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<br />. <br /> <br />. <br /> <br />. <br /> <br />~ ~#-.3. <br /> <br />COMMUTER PRINCIPLES <br /> <br />BNSF is willing to cooperate on commuter rail studies and provide state and local officials with <br />information. Where commuter service is proposed on a minimally used line that BNSF is willing <br />to sell, BNSF shall be paid fair market value for the property. Where commuter service is <br />proposed on a line BNSF intends to continue owning, the following principles apply: <br /> <br />. Any commuter operation cannot degrade BNSF's freight service, negatively affect BNSF's <br />freight customers or BNSF's ability to provide them with service. <br /> <br />. BNSF must be compensated for any and all costs incurred in providing commuter service and <br />make a reasonable return for providing the service. <br /> <br />. Capital investments necessary for commuter service are the responsibility of the public. <br /> <br />. BNSF will not incur any liability for commuter operations that it would not have but for those <br />operations. These operations are provided by BNSF primarily as a public service; the <br />relatively modest compensation BNSF receives does not begin to justify assuming the <br />significant liability associated with passenger service. <br /> <br />. Studies of how commuter service might be provided must take into account not only the <br />current freight traffic levels, but projected freight traffic growth. <br /> <br />. Investments made for commuter projects must not result in BNSF incurring a higher tax <br />burden. Property improvements should not become part of our tax base; materials used <br />should be exempt from all sales and use taxes, etc. or BNSF must be made whole for any <br />increased tax burden. <br /> <br />BNSF must retain operating control of rail facilities used for commuter service. All <br />dispatching, maintenance and construction must be done under the control of BNSF. <br />Passenger stations, parking lots and other non-rail facilities may be publicly owned and <br />operated. <br /> <br />. Studies must reflect BNSF's actual operating conditions and cost structures. For example, <br />construction work estimates must reflect our labor contract costs, schedules cannot assume <br />that we will not operate any freight trains during peak commuter periods, etc. <br /> <br />. BNSF will limit commuter operations to the commuter schedules intially agreed upon and for <br />which the capital improvement plan has been designed. Future expansions will have to <br />undergo the same analysis and provide any required capital improvements before schedules <br />can be altered, service added, or stations added. <br /> <br />. Improvements must include grade crossing protection and intertrack fencing as required to <br />minimize the risk of accidents, due to both liability and service interruption concerns. <br /> <br />04/28/99 <br />