Fury Grows Over Ohio Chemical Disaster as Biden Offers Help

Amid criticism of the response to a train derailment that spilled hazardous chemicals in a small Ohio town, Norfolk Southern Corp.’s chief executive officer pledged to ensure the safety of local residents, and the state’s governor asked for federal help.

(Bloomberg) — Amid criticism of the response to a train derailment that spilled hazardous chemicals in a small Ohio town, Norfolk Southern Corp.’s chief executive officer pledged to ensure the safety of local residents, and the state’s governor asked for federal help. 

“We are here and will stay here for as long as it takes to ensure your safety and to help East Palestine recover and thrive,” CEO Alan Shaw said in a letter released Thursday. The statement came after a town hall Wednesday in East Palestine, Ohio, which the company did not attend because of concerns about “the growing physical threat to our employees,” according to a report from a local ABC News station.

Also read: Norfolk Southern will be held accountable, White House says

Crews are cleaning up the site, and the railroad implemented a testing program for the water, air and soil, Shaw said. The company created a $1 million fund as a “down payment” to help rebuild the community of about 4,800. 

 

On Thursday, Ohio Governor Mike DeWine said he asked three federal agencies for assistance, according to the Associated Press. The White House said that President Joe Biden had offered DeWine help.

“We’re going to hold Norfolk Southern accountable,” White House Press Secretary Karine Jean-Pierre said on Thursday during a daily press briefing. 

Norfolk Southern could rack up tens of millions of dollars in costs from the derailment, according to one analyst’s estimate. The Environmental Protection Agency has urged the company to reimburse for costs related to the crash as soon as possible, citing “potential liability” in a Feb. 10 letter.

Norfolk Southern is likely to take a special charge in the first quarter to cover costs, Cowen Inc. analyst Jason Seidl wrote in a Tuesday report.

The company’s shares have declined more than 8% since the derailment on Feb. 3. Rail operations resumed last week, although delays continue.

Residents have raised concerns about whether it’s safe to return home after the 150-car train derailed, caught fire and spilled chemicals, including vinyl chloride. There were 20 chemical cars on the train. 

Three days after the accident, authorities intentionally vented and burned five tank cars containing vinyl chloride, in a safety measure designed to relieve pressure and prevent an explosion that would eject chemicals and metal shards in all directions. The dramatic cloud of black smoke and fire that resulted sparked even more concerns.  

“I know there are still a lot of questions without answers. I know you’re tired. I know you’re worried,” said Shaw, who visited the disaster site last week. “We will not let you down.”

(Updates with comment from White House in fifth paragraph.)

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