WASHINGTON, April 9 (Reuters) - U.S. railroad operator

Norfolk Southern ( NSC ) has agreed to pay $600 million to

settle a class action lawsuit over a February 2023 East

Palestine, Ohio train derailment that spilled toxic chemicals,

according to the company and court documents.

The agreement in principle, which is still subject to court

approval, would cover claims from residents and businesses in

the city and impacted surrounding communities.

It will also provide compensation "for past, present and

future personal injuries resulting from exposure to the

chemicals involved", the lawyers bringing the action against

Norfolk Southern ( NSC ) said in a joint statement.

The train caught fire and released more than a million

gallons of hazardous materials and pollutants, sparking concerns

abut U.S. rail safety.

Jayne Conroy, a lead attorney representing the class, said

the proposed settlement is "much larger than any derailment

settlement in the United States".

The agreement will resolve all class action claims within a

20-mile radius of the derailment and, for those residents who

choose to participate, personal injury claims within a 10-mile

radius, court documents show.

Conroy estimated there are just under 100,000 class members

who will be eligible to receive funds from the settlement,

including up to 25,000 residents who live within 10 miles and

another roughly 72,000 living within 20 miles of the crash site.

Norfolk Southern ( NSC ) is not admitting liability or wrongdoing.

Some details still need to be finalized, including setting

an allocation formula and how to efficiently process claims and

distribute funds. The lawyers suing Norfolk Southern ( NSC ) hope to get

initial payments distributed by the end of 2024, they said.

Claims will consider factors including location relative to

the derailment, household membership, the length of any

displacement, and exposure to contaminants, the lawyers said.

Last year, Norfolk Southern ( NSC ) agreed to compensate homeowners

around East Palestine, Ohio who have had to sell their

properties at a reduced value.

In addition to the class action, Norfolk Southern ( NSC ) also faces

lawsuits filed by shareholders, the state of Ohio and the U.S.

Justice Department.

In May 2023, a U.S. Senate committee approved bipartisan

rail safety legislation that tightens rules on trains carrying

explosive substances like the Norfolk Southern ( NSC )-operated train,

but further action has stalled.