May 01, 2001

To increase asset utilization for both BNSF and Private fleets, BNSF has enacted the following Private Equipment Policy. These policies will provide additional operational flexibility and increased capacity for our customers. The following changes become effective May 1, 2001 and will apply to both loaded and empty equipment held on railroad tracks.

• This policy will not supersede any provisions of existing contracts concerning the use of private equipment. However, if your contract refers to a rules tariff and that tariff changes, these changes will apply.
• Storage charges for loaded private equipment will be reduced from the current $75/day to $25/day.
• Storage charges for empty private equipment will be increased from the current No Charge/day to $25/day.
• Storage charges will apply at origin, destination and any intermediate holding location.
• There will be no credits given. Under the current policy, one (1) credit is given for loaded private equipment.
• Charges begin after the 2nd 12:01AM after Constructive Placement until the request for placement to private track is received.
• Under the new policy, Saturdays, Sundays and holidays that fall between Constructive Placement and the 2nd 12:01AM are excluded. Once charges begin, Saturdays, Sundays and holidays will be chargeable.
  
• Refused equipment: Once loaded equipment is refused, charges will be assessed against the consignor of the load. Once empty equipment is refused, charges will be assessed against the lessee or owner of the equipment. In either case, once charges begin for refused equipment, Saturdays, Sundays and holidays will be chargeable (Prior to refusal, this Policy will assess storage charges, to the consignee, from the 2nd 12:01AM after Constructive Placement until refusal).
• Equipment held for disposition: Storage charges will be assessed from the 1st 12:01AM after return to BNSF tracks until disposition is received at the rate of $25/day inclusive of Saturdays, Sundays and holidays.
• Equipment containing hazardous materials: a charge of $75.00/day in addition to the standard storage charge of $25.00/day will apply. Charges will run concurrent with storage charges.

Ancillary Issues:

• Intra-Plant Switches will remain at $105. Under the new policy, empty equipment will not be chargeable if immediately followed by a loaded movement under either line-haul or switching rates of BNSF.
• Diversions under the new policy, both loaded and empty diversions will be charged. ($150 for a single car diversion with a maximum of $450 for a multiple car diversion on a single BoL)

The intent of these changes is to improve asset utilization for our customers and effectively expand capacity without additional capital outlays. By announcing these changes three months prior to implementation, we hope you will have necessary time to adjust your operations. By standardizing, simplifying, and automating the process we will improve our ability to deliver more effective services.

If you have any questions regarding the new policy, please contact your Account Representative, or send us an e-mail at CustomerInterface@BNSF.com. You can also contact Randy Knox, Director Equipment Utilization at (817) 867-6589, or Kathryn Blackburn, Account Manager - Chemicals at (817) 867-6183.