4/29/2013 1

Please Do Not Copy or Distribute

Visit: www.nears.org for all the latest updates!

NEARS

NEARS Panel of 4, moderated by Jack Rudnicki (20 minutes each) Topic: Crude by Rail- from Bakken to the East coast

Denis: 1. BNSF Overview 2. BNSF in oil & gas drilling 3. BNSF in the Bakken

1. Walk through BNSF mainlines, yards and terminals 2. # of Manifest vs. unit train facilities (why there is room for both)

4. Unit train origin growth- and customer investment 5. Routing options- include flow to the East Coast through interchanges with NS, CSX, CP and CN

1. How trains are slotted for loading- if you wish to volunteer 6. Expanding our Resources 7. Continuing to grow and operate efficiently- Best practices

1. Expedite train movements 1. Establish inspection and onsite repair capabilities 2. BNSF vs. customer structure (example of coal network as a comparison)

2. Distributed Power 8. BNSF Investments (Capex) 9. BNSF Capacity 10. Results- % of crude going by rail out of the Bakken from 28% in 2/2012- to 68% moving by rail

Other considerations: Does Denis need a Permian, Niobrara or other additional slides to show our facilities?

BNSF Railway

Denis Smith

Vice President, Marketing – Industrial Products

BNSF is a Leading U.S. Railroad

• A Berkshire Hathaway

company with 32,500

route miles in 28 states

and two Canadian

provinces

• Moves one-fourth of the

nation’s rail freight

operating over 1,400

freight trains per day

• Serves over 40 ports and

leads rail industry in

technological innovation

• Over 40,000 employees

Delivering a Total Transportation Package

Upstream, midstream or downstream, your operations

are mainstream to the mission of BNSF Railway

Upstream:

• Sand

• Pipe

• Aggregate

Midstream:

• Crude Oil

• NGL

Downstream:

• Fuels

• Asphalt

Transporting Crude-by-Rail in North America

BNSF Railway is the only rail carrier to touch all of

the nation’s western shale plays

BNSF in the Bakken

Williston Basin Origin Facilities

Unit Train Facility (10)

Manifest Facility (14)

In Development Facility (3)

Unit Train Loading Facilities in the Bakken

Opened in 2009

Opened in 2011

Opened in 2012

Bakken Unit Train Facilities

Our customers have invested more than $2 billion in crude oil facilities and associated tank cars

Photo courtesy of Inergy in Epping, ND

Bakken Crude Origin Rail Facilities

Tioga, ND

Tioga, ND

Epping, ND

Epping, ND

Bakken Crude Origin Rail Facilities

Dore, ND

Dore, ND

Bakken Crude Origin Rail Facilities

Providing Reliable Transportation Solutions

BNSF offers

reliability and

flexibility with

multiple route

options out of

the Williston

Basin

Expanding our Resources

• Dedicated crude

sales team

• Comprehensive

economic

development

services

• Energy desk in

operations

We have built a sustainable rail solution for all operations

and are committed to serving this growing market

Identifying Opportunities for Efficiency

• Identify

opportunities to

expedite train

movements

• Utilize Distributed

Power (DP) train

configurations

BNSF is dedicated to rail solutions that promote growth

through efficient operating practices

Continuing to Invest in the Future

In 2013 BNSF

plans to invest

$4.1 billion to ensure our

infrastructure

remains strong

and our

network fluid

Vast and Readily Accessible Capacity

BNSF Railway

expects to be

hauling 700,000 barrels per day

of crude out of the

Williston Basin by

the end of 2013

ACCESSIBLE CAPACITY

120 84,000

100,000,000

700

Competitive Transportation Solution

Source: ND Pipeline Authority January 2013.

Rail is the preferred crude transportation

solution because it delivers profits

Capacity Flexible Value Service

9%

OTHER

23%

PIPELINE

68%

RAIL

Williston Basin Production 2010 Williston Basin

Production

6%

RAIL

20%

OTHER

74%

PIPELINE

We’re Thankful for Every Tankful.

www.bnsf.com/shale

4/29/2013 19

Please Do Not Copy or Distribute

Visit: www.nears.org for all the latest updates!