The derailment happened just after 7 PM Sunday night in Princeton, IN, north of the Toyota plant.
A section of U.S. 41 remains closed in both directions.
Indiana State Police say of the 60-70 homes affected, four families were moved to a hotel.
Duke Energy has cut power in the area, although that process is not expected to affect any homes or businesses.
State police have been granted a no-fly zone to ensure safety during the cleanup.
Officials say CSX will be moving train cars starting north and working their way south to the two cars on fire at this time. The source of smoke from those cars was reported to be french fries.
There is said to be no threat of explosion at this time, since the propane tanks are free burning, but air quality is being evaluated throughout the process.
Law enforcement does not have a set timeline for the cleanup, prioritizing safety over speed.
“It might take all day today, we might go into tomorrow,” said Sgt. Curt Durnil with Indiana State Police. “We can’t say how long we’re gonna be here but the primary objective right now is to make sure we continue with our streak of nobody getting hurt. There’s been no loss of life, there’s been no injuries to this point and we’re planning on keeping it that way, however long it takes, that’s what we’re gonna do.”
Resources can be donated to the American Red Cross of Gibson County.
The cause of the derailment is still under investigation by ISP and CSX.