Key questions and answers from the first quarter earnings call conducted by Union Pacific Corp. (UNP: chart) on April 24, 2008.

Ken Hoexter (Merrill Lynch): Is there a capacity to handle the increased demand for coal?

John J. Koraleski: We are in fairly good shape and the mines have held up. From time to time we have had problems with some of the Colorado, Utah mines in terms of their geology and things like that but they are right at the moment, mines are doing well, we are doing well and the market is pretty hot.

James R. Young: PRB has the capacity. Colorado, Utah will be stretched.

Ken Hoexter (Merrill Lynch): How do you measure the network interruption days?

John J. Koraleski: We look at any time that we incur 50 or more greater train hours, any one particular day from an incident then we characterize that as a service interruption day.

Ken Hoexter (Merrill Lynch): On the exposure on the insurance from the problems in upper west, are you still exposed about $25 million of that total amount that you had given?

James R. Young: We should be careful the timing of the insurance recovery. We are not assuming anything in our financials right now. That will be a long drawn out process there going forward.

Thomas Wadewitz (J.P. Morgan): In terms of the 11% yield, was there any mix or was it purely $5.5 from price and $5.5 from year-over-year increase in fuel surcharge?

James R. Young: There is some mix in there when you look at it. It did hold down, it negatively impacted our overall yields.

Thomas Wadewitz (J.P. Morgan): Where do you see the opportunity that comes from high fuel prices?

James R. Young: We are seeing more interest, on the one side there is a lot of pressure but there also a lot of these truckers are just basically trying to get some positive cash flow. So they can put some pressure on pricing in the short-term which we see.

Unidentified Analyst: Can we get an update on the Oregon outage?

Dennis J. Duffy: What we did was we restored the service. On a night-time basis we take about a 10-hour window at night to run trains through there. What we are in the process of doing now is cleaning up the unsuitable material that possess risk to be able to come down on us in future operation. We are gaining on that and we should get that behind us here hopefully within the next 30 days.

Unidentified Analyst: On the auto side, looking at the strike which seems to be have done worse not better recently what's the impact?

Dennis J. Duffy: It cost us $14 million in the first quarter. s.

Unidentified Analyst: How should we think about labour moving forward?

Dennis J. Duffy: We will hire in total 4,000 employees for the year. We are going to lose about 4,200, 4,500 employees. Part of this is a really a function of how we look for volume going forward.

We have got what we have 300, 400 locomotives sitting in storage right now. We have got about 15,000 freight cars in storage. We have on our train and engine crew size, the total there is about 300.

Unidentified Analyst: Has the Meridian Speedway started to open up a little bit for you?