1. © 2007 Railinc. All rights reserved. Tank Car Mileage Equalization Jim Pinson May 14, 2009 Pueblo, CO

2. Agenda Governing Document – RIC 6007 N Accumulation of Mileage Calculation of Excess Empty Miles Adjustments Monthly Reports Annual Billing Disbursement © 2007 Railinc. All rights reserved.

3. GOVERNING DOCUMENT RIC 6007 N © 2007 Railinc. All rights reserved.

4. RIC 6007 N © 2007 Railinc. All rights reserved.

5. RIC 6007 N © 2007 Railinc. All rights reserved.

6. RIC 6007 N © 2007 Railinc. All rights reserved.

7. RIC 6007 N Actual Loaded and Empty Mileage must be Reported to AAR Empty Mileage can Exceed Loaded Mileage by up to 6% Excess Empty Mileage is Billed at $0.57 per Mile Empty Cars Under Revenue Billing are not Included © 2007 Railinc. All rights reserved.

8. RIC 6007 N Empty Cars Moving FRA, DOT or AAR Shop Programs are not Included No Adjustments for Carrier Error or Carrier Convenience Adjustments Allowed for Accounting and Clerical Errors Adjustments Allowed for Misroutes © 2007 Railinc. All rights reserved.

9. ACCUMULATION OF MILEAGE © 2007 Railinc. All rights reserved.

10. Accumulation of Miles Car Movement Occurs Carrier Determines the Number of Miles Travelled Carrier Reports Mileage to Railinc via CHDX Railinc Adds Reported Miles to the Equalization Register © 2007 Railinc. All rights reserved.

11. CALCULATION OF EXCESS EMPTY MILES © 2007 Railinc. All rights reserved.

12. Calculation of Excess Empty Miles Pull Accumulated Loaded Miles Pull Accumulated Empty Miles Multiply Loaded Miles by 1.06 (106%) Result is Allowable Empty Miles Subtract Allowable Empty Miles from Accumulated Empty Miles Result is Excess Empty Miles © 2007 Railinc. All rights reserved.

13. Calculation of Excess Empty Miles For Example: –Accumulated Loaded Miles = 1,000 –Accumulated Empty Miles = 2,000 –1,000 Accumulated Loaded miles –X1.06 –=1,060 Allowable Empty Miles –2,000 Accumulated Empty Miles –-1,060 Allowable Empty Miles –= 940 Excess Empty Miles © 2007 Railinc. All rights reserved.

14. ADJUSTMENTS © 2007 Railinc. All rights reserved.

15. Adjustments Two methods –Individual Claims –On-Line ER1 (Formerly a Paper Document Faxed to Railinc for Data Entry) © 2007 Railinc. All rights reserved.

16. Adjustments Valid Reasons for Adjustments –Empty Moves Under Revenue Billing –Movements under FRA, DOT or AAR Shop Program –Erroneous Reporting (The Mileage Reported was not Travelled) © 2007 Railinc. All rights reserved.

17. Adjustments Invalid Reasons for Adjustments –Carrier Error –Carrier Convenience © 2007 Railinc. All rights reserved.

18. MONTHLY REPORTS © 2007 Railinc. All rights reserved.

19. Monthly Reports Letter that Accompanies the Reports Advises Which Month is Reported Contact Information Distributed via E-Mail to FindUS.Rail Contact © 2007 Railinc. All rights reserved.

20. Monthly Reports Carrier Report Shows Mileage Reported –By Car Mark –Buy Month –Excess Empty Miles are Shown for Each Mark –The Total Page Shows an Estimate of Funds to be Received by the Carrier © 2007 Railinc. All rights reserved.

21. Monthly Reports Car Owner Report Shows Mileage Reported –By Carriers –By Month –Excess Empty Miles are Shown for Each Carrier –The Total Page Estimates the Amount to be Billed © 2007 Railinc. All rights reserved.

22. ANNUAL BILLING © 2007 Railinc. All rights reserved.

23. Annual Billing Excess Empty Miles are Calculated –1,000 Loaded Miles Reported –X1.06 –=1,060 Allowable Empty Miles –2,000 Empty Miles Reported –-1,060 Allowable Empty Miles –= 940 Excess Empty Miles © 2007 Railinc. All rights reserved.

24. Annual Billing The Rate is Published in RIC 6007, Item 187 © 2007 Railinc. All rights reserved.

25. Annual Billing © 2007 Railinc. All rights reserved.

26. Annual Billing 940 Excess Empty Miles X.57 Per Mile =$535.80 Annual Equalization Bills are Created from a Legacy system – Not FindUS.Rail Address Changes Should go to Railinc CSC (csc@railinc.com) © 2007 Railinc. All rights reserved.

27. DISBURSEMENTS © 2007 Railinc. All rights reserved.

28. Disbursements Two Disbursements are Made Annually –One in November –One in July Carriers Share in the Equalization Funds Based on their Excess Empty Mileage © 2007 Railinc. All rights reserved.

29. Disbursement For Example, $1,000,000 is collected –Road 115% Excess Empty$150,000 –Road 220% Excess Empty$200,000 –Road 350% Excess Empty$500,000 –Road 415% Excess Empty$150,000 –Total100% $1,000,000 © 2007 Railinc. All rights reserved.

30. Questions? © 2007 Railinc. All rights reserved.