News Release

STB Will Prepare Environmental Impact Statement For Build-in to the Bayport Industrial District

HOUSTON, Texas - October 1, 2001:

San Jacinto Rail Limited announces that the Surface Transportation Board (STB) today has issued a Notice of Intent to prepare an Environmental Impact Statement (EIS) for the 13-mile rail line proposed by the Burlington Northern and Santa Fe Railway Company (BNSF) and its San Jacinto Rail partners to create competitive rail service for plastics and chemical industry shippers in the Bayport Industrial District. Under the STB’s environmental regulations, an EIS is generally required for rail construction projects.

“Very early in our meetings with the community, we publicly voiced our support for an EIS,” said Henry A. de La Garza, spokesman for the partnership. “An EIS will provide for a thorough, orderly, and public process for the review of the project’s potential benefits and impacts on local communities and the environment.”

Through the sanjacintorail.com website, San Jacinto plans to provide the public with information on the STB’s timetable for the EIS. San Jacinto Rail has been very active in meeting with public officials and community organizations to keep them fully informed about the project. San Jacinto Rail plans to continue its ongoing efforts to work with interested parties to identify their concerns.

San Jacinto Rail is a limited partnership comprised of the Burlington Northern and Santa Fe Railway Company (BNSF) and affiliates of BNSF; ATOFINA Petrochemicals, Inc.; Basell USA Inc.; Equistar Chemicals, LP; and Lyondell Chemical Company. The mission of the partnership is to provide competitively priced rail service that is sensitive to public safety and the environment.

The proposed rail line would be operated by BNSF and would connect several rail- served plastics and chemical-producing facilities in the Bayport Industrial District with BNSF’s network. The proposed line would run just south of Ellington Field and extend to the end of the Bayport Industrial District, just east of state highway 146. BNSF would connect to the new line via trackage rights, which the U.S. Surface Transportation Board (STB) is being asked to grant. A formal petition was filed August 30, 2001 with the STB.

San Jacinto Rail Limited (SJRL) and BNSF on August 30, 2001 filed a petition with the U.S. Surface Transportation Board (STB) for approval to build and operate its proposed 13-mile rail line into Houston's Bayport Industrial District. The proposed line would be operated by BNSF and would run just south of Ellington Field and extend to the end of the Bayport Industrial District, just east of state highway 146. On average, two trains per day are planned to operate between BNSF’s New South Yard in Houston and the exchange tracks in the existing Bay port Rail Terminal, an independent, locally owned and operated rail enterprise. Trains will operate at restricted speeds not to exceed 20 miles per hour. When service begins we expect trains will average 36 cars in length. It is possible that, after five years, trains could be as long as 66 cars. A 36-car train with locomotives is approximately 2,490 feet long, and a 66-car train with locomotives is approximately 4,440 feet long.

The estimated construction cost of the project is $80 million, which includes construction of six public road crossings including an overpass for Red Bluff Road, to handle traffic safely. No properties within residential neighborhoods will be required to build the new rail line. Construction and operation of the new rail line are subject to approval of the STB in coordination with other federal, state and local agencies.

San Jacinto Rail Limited Contacts: Henry A. de La Garza de La Garza Public Relations, Inc. (713) 622-8818

Richard Russack (817) 352-6425

BNSF Headquarters
BNSF Railway Company
2650 Lou Menk Dr. 2nd Floor
P.O. Box 961057
Fort Worth, TX 76161-0057
Phone: (817) 352-1000