Norfolk Southern has agreed to a $310 million settlement to resolve charges related to a toxic train derailment in East Palestine, Ohio, in February 2023, the company announced on Thursday. The majority of the settlement, approximately $235 million, is designated to cover all past and future cleanup costs. Additionally, Norfolk Southern will pay a $15 million civil penalty to address alleged violations of the Clean Water Act.

The agreement resolves a lawsuit filed in March 2023 by the Environmental Protection Agency (EPA) and the U.S. Department of Justice against Norfolk Southern. The lawsuit alleged that the company violated the Clean Water Act after the derailment of a freight train carrying hazardous substances caused a days-long fire, forced local residents to evacuate, and contaminated soil and waterways.

Alan Shaw, president and CEO of Norfolk Southern, 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. We will continue keeping our promises and are invested in the community’s future for the long-haul."

The proposed settlement, pending approval by the U.S. District Court for the Northern District of Ohio, will require Norfolk Southern to take measures to enhance rail safety and fund health monitoring and mental health services for the affected communities. The EPA specified that the settlement includes an estimated $7 million for remediation projects aimed at reducing pre-existing pollution and improving the region’s water quality.

EPA Administrator Michael Regan commented, "No community should have to experience the trauma inflicted upon the residents of East Palestine. Today’s enforcement action delivers on this commitment, ensures the cleanup is paid for by the company, and helps prevent another disaster like this from happening again."

The derailment incident, which occurred near the Ohio-Pennsylvania state border, resulted in a significant fire and the release of hazardous chemicals, leading to the evacuation of local residents. The train was en route from Madison, Illinois, to Conway, Pennsylvania, when it derailed.

US President Joe Biden received an operational briefing on the response and recovery efforts at the site of the derailment in East Palestine, Ohio, on February 16, 2024. The federal response has emphasized the need for corporate accountability and robust safety measures to prevent similar incidents in the future.

Norfolk Southern has estimated the total costs associated with the incident at approximately $1.7 billion. The company indicated that Thursday’s settlement would not increase this total, as it had already set aside funds in anticipation of the costs. The cleanup effort is currently expected to conclude around November 2024, though this timeline may change, according to EPA spokesman Remmington Belford.

This settlement follows a separate agreement in which Norfolk Southern agreed to pay $600 million in a class-action lawsuit settlement related to the 2023 derailment. The class-action settlement addressed claims from residents and businesses affected by the derailment, covering economic losses, property damage, and health impacts.

The EPA and the U.S. Department of Justice have emphasized that the settlement aims to ensure that Norfolk Southern is held accountable for the environmental and public health impacts of the derailment. The funds allocated for cleanup, health monitoring, and mental health services are intended to support the long-term recovery and resilience of the affected communities.

Norfolk Southern’s commitment to improving rail safety and addressing the environmental damage caused by the derailment is seen as a crucial step in rebuilding trust with the communities affected by the incident. The company has pledged to work closely with federal and state agencies to implement the terms of the settlement and to prevent future accidents.