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(The Associated Press circulated the following story by Dan Nephin on November 16.)

PITTSBURGH— Norfolk Southern Corp. pleaded no contest Thursday to three pollution charges and agreed to pay $7.35 million to settle related civil cases for a train derailment that spilled caustic chemicals into a prized trout stream.

The company pleaded no contest in McKean County Court to violating the state’s Fish and Boat Act. It also pleaded no contest to two charges under the Solid Waste Management Act.

The $7.35 million — one of the largest pollution settlements in the state — would resolve Norfolk Southern’s civil liability with state agencies including the Department of Environmental Protection and the Fish and Boat Commission, which will split the bulk of the money to support environmental projects.

Prosecutors have said the train’s engineer was under the influence of drugs and may have fallen asleep June 30, 2006, as the train began to speed down a steep grade at more than 70 mph in a 15 mph zone. About 42,000 gallons of sodium hydroxide, also known as lye, spilled from several cars after 31 of the train’s 46 cars derailed near the village of Gardeau in northwestern Pennsylvania.

Thousands of fish were killed in three popular trout streams — Big Fill Run, Sinnemahoning-Portage Creek and the Driftwood Branch of Sinnemahoning Creek. In all, about 30 miles of waterways were affected.

“We think that this is a fair settlement for all concerned and certainly was better than the alternative of an extended court situation,” said Norfolk Southern spokesman Rudy Husband. The Norfolk, Va.-based company spent more than $4 million cleaning up the spill.

McKean County District Attorney John Pavlock said authorities agreed to resolve the criminal case “to address the local harm that was caused by the spill and to benefit and improve our water resources.”

The company also paid a $150,000 fine and agreed to donate $100,000 to environmental groups.

The train’s engineer, Michael Seifert, 46, of West Seneca, N.Y., was fired. He has been charged with causing or risking a catastrophe, reckless endangerment and breaking environmental laws.