US authorities have said Norfolk Southern, whose toxin-laden train derailed in an Ohio town, must pay for the clean-up or face tough penalties.

The train, which derailed in East Palestine on 3 February, was carrying vinyl chloride and other potentially hazardous substances.

Norfolk Southern is now facing multiple lawsuits filed on behalf of residents, many of whom were forced to evacuate their homes.

It has apologised for the incident.

The Environmental Protection Agency (EPA), which has the power to fine or sanction firms over environmental concerns, said Norfolk Southern would "pay for cleaning up the mess they created and for the trauma they've inflicted on this community".

Speaking at a news conference in East Palestine, the head of the EPA Michael Regan said the company would have to find and clean contaminated soil and water supplies and pay back the EPA for its own cleaning efforts, provide information online for residents and take part in public meetings at the EPA's request.

If Norfolk Southern failed to comply, the EPA would "immediately" carry out the work itself, charge them triple the cost of the clean-up operations and fine the firm up to an additional $70,000 (£58,000) a day.

In the aftermath of the derailment, residents of East Palestine have reported ailments including headaches and nausea, and expressed fears that local water supplies are potentially harmful despite the repeated assurances of state, local and federal officials that the water is safe.

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Authorities in both Ohio and Pennsylvania have also suggested that further legal actions may follow.

At Tuesday's joint news conference, Pennsylvania Governor Josh Shapiro said his office had referred criminal charges against the rail firm to the state's top prosecutor, who must now make a decision on whether to press charges.

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Last week, Norfolk Southern came under intense criticism from East Palestine residents after company representatives failed to appear at a town hall meeting aimed at easing fears.

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In a statement on Tuesday, the company said: "We are committed to thoroughly and safely cleaning the site, and we are reimbursing residents for the disruption this has caused in their lives."