Norfolk Southern and the federal government outlined the settlement May 23.
The rail operator summarized its main elements this way:
- Paying a $15 million civil penalty and reimbursing EPA for its full response expenses, which are approximately $57 million through November 30, 2023, as well as subsequent response costs;
- Completing the cleanup of the derailment site, implementing several environmental remediation projects to address pre-existing pollution and to improve water quality in the region. This is estimated to cost $7 million.
- Continuing monitoring of groundwater and surface water bodies estimated to cost $10 to $15 million. Additionally, a drinking water monitoring program will be established, which is estimated to cost $15 million over 10 years.
- Establishing a $25 million Community Health Program that will provide medical exams and mental health services for the community and first responders for up to 20 years.
- Spending $244 million on safety initiatives through 2025.
In a statement, Norfolk Southern President and CEO Alan H. Shaw said: “From day one, it was important for Norfolk Southern to make things right for the residents of East Palestine and the surrounding area. 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.”
Republican U.S. Sen. JD Vance and Ohio Attorney General Dave Yost don't see the settlement in such positive terms.
They issued a joint statement Thursday "to express their concern" that the settlement "could severely undercompensate the residents of East Palestine."
The statement continued as follows:
“The Department of Justice would have better served East Palestine and surrounding communities by negotiating against Norfolk Southern armed with all relevant facts surrounding the disaster — facts which can only be revealed by the NTSB. The residents of East Palestine deserve full compensation to account for the hardships they have faced in the months since the derailment, but they also deserve the full truth about why the derailment and vent and burn occurred. With its decision to reach a settlement now, the DOJ may have sacrificed its opportunity to use the NTSB’s findings to impose maximum leverage on those responsible for any potential wrongdoing. We are reviewing the now-public settlement proposal, but with so much unknown at this time, it is difficult to assess its impact. We will continue to do everything in our power to ensure those impacted by the derailment are made whole and to ensure anyone responsible for wrongdoing is held accountable.”
Vance and Yost also complained that the Department of Justice "has closely guarded the details of this settlement and did not make co-plaintiffs, including the State of Ohio, aware of crucial details before its public release today (Thursday). This problem deserves more time and consideration."
The federal government in its announcement of the settlement noted that "together with other response costs and rail safety enhancements, Norfolk Southern estimates that it will spend more than $1 billion to address the contamination and other harms caused by the East Palestine derailment and improve rail safety and operations."
The proposed settlement was lodged in the U.S. District Court for the Northern District of Ohio. It is subject to a minimum 30-day public comment period and final court approval.
