The village of East Palestine, Ohio, and Norfolk Southern have announced a $22 million settlement resolving the village’s claims stemming from the February 2023 train derailment. This catastrophic incident, which released hazardous materials near the Ohio-Pennsylvania border, sparked a national conversation about railroad safety and its far-reaching consequences.
This settlement addresses the village’s priorities related to the derailment. It includes recognition of the $13.5 million already disbursed by Norfolk Southern for crucial upgrades. These funds covered improvements to the water treatment plant and replacement of essential police and fire equipment, as detailed in the joint announcement published on the village’s website. Furthermore, the agreement reaffirms Norfolk Southern’s commitment of an additional $25 million for ongoing enhancements to East Palestine City Park, separate from the settlement itself.
The derailment involved 11 cars carrying hazardous materials, forcing area residents to evacuate. Days later, officials, fearing an uncontrolled explosion, intentionally released and burned toxic vinyl chloride from five rail cars. This action resulted in a towering plume of black smoke and flames. However, the National Transportation Safety Board’s subsequent investigation concluded that breaching and burning the vinyl chloride cars was unnecessary.
Initially, a $20 million regional safety training center in East Palestine was proposed. However, deemed unfeasible, the project has been abandoned. Norfolk Southern will transfer the 15 acres acquired for the center to the village. The railroad remains committed to providing training for East Palestine’s first responders at alternative regional facilities. While Norfolk Southern routinely offers hands-on training to firefighters across its network, the proposed center was intended to significantly enhance preparedness for similar disasters. The future of this training center concept, and whether it will be relocated, remains unclear.
In the wake of the derailment, regulators and lawmakers proposed safety reforms. However, a bill co-authored by then-Senator JD Vance stalled in Congress. Major freight railroads pledged to review their procedures and deploy more trackside detectors to identify mechanical issues before derailments occur. Despite these promises, the Federal Railroad Administration reported that these changes haven’t yielded substantial improvements in the industry’s safety record.
This $22 million settlement doesn’t conclude all legal actions. Several residents are contesting Norfolk Southern’s broader $600 million settlement related to the crash, challenging a court order requiring an $850,000 bond to appeal for greater compensation and transparency regarding contamination. Nearly $300 million of that settlement remains pending due to this appeal, despite a judge’s approval in September.
Beyond the class-action settlement, a separate settlement with the federal government, awaiting judicial approval, includes $25 million for medical examinations and $30 million for long-term drinking water monitoring. Notably, it lacks provisions for treating potential future health issues. This federal settlement also mandates a $15 million fine for Norfolk Southern, alongside its commitment to the $1 billion cleanup in East Palestine and $244 million in safety upgrades across its 22-state Eastern U.S. network.
Individual businesses and government entities have filed separate lawsuits against the railroad. Norfolk Southern is pursuing claims against other involved parties, including the vinyl chloride manufacturer and tank car owners, seeking to share cleanup costs. Furthermore, both Ohio and Pennsylvania have ongoing lawsuits against the railroad. The legal ramifications of the East Palestine derailment are far from over. This recent settlement with the village marks a significant step, but numerous legal battles continue, underscoring the long-term impact of this disaster.
