1. Fuel Conservation and Management Symposium September 22, 2008 John Lanigan Executive Vice President and Chief Marketing Officer

2. Fuel Conservation and Management Symposium Rail Has Economic and Environmental Advantages

3. Fuel Conservation and Management Symposium Reducing Air Emissions NOx Emissions (g/ton-mile) PM Emissions (g/ton-mile) California Statewide with No SCAB Fleet Average– L. S. Caretto: Updated truck versus rail emissions comparison, August 2007 NOx Emissions per Ton Mile of Freight PM Emissions per Ton Mile of Freight Together trucks and trains are reducing emissions

4. Fuel Conservation and Management Symposium Reducing Air Emissions EPA Locomotive Emission Regulations Take effect yearPMNOx Remanufactured Tier 0 and 1 2008 as available, 2010 required 0.227.4 Remanufactured Tier 2 2008 as available, 2013 required 0.105.5 New Tier 320120.105.5 New Tier 420150.031.3

5. Fuel Conservation and Management Symposium 2007 Year-end BNSF Locomotive Fleet Status Total locomotive fleet = 6,800 Locomotives w/ AESS = 3,300+ Tier 0 (retrofitted) locomotives = 2,300 Tier 1 (purchased) locomotives = 620 Tier 2 (purchased) locomotives = 880 Remaining (Tier 0 retrofit) = 2,260

6. Fuel Conservation and Management Symposium Reducing Greenhouse Gases Developing and implementing new clean-air technology –Committed $2.5 million to jointly fund a research project to develop a high- performance diesel particulate filter –Piloting 67 NREC GenSet Locomotives –Installing Idle Reduction Devices –Promoting the use of Low Torque Roller Bearings Implementing process changes –Conducting engineer training and evaluation programs to further improve train fuel efficiency performance –Improving intermodal loading methods to reduce aerodynamic drag –Improving wheel and rail lubrication Maintaining EPA standards –Retrofitting existing locomotive fleet, and purchasing only Tier 2 or greater locomotives

7. Fuel Conservation and Management Symposium Increasing Fuel Efficiency If just 10 percent of the freight currently moved by truck were carried by rail for the long haul, we would save 1 billion gallons of fuel each year Gross Ton Miles Per Gallon BNSF Fuel Efficiency

8. Fuel Conservation and Management Symposium Increasing Fuel Efficiency Operating Practices Train Handling Practices –Training module for locomotive engineers on BNSF –Supervisor coaching based on locomotive scorecard –Fuel MVP program recognizing top fuel-saving locomotive engineers –Growing On-dock usage & units per train Company Vehicles –Communications to 10,000 vehicle operators –Focus on reducing idling, keeping tires properly inflated, maintaining vehicles

9. Fuel Conservation and Management Symposium Investing in Green Technology Diesel Particulate Filter Joint initiative between BNSF and UP railroads 5-year, $5 Million R&D project Two 1500 horsepower prototype switch engines equipped with DPF technology R&D work being performed by Southwest Research Institute through Association of American Railroads

10. Fuel Conservation and Management Symposium Investing in Green Technology Hydrogen Fuel Cell Switch Locomotive First railroad in the world to develop an experimental hydrogen fuel cell switch locomotive Potential to reduce air pollution Not dependent on oil for fuel Debut test run in late 2008

11. Fuel Conservation and Management Symposium Investing in Green Technology Wide-Span Cranes Span multiple loading / unloading tracks Powered by electricity vs. diesel hydraulic Advanced anti-sway systems Reduced switching & vehicle container transfers Increased inventory capacity; utilizes hub footprint more efficiently Lower energy consumption and noise level thanks to advanced drives and power regeneration

12. Fuel Conservation and Management Symposium Investing in Green Technology Automated Gates Digital cameras record images of container, chassis, tractor, & unit #’s Drivers identified by biometric and unique pin ID Improves safety Reduces truck idling and increases facility throughput

13. Fuel Conservation and Management Symposium Investing in Green Technology GenSet Switch Locomotive BNSF is testing 67 GenSet switch locomotives in the Dallas-Fort Worth and Houston areas Low-horsepower switch locomotive with three engines that operate only as needed Potentially reducing nitrogen oxide and particulate matter emissions by 80 to 90 percent and improving fuel efficiency by 15 percent over standard switch engines

14. Fuel Conservation and Management Symposium Investing in Green Technology LNG Switch Locomotives BNSF operates the only four environmentally friendly liquid natural gas locomotives that reduce emissions and fuel consumption 1200 sustainable horsepower, spark ignited

15. Fuel Conservation and Management Symposium Clean trucks and designated truck routes –BNSF will ensure a clean drayage operation –100% of the fleet will be 2007 or newer trucks upon facility opening – exceeding CAAP compliance –Trucks serving SCIG required to adhere to specified, non-residential routes and be equipped with GPS to monitor and enforce truck routes 2,500-foot entrance lane LNG (or equivalent) hostler tractors LNG, multi-engine or “hybrid” switch locomotives Low-sulfur fuel and automatic shutdown devices for locomotives Urban forest Sound wall Electric rail-mounted gantry cranes Jobs – workforce training BNSF is designing SCIG to reflect community concerns Investing in Green Technology Southern California International Gateway

16. Fuel Conservation and Management Symposium Fuel Efficiency and CO 2 Emissions Impact Intermodal v. Truck

17. Fuel Conservation and Management Symposium Carbon Calculator Working with customers like Schneider to calculate lane- specific fuel efficiency and emissions impacts, rail v. truck Will provide summary information to customers on a yearly basis Tool will be available by customers to calculate fuel efficiency and environmental impacts on lane-specific routes

18. Fuel Conservation and Management Symposium Summary Truck-Rail intermodal is the easiest, quickest and most economic way to reduce your company’s carbon emissions Rail is the most environmentally friendly provider of surface transportation and BNSF is a leader in the rail industry BNSF is employing technology and operating practices to improve fuel efficiency and reduce green house gas emissions BNSF is leading the industry in testing, development and implementation of green technology BNSF’s environmental stewardship promotes sustainability in the communities it serves today, and gives future generations a cleaner road ahead

19. Fuel Conservation and Management Symposium