Norfolk Southern will pay a $15 million fine but won’t face criminal consequences for last year’s toxic train derailment in East Palestine, Ohio, the federal government said Thursday.
The feds and the railroad announced the sprawling settlement two days after Norfolk Southern settled a class-action suit for $600 million. East Palestine residents were largely unimpressed with the fine.
“Slaps on the wrist,” said Krissy Ferguson. “A $15 million fine? And I can never go back to my home again?”
Norfolk Southern previously budgeted a total of $1.7 billion for the consequences of the derailment, and Thursday’s settlement did not change that figure. The company reported a $527 million profit in the fourth quarter of 2023.
Along with the civil penalty, the railroad committed $25 million for a health care fund to pay for 20 years of medical exams in the community and $25 million to $30 million for long-term monitoring of drinking water and groundwater. Norfolk Southern also agreed to reimburse the EPA $57 million in cleanup costs.
The $15 million fine was the largest allowed under the Clean Water Act.
“This settlement is historic in many ways and will begin to make up for some of the damage caused to the residents of East Palestine,” EPA Administrator Michael Regan said in a statement.
Norfolk Southern also agreed to numerous safety improvements, which they plan to implement by the end of 2025 and expect to cost $244 million. The EPA will monitor Norfolk Southern’s work under the terms of the settlement.
It was Norfolk Southern’s second major settlement of the week, as the company agreed Tuesday to pay $600 million to end a class-action suit surrounding the derailment. The company still faces a lawsuit from the state of Ohio over the crash.
With News Wire Services
