NORFOLK (dpa-AFX) - Norfolk Southern Corp. (NSC) has reached a $310 million settlement with the U.S. Department of Justice and the Environmental Protection Agency following a train derailment last year in Ohio, which resulted in the release of over a million pounds of hazardous chemicals into the surrounding soil, water, and air.
If the settlement is approved by the U.S. District Court for the Northern District of Ohio, 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, the Justice Department said in a statement.
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 amount includes the settlement with the United States valued at over $310 million, as well as around $780 million in environmental response costs incurred by Norfolk Southern.
Norfolk Southern has estimated its costs since the derailment will exceed $200 million in rail safety enhancements, including those required by th settlement.
Norfolk Southern noted that the financial impacts associated with the settlement have either been previously estimated as part of the total $1.7 billion 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.
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