Tuesday, November 16, 2004 (Washington, DC) Ensuring the safety of the nation’s railroad system is the number one mission of the Federal Railroad Administration (FRA). In the aftermath of a string of train accidents involving Union Pacific (UP), FRA began in July 2004, an extensive and comprehensive review of the railroad’s safety compliance performance in Texas.

The FRA review over the ensuing months included federal inspectors riding UP trains, overseeing UP inspectors perform their work, conducting FRA’s own inspections, and auditing the UP FTX Program. It concluded that UP failed in its implementation and management oversight of its Field Testing Exercise (FTX) Program, which tests train crew compliance with railroad operating rules and other Federal safety regulations, a result that was unsatisfactory.

As a result, FRA has entered into a Safety Compliance Agreement signed by UP and announced today. The document describes the actions the railroad will take to resolve the problems found by FRA. Under the one-year agreement, UP will have its San Antonio Service Unit:

· Immediately begin a thorough and vigorous program to re-instruct all railroad testing managers on the entire contents and requirements of its FTX Program;
· Conduct monthly analysis of FTX Program data, formulate a monthly plan to correct identified problems, and require the headquarters in Omaha audit the plan on a quarterly basis; and
· Assign an official to be directly responsible for the implementation of this agreement.

FRA has ordered additional federal inspectors from other regions to Texas to supplement existing staff in inspecting and monitoring UP adherence to this agreement. The first team is already in San Antonio working with front line UP managers and train crews. Additional FRA inspectors will be sent in the coming weeks.

Should FRA determine at any time that the Compliance Agreement is not being fulfilled by UP, a stronger Compliance Order will be issued without challenge from UP. A Compliance Order would then require UP to perform the provisions of the agreement and is enforceable in Federal Court where top railroad officials could be held personally liable.

Safety is the top priority of the FRA. We welcome the interest and assistance of affected officials representing the area of San Antonio as we continue to work with the highest levels of UP management and maintain an active presence to achieve lasting improvements for the safety of rail operations in the San Antonio area.