Norfolk Southern to begin compensating property owners for Ohio derailment By Reuters

© Reuters. General view of the website of the derailment of a train bring contaminated materials, in East Palestine, Ohio, U.S., March 2, 2023. REUTERS/Alan Freed/File image

By David Shepardson

(Reuters) – Norfolk Southern (NYSE:) stated on Monday it introduced an interim program to compensate property owners around East Palestine, Ohio who have actually needed to offer their residential or commercial properties at a decreased worth following a Feb. 3 train derailment that spilled hazardous chemicals.

The program uses to parts of Ohio and Pennsylvania near the derailment website and uses to those with houses on the marketplace, future listings or offered given that Feb. 3. The railway initially revealed strategies in May to produce the program. The train ignited and launched over a million gallons of dangerous products and toxins.

Senator Ted Cruz, the leading Republican on the Senate committee that manages railways, stated Norfolk Southern had actually made great on the guarantee it made in May, calling the fund “one of the most consequential actions taken to date for helping Ohioans and Pennsylvanians affected by the accident.”

The fund covers a radius of around 5 miles (8 km) around the derailment. Cruz stated the overall protection is 91 square miles, consisting of parts of Columbiana and Mahoning Counties in Ohio and Beaver and Lawrence Counties in Pennsylvania.

The last fund is anticipated to be part of the resolution of lawsuits arising from the derailment, however Cruz stated the interim fund “accelerates compensation for homeowners who decide to move with the benefit of this protection.”

The U.S. Justice Department and state of Ohio have actually both taken legal action against Norfolk Southern.

The business has actually up until now reserved charges of $803 million for the derailment. It stated it does not have an expense price quote for the house worth program.

Norfolk Southern has likewise stated it supports a “solution that addresses long-term health risks through the creation of a long-term medical compensation fund.” Another program would assist safeguard East Palestine drinking water.

Last month, the Transportation Department’s Federal Railroad Administration (FRA) stated Norfolk Southern requirements “significant improvements” in its security culture and revealed it is thinking about enforcement actions versus the railway on a variety of concerns, consisting of track upkeep, evaluation, repair work practices and hours of service policies.

In May, a U.S. Senate panel authorized bipartisan rail security legislation that tightens up guidelines on trains bring explosive compounds like the Norfolk Southern-run train, however even more action has actually stalled.


News and digital media editor, writer, and communications specialist. Passionate about social justice, equity, and wellness. Covering the news, viewing it differently.

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