The federal government and Norfolk Southern reach a $310 million settlement over the Ohio train derailment.

• The train derailment in East Palestine, Ohio, in February 2023 has led to Norfolk Southern agreeing to pay $310 million to settle charges, with most of the funds going towards cleanup costs.
• As part of a federal settlement, the company will be fined $15 million for alleged violations of the Clean Water Act.
• The total estimated costs for Norfolk Southern due to the incident is $1.7 billion.

On Thursday, Norfolk Southern announced that it had agreed to pay $310 million to settle charges related to a toxic train derailment that occurred in East Palestine, Ohio, in February 2023.

Under the agreement, the company will pay an estimated $235 million to cover all past and future cleanup costs, in addition to a $15 million civil penalty for alleged violations of the Clean Water Act.

In March 2023, a lawsuit was filed against Norfolk Southern by the EPA and the U.S. Department of Justice for violating the Clean Water Act after a freight train derailment in Norfolk, Virginia, caused a fire that contaminated soil and waterways.

"We are pleased to have resolved the investigations promptly, acknowledging our thorough response to the community's requirements and our commitment to maintaining the highest level of safety in the rail industry," stated Alan Shaw, president and CEO of Norfolk Southern. "We remain committed to fulfilling our promises and are dedicated to the community's long-term prosperity."

If approved by the U.S. District Court for the Northern District of Ohio, the settlement would require Norfolk Southern to take measures to improve rail safety and pay for health monitoring and mental health services for the surrounding communities, among other actions. The EPA said Thursday that this includes paying an estimated $7 million for remediation projects to curb pre-existing pollution and boost the region's water quality.

"EPA Administrator Michael Regan stated that no community should have to endure the trauma experienced by East Palestine's residents. The enforcement action taken today guarantees that the cleanup will be funded by the company and prevents a future disaster from occurring."

The settlement reached by Norfolk Southern on Thursday won't increase the total costs associated with the incident, as the company had already set aside money and anticipated the expense.

According to EPA spokesman Remmington Belford, the cleanup effort is currently expected to end around November 2024, but this "may change."

One month after agreeing to pay $600 million in a class-action lawsuit settlement related to the 2023 derailment, the company reached a resolution with the EPA.