1. Real Estate Contracts Group
Renay J. Robison
Director – Real Estate
May 28, 2014

2. Lincoln Signs Pacific Railroad Act in 1862
Our founder was none other than Abraham Lincoln.
Imagine the moment, the county divided North against South. Lincoln signs the Pacific Railway Act of 1862, on July 1, establishing the original Union Pacific.
The act granted government land and a loan financed with government bonds for a new corporation that was called the Union Pacific Railroad Company.
Ground was broken in Omaha, Nebraska, in 1863, but actual construction was delayed for 18 months. The delay was caused by a familiar foe: there simply wasn’t enough money, material or manpower.

3. Union Pacific 2013 Fast Facts Revenue $22.0 B
Seattle
Eastport
Portland
Duluth
2013 Fast Facts
Revenue $22.0 B
Route Miles 31,800 in 23 States through 7,000 Communities
Employees 45,400
Annual Payroll $4.3 B
Customers 10,000
Locomotives 8,300
Twin Cities
Chicago
This is a snapshot of Union Pacific today. We operate in 23 states, mainly west of the Mississippi River and serve, or run through more than 7,000 communities.
As the saying goes, we are a 32,000-mile factory without a roof. This means blizzards, floods, tornadoes and hurricanes are part of our life at the railroad.
Our employees are out there in the bitter cold of the Sierra Nevada and the brutal heat of the Mojave Desert. It’s certainly not your average desk job. That’s one of the reasons why we are extremely proud of our 46,000 employees.
Omaha
SLC
Oakland
Denver KC
St. Louis LA
Memphis
Calexico
Dallas
New Orleans
Nogales
El Paso
Houston
Eagle Pass
Laredo
Brownsville

4. Union Pacific in Texas 2013 Fast Facts Miles of Track 6,314
Annual Payroll $726 M
In-State Purchases $2.45 B
Capital Spending $589 M
Employees 8,196
U.S. Jobs Supported* 36,882
Community Giving $1.5 M
*Each American freight rail job supports 4.5 jobs elsewhere in the U.S. economy.
(Association of American Railroads)

5. Strengthening the Franchise
We make capital investments to enhance safety, improve customer service, increase productivity and add capacity to handle our customers’ growth.
Keeping what amounts to a privately owned steel highway in top condition is an expensive proposition. After oil and gas companies, railroads top the charts as the most capital-intensive businesses today.
For 2014, our capital plan totals a record $3.9 billion. Almost half of that is replacement spending to harden the infrastructure, making the network more safe and resilient. To accomplish that, on average, we replace more than 2 miles of track and install 10,000 ties a day.
On top of that to enhance service, growth and productivity, we’ll spend upwards of $1.5 billion on capacity, commercial facilities, 200 new locomotives and equipment.
We plan also to spend about $450 million this year to comply with the government mandate to install Positive Train Control, which is likely to cost $2 billion before its all done.
* Includes cash capital, leases and other non-cash capital.

6. Supporting Our Communities
Union Pacific has deep ties to the communities we serve. It is where we live, where our children go to school and where new employees are recruited. It is important to our company that these communities thrive.
All towns and cities have different struggles. We understand this, and through our programs, we try to address the unique needs of the region. In 2013, the Union Pacific supported 2,271 nonprofit organizations.
In 2013, Union Pacific donated nearly $14.3 million to community efforts.
(Note: 2013 State Community Giving Amounts available on respective state pages of the U.S. Guide on the UP public site -
2013
Supported 2,271 Nonprofits
Donated ~$14.3 M
Union Pacific Foundation

7. UNION PACIFIC RAILROAD Real Estate Department
15 Full Time Employees
2 Part Time Employees
Public Projects (Road X)
Utility Licenses
Rights of Entry
Mineral/Water Rights
- Signboards
Property Management / Leases
Industry Track Agreements
Property Sales
Acquisitions
Facilities Group
CONTRACTS GROUP
There are approximately 90 employees working in UP Real Estate Department. 17 of which work in the Contracts Group.

8. Safety - Top Priority at Union Pacific
There are additional benefits railroads bring to the communities beyond the goods we haul. Not only is rail the safest mode of transportation, it is one of the safest industries.
At Union Pacific we have a diligent focus on three key areas -- employee, customer and public safety.
We have reduced employee reportable injuries by 46 percent over the last 10 years. Although we are proud of this improvement, we will not be satisfied until we are at zero accidents.
To achieve the 23 percent reduction in reportable derailments of customer goods, UP employs state-of-the art technology.
In the area of public safety, we’ve experienced a 15 percent reduction in crossing accidents.
Employee
Customer
Public
Reportable Injuries Per 200,000 Work Hours
Reportable Derailments Per Million Train Miles
Grade Crossing Accidents Per Million Train Miles
4.22
2.61
1.93
23%
15%
2.22
3.24
46%
1.05
2003
2013
2003
2013
2003
2013

9. CONTRACTS GROUP ROLE PRESERVE UPRR ROW FOR RAIL TRANSPORTATION
PRIORITY IS SAFETY FOR COMMUNITY, UTILITY’S AND UP’S EMPLOYEES
PRESERVE UPRR ROW FOR RAIL TRANSPORTATION
SAFETY, SAFETY, SAFETY
The #1 priority for each and every contract is to ensure safety for the community and Union Pacific employees as well as preserve the right of way for rail transportation.

10. UNION PACIFIC RAILROAD
Over 1,100,000 Real Estate agreement records in storage…
Deeds, leases, licenses, easements, rights of entry
If you can’t find your record, we probably can, but finding a 80 year old agreement can be a laborious task. Historical records are off site, although over 300,000 are stored electronically. More are being scanned in every year. Most of those are geolocated. Retrieving the original records or those that have not been scanned is very costly. Several records systems must be searched, predecessor audit numbers matched to UP numbers, valuation maps reviewed to determine where it is stored. Then personnel must physically locate the agreement from offsite storage, and deliver the documents to Real Estate.

11. UTILITY GROUP STATISTICS
2013
NEW APPLICATIONS 3,000
We are adding thousands of records a year. The Contract Group alone adds 3,000 documents a year.
AGREEMENTS PROCESSED
New Contracts ,900
Supplements
TOTAL 3,300

12. PUBLIC PROJECTS GROUP http://www.uprr.com/reus/roadxing/index.shtml
All road crossing applications, whether from a public entity or a private citizen or business, begins with the Manager of Public and Industry Projects. Until their review, the application does not come to Real Estate.

13. PUBLIC PROJECTS GROUP

14. Public And Private Road Crossings
Public Roads
Overpass
Underpass
At-grade
Private Roads
Commercial
Residential
Farm
CONSIDERATIONS FOR APPROVAL
- New or existing crossing
- Types of vehicles
- Number of daily crossings
- Proximity to other crossings
- Surrounding Land Uses
- Location
- Site lines for train and for users
- Availability of alternative access

15. APPLICANT IS RESPONSIBLE FOR ALL COSTS
Engineering design and review
Construction and installation of new crossing including work performed by Union Pacific
Relocation of utilities
Any current and future warning devices (passive or active)
Insurance as required by UPRR
All liability for accidents or injuries arising from construction, maintenance or use of the crossing
Ongoing maintenance

16. Special Projects
Contracts must be in place for special projects such as flood gates and levies.

17. UTILITIES MANAGEMENT GROUP
CROSSINGS
ENCROACHMENTS
RIGHTS OF ENTRY
-Nonintrusive Survey
-Environmental
-Utility Service for UP
-Archeology
-Contractor
-Movies, others

18. UTILITIES MANAGEMENT GROUP

19. UTILITY CROSSINGS

20. UTILITIES MANAGEMENT GROUP
Online application process saves 7-10 days over mail or submission methods
New online application process (to be rolled out 2015) will be even more efficient.
Step by step instructions to assist in generating application and compliant exhibit documents.
Application fees and license fees can be paid online.

21. APPLICATION REVIEW PROCESS PRIOR TO EXECUTION OF AGREEMENT
UTILITY CROSSINGS
APPLICATION REVIEW PROCESS
PRIOR TO EXECUTION OF AGREEMENT
WHY FOLLOW GUIDELINES? PROTECTION OF UTILITY AND RAILROAD PERSONNEL AND PUBLIC IS CRUCIAL!
Online submission
Geolocation and determination of UPRR property rights.
Review for compliance with engineering and safety standards
Property valuation
Preparation and transmission of standard agreement
Return of executed agreement to Railroad with applicable fees.
Prior to entering into an agreement, the following steps must be taken. Again, safety and right of way preservation are the key factors in all decisions.

22. APPLICATION REVIEW PROCESS
UTILITY CROSSINGS
APPLICATION REVIEW PROCESS
PRIOR TO INSTALLATION
Confirmation of compliance with required insurance coverage limits.
Purchase of Railroad Protective Liability Insurance policy.
Contact UPRR Fiber Hotline
Contact local One-Call line to locate buried utilities.
Notification of Managers of Track Maintenance and Signal Maintenance.
Arrange for Flagging

23. INSTALLATION REQUIREMENTS TERMINATION REQURIMENTS
UTILITY CROSSINGS
INSTALLATION REQUIREMENTS
Pipeline Follow AREMA Standards
Wireline Follow NESC +3 feet
The American Railway Engineering and Maintenance of Way Association (AREMA) provide construction guidelines for railways including proper pipeline installations. The National Electrical Safety Code + 3 feet for overhead powerlines. Why the extra 3 feet? To ensure 3-tier railcars, cranes and other equipment using the right of way can safely pass under wires.
TERMINATION REQURIMENTS
Notification
Engineering Approval
Removal and Certification
Abandonment in Place under track

24. UTILITY GROUP SPECIAL AGREEMENT TYPES
Modification Supplements
Maintenance Consent
Contractor’s Right of Entry
Emergency
RMCC:
Assignments
Non Intrusive Civil Surveys

25. QUESTIONS?
If you are not sure whom to contact for assistance, use the website.

26. Building America for more than 150 Years
THANK YOU