Union Pacific 2005 Annual Report Download - page 16

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Rail and ties installed and replaced during the year ended December 31, 2005 are as follows:
Rails and Ties
Track miles of rail:
New .............................................................................. 661
Used ............................................................................. 312
Ties (000) ........................................................................... 4,690
Equipment – Our primary rail equipment consisted of the following as of December 31, 2005:
Equipment
Owned or leased at year end:
Locomotives ........................................................................ 8,226
Freight cars:
Covered hoppers ................................................................... 38,553
Boxcars .......................................................................... 16,505
Open-top hoppers ................................................................. 19,950
Gondolas ......................................................................... 15,037
Other ............................................................................ 16,698
Work equipment and other ............................................................ 5,041
Item 3. Legal Proceedings
Environmental Matters
As we reported in our Annual Report on Form 10-K for 2003, the United States Attorney for the Central District
of California notified the Railroad that the office intended to pursue criminal charges against us for alleged
violations of federal environmental laws, including the federal Clean Water Act, in connection with releases of oil
contaminated wastewater from our Taylor Yard in 2001 and 2003. In April 2004, the Railroad settled the State of
California’s claims arising from these releases for $45,020.
As we reported in our Annual Report on Form 10-K for 2003, the California Department of Toxic
Substances Control (DTSC) threatened civil prosecution against us in November 2003, after a series of protracted
negotiations, relating to our failure to register as a hazardous waste transporter under California law from April
2000 to August 2001. We contend that we are exempt from the registration requirements due to federal
preemption. The DTSC proposed civil penalties of $125,160 for the alleged violation. We settled this matter on
September 14, 2005 for $55,000.
As we reported in our Annual Report on Form 10-K for 2001, on January 30, 2002, the Louisiana
Department of Environmental Quality (LDEQ) issued to the Railroad a notice of a proposed penalty assessment
in the amount of $195,700. The proposed penalty relates to the derailment of one of our trains carrying hazardous
materials near Eunice, Louisiana, on May 27, 2000. We met with the LDEQ regarding this matter to demonstrate
that no penalty should be assessed. On December 28, 2005, the LDEQ amended the proposed penalty to $47,113.
As we reported in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2003, the San
Joaquin County District Attorney filed an action against the Railroad on February 3, 2003, in the San Joaquin
County Superior Court alleging claims under the California Business and Professions Code section 17200 (unfair
business practices), Fish and Game Code section 5650 and 5650.1, California Health and Safety Code section
25189(d), and Public Nuisance, California Civil Code section 3480. The claims arise from a February 16, 2000,
derailment in Stockton, California, in which a locomotive struck an object on the tracks, puncturing a fuel tank.
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