Norfolk Southern To Pay $600 Million To East Palestine Over Toxic Train Derailment

Norfolk Southern has agreed to pay $600 million to settle a class-action lawsuit over the toxic train derailment in February 2023 in eastern Ohio, causing nearly half of the town's population to evacuate.

The agreement, which is pending court approval, would resolve all class action claims from within a 20-mile radius from the derailment - and for residents who agree to the settlement, personal injury claims within a 10-mile radius from the derailment, the Daily Mail reports.

Following the derailment, which spilled more than a million gallons of hazardous materials and pollutants, residents reported various health problems, including rashes, headaches, and other issues.

The Feb. 3 derailment triggered officials to initiate a controlled release and burn of various chemicals as they cited concerns that those materials would explode and send out deadly shrapnel. Chemicals carried on the Norfolk Southern-operated train include toxic vinyl chloride gas, which was vented and burned, releasing a large cloud of black smoke that hung over the area for days.

Other chemicals carried on the train include butyl acrylate, ethylene glycol monobutyl ether acetate, and 2-ethylhexyl acrylate, the U.S. Environmental Protection Agency said (pdf).

On top of that, the federal response to the disaster was a complete debacle, with FEMA denying a request for federal assistance, Transportation Secretary Pete Buttigieg blaming the Trump administration for the disaster, and during the class-action litigation - the NTSB tried to block a 3rd party examination of the evidence. Meanwhile, a mobile lab of scientists at Texas A&M University and Carnegie Mellon discovered a chemical known as 'acrolein' in the air - a clear, colorless gas or a pale yellow, strong-smelling liquid which causes inflammation and irritation of the skin, respiratory tract and mucus membranes. Inhalation of the chemical can cause delayed pulmonary edema — excess fluid in the lungs. This can lead to coughs, chest pain and fatigue, the Mail reports.

That said, last week federal officials announced that the aftermath of the train derailment doesn't qualify as a public health emergency because widespread health problems and ongoing chemical exposures haven't been documented, the Mail continues.

The Environmental Protection Agency never approved that designation after the February 2023 Norfolk Southern derailment even though the disaster forced the evacuation of half the town of East Palestine and generated many fears about potential long-term health consequences of the chemicals that spilled and burned. The contamination concerns were exacerbated by the decision to blow open five tank cars filled with vinyl chloride and burn that toxic chemical three days after the derailment. -Daily Mail

That said, the head of the NTSB said recently that her agency's investigation showed that the 'vent and burn' of the vinyl chloride was unnecessary because the company that produced it was confident that no dangerous chemical reaction would occur in the tank cars. Officials who made the decision to blow the cars say they were never told that. The results of the NTSB's full investigation will be complete in June.

As part of the settlement, the company will not admit any liability or wrongdoing, but will provide compensation "for past, present and future personal injuries resulting from exposure to the chemicals involved," said the lawyers for the plaintiffs in a joint statement.

The settlement is expected to be submitted for preliminary approval to the U.S. District Court for the Northern District of Ohio later this month, with payments to class members beginning as soon as the end of the year, subject to final court approval.

"This resolution comes shortly after the one-year anniversary of the disaster and will provide substantial compensation to all affected residents, property owners, employees and businesses residing, owning or otherwise having a legal interest in property, working, owning or operating a business for damages resulting from the derailment and release of chemicals," said lawyers for Norfolk Southern.

Last year, the company agreed to compensate homeowners around East Palestine who have had to unload their homes at a reduced value. Norfolk has already spent over $1.1 billion on the response to the derailment.