Union Pacific Railroad Co. will pay $1.5 million to settle alleged violations of the US Clean Water Act and US Oil Pollution Act. The settlement with the Environmental Protection Agency resolves a Clean Water Act enforcement action against Union Pacific that involves operations at 20 rail yards and spills of oil and coal in 2003 and 2004 along railroad lines in Colorado, Wyoming and Utah. Most of the rail yards are in low-income areas with minority populations, according to the EPA.
About $1.4 million of the settlement will be deposited into a fund used by federal agencies to respond to oil spills. The remaining $100,000 will be deposited in U.S. Treasurys for coal spills and storm-water violations. The settlement requires the company to develop a management and reporting system to ensure compliance with various regulations. Union Pacific also must perform installations to safely store oil and prevent spills from leaving its properties. The company must designate an environmental vice president tasked with following oil spill prevention and storm water control requirements at the 20 rail yards. The complaint stemmed from six oil spills in Colorado, Utah, and Wyoming and three coal spills in Colorado.
Union Pacific to pay $1.5M settlement in oil spills, Northern Colorado Business Report, February 10, 2012