EAST PALESTINE, Ohio — Norfolk Southern and the Village of East Palestine have reached a $22 million settlement to resolve all claims by the village resulting from the Feb. 3, 2023, derailment and hazardous-materials release, the two parties have announced.
A joint statement on the East Palestine website says the village recognizes the approximately $13.5 million NS has already spent in the village — including replacement of fire and police vehicles, improvements to the water treatment plant, and exterior renovation of the East Palestine railroad station. NS also remains committed to spending $25 million on improvements to East Palestine City Park.
A defective wheel bearing led to the derailment of 38 cars of an NS train in East Palestine about 9 p.m. on Feb. 3, 2023, while another 12 became involved in a subsequent fire. Eleven of the cars were carrying hazardous material. Fearing an explosion, NS eventually conducted a vent and burn of the five cars carrying highly toxic vinyl chloride — a move the National Transportation Safety Board would eventually determine was unnecessary, and one that spread the material throughout the area [see “NTSB releases final East Palestine report,” News Wire, July 13, 2024].
The derailment led to intense scrutiny of rail safety nationwide. It has cost NS more than $2.2 billion, including cleanup and legal expenses, the company said in its fourth-quarter earnings report for 2024. It also led to a proxy fight that saw activist investor Ancora Holdings make an unsuccessful attempt to gain control of the NS board, although Ancora did gain some seats and eventually reached a settlement giving it further influence [see “News Wire top stories of 2024, No. 1 …,” News Wire, Dec. 31, 2024].
A planned regional safety training center in East Palestine, however, will not be built, as the railroad and village have determined it is “not feasible,” according to the statement. NS will transfer 15 acres for that planned facility to the village for a use to be determined by the village as it sees fit. NS had broken ground on the $20 million facility, which had been planned for first responders from Ohio, Pennsylvania, West Virginia, and the surrounding region, in September 2023.
— Updated Jan. 29 at 11:37 p.m. to reflect latest Norfolk Southern estimate of East Palestine costs.
