• Sat. Sep 30th, 2023

    Railroad Announces Compensation Plan for East Palestine Residents After Fiery Derailment

    ByJames Forsyth

    Sep 19, 2023
    Railroad Announces Compensation Plan for East Palestine Residents After Fiery Derailment

    Norfolk Southern, the railroad company responsible for a fiery derailment in East Palestine, Ohio in February, has revealed new details about its plan to compensate residents for the loss in home values. The program aims to give reassurance to homeowners in the area, but not everyone is satisfied with the steps being taken.

    The compensation program will pay homeowners in East Palestine and the surrounding area the difference between the appraised market value of their homes and the sale price. This program, however, comes with a condition that homeowners must give up property damage claims that they could have received through lawsuits against the railroad.

    While the program may be welcomed by some residents who wish to sell their homes and relocate, critics argue that Norfolk Southern should be prioritizing health concerns rather than economic recovery. There are concerns about lingering health worries related to the incident and potential water contamination issues. To address these concerns, the Ohio Attorney General’s office is negotiating an agreement to create a long-term fund that will compensate homeowners and cover potential health problems or water contamination issues.

    Norfolk Southern estimates that the total cost of the cleanup will exceed $800 million, with $74 million already pledged to East Palestine in an effort to aid the town’s recovery. The cleanup costs are expected to increase as the funds are finalized and ongoing lawsuits progress. The railroad will also receive compensation from insurers and potentially other companies involved in the derailment.

    While some political figures, such as Texas Sen. Ted Cruz, have praised Norfolk Southern for its commitment to the community, there are skeptics who doubt the company’s promises. Ohio Senator JD Vance proposed a package of railroad safety reforms which are still pending and remains skeptical of Norfolk Southern’s commitment to delivering on its promises.

    Although the compensation program targets homeowners, there are concerns that it disregards the needs of vulnerable renters in the area. Additionally, some long-time residents are not eager to sell their homes and simply want reassurance about their safety.

    The priority for many residents, like Jami Wallace, is obtaining answers about potential health problems and ensuring that ongoing tests conducted by the Environmental Protection Agency (EPA) are thorough. Wallace, along with the Unity Council group, is more focused on residents’ health rather than property values.

    The compensation program is a step towards addressing the issues faced by East Palestine residents, but concerns about health and safety remain paramount. The negotiation and finalization of the funds will shape the future of compensation for affected residents and determine how Norfolk Southern fulfills its commitments to the community.


    – “Railroad explains compensation plan for East Palestine residents” AP
    – Definitions: Appraised market value.