On Monday, U.S. Senator JD Vance (R-OH) said that rail giant Norfolk Southern’s property value reimbursement program for the residents of East Palestine has so far been a “complete and total disaster.”
This follows Norfolk Southern CEO Alan Shaw announcing in May that Norfolk Southern Railroad would set up a fund to compensate East Palestine homeowners for losses in property value due to the catastrophic February 3rd train derailment that spilled hazardous chemicals into the community.
As previously reported by The Ohio Star Shaw said that Norfolk Southern would utilize the fund to provide compensation to homeowners who sell their properties for less than the property’s before February 3rd appraised worth and who live within a 5-mile radius of the derailment.
He also said that the rail company had already engaged Alvarez & Marsal to assess the regional real estate market and create a comprehensive plan.
According to Vance, Norfolk Southern’s announcement was nothing more than an attempt to distract people from the fact that the rail company opposed his Bipartisan Railway Safety Act which aims to prevent future train disasters like the one that occurred in East Palestine.
The Railway Safety Act would require wayside defect detectors, or “hotbox detectors,” to scan trains carrying hazardous materials every 10 miles to prevent future derailments caused by faulty wheel bearings. It stipulates that railroad companies must provide advance notification to state emergency response commissions when transporting hazardous materials. It requires railroads to operate with at least two-person crews. It also increases the maximum fine for rail safety violations.
Shaw has expressed support for some additional rail safety measures since the derailment but has shown resistance to others including legislation requiring two-person rail crews.
“In the run-up to the markup of the Railway Safety Act, Norfolk Southern and its backers in Congress announced that they had reached an agreement to establish a fund making East Palestine residents whole for the diminution of their property value. This announcement was a transparent attempt to distract from the fact that they were opposed to railroad safety reform to prevent another East Palestine disaster. I did not join this effort because I did not trust the railroad to make good on its word,” Vance said.
According to Vance, since Norfolk Southern’s announcement the program has been nothing more than a disaster and his office has been swarmed with complaints from residents.
“This turned out to be the correct decision. The program has thus far been a complete and total disaster. Since their announcement, reliable information has been difficult to impossible for homeowners to secure. My office has been inundated with complaints from residents that Norfolk Southern has failed to answer their very reasonable questions and that their property value has fallen significantly since the railroad set off a chemical bomb in the heart of their town,” Vance said.
Vance continued by saying that although Norfolk Southern says they intend to expand the program later this week he does not expect that they will deliver on their promises.
“It is exactly as I had feared—that there would be generosity and openness in public and penny-pinching and evasion in private. Proponents of the program, having trumpeted their success in securing empty promises, have not been particularly interested in ensuring the fund worked to help East Palestine. My staff and other Ohio officials have worked together to pressure the railroad to make changes and I understand that Norfolk Southern intends to announce an expansion of the program later this week. My expectations that they will deliver on their promises are low,” Vance said.
According to Vance, he will continue to hold the railroad and its backers in Congress accountable for the promises they made to Ohioans.
On February 3rd 50 train carriages, 10 of which were carrying hazardous materials, derailed as a result of a technical problem with a rail car axle, according to federal authorities. There was vinyl chloride in five of the vehicles. Hundreds of residents evacuated as a result of the controlled release of poisonous gasses that Norfolk Southern carried out on February 6th to stop an explosion.
Norfolk Southern faces a lawsuit from Ohio’s Attorney General Dave Yost over costs for the cleanup of the toxic chemical spill and environmental damage even as they collaborate to establish funds for resident health care, property value issues, and water protections. The federal government is also suing the railroad.
Norfolk Southern is also facing a special investigation launched by the National Transportation Safety Board that it said will look into the company’s organization and safety.
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Hannah Poling is a lead reporter at The Ohio Star, The Star News Network, The Arizona Sun Times, and The Tennessee Star. Follow Hannah on Twitter @HannahPoling1. Email tips to [email protected].
Image “J.D. Vance” by J.D. Vance.
