In a significant financial reckoning for last year's train disaster in Ohio, Atlanta's Norfolk Southern railway has committed to a series of substantial payments totaling more than $300 million for safety upgrades and community restitution. The pact, unveiled by federal authorities this Thursday, includes a $15 million fine as part of the settlement over the East Palestine derailment—a sum that is being dubbed as "modest" in light of the incident's repercussions.
The Environmental Protection Agency and Department of Justice confirmed the details of the agreement. Norfolk Southern will not face criminal charges despite earlier uproar from affected locals. In a deal two days prior, a federal judge had greenlighted a $600 million class action settlement with East Palestine residents, as WABE reported.
Beyond the fines, the settlement dictates that Norfolk Southern must reimburse the EPA an additional $57 million for response costs and create a $25 million health care fund for 20 years’ worth of medical exams within the community. There's also an allotment of $25 million to $30 million reserved for long-term drinking water and groundwater monitoring—a response to fears of environmental pollution following the derailment.
EPA Administrator Michael Regan emphasized the historic nature of the settlement in a statement saying, "This settlement is historic in many ways. And will begin to make up for some of the damage caused to the residents of East Palestine." However, Jami Wallace, a resident of the affected area, voiced dissatisfaction with the outcome, saying to WABE, “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.”
Norfolk Southern has promised to introduce roughly 200 trackside detectors and more than a dozen high-tech inspection portals to monitor mechanical issues, endeavors that have an estimated cost of $244 million through 2025. Norfolk Southern CEO Alan Shaw stated, "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.” Shaw's declaration appears to express a commitment to meeting the community's future needs in light of the derailment's aftermath.
Investigations continue to unfold, with the National Transportation Safety Board planning to present findings regarding the cause of the Feb. 3, 2023, derailment at a June 25 hearing in East Palestine. This remains the sole pending federal investigation.
