East Palestine, Norfolk Southern reach $22M settlement

(The Center Square) – Nearly two years after a train derailment sent toxic chemicals into the air, ground and water, the village of East Palestine, Ohio, and Norfolk Southern reached a deal to resolve all claims from the wreck.

According to court documents, Norfolk Southern agreed to pay $22 million for priorities identified by the village in connection with the derailment.

The settlement also recognized $13.5 million already paid to the village by Norfolk Southern to replace fire and police equipment and vehicles, to improve East Palestine’s water treatment plant, and renovate the village’s historic train depot.

The deal also reaffirms the company’s commitment of $25 million for improvements at East Palestine City Park.

However, the village and company agreed creating and operating a regional safety training center in East Palestine was not possible and scrapped the idea. Norfolk Southern will also transfer ownership of about 15 acres of land it bought to build the center to the village.

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In September, as previously reported by The Center Square, a federal judge approved a $600 million settlement that covered residents, property owners and businesses within 20 miles of the derailment site and chemical release that happened Feb. 3, 2023.

That settlement called for personal injury payments of $25,000 for those within 2 miles of the derailment and about $1,000 for those 5-10 miles away.

Also, those within 2 miles of the site were scheduled to receive $70,000 per household in direct payments, lowering by distance to about $250 per household for those from 15-20 miles away from the derailment site.

That settlement was separate from the U.S. Department of Justice’s $310 million settlement with Norfolk Southern. That deal came in the National Transportation and Safety Board’s final report.

At the time, then-Ohio Sen. J.D. Vance, now vice president, called the deal premature. He has said little about the derailment since then.

At about 9:30 p.m. on Feb. 3, 2023, 53 Norfolk Southern train cars derailed in East Palestine, leading to a vent and burn of toxic chemicals.

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At a public hearing in June in East Palestine, National Transportation and Safety Board Chairwoman Jennifer Homendy called Norfolk Southern’s attempts to sway the investigation unprecedented and reprehensible.

She reiterated the board’s finding that the eventual vent and burn following the crash was unnecessary, and the report said the crash could have been avoided.

It blamed the crash that forced the evacuation of more than 2,000 residents on the wheel bearing of rail car 23, which caught fire, causing the axle to fall off and derail the train.

The final report confirmed initial findings released a year ago and previously reported by The Center Square.

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