TEXAS NORTH WESTERN RAILWAY COMPANY

SWITCHING TARIFF FREIGHT TARIFF TXNW 8000E (Replaces FT TXNW 8000D)

ISSUED: April 4, 2016

EFFECTIVE: May 4, 2016

SWITCHING and MISCELLANEOUS RULES and CHARGES APPLYING at POINTS on the TEXAS NORTH WESTERN RAILWAY (Except as otherwise provided)

ISSUED BY: Wade Hoffmann, Vice President of Marketing & Sales Texas North Western Railway Company 5430 LBJ Freeway, Suite 1540 Dallas, TX 75240

Page | 1 TXNW FT 8000E (Replaces TXNW FT 8000D)

TABLE OF CONTENTS ITEM

SUBJECT Glossary

PAGE 3

General Rules and Other Governing Provisions 8000 8005 8010 8015 8020 8025 8030

General Application Supplements and Reissues Charges on Private Cars Hazardous Freight Loss and Damage Claims Collection of Charges Reasonable Dispatch

4 4 4 4 4 4 5

SECTION ONE: Switching Rules and Charges 8100 8105 8110 8115 8120 8125 8130 8135 8140 8145

Extra Switching Services In-Plant Switching Inter-Terminal Switching Respot Set-Back Cherry-Picking Special Handling Turning Cars Inter-Junction Haulage Charge Inter-Junction Switch Charge

5 5 5 5 5 5 5 5 5 6

SECTION TWO: Miscellaneous Rules and Charges 8200 8205 8210 8215 8220 8225 8230 8235

Weighing Weight Limit Cars Ordered but Not Used Cars Released but Not Ready to Pull Cars Requested but Unable to Place Cars Interchanged in Error Delay of Cars Cars Not Suitable for Loading/Unloading

6 6 6 6 6 6 6 7

SECTION THREE: Disputes 8300

Disputes

7

SECTION FOUR: Hours of Operations 8400

Schedule of Operations

7

SECTION FIVE: Items Added, Revised, or Removed 8500

Items Added, Revised, or Removed in this Issue

8

Page | 2 TXNW FT 8000E (Replaces TXNW FT 8000D)

GLOSSARY ACCESSORIAL CHARGES – Any/All charges assessed by the TXNW and presented in FT TXNW 8000-series and FT TXNW 6004series, their supplements and reissues. BOE – Bureau of Explosives. BOL – Bill of Lading. CARS ORDERED BUT NOT USED – Car(s) ordered on behalf of Customer and not used for loading/unloading. CHERRY-PICKING – Storage Only Customers (refer to TXNW FT 6000-series) requesting a specific car(s) that is not first available from the place of storage, due to the order that cars were received and/or were moved onto a storage track(s), that are under the same customer account and have the same Standard Transportation Commodity Code (STCC) code, and requires additional switching to access the car(s) initially requested. A chargeable Cherry-picking is when the switching movement is by order or convenience of a Customer. CONNECTING CARRIER – BNSF Railway Company or other railroad that interchanges rail traffic directly with the TXNW. CUSTOMER – The Consignee, the Consignor or the party, agent, or transloader authorized to tender or receive the rail shipment. The Customer is the entity directly served by the TXNW. ELECTRONIC DATA INTERCHANGE (EDI) – the transfer of data from one computer system to another by standardized message formatting, without the need for human intervention. FT – Freight Tariff. HAZARDOUS MATERIALS – “Hazardous waste” and “Hazardous substances” as defined in Hazardous Materials Regulations of the U.S. Department of Transportation in 49 C.F.R. 171.8 or successor thereof. IN-PLANT SWITCHING – A switching movement of car(s) loaded or empty from one track to another track, between two points on the same track within the same plant or industry without leaving the tracks of the same plant or industry. A chargeable In-Plant Switch is when this switching movement is by order or convenience of a Customer. INTER-TERMINAL SWITCHING – A switching movement of car(s) loaded or empty (other than In-Plant Switching) from one track to another within the switching limits of TXNW. This charge shall be assessed whenever a car(s) are spotted to a track for inspection, remarking, repair or for any other reason at the direction of a Customer. LOADED CAR – A car that is completely or partially loaded, or a car that is moving as a load under the provisions of a BOL. PRIVATE CAR – A car bearing other than railroad reporting marks where its use is controlled by the owner, leasee, or party other than the railroad. The term Private Car specifically excludes cars owned or furnished by TTX Company or its subsidiaries. PRIVATE SCALE – A rail scale owned and operated by a Customer. REJECTED CAR – 1. An empty car determined by a Customer to be unfit for loading; 2. An empty/loaded car determined by a Customer to be Diverted or Re-consigned; 3. An empty/loaded car determined by a Customer to be refused for miscellaneous purposes. RELEASE – The written or electronic notification received from the Customer that loading or unloading of a car has been completed and the car is available for movement. RESPOT – Switching movements resulting in the re-sequencing of car(s) on a track. A chargeable Respot is when this switching movement is by order or convenience of a Customer. SET-BACK – Switching movements removing one car(s) from a track in order to access another car(s) on the same track, then replacing the car(s) to the original track. A chargeable Set-back is when this switching movement is by order or convenience of a Customer. TXNW – Texas North Western Railway Company. TURNING CARS – Repositioning a railcar(s) so that the other side is accessible or one particular end of the car is facing a specified direction. UNIT TRAIN – A movement of forty (40) or more cars moving from a single origin to a single destination under a single BOL. Page | 3 TXNW FT 8000E (Replaces TXNW FT 8000D)

GENERAL RULES AND OTHER GOVERNING PROVISIONS ITEM 8000 A. B. C. D. E. F.

GENERAL APPLICATION

This Tariff and its supplements are applicable at all points on the TXNW. This Tariff and its supplements are applicable to the movement and handling of all railcars. No exceptions will be allowed for holidays, weekends, days where no service is provided, Acts of God, terrorism, strike interference, or Bunching. Invoices will be presented on a monthly basis. Accessorial charges as presented herein will be assessed against the Customer. The Customer is solely responsible for payment of charges. TXNW will not issue invoices to third parties. Charges presented herein may also be subject to Demurrage, Storage, Diversion, Re-consignment, and Transfer Rules and Charges as provided in FT TXNW 6004-series.

ITEM 8005

SUPPLEMENTS AND REISSUES

Where reference is made in this tariff or supplements to other publications for rates or other information, it includes supplements thereto or successive issues thereof. ITEM 8010

CHARGES ON PRIVATE CARS

TXNW will not pay per diem, hourly or mileage charges on private cars when moving to or from stations on the TXNW. ITEM 8015

HAZARDOUS FREIGHT

For rules and regulations governing the transportation of hazardous waste and hazardous substances including explosives and other dangerous articles, specifications for shipping containers, and restrictions governing the acceptance and transportation of hazardous waste and substances, including explosives and other dangerous articles, see BOE 6000-series and/or Hazardous Materials Regulations of the U.S. Department of Transportation in 49 C.F.R 171.8 or successor thereof. ITEM 8020

LOSS AND DAMAGE CLAIMS

Loss and Damage Claims must be filed with and processed by the Connecting Carrier. ITEM 8025

COLLECTION OF CHARGES

Payment of Charges: A. Payments of all charges for invoices issued by TXNW, is due within thirty (30) days from the date of billing. Finance Charges: The TXNW may assess a finance charge of 1.5% per month (18% per annum) on unpaid bills thirty (30) days past due, including, without limitation, demurrage, switching and all other charges. If TXNW, at its sole discretion, uses a collection agency or attorneys to collect delinquent charges and TXNW is successful in collecting such charges, customers shall reimburse TXNW for all reasonable collection costs, including reasonable collection agency fees and reasonable attorneys’ fees. Security Deposit: A. A security deposit to insure payment of any Switching and Miscellaneous charges that may accrue will be required from every Customer who: 1. Has not established credit with the TXNW; or 2. Fails to pay freight, demurrage, storage, switching or other accessorial charge within thirty (30) days of invoice. B. The deposit must be paid in wire transfer, certified check, or cashier’s check before any freight car is delivered to such Customer for loading or unloading. C. The deposit shall be equal to the previous month’s billing for charges under this tariff accrued by the Customer plus $1000. New Customers commencing operations shall be required to post a $2500 deposit. D. Deposits will no longer be required after the Customer either: 1. Has established credit with the TXNW; or 2. Has paid all outstanding Switching and Miscellaneous charges, and has given assurance to the satisfaction of the TXNW’s credit office that future charges will be paid within thirty (30) days of invoice. 3. When the Customer is notified that a deposit will no longer be required, railroad will refund any remaining deposits to the Customer within thirty (30) days. Page | 4 TXNW FT 8000E (Replaces TXNW FT 8000D)

ITEM 8030

REASONABLE DISPATCH

TXNW will transport railcars over its line with reasonable dispatch. TXNW does not guarantee rail service on any scheduled time frame.

SECTION ONE: SWITCHING RULES AND CHARGES ITEM 8100

EXTRA SWITCHING SERVICES

Normal switching service is provided by the TXNW, one event per day Monday through Friday, excluding holidays & weekends. If requested by the Customer, Extra Switching Service will be performed providing the TXNW has available personnel and motive power subject to the following additional charge; other Switching, Miscellaneous, or Demurrage charges may apply: $500 per hour or fraction thereof Minimum charge of $2000 An Extra Switching Service, when requested, will not be completed until a signed TXNW Special Switching Form is received by TXNW personnel. If the Extra Switching Service is cancelled for any reason attributable to the Customer, the Customer will be assessed an Administration Fee in accordance to FT TXNW 6004-series. ITEM 8105

IN-PLANT SWITCHING

$175 per car ITEM 8110

INTER-TERMINAL SWITCHING

$250 per car ITEM 8115

RESPOT

$175 per car ITEM 8120

SET-BACK

$175 per car ITEM 8125

CHERRY-PICKING

$75 per car If the request is for a group of ten or more cars on one single track that are all connected together, this Accessorial Charge will not be applied. ITEM 8130

SPECIAL HANDLING

In addition to freight charges and/or other Accessorial Charges, the following charges will apply on movements requiring special handling: A. Locomotives moving to or from a Customer’s facility will be assessed a charge of $1000 per locomotive each direction. B. Scale test cars moving to or from a Customer’s facility will be assessed a charge of $500 per car each direction. C. Car shipments requiring special handling or protection, including high-wide loads, will be assessed a charge of $1000 per car each direction. ITEM 8135

TURNING CARS

$500 per car ITEM 8140

INTER-JUNCTION HAULAGE CHARGE

Unless prior arrangements are in place with the Connecting Carrier, TXNW will assess a charge of $200 per car for all railcars that are: A. Interchanged to TXNW over the Etter Junction for loading or unloading at rail stations Machovec or McKee; or, B. Interchanged to TXNW over the Machovec Junction for loading or unloading at rail stations Sheerin, Sunray, Cactus or Etter. This charge shall be assessed to the Connecting Carrier. Page | 5 TXNW FT 8000E (Replaces TXNW FT 8000D)

ITEM 8145

INTER-JUNCTION SWITCH CHARGE

Unless prior arrangements are in place with the Customer, TXNW will assess a charge of $100 per car for all railcars destined for loading or unloading at rail stations Machovec or McKee that are interchanged to TXNW over the Machovec Junction and then must be handled to TXNW stations north of Machovec or McKee due to: A. The Customers’ inability to immediately receive the car on their own trackage at Machovec or McKee; B. The Customers’ request to place the car into storage on TXNW; or, C. For any other reason attributable to the Customer. This charge shall be assessed to the Customer, and shall be in addition to any storage or other changes applicable pursuant to FT TXNW 6004-series.

SECTION TWO: MISCELLANEOUS RULES AND CHARGES ITEM 8200

WEIGHING

Weighing loaded or empty cars on a Private Scale Weighing loaded or empty cars on TXNW’s scale

$300 per car $300 per car

This charge will not be assessed on cars weighed on weigh-in-motion scales where additional handling is not required on the part of TXNW. ITEM 8205

WEIGHT LIMIT

TXNW’s weight limit is 263,000 pounds gross weight on rail (GWR). TXNW receives the GWR weight of car(s) through the information received from EDI. Car(s) exceeding the weight limit may be accepted on the TXNW at the discretion of the TXNW General Manager, subject to the following charges: A.

Car(s) with a GWR exceeding 263,000 pounds, but less than 286,000 pounds

$100 per car

B.

Car(s) with a GWR exceeding 286,000 pounds

$500 per car

ITEM 8210

CARS ORDERED BUT NOT USED

When an order for cars for loading/unloading is cancelled, a charge of $500 per car will be assessed against the Customer. This charge will not apply on Cars Not Suitable for Loading/Unloading – see Item 8235. Other charges under this tariff or FT TXNW 6004-series may apply. ITEM 8215

CARS RELEASED NOT READY TO PULL

Cars released by the Customer which cannot be pulled due to a condition attributable to the Customer will be assessed a charge of $500 per event. An event is an attempt by TXNW to switch the industry or track from which the car(s) are released. Other charges under this tariff or FT TXNW 6004-series may apply. ITEM 8220

CARS REQUESTED BUT UNABLE TO PLACE

Cars requested for placement by the Customer which cannot be actually placed due to a condition attributable to the Customer will be assessed a charge of $500 per event. An event is an attempt by TXNW to switch the industry or track from which the car(s) were requested to be placed. Other charges under this tariff or FT TXNW 6004-series may apply. ITEM 8225

CARS INTERCHANGED IN ERROR

A charge of $400 per car will be assessed to the Connecting Carrier on all cars interchanged to the TXNW in error. ITEM 8230

DELAY OF CARS

A Connecting Carrier refusing to accept cars when offered by the TXNW shall pay a delay charge of $75 per day for each refused car. Such charges will be in addition to all other applicable charges.

Page | 6 TXNW FT 8000E (Replaces TXNW FT 8000D)

ITEM 8235

CARS NOT SUITABLE FOR LOADING/UNLOADING

When cars ordered for loading/unloading are refused or rejected due to not being in suitable condition for loading/unloading, a charge of $500 per car will be assessed against the Customer furnishing and/or handling such cars.

SECTION THREE: DISPUTES ITEM 8300

DISPUTES

In order to be considered for relief, a dispute must be presented to TXNW in writing with supporting documentation within thirty (30) days of the invoice issue date. The dispute must fully state the conditions for which relief is claimed, and identify disputed charges by car number and date. All disputes must be transmitted to: Via Email – [email protected]; or Via Fax – 972.386.0374 If charges are assessed due to TXNW error, charges will be adjusted to the appropriate amount that would have accrued with the omission of such error. Bunching will not be considered TXNW error and no allowance will be made. Claims sent to TXNW which are not found to be valid will be subject to a processing fee of $50 for each incorrectly disputed car. Any portion of the invoice not in dispute must be paid by the due date. Disputes submitted more than thirty (30) days after the invoice issue date will not be accepted.

SECTION FOUR: HOURS OF OPERATIONS ITEM 8400

SCHEDULE OF OPERATIONS

TXNW normal operating hours are 0800-1700, Monday through Friday, excluding Company Holiday’s listed below. Customer requests and communications received outside of these times will be processed the next day of normal operations. Below is a list of TXNW’s Company Holidays in which the TXNW will be closed. In the event a switch request is approved for any of these days, the Customer will be assessed Item 8100: Extra Switching Service. Other charges under this tariff or FT TXNW 6004-series may apply. New Year’s Day (January 1) President’s Day (third Monday in February) Good Friday (Friday before Easter) Memorial Day (last Monday in May) Independence Day (July 4) Labor Day (first Monday in September) Thanksgiving (fourth Thursday in November) Day after Thanksgiving Christmas Eve (December 24) Christmas Day (December 25) New Year’s Eve (December 31) Page | 7 TXNW FT 8000E (Replaces TXNW FT 8000D)

SECTION FIVE: ITEMS ADDED, REVISED, OR REMOVED ITEM 8500

ITEMS ADDED, REVISED, OR REMOVED IN THIS ISSUE

Items added, revised, or removed in this issue (Freight Tariff TXNW 8000D): Cover - revised Table of Contents – added; revised Glossary - added; revised 8000 - former 8010; revised E & F 8005 - former 8020; revised 8010 - former 8030 8015 - former 8040 8020 - former 8060 8025 - former 8090; revised 8030 - former 8095 8100 - former 8110; revised 8105 - former 8130 8110 - former 8135; revised 8115 - former 8150; revised 8120 - former 8155; revised 8125 - added 8130 - former 8170; revised 8135 - former 8190; revised 8140 - revised A 8200 - former 8210 8205 - former 8215; revised 8210 - former 8220; revised 8215 - former 8230; revised 8220 - added 8225 - former 8260; revised 8230 - former 8265 8235 - former 8270; revised 8300 - former 8310; revised 8400 - added 8500 - former 8400; added; revised

Page | 8 TXNW FT 8000E (Replaces TXNW FT 8000D)