The Village of East Palestine and Norfolk Southern have announced a $22 million US settlement resolving all of the village’s claims arising from a disastrous 2023 train derailment near the Ohio-Pennsylvania border.
The settlement is to be used for priorities the village identifies in connection with the derailment, but it also recognizes about $13.5 million that Norfolk Southern has already paid to the village, according to the joint announcement posted on the village’s website. It also reaffirms Norfolk Southern’s commitment of $25 million to ongoing improvements to East Palestine City Park.
The freight train derailment in the village near the Pennsylvania state line in February 2023 included 11 cars transporting hazardous materials. At least 1,500 residents were subject to an evacuation order and, days later, officials fearing a possible uncontrolled blast intentionally released and burned toxic vinyl chloride from five rail cars, sending flames and black smoke into the sky.
The National Transportation Safety Board (NTSB) said in a subsequent investigation that the venting and burning of the vinyl chloride was unnecessary because the producer of the chemical ascertained that no dangerous reaction occurred inside the tank cars. Officials who made the decision — Ohio’s governor and the local fire chief leading the response — have said they were never told that.
Norfolk Southern and the village agreed that a proposed regional safety training centre in the village is not feasible and work will not proceed with building the centre according to the statement. Norfolk Southern agreed to transfer about 15 acres (six hectares) acquired for the centre to the village and it remains committed to providing training for East Palestine’s first responders at other facilities in the region.
Additional legal actions are pending. Residents challenging Norfolk Southern’s $600-million class-action settlement related to the crash have asked a court to reject a judge’s order requiring them to put up an $850,000 bond to continue their appeal for higher compensation and more information about the contamination.
Nearly $300 million of the settlement has been on hold because of the appeal, even though a judge approved the deal in September. The holdout residents are urging the 6th Circuit Court of Appeals to stop them from having to put up the huge sum to continue with their claims.
The U.S. government is ordering railway operator Norfolk Southern to clean up contaminated soil and water at the site of a hazardous train derailment in East Palestine, Ohio, where officials are trying to convince wary residents their tap water is safe to drink.
That settlement doesn’t include any admission of liability or wrongdoing.
NTSB has said the derailment was caused by a wheel bearing that video showed was on fire for more than 30 kilometres beforehand but wasn’t caught in time by inaccurate trackside detectors.
NTSBÂ chair Jennifer Homendy last year accused Norfolk Southern of interfering with the investigation and that the company was threatened with a subpoena on more than one occasion before sending requested information to federal investigators.
“Norfolk Southern’s abuse of the party process was unprecedented and reprehensible,” she said.Â
