Norwest Corporation and Subsidiaries - Page 17

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          of the asbestos-containing materials, and made routine maintenance          
          more expensive.                                                             
               Petitioner intended to create a safer  and  healthier                  
          environment for the building employees by removing the asbestos-            
          containing materials.5  The building indeed became safer after the          
          asbestos-containing materials were removed.                                 
               H. Liability Issues                                                    
               By removing the asbestos-containing materials from the Douglas         
          Street building, petitioner also intended to avoid or minimize its          
          potential liability for damages from injuries to employees,                 
          customers, and workers resulting from asbestos exposure.                    
          Petitioner's general liability insurance policies in effect at all          
          relevant times contained an exclusion for damages attributable to           
          the discharge of pollutants.  Such exclusion would include the              
          circulation  of  asbestos  fibers  through  the  Douglas  Street            
          building's ventilation system. Some of petitioner's umbrella                
          insurance policies contained an additional endorsement specifically         
          excluding liability for damages caused by asbestos exposure.                
               Injuries to Douglas Street building employees arising out of,          
          and in the course of, their employment are not covered under                
          petitioner's general liability or umbrella insurance policies.              


               5    Before the asbestos removal and remodeling work began,            
          John Cochran, president of Norwest Nebraska, wrote a memorandum             
          dated Oct. 28, 1987, to the Douglas Street building employees,              
          assuring them that Norwest Nebraska wanted their work environment           
          to be safe.                                                                 




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