Serving Area Table Project Update ACACSO May 11th, 2017

Project Timeline Sponsored by EAC in October 2015 Approved by RPSWC in August 2016 Development beginning June 2017 Implementation expected by EOY 2017

Issues with Current Industry Practices Universal definition of a switch district? Is it OPSL 6000 (Official Railroad Station List)? Is it Centralized Station Master (CSM)? Lack of transparency between roads and owners: No framework to exchange switch district information No visibility to how reclaiming roads apply switch districts to their records No methodology for the dispute of switch districts

OT-10 Rule 22 Existing – Rule 22 Verbiage A. General 1. Reclaims made under this rule shall be prepared on a form similar to that shown in Appendix K. 2. Loading point, referred to in this rule, means any point within the limits of the switching district in which the industry being serviced is located. 3. The date and hour placed for loading, referred to in this rule will be the date and hour demurrage free time commences or the date and hour released loaded, whichever comes first. 4. When assignee is granted relief from storage charges as provided in service orders or tariffs, car owner will allow reclaim for the hours car is so exempted from storage charges.

OT-10 Rule 22 Proposed Proposed – Rule 22 Verbiage A. General 1. Reclaims made under this rule shall be prepared on a form similar to that shown in Appendix K. (no change) 2. Serving area, as referred to in this rule, means Standard Point Location Codes (SPLC) within a reasonable geographic distance of the industry being serviced used to stage, prepare or store cars for use by the shipper. Each loading carrier must use the Serving Area Repository maintained at Railinc to create and maintain a list of the serving area(s) associated with each loading point. Arbitration may be requested under Car Hire Rule 17 if the SPLC’s in a serving area are not within the same two-digit SPLC or if the SPLC’s in a serving area are not required to accommodate reasonable rail operations.

OT-10 Rule 22 Proposed Proposed – Rule 22 Verbiage 3. Loading point, as referred to in this rule, means any point within the limits of the serving area in which the industry being serviced is located. 4. The date and hour placed for loading, referred to in this rule will be the date and hour demurrage free time commences or the date and hour released loaded, whichever comes first. (no change) 5. When assignee is granted relief from storage charges as provided in service orders or tariffs, car owner will allow reclaim for the hours car is so exempted from storage charges. (no change)

Project Themes Project themes: Create a common/shared platform (table) User maintenance of table Automated Manual (user interface) Facilitate the population of the table

Project Benefits Project benefits: Create a common/shared platform Centralized and standardized system repository Transparency between using roads and car owners Simplification of Rule 22 in OT-10 Provide the information necessary for audits Provide a methodology for settling disputes

Project – User Development Internal development : Review internal reclaim receivable systems Ensure appropriate serving areas are being used Review internal counter reclaim systems Ensure appropriate counters are being issued Establish input methodology Create automated process Manual input

Questions?