Norfolk Southern faces $8.89 million in fines from a state
environmental agency following a June train derailment in southern
McKean County, where a pristine creek was polluted with lye and
aquatic life in the area was wiped out.

The announcement was made Thursday by the state Department of
Environmental Protection. Officials said the agency is also seeking
a daily civil penalty of $46,420 for any ongoing discharges into
the Sinnemahoning-Portage Creek, effective from Thursday.

“The waterways, wetlands and soil all paid a price when that
speeding train derailed and the tank cars split open,” DEP
Secretary Kathleen McGinty said.

In its first two actions, DEP filed a complaint with the
Environmental Hearing Board citing the company for violations of
the state’s Clean Streams Law and requesting $5.41 million for
discharges into Big Fill Run, Sinnemahoning-Portage Creek, the
Driftwood Branch of Sinnemahoning Creek, Sinnemahoning Creek and
associated wetlands.

That penalty covers discharges that occurred between the date of
the accident and the board filing on Thursday. Meanwhile, DEP also
assessed a $3.48 million civil penalty for violations of the
state’s Solid Waste Management Act and Hazardous Sites Cleanup Act
for the unpermitted disposal of wastes and the release of hazardous
substances related to the June 30 derailment near the Village of
Gardeau.

Railroad spokesman Rudy Husband called the fines “unwarranted
and not supported by facts or law.”

“We’re going to continue to do all we can to cooperate with DEP
and we’re disappointed that DEP has chosen a course that is going
to create an adversarial relationship between the railway and the
agency,” Husband said, adding the railroad will be appealing the
decision. Husband added the railroad has taken samples to ensure
residential water supplies are safe.

The train derailed while descending Keating Summit. Railroad
officials confirmed it was traveling about 73 mph at the time of
the accident; the speed limit was posted for that area of rail line
was 15 mph.

When 28 of the 31 cars on the train tipped over during the
derailment, the lye spilled into the nearby creek, damaging it more
than seven miles downstream at the mouth of the Fourmile Run near
Emporium in Cameron County.

On Aug. 14, DEP issued a notice of violation to the railroad,
stating its actions violated numerous state environmental
regulations.

“These enforcement actions and fines against Norfolk Southern
seek to remedy the breach of laws that has created environmental
and economic havoc in McKean and Cameron counties,” McGinty
said.

According to DEP Press Secretary Kurt Knaus, the fine levied by
DEP is on the “high-end” for penalties.

“We have had other million dollar penalties in the Commonwealth,
but while they are rare, the penalty is reflective of the action
that occurred,” Knaus said, adding Norfolk Southern now has 30 days
to appeal the action.

In regards to the ongoing penalties for discharges into the
creek, Knaus said the figure is for nine separate and discreet
violations totaling the more than $46,000 per day.

“I certainly knew the secretary was going to come down hard
based on her comments at the site,” state Sen. Joe Scarnati,
R-Brockway, said, “but I never envisioned fines this large. The
real damage has been done to the economy of the local area and that
stream.”

State Rep. Martin Causer, R-Turtlepoint, called the spill “one
of the biggest this state has ever seen.”

“It’s a big penalty, but it’s also a big spill,” Causer said.
“It’s going to take a long time for that area to recover. Those are
some of the best trout streams in the whole state and they were
just completely devastated.”

Causer is seeking the development of a special account through
the DEP to finance the restoration of the area affected by the
spill. The fines collected by the agency would go into the account,
which will eventually be recycled back to the area for habitat
improvement.

“I’m committed to making sure the money comes back here,” Causer
said, adding in discussions with McGinty about the issue, the
secretary said DEP is still considering the account. Causer said he
was told by McGinty that if a separate account isn’t used, the
money could be put into an existing fund earmarked specifically for
projects in that area.

“The money shouldn’t go into the coffers of the DEP to crank out
a whole new round of bureaucrats to come after our local folks,”
Scarnati said, adding he’s also committed to bringing the money
back home.

McKean County Commissioner Chairman Clifford Lane said Norfolk
Southern “has to take responsibility” for the aftermath of the
accident.

Officials said DEP is continuing to work with the conservation
district and local officials to identify members to participate in
a stakeholder group, which will work with the department, other
agencies and the public through regular meetings to advance
restoration projects.

The railroad believes the creek can support restocking trout by
next spring; that decision ultimately lies with the state Fish and
Boat Commission.

(The Associated Press contributed to this report.)