicals in the city.

As part of the settlement, the railroad promised to pay more than $500 million to complete the efforts to improve safety and address community health concerns it announced after the crash.

In addition to the civil penalty, Norfolk Southern agreed to pay $235 million in past and future cleanup costs on top of what it had already paid.

The railroad will set up a $25 million health care fund to pay for 20 years of medical exams in the town and will also pay about $30 million for long-term monitoring of drinking water, groundwater and surface water in the area. The agreement also says the railroad will pay $244 million for previously promised railroad improvements through 2025.

Residents who had to evacuate after the derailment complained that the settlement didn’t include any criminal charges. This federal settlement comes two days after a federal judge signed off on the railroad’s $600 million class action settlement with residents whose lives were disrupted.

“Honestly, no amount can ever make this right, but it should be at least enough to hurt them a little bit. I’m sure that’s not going to hurt their bottom line at all,” Jami Wallace told the AP.

A bill that would require Norfolk Southern and other major freight railroads to make more significant changes has stalled in Congress, although the industry has promised to make improvements on its own.

The NTSB has said previously that the derailment was likely caused by an overheating bearing that wasn’t caught in time by the trackside detectors the railroad relies on to spot mechanical problems.

The railroad is still working to resolve a lawsuit Ohio filed against it after the derailment.