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-aft Status Report on the Northstar Commuter Rail Project. June 7, 2001 <br /> <br />VIII <br /> <br /> BNSF <br />NEGOTIATIONS <br /> <br />BNSF Negotiations <br /> <br />A. Commuter Rail Demonstration Projects <br />1. Background <br />The NCDA had discussions with BSNF regarding the two <br />commuter rail demonstration projects that the NCDA sponsored in <br />the corridor in July, 1997 and August, 2000. The NCDA had <br />extensive negotiations with BNSF regarding dispatching services <br />and the right to use the BNSF freight mainline between St. Cloud <br />and Minneapolis for these two demonstration projects. <br /> <br />2. Results <br />Successful demonstration projects in July, 1997, and August, 2000, <br />utilizing the BNSF right of way. For more information on the <br />demonstration projects, see Section IX.F. <br /> <br />Preliminary BNSF Negotiations <br />Letter of Commitment <br />The first step in the process of developing a partnership with <br />BNSF was to determine whether BNSF was willing to work <br />with the NCDA to develop the commuter rail service on the <br />BNSF railway. Congressman Jim Oberstar, a key proponent <br />of the project, requested that BNSF sign a letter of <br />commitment to the Northstar Project; and on May 13, 1999, <br />Congressman Oberstar and Northstar officials met with <br />BNSF officers. Matthew Rose, Chief Operating Officer, <br />presented a letter stating BNSF's commitment to work with <br />the NCDA and the conditions or principles that BNSF will <br />apply when commuter service is proposed on a line that <br />BNSF intends to continue to own. <br /> <br />Commuter Rail Principles <br />(a) In the letter of commitment, dated May 13, 1999, Mr. <br /> Rose included the BNSF Commuter Rail Principles <br /> (See Appendix G.1 for BNSF Correspondence and <br /> Commuter Rail Principles). BNSF's fundamental <br /> principle is that commuter service cannot degrade <br /> freight service and all costs and liabilities arising out <br /> of the commuter service must be borne by the public. <br /> On August 18, 1999, BNSF officials presented its <br /> Commuter Rail Principles to the NCDA Negotiating <br /> Team. <br /> <br />Northstar Corridor Development Authority 29 <br /> <br /> <br />