Norfolk Southern made a series of commitments to the community of East Palestine, Ohio, following a catastrophic train derailment in February 2023. The incident involved the intentional burning of five vinyl chloride tank cars, which unleashed a massive black cloud of smoke over residential areas, schools, and farmlands, further raising alarm due to the spread of harmful chemicals.
However, a recent lawsuit filed by the local school district casts doubt on the railroad company’s intention, given the halted progress on a planned student wellness center and athletic facility. Among the community, feelings towards Norfolk Southern are mixed. While some residents report ongoing health issues like respiratory problems and rashes, others seem ready to move on. Norfolk Southern’s actions, such as trying to involve other companies in sharing the financial burden of its $600 million class-action settlement, only add to the skepticism.
Norfolk Southern and East Palestine reached a $22 million settlement this past January, which included $13.5 million already dispensed to the village, along with a future pledge of $25 million for renovating local parks. Despite these agreements, both parties have concurred that establishing the promised training center for first responders is not feasible, though no further explanation has been provided.
The railroad claims to have allocated over $115 million for community recovery efforts, which includes $1.1 million directed to the school district. Payments have reportedly been made for all documented invoices submitted by the schools. However, these figures do not encompass the costs of the class-action settlement or the over $1.1 billion already spent on cleanup efforts.
The school district’s lawsuit accuses Norfolk Southern of not fully reimbursing the district for its services during the disaster and for neglecting the development of the community wellness facilities. The district claims to have lost over $1 million in funding due to decreased enrollment following the incident. Superintendent James Rook expressed that abandoning these plans harms the community significantly.
The proposed $30 million wellness center was to provide healthcare services, wellness programs, and job training for students. Norfolk Southern had initiated design efforts, appointing architects and construction firms, while the district established a steering committee for community input. But as communication dwindled, Rook highlighted that the wellness center was envisioned as the linchpin of Norfolk Southern’s recovery efforts.
The school district seeks reimbursement of at least $300,000 in additional expenses, plus compensation for the loss in revenue. “Norfolk Southern hasn’t even begun to scratch the surface in terms of reimbursing the true costs of this disaster to the East Palestine Board of Education and the students that it serves,” stated attorney Ashlie Case Sletvold.
In response, Norfolk Southern maintains that its commitments remain unchanged. The train derailment evolved into North America’s worst rail disaster in a decade, especially after vinyl chloride tanks were intentionally vented, an act later deemed unnecessary by the National Transportation Safety Board. Through its website, Norfolk Southern continues to emphasize its resolve to align with community priorities.
The current CEO, Mark George, has promised to fulfill all commitments, making several visits to East Palestine for reassessment. However, community members like Misti Allison criticize the railroad for not covering additional costs beyond its initial $25 million park project pledge. The termination of the proposed training center for first responders, a project poised to give the local job market a boost, generates disappointment among residents like Allison.
Most class-action settlements remain delayed due to ongoing appeals, exacerbating frustrations within the community. While some personal injury claims have been partially distributed, complaints about the settlement amounts persist. Even though these delays are rooted in legal procedures, the railroad bears much of the blame in the eyes of residents.
Community initiatives continue to focus on potential positives, as noted by Barb Kliner, a retired CFO from another district, who points out that despite efforts, a palpable sense of disappointment lingers within the village.