CSX is expected to pay $2.2 million in penalties to settle an action stemming from a 2015 derailment and subsequent oil spill.
The railroad would pay $1.2 million to the federal government and $1 million to the State of West Virginia to settle water pollution violations.
In a state-negotiated agreement, CSX will pay $500,000 to a state-administered fund to upgrade a water treatment facility in Fayette County, West Virginia.
The federal agencies involved in the case were the Environmental Protection Agency and the Department of Justice.
The derailment occurred on Feb. 16, 2015, at Mount Carbon, West Virginia, when 27 cars of a CSX train with 109 rail cars carrying crude oil derailed. The train carried 29,000 gallons of Bakken crude and about half of the cars ignited.
Some of the oil flowed into the Kanawha River and Armstrong Creek.
The explosions and fires destroyed an adjacent home and garage. A local state of emergency was declared, nearby water intakes were shut down and area residents were evacuated.
The settlement is subject to a 30-day public comment period and final court approval. CSX officials declined to comment on the settlement.
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