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Jul-23-2008Union Pacific to pay landmark $102-million settlement for fire(topic overview)
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The Union Pacific settlement is the result of a lawsuit filed after a fire about 100 miles northeast of Sacramento that started in August 2000 and burned more than 52,000 acres in the Plumas and Lassen national forests. It was contained after three weeks at a cost of $22 million. It later was determined that sparks from welders repairing tracks set it off. Richmond, the company spokeswoman, said railroad employees thought they had extinguished the sparks that were burning alongside the tracks. "We feel our employees handled the situation as best they could. It was a rare and unfortunate set of circumstances that this fire became bigger than it should have," Richmond said. [1] By failing to use spark shields and clear the area of flammable material, smoldering bits of metal were able to ignite a blaze that consumed 52,000 acres within the Plumas and Lassen national forests over three weeks, federal officials said. A Union Pacific spokeswoman Tuesday said the settlement was reached to put the so-called Storrie fire behind them and it was agreed upon without any admission of liability on the part of its crew. She said the crew had extinguished the flames when the fire started, but a passing train reignited it.[2] Five Union Pacific workers failed to use spark shields on their power tools and didn't clear a work area of flammable material, igniting a blaze that consumed 52,000 acres over three weeks, federal officials said. A Union Pacific spokeswoman said Tuesday that the settlement was reached without admitting liability by its crew.[3]
A new settlement regarding these kinds of accidents was released on Tuesday. This increases the punishments for those responsible in creating the fire in the forests. Once with this settlement, the Union Pacific Railroad Co. had to pay $102 million to the U.S. Forest Service. Officials handling this issue have stated that Union Pacific damaged the wildlife, the habitat and the environmental uses, besides of the fact it had created a devastating fire. This must arrest the attention of those who spark a fire, even by accident.[4] The railroad was blamed for a 2000 fire that burned 52,000 acres north of Sacramento. Union Pacific Railroad Co. has agreed to pay $102 million to the U.S. Forest Service for a devastating 2000 wildfire north of Sacramento in a landmark settlement that dramatically increases the stakes in punishing those responsible for setting forest fires.[2] SACRAMENTO Two high-ranking federal officials came to Sacramento on Tuesday to hail the record-setting $102 million settlement between the U.S. Forest Service and Union Pacific Railroad for damage to two national forests from a 2000 wildfire. It is the largest settlement ever in connection with a wildfire's origin.[5] Los Angeles, CA (AHN) - The Union Pacific Railroad Co. (UPRC) is paying the U.S. Forest Service $102 million to settle the federal agency's lawsuit seeking damages from the firm for causing a California wildfire in 2000.[6] SACRAMENTO (AP) — Union Pacific Railroad Co. will pay $102 million to settle a federal lawsuit over damage from a massive California wildfire sparked by railroad employees in 2000.[7] Sacramento, CA (AHN) - Union Pacific Railroad Co. is paying $102 million to settle a federal lawsuit over a California wildfire in 2000 that was started by railroad employees.[8]
SACRAMENTO, Calif. (AP) — Union Pacific Railroad Co. has agreed to pay $102 million for a huge California wildfire sparked by its workers in what federal officials described Tuesday as a precedent-setting case.[1] SACRAMENTO -- In the largest settlement ever for a forest fire, Union Pacific Railroad Co. will pay $102 million for causing the so-called "Storrie Fire" in California's Plumas and Lassen National Forests in 2000.[9] Union Pacific's operating revenue in 2007 was $16.3 billion. Authorities have heightened their efforts to recover costs associated with wildfires and punish those responsible. The Department of Justice established Fire Recovery Teams in California and Utah this year to bolster their ability to seek damages. The $102-million figure marks a sizable increase from the previous record settlement targeting the origins of a wildfire -- $14 million in 2006 paid by Southern California Edison for its role in the 1994 Big Creek fire in the Sierra National Forest, officials said.[2] The remaining $80 million of the settlement is earmarked for damages to natural resources, with the money used for the remediation of Lassen and Plumas national forests. "The money will be quickly applied toward restoring the landscape and the ecological balance on National Forest lands damaged in the fire so that the public can once again enjoy these pristine forest regions." U.S. Department of Agriculture undersecrtary Mark Rey said in a news release. Union Pacific will make three installments this year, with $35 million paid July 2.[10] Rey said the settlement will repay the government's cost to fight the fire, with the other $80 million for restoration and rehabilitation of the timber land. "I think it's fair to say that you will see us pursuing more of these kinds of damage claims as we deal with more man-caused fires," he said. "It's sending a message to people that their negligence in causing these fires has consequences," added Kevin O'Connor, U.S. Associate Attorney General. "I hope that not only Union Pacific but anybody else who is in a position on our forest service lands to cause a forest fire is thinking twice about whether or not they're going to shirk their responsibilities to take the necessary precautions," said O'Connor.[9]
Federal officials also announced that U.S. attorneys in Sacramento, Los Angeles and Utah have dedicated teams to recover damages from people and entities deemed to have started costly wildland blazes. "It's sending a message that their negligence in setting a fire has consequences," O'Connor said. An estimated $600 million in such damages could be recovered nationwide from fires set on Forest Service land, said Mark Rey, undersecretary of the U.S. Department of Agriculture and the head of the Forest Service.[1] Sacramento's U.S. Attorney McGregor Scott called it "a magnificent settlement," the U.S. Forest Service's largest-ever damage recovery for a wildfire. USDA Undersecretary Mark Rey said it's also the second-largest settlement for any environmental damage involving federal resources, second only to the settlement in the 1989 Exxon Valdez oil spill in Prince William Sound in Alaska.[9] U.S. Attorney McGregor Scott says the settlement marks the U.S. Forest Service's largest ever damage recovery for a wildfire. It also is the largest civil judgment for federal prosecutors in the region, which stretches from Bakersfield to Oregon and covers California's Central Valley and the Sierra Nevada.[7]
The settlement announced Tuesday marks the most money the U.S. Forest Service has ever received in a lawsuit and was undergirded by a first-of-its-kind ruling by a federal judge, officials said.[2] U.S. Undersecretary of Agriculture Mark Rey was also on hand to celebrate the occasion. He said the settlement is not only the largest resolution of a wildfire lawsuit, but is second in Forest Service history only to the agency's $111 million portion of the $900 million settlement with state and federal governments in connection with the 1989 Exxon Valdez oil spill in Alaska.[5]
Damrell also ruled that the forest was more valuable because it was protected against logging by Congress. Federal prosecutors said the settlement should send a message that the government is serious about prosecuting those who spark wildfires -- even by accident. "We want those individuals or corporations operating lawfully in our national forests to be on notice," said U.S. Atty.[2]
The settlement is the biggest ever in a suit over a forest fire's origin, officials said, and Union Pacific's payment is not only for the costs of fighting the blaze but also for loss of recreation areas and wildlife habitats. "The money will be quickly applied toward restoring the landscape and the ecological balance on National Forest lands damaged in the fire so that the public can once again enjoy these pristine forest regions."[11] The Storrie fire was accidentally started by a Union Pacific crew repairing track at a point in the Feather River Canyon that is part of the Plumas National Forest. It spread to the Lassen National Forest and eventually scorched an area larger than San Francisco, much of it pristine timber and wilderness.[5] Five Union Pacific workers were accused of neglecting safety precautions when using power tools to repair track on Aug. 17, 2000, in Plumas National Forest.[2]
Terrifying wildfire that captured north of Sacramento on 2000 seems to have been caused by crews of Union Pacific who repaired the road in Feather River Canyon, a part of Plumas National Forest[4]
Sparks from welders repairing tracks caused the fire, which burned more than 52,000 acres in the Plumas and Lassen national forests northeast of Sacramento. Richmond says the employees thought they had extinguished the blaze.[7] "We feel our employees did all the right things," UPRC spokesman Zoe Richmond told LATimes.com. Richmond said UPRC workers had extinguished the flames on the track they repaired on Aug. 17, 2000, in Plumas National Forest when the fire started. In the lawsuit, the Forest Service claimed the workers did not follow safety precautions in using power tools, did not use spark shields, and did not clear the track of smoldering bits of metal when they left.[6]
District Court Judge Frank C. Damrell Jr. announced Tuesday the landmark settlement to the Forest Service covering damage to Plumas and Lassen national forests, lost timber and recreation use, and the cost of firefighting.[6] The little pieces of metal that were used by the crew created a blaze that burnt 52,000 acres in Plumas and Lassen national forests for more than three weeks. This cost the U.S. Forest Service no more than $22 million. That was only firefighters' work, not the damage already made to the environment.[4]
The blaze burned 52,000 acres of federal forest land, taking three weeks and costing $22 million to put out. Scott said the case is groundbreaking because prosecutors in his office used new formulas to calculate the loss to taxpayers in a federally protected wilderness area. He said the loss isn't just in timber, but in the recreational value. "Congress has said the value of this land remaining in its pristine condition exceeds any timber value that would come from that land.[9] The Forest Service had about 2,600 federal, state and local firefighters, air tankers and helicopter crews to battle the fire that burned 52,000 acres over three weeks, Assistant U.S. Attorney Kendall Newman said in a news release.[10]
"A precedent has been set here. that will let us assess the true, inherent value of forest land," U.S. Associate Attorney General Kevin O'Connor said during a news conference in Sacramento. He said the case would serve as a national model for the Forest Service and Justice Department.[1] Associate Attorney General Kevin O'Connor, the third-ranking official in the U.S. Department of Justice, said the settlement jump-starts a program for litigation teams in Sacramento, Los Angeles and Utah that will pursue similar cases against companies and individuals who negligently touch off a wildfire.[5]
The damage to the soil, according to plaintiff, may take hundreds of years to rebuild, if ever." Scott, the U.S. attorney in Sacramento, said his office has two dozen similar cases pending. The next is against an individual who started a fire on his property.[1] O'Connor credited McGregor Scott, the U.S. attorney in Sacramento, with prodding the department to establish the program.[5]
A team led by Assistant U.S. Attorney Kendall Newman countered that national forests have great value in terms of not just timber, but scenic beauty, recreation, wildlife and habitat.[5]
U.S. District Judge Frank C. Damrell Jr. said Union Pacific was not only responsible for the cost of firefighting and lost timber, but also damage to young growth, soil, wildlife, habitat, recreational uses and views.[2] U.S. District Judge Frank C. Damrell Jr. had said the federal government could seek damages far beyond the previous legal benchmarks — lost market value of burned trees and the cost of fighting the fire. He ruled that a jury also could consider the loss of public recreation, scenery and wildlife, as well as wilderness areas with old-growth trees that never would have been logged for sale. That would allow the government to seek significantly higher damages.[1] U.S. District Judge Frank C. Darnell Jr. ruled that the federal government could seek additional damages of more than $13 million for loss of wildlife habitat and $33 million for the cost of planting new trees.[8]
The judge said the government could seek more than $13 million for "damage to wildlife habitat and public enjoyment of the forest," as much as $33 million to plant trees and $122 million in lost timber.[1]
Legal experts said the settlement has broad implications because of the judge's view of the forest's value and Union Pacific's high level of liability in setting the blaze. "It's an important development in the law to have courts saying decisions aren't limited to the value of timber," said Sean Hecht, executive director of the UCLA Environmental Law Center. [2] Union Pacific spokeswoman Zoe Richmond said Tuesday that the Omaha, Nebraska-based company agreed to settle after a federal judge ruled against it in February. She said employees thought they had extinguished the blaze.[9] The fire lasted three weeks and burned more than 52,000 acres. "We feel our employees handled the situation as best they could. It was a rare and unfortunate set of circumstances that this fire became bigger than it should have," said Union Pacific spokeswoman Zoe Richmond, according to the Associated Press.[8]
Federal authorities allege Union Pacific employees failed to clear the area when they were using grinders and rail saws during repair work, sparking the fire on Aug. 17, 2000.[10]
Railroad repairs on August 17, 2000 led five workers of Union Pacific create a terrible fire, only by using power tools.[4]
The Union Pacific settlement "is exactly what we had in mind when we created the fire recovery litigation teams," O'Connor said. "It is sending a message that negligence in setting these fires will have consequences, and the guilty parties will face an even more aggressive recovery effort."[5] News - Federal officials laud historic Union Pacific wildfire settlement - sacbee.com Some features on this site require that JavaScript be turned on.[5]
U.S. Department of Agriculture undersecrtary Mark Rey said in a news release. Union Pacific will make three installments this year, with $35 million paid July 2.[11]
In a statement filed Tuesday with the Securities and Exchange Commission, Union Pacific said the settlement will be paid from insurance and will not affect earnings or cash flow.[1]
The settlement is the largest for a forest fire in U.S. Forest Service history. [8] The settlement is the largest-ever recovery by the U.S. Forest Service in a forest-fire case.[12]
The settlement announced Tuesday marks the most money the Forest Service has received in a lawsuit.[3]
The current settlement is just for the cost of fighting the fire and the value of burned trees. [8] U.S. attorneys argued that the actual cost of the blaze far exceeded just the firefighting resources and loss of valuable trees.[2] A passing train ignited the metal, causing a blaze that spread across 52,000 acres. It took 2,500 firefghters more than three weeks to extinguish the flames at a cost of $22 million.[6] After recovering the costs of fighting the fire, $80 million will go to restoring landscapes and repairing ecological damage.[2] After the fire was stopped and no danger threatened the forests, $80 million were used to restore landscapes and repair ecological damages, which consisted of replanted trees, trails and roads improvements.[4]
The government alleged that a 2000 fire in the Plumas National Forest was sparked by railroad workers who were repairing track without taking necessary fire precautions. [12] The Storrie forest fire broke out on Aug. 17, 2000 when a section crew working for the railroad was repairing track in Plumas National Forest.[11]
The fire, started on Aug. 17, 2000, came from sparks while welders were repairing railroad tracks in Plumas County, roughly 100 miles northeast of Sacramento.[8] The Storrie Fire ignited August 17, 2000, when UP employees were doing track repairs in the Feather River Canyon north of the town of Storrie. After failing to clear the area and use spark shields, it's believed rail saws and grinders sent out hot pieces of metal that started the fire, according to prosecutors.[9]
Over a five-year period, about two-thirds of state wildfires were started accidentally by humans, natural causes or unsafe use of equipment, according to a study by the California Department of Forestry and Fire Protection.[2]
The fire burned 52,000 acres, including old-growth forests that Congress had set aside for preservation. You can use this link on the day this article is published and the following day.[12] The fire blazed three weeks, burned more than 52,000 acres, and 2,600 firefighters were called in to battle it.[11]
The fire caused extensive damage to trees and destroyed 21,000 acres of wildlife habitat.[10]
The Eastern District, which stretches from the Oregon border to the Tehachapis, encompasses 16 million acres of national forest system land, 8.3 percent of the country's total.[5] O'Connor echoed that sentiment, saying that the ruling "allowed us to recognize the true inherent value of national forests. This is a model for the nation."[5]
O'Connor and Scott praised a groundbreaking ruling by U.S. District Judge Frank C. Damrell Jr. that set the stage for the negotiations that led to the settlement.[5] We start with the fair market value of the timber and go up," said Scott. He also said UP worked on the settlement in good faith. "They did admit negligence and did admit liability," Scott said.[9] Arsonists were responsible for 7%. Scott said the settlement sends a clear message that the government will aggressively argue its case. "It will provide solid ground to pursue earlier resolutions to these cases," Scott said.[2]
Trees will be replanted, trails and roads improved and dangerous woody fuels cleared, officials said. "The money received will go directly to remedy and heal the harm to these forests," said John Heil, a Forest Service spokesman. [2] More than 2,500 firefighters battled the flames without any loss of life or structure damage at a cost of $22 million.[2]
SOURCES
1. The Associated Press: Railroad to pay $102 million after Calif. wildfire
2. Union Pacific to pay landmark $102-million settlement for fire - Los Angeles Times
3. Railroad will pay $102M in fire suit
4. Union Pacific Railroad Co. Pays $102 Million for Fire Damage on Sacramento
5. News - Federal officials laud historic Union Pacific wildfire settlement - sacbee.com
6. Railroad To Pay Forest Service Record $102M Settlement For California Wildfire | AHN | July 23, 2008
7. The Associated Press: Railroad to pay $102 million after Calif. wildfire
8. Union Pacific To Pay $102 Million Settlement For California Wildfire | AHN | July 23, 2008
9. News10.net | Sacramento, California | Local News Union Pacific to Pay $102 Million for Wildfire Damage
10. Union Pacific agrees to $102M Storrie fire settlement - Sacramento Business Journal:
11. Union Pacific to pay $102M over Northern California fires - Silicon Valley / San Jose Business Journal:
12. Union Pacific Settles US Forest-Fire Case For $102 Million
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