Norwest Corporation and Subsidiaries - Page 8

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               B. Remodeling Plans                                                    
               In 1985 and 1986, Norwest Nebraska consolidated its "back              
          room" operations at the Douglas Street building. Pursuant to that           
          process, Norwest Nebraska undertook to determine the most efficient         
          means for providing more space to accommodate the additional                
          operations personnel within the building. The planning process              
          indicated that the building needed a major remodeling. (The                 
          building had not been remodeled since its construction; Norwest             
          Nebraska usually remodels its banks every 10 to 15 years.) Thus, by         
          the end of 1986, petitioner and Norwest Nebraska had decided to             
          completely remodel the Douglas Street building. In December 1986,           
          both petitioner and Norwest Nebraska approved a preliminary budget          
          of $2,738,000 for carpet, furniture, and improvements.                      
               C.  Use of Asbestos-Containing Materials in the Douglas Street         
               Building                                                               
               The Douglas Street building was constructed with asbestos-             
          containing materials as its main fire-retardant material. (The              
          local fire code required that buildings contain fireproofing                
          material.)  Asbestos-containing materials were sprayed on all               
          columns, steel I-beams, and decking between floors. The health              
          dangers of asbestos were not widely known when the Douglas Street           
          building was constructed in 1969, and asbestos-containing materials         
          were generally used in building construction in Omaha, Nebraska.            
               A commercial office building's ventilation system removes              
          existing air from a room through a return air plenum as new air is          





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