Union Pacific 2006 Annual Report Download - page 16

Rail and ties installed and replaced during the years ended December 31, 2006 and 2005 were as follows:
2006 2005
Track miles of rail:
New ................................................................... 632 661
Used .................................................................. 361 312
Ties (000) .................................................................. 4,669 4,690
Equipment – Our primary rail equipment consisted of the following as of December 31, 2006 and 2005:
2006 2005
Owned or leased at year-end:
Locomotives ................................................................ 8,475 8,226
Freight cars:
Covered hoppers ......................................................... 38,785 38,553
Boxcars ................................................................ 24,342 26,770
Open-top hoppers ....................................................... 19,012 19,950
Gondolas ............................................................... 14,884 15,037
Other .................................................................. 7,702 6,433
Work equipment and other .................................................... 5,263 5,041
Item 3. Legal Proceedings
From time to time, the Corporation is involved in legal proceedings, claims, and litigation that occur in
connection with the Corporation’s business. Management routinely assesses the Corporation’s liabilities and
contingencies in connection with these matters based upon the latest information available. Consistent with SEC
rules and requirements, the Corporation describes below material pending legal proceedings (other than ordinary
routine litigation incidental to the business of the Corporation), material proceedings known to be contemplated
by governmental authorities, other proceedings arising under federal, state, or local environmental laws and
regulations (including governmental proceedings involving potential fines, penalties, or other monetary sanctions
in excess of $100,000) and such other pending matters that the Corporation may determine to be appropriate.
Environmental Matters
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. The District
Attorney alleged that diesel fuel from this spill entered waters of the State of California. The complaint also
asserted claims under the above referenced statutes for any other diesel spill that may have occurred in the State of
California between 2000 and 2003, in which diesel may have passed into waters of the State of California. It
sought injunctive relief and civil penalties of $25,000 for the alleged February 16, 2000 diesel spill and total
penalties of not less than $250,000 for all diesel spills that may have occurred since 2000. The District Attorney
filed an amended complaint on April 10, 2003, which narrowed the claims to the incident of February 16, 2000.
The amended complaint seeks both injunctive relief and daily penalties for each day that fuel was in the affected
waterway, which could exceed $100,000.
As we reported in our Annual Report on Form 10-K for 2003, the District Attorneys of Merced, Madera, and
Stanislaus Counties in California filed a criminal case against the Railroad relating to a series of alleged releases of
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