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To: BNSF Cement Customers
02/01/2007

BNSF 80022: Cement Price Adjustments Effective May 1, 2007

Effective May 1, 2007, BNSF 80022 Item 1000-1005 mileage-based rates will be restructured. The changes are designed to better match pricing to value offered, as well as to streamline and simplify the document.

Changes include:

    The current five regions will be reduced to three regions:
      o Southwest: Includes AZ, CA, NM, NV, UT
      o Pacific Northwest: Includes BC, ID, OR, WA, MT
      o Central: Includes essentially all other BNSF states
      Price differentiation will be enhanced. Previously the price for a 201-mile move was the same as a 500-mile move, or for a 1-mile haul was the same as a 100-mile haul. Some mile bands will be split into multiple bands.

      Pricing for rail-owned equipment will be equalized across regions.

      Pricing will be added or expanded for high-capacity equipment (including 165-ton and 205-ton equipment, a.k.a. “articulated” equipment).

      Price impact to individual lanes will vary. The overall impact, based on historical traffic, will be about five percent (5%). The new mileage table is attached.
      If your company has point-to-point rates, your Sales Representative will be contacting you to provide details for price changes to those lanes.

      If you require more specific information regarding your specific lane adjustments, please contact your BNSF sales representative or email ViCC@BNSF.com

      Your business is important to us. Thank you again for choosing BNSF Railway as your transportation provider.

      PU 02-01_Cement Pricing.xls

      If you have any questions, please send an email to Customer.Notifications@bnsf.com