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<br />Term Sheet <br />Memorandum of Understanding <br /> <br />This Term Sheet and Memorandum of Understanding ("MOU") is entered into this _ <br />day of May, 2006 between the Commissioner of Transportation (the "Commissioner") acting on <br />behalf of the State of Minnesota (the "State"), and BNSF Railway Company ("BNSF"). <br /> <br />WHEREAS, the State desires to use its resources and authority to provide commuter rail <br />service between Big Lake and Minneapolis, Minnesota (the "Northstar Corridor") on the existing <br />BNSF rail lines and facilities, as improved; and <br /> <br />WHEREAS, provision of Northstar Commuter Rail Service will support the Northstar <br />Corridor's economic growth by increasing mobility and reducing reliance on the existing highway <br />system and will improve environmental quality; and <br /> <br />WHEREAS, BNSF plays an important role in maintaining the competitive position of <br />Minnesota by providing freight transportation between Chicago, Illinois and the American West and <br />Pacific Northwest through the Northstar Corridor (the "BNSF Freight Service") and Amtrak <br />intercity passenger service; and <br /> <br />WHEREAS, BNSF and State wish to protect freight mobility and capacity provided in the <br />Northstar Corridor so that Northstar Commuter Rail Service does not jeopardize freight mobility on <br />this corridor; and <br /> <br />WHEREAS, the parties hereto wish to negotiate a mutually acceptable agreement in lieu of <br />the threatened condemnation or similar proceeding in furtherance of the above: <br /> <br />NOW, THEREFORE the parties agree as follows: <br /> <br />1. Subject to the negotiation of mutually acceptable definitive service, easement <br />purchase and sale, joint use, and/or other implementing agreements (collectively, the "Definitive <br />Agreements"), BNSF will permit the operation of the following (the "Northstar Commuter Rail <br />Service"): (a) 5 morning peak direction one-way train trips per work weekday and 1 morning <br />reverse peak direction train trip per work weekday; (b) 5 evening peak direction one-way train trips <br />per work weekday and 1 evening reverse peak direction one-way train trip per work weekday; (c) <br />subject to agreed upon schedules, parameters and terms, up to 3 round trip trains each weekend day; <br />and (d) subject to agreement on acceptable procedures and availability, special event train trips as <br />may be requested by State and approved by BNSF in its discretion from time to time. The <br />Definitive Agreements will provide for passenger stations in the communities of Big Lake, Elk <br />River, Anoka, Coon Rapids, Fridley, and downtown Minneapolis. .'- <br /> <br />2. BNSF and State contemplate that the Definitive Agreements would provide for the <br />following: (a) BNSF will provide the State with perpetual easements, interests and/or rights for use <br />of the Northstar Corridor for use in providing Northstar Commuter Rail Service as described in <br />paragraph 1, with BNSF retaining all rights and obligations to provide freight service and intercity <br />passenger service along the Northstar Corridor; (b) BNSF will implement certain improvements in <br />the Northstar Corridor, with BNSF responsible for the ordinary and customary design, engineering <br />