Union Pacific 2001 Annual Report Download - page 32

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stringent as those promulgated by the EPA may be authorized by the EPA to administer all or part of RCRA on behalf
of the EPA.
CERCLA was designed to establish a strategy for cleaning up facilities at which hazardous waste or other hazardous
substances have created actual or potential environmental hazards. The EPA has designated certain facilities as requiring
cleanup or further assessment. Among other things, CERCLA authorizes the federal government either to clean up such
facilities itself or to order persons responsible for the situation to do so. The act created a multi-billion dollar fund to be
used by the federal government to pay for such cleanup efforts. In the event the federal government pays for such cleanup,
it will seek reimbursement from private parties upon which CERCLA imposes liability.
CERCLA imposes strict liability on the owners and operators of facilities in which hazardous waste and other
hazardous substances are deposited or from which they are released or are likely to be released into the environment. It
also imposes strict liability on the generators of such waste and the transporters of the waste who select the disposal or
treatment sites. Liability may include cleanup costs incurred by third persons and damage to publicly owned natural
resources. The Company is subject to potential liability under CERCLA as an owner or operator of facilities at which
hazardous substances have been disposed of or as a generator or a transporter of hazardous substances disposed of at
other locations. Some states have enacted, and other states are considering enacting, legislation similar to CERCLA.
Certain provisions of these acts are more stringent than CERCLA. States that have passed such legislation are currently
active in designating more facilities as requiring cleanup and further assessment.
The operations of the Corporation are subject to the requirements of the CAA. The 1990 amendments to the CAA
include a provision under Title V requiring that certain facilities obtain operating permits. EPA regulations require all
states to develop federally-approvable permit programs. Affected facilities must submit air operating permit applications
to the respective states within one year of the EPA's approval of the state programs. Certain of the Corporation’s facilities
may be required to obtain such permits. In addition, in December 1997, the EPA issued final regulations which require
that certain purchased and remanufactured locomotives meet stringent emissions criteria. While the cost of meeting these
requirements may be significant, expenditures are not expected to materially affect the Corporation’s financial condition
or results of operations.
The operations of the Corporation are also subject to other laws protecting the environment, including permit
requirements for wastewater discharges pursuant to the National Pollutant Discharge Elimination System and storm-
water runoff regulations under the Federal Water Pollution Control Act.
Information concerning environmental claims and contingencies and estimated remediation costs is set forth in
Management’s Discussion and Analysis of Financial Condition and Results of Operations – Other Matters –
Environmental Costs, Item 7, and in note 12 to the Consolidated Financial Statements, Item 8.
Item 2. Properties
The Corporation’s primary real estate, equipment and other property (properties) are owned or leased to support its rail
and trucking operations. The Corporation believes that its properties are in good condition and adequate for current
operations. The rail and trucking segments operate facilities and equipment designated for both the maintenance and
repair of their respective property, including locomotives, rail cars, tractors and trailers and other equipment, and for
monitoring such maintenance and repair work. The facilities include rail yards, intermodal ramps and maintenance shops
throughout the rail system and service centers operated by the trucking segment. Additionally, the Corporation had
approximately $1.7 billion in capital expenditures during 2001 for, among other things, building and maintaining track,
structures and infrastructure, upgrading and augmenting equipment and developing and implementing new technologies.
Certain of the Corporation’s properties are subject to federal, state and local provisions involving the protection of
the environment. See discussion of environmental issues in Management’s Discussion and Analysis of Financial
Condition and Results of Operations – Other Matters – Environmental Costs, Item 7, and in note 12 to the Consolidated
Financial Statements, Item 8. See also notes 1, 5, 7 and 8 to the Consolidated Financial Statements, Item 8, for additional
information regarding the Corporation's properties.