News Release

San Jacinto Rail Limited Announces Plan to Build Alternate Rail Line into Houston's Bayport Industrial District

HOUSTON, Texas, August 21, 2001 :

Plans to construct a 13-mile rail line in southeast Houston to create competitive rail service for plastics and chemical industry shippers in the Bayport Industrial District were announced today by a newly formed partnership, San Jacinto Rail Limited.

San Jacinto Rail is a limited partnership comprised of: The Burlington Northern and Santa Fe Railway Company (BNSF) and affiliates of BNSF; ATOFINA Petrochemicals, Inc.; Basell USA Inc.; Equistar Chemicals, LP; and Lyondell Chemical Company. The mission of the partnership is to introduce and provide competitively priced rail service options that are sensitive to public safety and the environment.

The proposed rail line would be operated by BNSF and would connect several rail- served plastics and chemical-producing facilities in the Bayport Industrial District with BNSF’s network. BNSF would connect to the new line via trackage rights which the U.S. Surface Transportation Board (STB) will be asked to grant. An average of one train in each direction daily is anticipated. The majority of the shipments will consist of non-hazardous plastic pellets, although some hazardous chemicals will also be transported over the proposed route.

Construction and operation of the new rail line are subject to approval of the STB in coordination with other federal, state and local agencies. A petition will be filed next week with the STB. The proposed line would run just south of Ellington Field and extend to the end of the Bayport Industrial District, just east of state highway 146. The estimated construction cost of the project is $80 million, which includes construction of six public road crossings including an overpass for Red Bluff Road, to handle traffic safely. No properties within residential neighborhoods will be required to build the new rail line.

“Our partners will be able to gain the benefits from a competitive, BNSF distribution network linking the Bayport Industrial District with major markets throughout North America,” said Matthew K. Rose, president and chief executive officer of BNSF. “We believe other shippers within the district would benefit, too.”

“Access to a competitive rail transportation option is essential to the long-term viability of plastics and chemical companies,” said Martin W. Bercovici, counsel for the shipper partners in San Jacinto Rail Limited. “The partners are committed to responsible growth by maintaining their commitment to safety and respect for the environment."

The STB will conduct an environmental review of the proposed rail line and that process will provide opportunities for the public to comment on the proposal. Subject to regulatory approvals, construction is targeted to begin during the first quarter of 2003, with rail operations starting at the end of the second quarter of 2004.

BNSF operates one of the largest rail networks in North America, with 33,500 route miles of track covering 28 states and two Canadian provinces. With annual revenues exceeding $9 billion and more than 39,000 employees, BNSF is recognized as one of the nation’s largest and safest carriers of bulk commodities, including plastics and chemicals.

ATOFINA Petrochemicals, Inc., headquartered in Houston, Texas is a world-scale producer of polypropylene, polyethylene, styrene and polystyrene. ATOFINA's Bayport facility, with about 175 employees, produces primarily high density polyethylene which is used to make a variety of plastics including packing and molded products for consumer, and industrial use, jacketing for fiber optic cable, and film for retail bags and packaging.

Basell USA Inc. is part of the Basell Polyolefins group of companies. Basell Polyolefins is the largest producer of polypropylene in the world and a leading supplier of polyethylene and advanced polyolefin products worldwide. Basell's Bayport site, with over 260 personnel, is its largest polypropylene manufacturing operation in North America.

Lyondell Chemical Company is a global chemical manufacturer with headquarters in Houston, Texas. Lyondell and its affiliate, Equistar Chemicals, LP, operate three plants in the Bayport Industrial District. Lyondell’s Bayport plant is a 180-acre site that produces propylene oxide and derivative products that are used to make anti-freeze, seat cushions, and cosmetics. Equistar’s Bayport Polymers plant is a 164-acre site that produces polyethylene and polypropylene resins used in the manufacture of plastics. Equistar’s Bayport Chemical Plant is a 60-acre site that produces ethylene oxide, ethylene glycol and derivative products used to make PET resin, antifreeze and brake fluid. The three sites have a total workforce of almost 500 employees.

San Jacinto Rail Limited Contacts: Henry A. de La Garza de La Garza Public Relations, Inc. (713) 622-8818

Richard Russack (817) 352-6425

BNSF Headquarters
BNSF Railway Company
2650 Lou Menk Dr. 2nd Floor
P.O. Box 961057
Fort Worth, TX 76161-0057
Phone: (817) 352-1000