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Norfolk Southern Railway Company, $310M Settlement, East Palestine OH, 2023
The Norfolk Southern Railway Company has been dealt a $310 million blow after a settlement was reached with the U.S. government to address the harms caused by the East Palestine train derailment. The incident occurred on February 3, 2023.
According to the Justice Department and Environmental Protection Agency (EPA), Norfolk Southern will be required to take measures to improve rail safety, pay for health monitoring and mental health services for the surrounding communities, fund long-term environmental monitoring, pay a $15 million civil penalty, and take other actions to protect nearby waterways and drinking water resources.
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.
Acting Associate Attorney General Benjamin C. Mizer stated, ‘The President issued an executive order which promised to address the disaster’s long-term effects and to hold Norfolk Southern responsible for its train derailing and the burning of hazardous chemicals in East Palestine. This settlement helps fulfill that promise.’
EPA Administrator Michael S. Regan added, ‘No community should have to experience the trauma inflicted upon the residents of East Palestine. That’s why President Biden pledged from the beginning that his Administration would stand with the community every step of the way. 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.’
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division noted, ‘The human cost from the Norfolk Southern train derailment disaster was high and continues today. That is why we worked to include funding in this agreement for a community health program.’
U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio stated, ‘Norfolk Southern’s train derailment and massive chemical spill onto East Palestine’s grounds and into its waterways jeopardized the safety and health of residents, damaging their homes, their lives, and the environment.’
Key Facts
- State: Ohio
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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