The federal government has agreed to a $15 million fine for Norfolk Southern as a result of last year’s disastrous derailment in East Palestine, Ohio. In addition to the fine, the railroad has promised to invest over $300 million in safety improvements and addressing community health concerns. The Environmental Protection Agency and Justice Department announced the agreement, which came two days after a federal judge approved the railroad’s $600 million class action settlement with affected residents. Norfolk Southern will also reimburse the EPA an additional $57 million in response costs and establish a $25 million health care fund for medical exams in the community.
Despite the significant financial penalties, some East Palestine residents feel that the settlement does not go far enough to hold the company accountable. Many are frustrated by the fact that Norfolk Southern reported a profit of $527 million in the fourth quarter of last year, even after accounting for derailment costs. However, the railroad has already spent significant sums on cleanup efforts and aid for affected communities. Norfolk Southern has pledged to implement various safety improvements, including the addition of more trackside detectors and advanced inspection portals, which are expected to cost $244 million through 2025. While a bill in Congress aimed at requiring more substantial changes has stalled, the industry has committed to making improvements independently.
Norfolk Southern officials believe that the relatively small size of the settlement reflects the extensive actions the company has already taken to address the derailment and its aftermath. The railroad has invested in cleanup efforts, aid for residents, and safety upgrades. CEO Alan Shaw emphasized the company’s commitment to being a leader in rail industry safety and its dedication to the community’s long-term well-being. The only remaining federal investigation now is the National Transportation Safety Board’s probe into the derailment’s cause, with a hearing scheduled for June 25. Following the NTSB’s conclusions, Republicans in Congress have expressed a willingness to consider rail safety reforms.
The NTSB has previously indicated that the derailment was likely caused by an overheating bearing that went undetected by the trackside detectors. The agency also noted that despite the fire burning around them, the five tank cars filled with vinyl chloride were actually starting to cool off and did not require blowing open to prevent an explosion. The railroad’s promised safety improvements, including additional trackside detectors and inspection portals, aim to prevent similar incidents in the future. Norfolk Southern has expressed its commitment to fulfilling its promises and remaining dedicated to safety and community welfare for the long term. The latest settlement and ongoing efforts underscore the importance of proactive safety measures in the rail industry.
