Norfolk Southern released new details Monday on plans to compensate East Palestine residents for the loss in home value since a serious derailment in February disrupted life in the eastern Ohio town.
The rail plan will no doubt be popular with some who want to sell their homes and move out of town rather than deal with lingering health concerns. But some critics say the railroads should do more to address these health concerns and not worry too much about the region’s economic recovery.
Details are still tentative as the Ohio Attorney General’s Office is still negotiating an agreement that would establish a long-term fund to compensate homeowners and two additional funds to pay for any future health issues or water contamination issues. . The attorney general’s office said it’s unclear when the funds will be finalized as all questions remain unanswered at this stage.
The railroad estimates the cleanup will cost more than $800 million, including $74 million Norfolk Southern has pledged to East Palestine to help the town recover. That number will continue to grow as cleanup efforts continue, funding is finalized and various lawsuits proceed. The railroad will also receive compensation from its insurance company and other companies that may have been involved in the derailment.
“This is another step in delivering on our commitment to righting wrongs in East Palestine. Norfolk Southern Railway remains steadfast in our commitments, including protecting home values in our communities.” Chief Executive Officer Alan Allen, who works to improve rail safety Alan Shaw said. “This program is designed to give homeowners the assurance they need.”
The new program will pay homeowners in East Palestine and the roughly five-mile area surrounding the derailment the difference between their home’s assessed market value and its sales price. But accepting compensation through the program would require homeowners to waive property damage claims that they could ultimately collect in one of the lawsuits against the railroad.
Sen. Ted Cruz, R-Texas, praised the railroad for delivering on a promise it made in the spring. “I intend to continue to put pressure on Norfolk Southern to do good things for the community,” he said.
J.D. Vance, one of Ohio’s U.S. senators who proposed a series of rail safety reforms in the wake of the derailment that are still awaiting votes, said he remains skeptical of Norfolk Southern.
“I have low expectations for them to deliver on their promises,” said Vance, a Republican. “I will continue to hold the railroads and their supporters in Congress accountable for the promises they made to the people of Ohio.”
Longtime East Palestine resident Jami Wallace, who has yet to move back home since the derailment, said she and the Solidarity Council group she helped lead are more focused on the health of residents than on issues like home values, though The government and rail companies continue to insist that ongoing testing of the region’s air and water has not revealed worrying levels of chemicals.
Plus, she said “many of our most vulnerable groups are renters,” so a program to help homeowners wouldn’t do much for them.
“Human health should come first,” Wallace said.
Getting answers to the community’s potential health concerns is a top priority for Wallace, who was frustrated by her inability to convince the EPA to conduct detailed testing in her home’s basement.
Furthermore, people who have lived in the city for generations are in no hurry to sell their homes anyway. They just want to know their home is safe.
“It’s not just a matter of selling the house and moving to another house. We don’t want to move,” Wallace said.
