Norfolk Southern will pay modest $15 million fine as part of federal settlement over Ohio derailment

Norfolk Southern will pay modest $15 million fine as part of federal settlement over Ohio derailment

Norfolk Southern will pay modest $15 million fine as part of federal settlement over Ohio derailment

The federal government agreed to a modest $15 million fine for Norfolk Southern over last year’s disastrous derailment in East Palestine, Ohio

ByJOSH FUNK Associated Press

May 23, 2024, 11:34 AM

    The federal government agreed to a modest $15 million fine for Norfolk Southern over last year's disastrous derailment in East Palestine, Ohio, and the railroad promised to pay more than $300 million to complete the efforts to improve safety that it announced after the crash and address community health concerns.

    The Environmental Protection Agency and Justice Department announced the agreement Thursday — two days after a federal judge signed off on the railroad's $600 million class action settlement with residents whose lives were disrupted. In addition to the civil penalty, Norfolk Southern agreed to reimburse the EPA an additional $57 million in response costs and set up a $25 million health care fund to pay for 20 years of medical exams in the community. The railroad will also pay $25 million to $30 million for long-term monitoring of drinking water and groundwater.

    “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. And it would absolutely push the industry in the direction that we would like for the industry to go,” EPA Administrator Michael Regan said. “Again, if some of these provisions that we’ve secured and locked in had been in place, we may not even be where we are today. ”

    But the railroad won't face criminal charges, and this latest settlement won't add anything to Norfolk Southern's roughly $1.7 billion in total costs related to the derailment because the Atlanta-based company was already anticipating those costs.

    Many East Palestine residents feel this settlement doesn't do nearly enough to a company that just reported a $527 million profit in the fourth quarter of last year even with the derailment costs.

    “Honestly, no amount can ever make this right, but it should be at least enough to hurt them a little bit. I’m sure that’s not going to hurt their bottom line at all,” Jami Wallace said.

    The safety improvements Norfolk Southern promised to follow through on include adding about 200 more trackside detectors to spot mechanical problems. It has also promised to invest in more than a dozen advanced inspection portals that use an array of cameras to take hundreds of pictures of every passing railcar. The railroad estimated that those improvements will cost $244 million through 2025.

    A bill in Congress that would require Norfolk Southern and the rest of the major freight railroads to make more significant changes has stalled, although the industry has promised to make improvements on its own.

    Norfolk Southern officials said they believe the relatively small size of this settlement reflects how much the railroad has already done, including paying $780 million in cleanup costs and providing $107 million in aid to residents and the communities affected.

    “We are pleased we were able to reach a timely resolution of these investigations that recognizes our comprehensive response to the community’s needs and our mission to be the gold standard of safety in the rail industry," CEO Alan Shaw said. "We will continue keeping our promises and are invested in the community’s future for the long haul.”

    After Thursday's announcement, the only remaining federal investigation is the National Transportation Safety Board's probe into the cause of the Feb. 3, 2023, derailment. That agency plans to announce its conclusions about what went wrong that night at a hearing in East Palestine on June 25. Republicans in Congress have said they might be willing to look at rail safety reforms after that report.

    The NTSB has said previously that the derailment was likely caused by an overheating bearing that wasn't caught in time by the trackside detectors the railroad relies on to spot mechanical problems. The head of the NTSB also said that the five tank cars filled with vinyl chloride didn’t need to be blown open to prevent an explosion because they were actually starting to cool off even though the fire continued to burn around them.

    The railroad is still working to resolve a lawsuit Ohio filed against it after the derailment.

    OTHER NEWS

    30 minutes ago

    Scotland vs Switzerland: Euro 2024 prediction, kick-off time, TV, live stream, team news, h2h results, odds

    31 minutes ago

    De Minaur wins Dutch grasscourt title to hit a new high ahead of Wimbledon

    31 minutes ago

    How much does it cost to build a golf course?

    31 minutes ago

    Nearby Iranian ship ignores distress call of ship attacked by Houthis

    31 minutes ago

    This part of the US is at highest risk for a devastating tsunami

    31 minutes ago

    Russian soldier says army suffering heavy losses in Kharkiv offensive

    31 minutes ago

    Police shoot axe-wielding man before Euro match

    31 minutes ago

    Two killed, several wounded in shooting in Texas park

    32 minutes ago

    Jack Draper beats Matteo Berrettini to win Stuttgart Open and first ATP title

    32 minutes ago

    Search resumes for boater reported missing in Chicago's ‘playpen'

    34 minutes ago

    Video: British couple, 44 and 30, are rushed to hospital with second-degree burns after boat explodes in Majorca

    35 minutes ago

    Dog bitten by venomous snake at Connecticut state park prompts risky mountaintop rescue

    36 minutes ago

    Brilliant Bulls end Leinster's season and reach URC final

    36 minutes ago

    Donald Trump challenged Biden to a cognitive test, then got his own doctor’s name wrong

    36 minutes ago

    Ukraine updates: Swiss peeace summit enters second day

    36 minutes ago

    NT government confirms option on the table to build more houses, infrastructure outside of Wadeye

    36 minutes ago

    One House Of The Dragon Star Refuses To Watch Game Of Thrones

    37 minutes ago

    Influencer Jadé Tuncdoruk welcomes first child with husband Lachie Brycki and reveals newborn's unique name

    40 minutes ago

    Heathrow faces near billion-pound rates time bomb

    40 minutes ago

    Euro 2024 scores, results, highlights, standings: Switzerland top Hungary in Group A; Spain face Croatia

    40 minutes ago

    The rise of ‘micro-schools’: Parents opt for alternative child learning amid public education concerns

    40 minutes ago

    A couple who achieved financial independence and retired in their 30s shares their $280,000 a year budget raising 2 kids in San Francisco

    40 minutes ago

    Twiggy v Facebook: Decision looms in billionaire’s anti-scam battle

    40 minutes ago

    ‘No joy’: Gazans mark sombre Eid in shadow of war

    41 minutes ago

    Jack Draper wins maiden title with impressive display against Matteo Berrettini

    41 minutes ago

    3 in-demand remote jobs hiring now that pay $100,000 in 2024

    41 minutes ago

    Steve Jobs built Apple using a simple piece of advice from his dad: ‘He loved doing things right'

    42 minutes ago

    Top Wall Street analysts suggest these 3 dividend stocks for enhanced returns

    42 minutes ago

    Growing heat dome to produce warmest temperatures in years with 100-degree readings in Northeast

    42 minutes ago

    British couple, 44 and 30, are rushed to hospital with second-degree burns after boat explodes in Majorca

    45 minutes ago

    Tories accuse BBC of ‘lefty Blairite bias’ over Laura Kuenssberg panel

    45 minutes ago

    Succession's Brian Cox rips into Nigel Farage calling him 'slightly fascist' live on BBC

    45 minutes ago

    Ukrainian writer and soldier says all Russians are to blame for the invasion: 'It's not Putin who is pulling the trigger in Bucha'

    45 minutes ago

    Threat for severe weather returns to northwestern Ontario

    45 minutes ago

    The 90s band who famously made it rain at Glastonbury in 'historic' moment

    45 minutes ago

    Most people expect early general election in autumn, says Labour leader

    45 minutes ago

    Bryson DeChambeau’s secret to US Open success: Floating his golf balls in Epsom salt

    45 minutes ago

    Peter Dutton is the leading preferred prime minister: Paul Murray

    45 minutes ago

    Buc-ee’s celebrates grand opening of largest travel center location

    45 minutes ago

    NTR to Chiranjeevi: How films, politics connect two prominent Telugu families now at the helm of Andhra Pradesh