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REOPENING OF

Randy Poggemiller Dave Hesterman

Vice President AVP Line Maintenance - North Herzog BNSF

Mr. Hesterman: Thank you, Andy. Ladies and gentlemen, good morning. At the conclusion of my presentation, we will open up for any questions that may be generated throughout this presentation.

One legend says that Stampede Pass, which cuts its way through the in Central , got its name from the stampede of trail cutters leaving the Pass in a hurry because they were either overwhelmed by the work or didn't like their foreman. Stampede Pass seemed to have that kind of affect on people.

Stampede Pass was actually one of several passes considered by engineers with the Northern Pacific railroad looking for a path to the Pacific Coast. Stampede Pass was selected in 1881 by assistant chief engineer V.G. Bole. Soon after, railroad engineers recognized that the through Stampede Pass was going to call for a about two miles long at the elevation of over 2,800 feet. The successful bidders on the tunnel project were brothers Nelson and Sidney Bennett who underbid many experienced contractors by as much as 50 percent. The brothers agreed to complete the contract in 28 months by June of 1888 or pay a hefty penalty of over $100,000. In 1885, the NP began building temporary over the crest of the Cascade Mountains. This temporary switchback would serve the company until the tunnel was completed.

The Bennett crew began hand drilling the 9,850 foot tunnel at an altitude of 2,837 feet in February of 1886. The average excavation rate with hand drills was three and a half feet per day. Some days the job advanced only inches. The air drill was invented while construction was underway and helped increase that excavation rate to six feet per day.

On May 3, 1888, the two ends of the Stampede tunnel were joined when a dynamite blast opened up a fist-sized hole. Three weeks later on May 27, just ten days before the contract deadline, the first train passed through Stampede tunnel. The efforts resulted in what was one of the most remarkable engineering feats of the day.

A high price was paid for the achievement however. Seventeen men were killed while working on the tunnel construction. A total of 39 others were seriously injured.

Diminishing volumes and decreasing demands for rail freight transportation led Burlington Northern to take the Stampede Pass line out of service in the early 1980s. Burlington Northern had two other good routes through the State of Washington through Steven's Pass and along the Columbia River which had been developed by BN predecessors, the Great Northern, and the Spokane, Portland, and .

In 1983, the eastern part of the Stampede Pass line was sold to shortline Washington Central, but in the early 1990s traffic in the started to increase. By 1996, it became clear that the Burlington Northern and Santa Fe Railway needed additional capacity in the Pacific Northwest. BNSF's two routes to the northern Pacific Coast were pretty well saturated with business. Capacity increases were needed to enable BNSF to tap the market's full potential and provide routing alternatives when weather or other operating difficulties interfere with smooth operations.

In April 1996, BNSF announced plans to acquire the Stampede Pass route from the WCRC for approximately $40 million in BNSF common stock and cash. The acquisition involved adding 200 miles of shortline between Kennewick and Cle Elum, Washington, including branchlines and an 85-mile segment from Connell to Moses Lake, Washington.

The challenges posed by the task of reopening Stampede Pass were not quite as great as those challenges faced by the Bennett brothers, but they came close. In early May 1996, BNSF engineering officers representing signal, telecommunications, track maintenance, structures, roadway equipment, maintenance planning, and engineering construction made several hi-rail trips to review the condition of the line, identifying work to be done, and developing a work plan. Prospective contractors joined them on some of these trips to help them prepare bids.

BNSF officials and contractors alike recognized that they had their work cut out for them. Although the western side of the line had been periodically patrolled, mud slides and water from the winter floods of 1995 and 1996 washed out tons of dirt, ballast, and wooden ties under large section of track. Debris had buried culverts and in places boulders covered the rails. During one of our inspection trips, the ice was so thick off one of the Stampede tunnel portals that we could not get into the tunnel. The snow sheds at Stampede tunnel had long been destroyed by fire.

At the time of construction, the eastern portion of the line was still owned by the WCRC, a non-unionized shortline. The work to be done was staggering. With winter weather not far off, every day was precious. Contractors were called in and performed most of the construction work. This flexibility proved to be critical. Initial efforts with the BMWE exploring to use more BNSF maintenance-of-way employees was unsuccessful. Using BNSF forces for this first part of line would have drained manpower across our system and would have undermined the railroad's ability to complete other crucial capital projects also underway at the time. As it was, approximately 250 BNSF employees were utilized on the western end of the Stampede Pass line on strategic work program activities.

Herzog Contracting was awarded track work and 14 other contractors and consultants were identified for related work. The challenges they faced fell short of those by the Bennett contractors 100 years ago, but the challenges were still substantial. Herzog and other contractors quickly mobilized additional inspection trips to help them focus on the task. What under most circumstances could have been an 18-month construction project, this needed to be completed in about six months to meet the rapid volume increases BNSF was seeing. The bulk of the construction work began in July and over the six months that followed approximately 1, 100 people, both BNSF and contract forces, labored over 800,000 man-hours to complete the task. The entire route was upgraded with the 77.9 mile segment over the Stampede Pass receiving the most attention.

Mr. Poggemiller: I'll recap a few key statistics just to indicate something about the magnitude of this project. More than 5,000 carloads of ballast and riprap were unloaded using Herzog radio control dump trains, company service air dumps, and conventional cars. Nine sidings were constructed or extended equally 22,200 track feet. Eight set-out tracks and two Ys were built requiring the installation of 40 turnouts or track switches. Forty-seven miles of new continuous welded rail was relayed. The rail is 136-pound rail section, CWR on curves transitioning to 132-pound existing rail on the tangent track. More than 1,900 field welds were made using Holland in-track welders and Orgo-Thermit and RailTech Boutet thermite welds.

A full 114 miles of jointed rail was slotted and tightened and 800 rail joints were eliminated. Portec and railroad forces installed 61 Portec rail lubricators. A total of 145,000 concrete ties provided by CXT and Rocla were installed with a Herzog leased P-811 operated and maintained by Fairmont Tamper. Also, a total of 165,000 wood cross ties and 2,600 wood switch ties were installed by both Herzog and BNSF tie gangs. Track inside the tunnel was completely replaced using a modified track laying machine - the first time such a machine had been used in a tunnel on the BNSF Sixteen bridges were upgraded or rebuilt and buildings for maintenance of way and trainmen were constructed at seven sites. New crossing services were installed at 57 grade crossings. Active warning devices were installed or upgraded at 46 crossings. Five microwave and radio towers for dispatch and data communication were erected. Electrical service was installed at 80 locations to allow for signal, communications, and building work.

As anticipated, there were numerous challenges that came with a project of this magnitude. Restoring the line was complicated, of course, by the logistics of working on a mountain with a grade of up to 2.2 percent and curvature of up to 10 degrees 31 minutes. Tons of equipment and track materials had to be moved to remote job sites. On each slope, men, equipment, and vehicles were brought up to the tunnel and worked downhill. For equipment like the P-81 I this required materials to be brought up nightly and switched behind the machine.

On the east slope of the Pass, vehicles had to travel a nine-mile logging road from the highway to access the line. The west slope was accessed by rail or via 37 miles of logging road. Before the project was over, crews on both slopes were plowing snow off the roads daily to maintain access.

In addition to logistical issues, we also faced environmental issues. Twenty-one miles of the project from Palmer Junction to Lester ran through the Green River Watershed. This area is the water supply for the City of Tacoma, Washington. Understandably, it is environmentally sensitive and access was allowed only for logging and railroad uses by rail or by logging roads that run through the watershed and is monitored through gates. Additional permits and precautions were required to operate in the watershed area including procedures for containing fuels and oils, contingency plans for machine failures, and facilities for containing waste and refuse.

As it turned out, the project was completed without an environmental mishap of any kind even though numerous persons with many consultants and contractors accessed the area.

The weather brought many additional challenges ranging from fire to ice. Dry summer conditions combined with notable Ellensburg winds made for a high fire hazard through much of the project area early on. Several grass fires occurred, some attributable to the track work. BNSF worked with Herzog and local and county fire marshals and officials from the Washington Department of Natural Resources to outline and implement fire protection.

Winter came late on the Cascade Range, but when it came, it quickly made up for lost time. Snow began falling in late October. Then in November, all points along the route received twice their annual average snowfall in one month. December set an all-time record for Stampede Pass with 232 inches of snowfall - that's 19.3 feet. During one week of heavy snow, Herzog mobilized all of their employees to Easton to shovel snow so that the partial siding could be completed.

Due to work on the snow sheds and track rehabilitation in the tunnel, we were unable to pass equipment and materials through the tunnel during the construction. Work on each slope of the Pass was handled as if we were handling two long stub tracks with different strategies and work schedules for east and west slopes of the Pass. At least 200 feet of snow shed needed to be built by early December or ice would form on the track from the waterfall spray at the east part of the tunnel. The construction of the snow shed and work on the tunnel line at the east portal of tunnel three was hindered by a rock slide in October. This prevented workers from pouring concrete until the slide could be excavated. More than 200 rock bolts were required to stabilize the slope to continue working on the adjacent snow shed.

In addition to all the challenges posed by the weather and the terrain, the entire effort needed to encompass the work of 15 contractors and consultants as well as the operation of the WCRC. Consistent track standards were identified and communicated to all involved. Two senior field supervisors were brought in to coordinate efforts, work with local officers, and supervise the roadmasters on site. These two officers had significant field experience with varied work groups and track rehabilitation and construction. They helped coordinate the work of multiple contractors through adjacent areas. These officers also worked daily with officials from the WCRC. Construction progressed on the WCRC under a right of occupancy. The WCRC was sensitive to construction needs, but also needed to maintain their customer commitments. Motive power was provide by BNSF as WCRC had limited resources to lend to the project. Numerous meetings and data communications were necessary to limit service interruptions to WCRC and ensure safety during construction activities.

Working with contractors on such a large project posed three unique challenges: First, the work had to be clearly identified. When BNSF performs its own capital work, the roadmasters and foremen supervising the work know BNSF's track standards and expectations. A lot of what we considered to be standard practice is taken for granted. The contractors were very capable of meeting or exceeding our standards, but because standards and expectations vary so much from one client to the next, our expectations had to be communicated clearly to avoid misunderstanding.

Second, we needed to bring in 10 roadmasters with capital project experience to secure track authority, provide protection from train and other track activity, and inspect quality for contract crews. These roadmasters were required seven days a week, arrived daily before the contractors could start and usually left after the contractors finished at night.

Third, BNSF provided the materials for the contractors who did not have control or direct access to the material supplies. This situation required a great amount of communication between BNSF engineering, purchasing and materials, and the contractors to ensure the materials were provided precisely when and where they were needed. One full-time position was required to maintain this coordination.

Safety was given a high priority. All contract crews were briefed by BNSF on personnel protective equipment standards. Frequent audits were conducted to ensure compliance.

Unlike the original construction in the 1880s, fatalities and major injuries were not a part of the reconstruction. BNSF crews only sustained one FRA non-reportable first aid injury. The contract crews reported one lost workday case.

On December 7, 1996, a grain train was the first to make a revenue trip across the new Burlington Northern Santa Fe line. The route has seen as many as ten trains a day with an average of three to four trains daily. With the completion of the Stampede Pass line, BNSF now has three routes between eastern Washington State and the Pacific Coast. The Stampede Pass route is expected to save four to six hours per trip compared to the Southern Pasco/Vancouver route. With grain traffic diverted over the Stampede Pass route, the route can be used for high priority intermodal capacity.

As it turned out, Stampede Pass also proved to be a critical alternative route during the unusually severe weather this past winter in the Pacific Northwest. At times when existing routes suffered numerous mud slides and other blockages, the newly completed Stampede Pass line was the only route open through the Cascade Mountains. This led BNSF chairman Rob Krebs to remark that the Stampede Pass saved our life in the Pacific Northwest.

Legend has it that workers of the late 1800s stamped away from the Pass. Today, however, we are seeing another stampede - the rush of traffic crossing the Pass on this crucial third route in Burlington Northern Santa Fe's Pacific Northwest territory.

Please join me in viewing a five-minute video and then we will entertain questions from the audience.

(Whereupon there was a video presentation as follows.-).

The story of Stampede Pass began back in 1881. Originally named Garfield Pass by an assistant engineer working for the in honor of the 20th U.S. president, the name "Stampede" came from a sudden head long rush of trail builders. Due to various extreme conditions on the Pass, some of the hired trail builders revolted and departed rather quickly never to return. The stampede of trail builders past the surveyors and other workers prompted the Pass name of "Stampede," a namesake that has stuck with this harsh bitter connection between eastern and western Washington for over a century.

In 1970, the Northern Pacific Railway merged with other railroads to form Burlington Northern Railroad. The Stampede Pass line was used for passenger and freight service until it was taken out of service in 1983 when the industry was sizing itself to become more efficient. Also in 1983, the eastern half of the line from Cle Elum to Kennewick was sold and became the Washington Central Railroad Company. Although the western half of the Stampede Pass line was never officially abandoned, only a 14-mile segment from Auburn to Ravensdale had regular traffic.

In October 1995, Burlington Northern merged with the Atchison, Topeka, and Santa Fe Railway to become the Burlington Northern Santa Fe Railway Company. In April of 1996, the BNSF Railway announced plans to acquire the Washington Central Railroad Corporation and re-open Stampede Pass reconnecting a third route into the Pacific Northwest and increasing their freight capacity potential.

What does it take to rebuild a railroad of this magnitude'? A line that had seen limited use for 15 years? In June of 1996, after nearly a year of planning, the construction began. The Burlington Northern Santa Fe Railway employed a 200-man workforce teamed with 15 contractors and consultants. It took over 800,000 man-hours in blazing hot sun and winter blizzards. With the arrival of winter and the deadline approaching quickly, increasing manpower and accelerating material deliveries were key, but the job didn't go like clock work. There were several challenges and delays along the way. Before track could be upgraded, many areas washed out by the floods required BNSF Railway to install new riprap and reconstruct roadbeds. Construction of the snow sheds on both ends of the Stampede tunnel was a major challenge for the BNSF Railway Company and Atkinson Construction. Landslides, rock slides and snowfall hindered progress. More than 300 inches of snow falls on an average each year on Stampede Pass with 100 inches by the end of December. This year, however, the snow fall was nearly triple the normal average through December 1996 totaling about 300 inches. This continuously falls next to the east portal of the tunnel from a nearby waterfall creating heavy ice build up, a constant threat to the track during winter. Canyon walls and excessive snowfall are a perfect recipe for an avalanche. That's why snow sheds are key to protecting the track. But building snow sheds was not an easy task. Work began in June and the snow sheds were substantially completed by December 1, 1996. The job required heavy construction at sites with limited access working 24 hours a day for over two months.

Another major work effort was the Stampede tunnel itself. It needed the complete wiring of electrical services for lights and three separate cables for radio and telephone communication. The track and ties inside this 9,834-foot long tunnel and through the snow sheds were completely replaced as work continued around the clock. This was done simultaneously with the final stages of snow shed construction at the east portal. First, the old track was removed from the tunnel in panels and moved by rail to Stampede siding where they were trucked to and then stacked at Lester for dismantling. After the tunnel floor was regraded, the new track and ties were installed with a modified track-laying machine. Communication along the line included the construction of five radio towers, an installation of a communication cable, and a radiating cable antenna in the Stampede tunnel to establish the dispatcher and data communication.

After six months of 12 to 24-hour workdays with no reportable injuries within the BNSF engineering work groups, the final track inspection was completed. All the challenges of this multi-million dollar construction project had been met and the Stampede Pass reopened.

Here's the first train making the journey once again over the Stampede Pass, through Easton and beyond onto the pages of BNSF's history journals in a new century of railroading.

Mr. Hesterman: Are there any questions from the audience that either Randy or I could answer at this time? If not, in closing I would like to take a moment and thank all of the contractors and vendors who helped make this project possible. It was quite a challenge to say the least and it would not have happened without a lot of teamwork and cooperation of everyone involved. Thank you. (Applause).

Mr. Sensing: Dave and Randy, we spare no expense in showing our appreciation. We have two certificates and two hats for you. We appreciate a job well done.

I would now like to introduce Dave Crader. I have known Dave for several years. He is a presenter of the Illinois Central/Canadian National intermodal facility. Dave began his railroad career with Peoria and Pekin Union Railroad in 1975 as a track laborer. He worked part time in the engineering department until graduation from Bradley University with a Bachelor of Science degree in civil engineering in 1978.

In 1980, Dave resumed his railroad career with P&PU working on a four-hour yard project rehabilitating the yard at East Peoria, Illinois. In 1981, he joined the Illinois Central as a roadway designer in Paducah, Kentucky. From 1984 to 1986, he served as project engineer of the rail barge unloading facility at Jessup, Kentucky. Dave served as division field engineer from 1986 to 1997 which included design construction of the Moyers Intermodal Facility in 1992, the bulk transfer facility in 1994, the CN gateway expansion of the Moyers Intermodal Facility in 1996, and the MIT phase expansion in 1997. He was promoted to his present position in March of 1997.

Please join me in welcoming Dave Crader. (Applause).