MAGGIE PRELLWITZ                                         The Burlington Northern
Director Operating Timekeeping                          and Santa Fe Railway Company
P. 0. Box 1738
920 S. F. Quincy                                         Phone: 785-435-3140
Topeka, KS 66601                                        Fax 785-435-7998

January 20, 2001

Mr. Richard Etienne
Local Chairman
BLE Division 758
Vancouver WA.

Dear Mr. Etienne:

Reference your letter dated December 5, 2000 wherein you question the continuance of declines being issued by Operating Timekeeping for such issues as initial terminal delay versus overtime payments.

First of all to my knowledge, the correct application of the compensation rule is being applied by Operating Timekeeping. If this is not the case as you have outlined in your letter, let me assure you that I will resolve what the proper application should be through communication with our Labor Relations department in Ft. Worth. It has never been our intent to willfully deny any legitimate monies earned by our BNSF employees.

By response to you, I am also copying our Labor Relations department in Ft. Worth for their review of this issue. I would appreciate them providing Operating Timekeeping clarification of the issue and an outline of the claims evaluation process and how it relates to declinations.

Respectfully,

Maggie Prellwitz

cc:     Marka Hughes
         Milton Siegele
         Randy Luther
        George Wong