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To: BNSF Lumber and Panel Customers
12/16/2009

Lumber and Panel LOGS Program Enhancements Effective February 15, 2010

In response to current market conditions, beginning Monday, February 15, 2010, BNSF is making enhancements to the Loading Origin Guarantees (LOGS) program for Lumber and Panel customers. These changes include elimination of the freight allowances associated with the program and various rules changes.

Elimination of Freight Allowances
Effective February 15, 2010, BNSF will no longer offer the $200-$300 freight allowances in association with LOGS permits. In impacted pricing documents, lanes have been adjusted to reflect the removal of these allowances, if necessary. Price documents also reflect the rate adjustments previously announced. Customers who commit to LOGS for 52 weeks will receive an allowance of $50 per car.

This change separates the LOGS program from BNSF’s pricing structure and allows customers to participate in the LOGS program based solely on the value of guaranteed car supply.

Rules Changes
1) Elimination of 10% Car Order Variation

    The allotted 10% order under/overage will be eliminated.

2) Clarification of Rules in Relation to BNSF Holidays
    In an attempt to simplify the rules related to the impact of BNSF-observed holidays on car order commitments, BNSF is making the following changes:

    BNSF will now allow reductions of one car per holiday, based on increments of five-car-per-week commitments. For example, a five-car-per-week commitment receives a one-car reduction per holiday; a 10-car-per-week commitment receives a two-car reduction per holiday, etc. Also, it is necessary to have at least a minimum of five cars per week to receive the holiday reduction.

3) Expiration of Short-Term Changes
    As of February 15, 2010, LOGS order commitments will return to a weekly/monthly calculation for shippers using centerbeams for all bid periods. In September of this year, BNSF announced a short-term change to the LOGS program that allowed centerbeam permit holders to use their entire bid period to meet their total LOGS commitment. This was a short-term adjustment to the program in response to market volatility and will be eliminated with the new LOGS period.

If you have questions regarding these enhancements, please contact your BNSF Sales Representative, or email ViCC@bnsf.com.

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

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