NORFOLK (dpa-AFX) - Norfolk Southern Corp. (NSC) has reached a $310 million
settlement with the U.S. Department of Justice and the Environmental Protection
Agency following a train derailment last year in Ohio, which resulted in the
release of over a million pounds of hazardous chemicals into the surrounding
soil, water, and air.

If the settlement is approved by the U.S. District Court for the Northern
District of Ohio, Norfolk Southern will be required to take measures to improve
rail safety, pay for health monitoring and mental health services for the
surrounding communities, fund long-term environmental monitoring, pay a $15
million civil penalty and take other actions to protect nearby waterways and
drinking water resources, the Justice Department said in a statement.

Norfolk Southern estimates that it will spend more than $1 billion to address
the contamination and other harms caused by the East Palestine derailment and
improve rail safety and operations. The amount includes the settlement with the
United States valued at over $310 million, as well as around $780 million in
environmental response costs incurred by Norfolk Southern.

Norfolk Southern has estimated its costs since the derailment will exceed $200
million in rail safety enhancements, including those required by th settlement.

Norfolk Southern noted that the financial impacts associated with the settlement
have either been previously estimated as part of the total $1.7 billion
recognized in response to the incident through March 31, 2024, or are included
as part of the company's ongoing financial outlook, including those surrounding
capital expenditures and overall 2024 outlook. The company continues to pursue
insurance reimbursements and third-party claims.



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