(NewsNation) — East Palestine, Ohio, and Norfolk Southern said Tuesday that they reached a $22 million settlement that “resolved all claims by the village” stemming from the 2023 train derailment.
This settlement, East Palestine and Norfolk said in a joint statement, is to be used “for priorities identified by the Village in connection with the train derailment.”
The around $13.5 million in prior payments Norfolk has made to the village since the derailment are recognized in the settlement, the statement said. These include the replacement of East Palestine’s fire and police equipment and vehicles, improvements to its water treatment plant and the exterior renovation of the historic East Palestine train depot.
Norfolk Southern, per the settlement, also reaffirmed its commitment of $25 million for the ongoing improvements to East Palestine City Park.
However, Norfolk Southern and East Palestine officials, the statement said, mutually agreed that work would not continue on a $20 million proposed regional safety training center in the village. The statement said both entities decided that the “creation and operation” of such a center is “not feasible.” Initially, Norfolk had agreed to transfer about 15 acres it acquired for the center to the village.
Residents of East Palestine say they are still having health issues more than two years after a Norfolk train carrying toxic chemicals derailed in the area on Feb. 3, 2023. Officials vented and burned five tank cars, releasing the carcinogen vinyl chloride into the air.
Linda Murphy, an East Palestine resident, expressed frustration with the $22 million settlement, telling NewsNation that “many individuals and families are stuck in the same place” they were when the derailment first happened.
“The village has been receiving millions,” Murphy said. “It is like it has become a separate individual entity — not something made up of its residents.”
Another resident, Jami Wallace, criticized what she said is “zero transparency” from the village on the settlement, along with it not mentioning health insurance or relocation.
The settlement, Wallace said, “goes with the village’s choosing economic recovery over human health.”
More legal actions are pending, with some residents challenging Norfolk Southern’s $600 million class-action settlement that was offered to those who lived within 20 miles of the derailment. The residents have asked the 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. A separate settlement with the federal government is waiting for a judge’s approval as well. This deal includes $25 million for medical exams and another $30 million for drinking water monitoring.
In addition, Norfolk agreed to pay a $15 million fine and for the $1 billion cleanup in East Palestine.
The Associated Press contributed to this report.