Norfolk Southern and East Palestine announce $22 million settlement after 2023 derailment

EAST PALESTINE, Ohio (AP) — The Village of East Palestine and Norfolk Southern have announced a $22 million settlement resolving all of the village’s claims arising from a disastrous 2023 train derailment near the Ohio-Pennsylvania border.

The settlement is to be used for priorities the village identifies in connection with the derailment, but it also recognizes about $13.5 million that Norfolk Southern has already paid to the village, according to the joint announcement posted on the village’s website. It also reaffirms Norfolk Southern’s commitment of $25 million to ongoing improvements to East Palestine City Park.

The freight train derailment in the village near the Pennsylvania state line included 11 cars transporting hazardous materials. Area residents evacuated and, days later, officials fearing a possible uncontrolled blast intentionally released and burned toxic vinyl chloride from five rail cars, sending flames and black smoke into the sky.

Norfolk Southern and the village agreed that a proposed regional safety training center in the village is not feasible and work will not proceed with building the center, according to the statement. Norfolk Southern agreed to transfer about 15 acres (6 hectares) acquired for the center to the village and it remains committed to providing training for East Palestine’s first responders at other facilities in the region.

Additional legal actions are pending. Residents challenging Norfolk Southern’s $600 million settlement related to the crash have asked a court to reject a judge’s order requiring them to put up an $850,000 bond to continue their appeal for higher compensation and more information about the contamination.

Nearly $300 million of the settlement has been on hold because of the appeal, even though a judge approved the deal in September. The holdout residents are urging the 6th Circuit Court of Appeals to stop them from having to put up the huge sum to continue with their claims.