Norfolk Southern agrees to settle federal East Palestine derailment claims

Norfolk Southern announced it has reached an agreement on a consent decree with the U.S. Department of Justice, U.S. Environmental Protection Agency, and U.S. Department of the Interior to resolve all their claims and investigations arising from the derailment in East Palestine, Ohio. The agreement, which is subject to court approval, builds on the significant financial commitments that the company has already made toward environmental remediation, community-based programs, and safety-related enhancements. Under the agreement, Norfolk Southern will formalize several commitments to address environmental remediation, health monitoring, and rail safety. Those include: Paying a $15M civil penalty and reimbursing the EPA for its full response expenses, which are approximately $57M through November 30, 2023, as well as subsequent response costs. In addition to completing clean-up 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 $7M. Continuing monitoring of groundwater and surface water bodies estimated to cost $10M-$15M. Additionally, a drinking water monitoring program will be established, which is estimated to cost $15M over 10 years. Establishing a $25M Community Health Program that will provide medical exams and mental health services for the community and first responders for up to 20 years. $244M to be spent on safety initiatives through 2025, as part of the company’s Six Point Safety Plan and investments in safety infrastructure, technology, and training. “The financial impacts associated with the above have either been previously estimated as part of the total $1.7B recognized in response to the incident through March 31, 2024, or are included as part of the company’s ongoing financial outlook, including those surrounding capital expenditures and overall 2024 outlook. The company continues to pursue insurance reimbursements and third-party claims,” the company stated.