The Union Pacific Railroad has agreed to pay the Forest Service $102 million — the largest wildfire settlement in history — for causing a fire in California’s Feather River Canyon. Though railroad employees were almost certainly responsible for the fire, the UP could have used some better lawyers or, better yet, some economists among their expert witnesses.
Normally, if you start a fire that gets out of control, you are responsible for paying suppression costs — in this case, $22 million. But this time, the judge also ordered the railroad to pay the estimated damage to “public scenery and recreation and habitat and wildlife,” which added $80 million to the total. On top of that, the UP may have to cover the Forest Service’s costs of reforesting the burned acres.
At first glance, this sounds just. Except it isn’t clear to me that the fire actually did any damage to scenery, recreation, habitat, or wildlife. On top of that, if the Forest Service is so concerned about such damage, why didn’t it do something to fix the problems as soon as the fire was put out? In fact, it did nearly nothing for years.
