SACRAMENTO, Calif. (AP) Union Pacific Railroad Co. will pay $102 million to settle a federal lawsuit over damage caused by a huge California wildfire sparked by railroad employees in 2000, officials said Tuesday.
U.S. Attorney McGregor Scott said it is the U.S. Forest Service's largest ever damage recovery for a wildfire.
Union Pacific agreed to settle after a federal judge in Sacramento ruled against it in February, said Zoe Richmond, a spokeswoman for the railroad based in Omaha, Neb.
U.S. District Judge Frank C. Damrell Jr. decided the federal government could seek damages far beyond the lost market value of burned trees and the cost of fighting the fire.
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 new trees and $122 million in lost timber.
"The forests' use for recreation and scenic enjoyment was also sorely impacted," Damrell wrote, summarizing the government's claim. "Much of the devastated areas involved old growth forests, designated wilderness and trees that were hundreds of years old. The damage to the soil, according to plaintiff, may take hundreds of years to rebuild, if ever."
The government sought damages as high as $190 million, a figure the railroad disputed, according to court records.
Sparks from welders repairing tracks caused the fire on August 17, 2000, in Plumas County, about 100 miles northeast of Sacramento. The fire charred more than 52,000 acres in the Plumas and Lassen national forests before it was contained three weeks later at a cost of $22 million.
Richmond said railroad employees thought they had extinguished sparks alongside the tracks. Union Pacific said it was likely that a passing train fanned them into flames.
"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. "We are very fortunate that we didn't have any injuries or any major damage (to homes)."
Union Pacific says its second-quarter earnings rose 19 percent as continued productivity improvements offset the effects of rising fuel costs and Midwest floods, the Associated Press reports.
The company earned $531 million, or $1.02 per share, compared with $446 million, or 82 cents per share, a year earlier.
Revenue rose 13 percent to $4.57 billion, from $4.05 billion in the 2007 second quarter.
The results have beat estimates of analysts polled by Thomson Financial, who expected profit of 92 cents per share on revenue of $4.51 billion.
Shipments of agricultural products jumped 29 percent, leading growth in five out of six business segments.
Automotive was the only segment to fall in the quarter, down 9 percent.
(This item was distributed July 24, 2008, by the Associated Press.)
