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To: BNSF Lumber Customers
09/30/2009

LOGS Program Enhances Rules for Centerbeam Users

To help customers better react to continuing volatility in the lumber market, BNSF is making enhancements to its Loading Origin Guarantees (LOGS) program for shippers using Centerbeams. These enhancements will become effective Monday, October 5, 2009, and will remain in place until February 14, 2010.

1. Elimination of Weekly and Monthly Averages – BNSF will change car order commitments from a weekly/monthly commitment to a bid period commitment. This change should give permit holders more flexibility in meeting their bid commitments.

Permit holders will have the entire bid period to meet their equipment commitments (4-5, 13, 26, or 52 weeks).
Penalties will be assessed for all unused LOGS permits at the end of the bid period.
Penalties for non-ordering of your weekly commitment will no longer be assessed.
BNSF will still allow for a 25 percent overage for the LOGS permit, calculated on the bid term commitment.

2. Equalization of Discounts – Discounts for the 4- and 5-week auctions for Centerbeams will be increased to match the discounts provided for the 13-, 26- and 52-week auctions ($300).

To help facilitate these changes, the following guidelines are required for using LOGS permits:

Order original weekly bid commitment as LOGS cars.
Any additional requests for cars over the original weekly commitment should be ordered as Non-LOGS cars. However, these orders will still receive the LOGS discount and count toward the total commitment, as long as the LOGS permit number is included on the Shipping Instructions.
BNSF only guarantees placement of the original weekly LOGS commitment and is not subject to late penalties for cars ordered over the weekly commitment.

Your business is important to us. Thank you again for choosing BNSF as your transportation provider. If you have questions, please contact your BNSF Sales Representative, or email ViCC@bnsf.com.


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