MEMORANDUM OF AGREEMENT
Between
BURLINGTON NORTHERN RAILROAD COMPANY
And
BROTHERHOOD OF LOCOMOTIVE ENGINEERS

Pursuant to Article VIII of the May 13, 1971 BLE National Agreement the parties agree that interseniority district freight service may be established between Duluth, Minnesota Superior-Allouez-East End, Wisconsin (hereinafter referred to as "Superior") and Fargo-West Fargo, North Dakota, Moorhead-Dilworth, Minnesota (hereinafter referred to as "Dilworth"), through Staples, Minnesota. The following conditions will apply:

Section 1. A pool of engineers will be established and maintained at each home terminal sufficient to take care of traffic in the manner prescribed hereinafter with the understanding that the total number of engineers in the pools will be adjusted on the following basis:

(a) Freight service pools shall be regulated on the basis of assigning a sufficient number of engineers so as to provide an average within the range of 3,500 and 3,900 line miles per month.

(b) For the purpose of adjusting the number of engineers' turns in this freight pool and equalizing mileage between the seniority districts, only the line mileage between Superior and Dilworth for road service and for deadhead shall be used. Within 5 days following the close of the semi-monthly pay period, the Carrier shall furnish the involved BLE Local Chairmen a semi-monthly report showing line miles run by engineers in the pool. line mi1es, both working and deadheading, will be treated as equals for regulation and equalization purposes.

(c) The phrase "within the range" means that miles will be regulated within the prescribed limits. The average monthly miles within that range will be agreed upon between the designated local Carrier officer and the involved BLE Local Chairmen.

Section 2. At each terminal an engineers board having an "active' and "inactive" list will operate in the manner described below:

(a) The active list at each terminal will be the list from which engineers will be called, in turn, to work or deadhead to the other terminal (except as otherwise provided in Sections 3 and 4 hereof).

(b) The inactive list will be a list of engineers who are at their home terminal but who have not been advanced to the active list.

(c) Each engineer arriving at his home terminal will be placed at the bottom of the inactive list except when he is entitled to "restoration of turn" or when he has "bypassed" some other engineer who is entitled to "restoration of turn," under Section 3(e) hereof. When an engineer arrives at either terminal "out of turn" he must register that fact (advising the caller) upon arrival and he will then be marked up on the active or inactive list in the proper place. See Example #2 following Paragraph (h).

(d) Except when he arrives "out of turn", each engineer arriving at his away-from-home terminal will be placed at the bottom of the active list even though this will result in exceeding the "quota" established under the provisions of Paragraph (c), below.

(e) The number of engineer positions (i.e., "quota") that will "normally" be on the active lists at Superior and Dilworth will be initially determined and later changed (from time to time, within a specified 4-hour daily period, as service requirements and crew availability changes) by the Superintendent or designated Carrier officer, with immediate notification being given to the involved BLE Local Chairmen. This quota may be different at each terminal.

(f) The number of engineer positions (i.e., "quota") on the inactive list will be the difference between the number of engineer positions with that home terminal and the number on the active list.

(g) When an engineer ties up at his home terminal (except when he arrives "out of turn") and adding him to the inactive list causes that list to exceed its current quota, the first-out engineer on the inactive list will be immediately moved to the bottom of the active list. If the engineer arrives at his home terminal "out of turn", he will be marked up in accordance with Paragraph (c) as soon as the proper order of mark up can be determined.

(h) It is recognized that if the designated Carrier officer fails to maintain the proper equalization of work under this Section, upon demand of the designated Local Chairman the proper adjustment will be made in order to assure that this agreement is properly applied.

EXAMPLES FOR THE APPLICATION OF THIS SECTION 2:

E-1. At Superior, there are ten long pool engineers assigned. The quota for the active list is six at that time and the inactive list quota is therefore four. A Superior engineer ties up there at a time when there are already four engineers on the inactive list. The first-out engineer on the inactive list will be immediately moved (i.e., marked up) to the bottom of the active list since if this were not done, there would have been five positions on the inactive list (which would exceed the quota).

E-2. At Superior, the active board stands as follows at the time a decision is made to deadhead a Dilworth engineer to his home terminal "out of turn (in order to reduce the number of away-from-home crews):

1. Superior Pool #4
2. Superior Pool #5
3. Dilworth Pool #7
4. Dilworth Pool #8
5. Superior Pool #6

Dilworth Pool #7 is then called to "deadhead out of turn" on the train on which Superior Pool #4 is the working crew. Dilworth Pool #7 is not to be marked up on the inactive list at Dilworth until Superior Pool #5 arrives and marks up on the active list at Dilworth.

E-3. At Superior, the active board stands as follows at the time a decision is made to deadhead a Dilworth engineer (for the same reason as Example No. 2):

1. Dilworth Pool #2
2. Superior Pool #4
3. Superior Pool #5
4. Dilworth Pool #3
5. Dilworth Pool #4

Dilworth Pool #3 is then called to "deadhead out of turn" on the train on which Dilworth Pool #2 is the working crew. This "deadheading out of turn" preempts the usual "first crew deadheads-second crew works" principle. However, if it should happen that Dilworth Pool #2 is not rested, the provisions of Section 4(b) would reverse the working or deadheading order.

Section 3. (a) Engineers will be called first-in, first-out from the active list at each terminal provided that the first-out engineer has had full rest under the Hours of Service Act. If possible and when no other trains would be delayed thereby, the first-out engineer's call may be held up for as long as thirty minutes so that he may obtain full rest and depart in his proper standing. If the first-out engineer does not have full rest, the next following engineer who is fully rested will be used. If there are no engineers available with full rest on the active list, then the first-out engineer from the inactive list with full rest will be called. Should there be no engineers on either the active or inactive lists who are fully rested, then an extra engineer may be called at the home terminal to operate for one round trip.

(b) Subject to the exceptions contained in this agreement, long pool engineers who are not called to report for duty or deadheading in the order of their proper standing will be allowed 100 miles at the applicable rate of pay (or, if greater, the difference in earnings for the proper trip(s), until his arrival at the next terminal where restoration can be accomplished), for each time another engineer in the same service is improperly called to report before (i.e., in advance of) him and he shall continue to retain his position until properly called. Engineers entitled to such payment will be entitled to "restoration of turn' under the provisions of Paragraph (e) of this section. It is understood that the Carrier may, without penalty, remove an engineer from the train for which called and place him on another train or deadhead him.

(c) Long pool engineers will not be entitled to runaround payments based on departure from the initial terminal of the trip in other than order of call, runaround payment account not rested, and for other exceptions specified in this Agreement.

(d) When a long pool engineer qualifies for any payment under Schedule Rule 69, captioned "Called and Recalled", he will continue to stand first out, instead of last out. When he has performed some service or has been called and released under that rule and is returned to the first-out position, he will not be called for service again until he is rested (except he may be called to deadhead to his home terminal before rested) and, in such event, he will be allowed not less than 100 miles for the call and release, and it is recognized that other engineer(s) maybe called around him without penalty while he is resting.

NOTES: (1) The provisions of this paragraph do not apply to individual extra engineers when the call and release occurs at their extra board terminal; but, instead, such extra engineer will be handled (and paid) in accordance with applicable schedule agreement rules.

(2) It is understood that when a crew has been called and released in a manner that did not interrupt their "rest" under the Hours of Service Act, then the crew retains their position and are already rested (i.e., they do not require an additional 8 hours' rest before being subject to another call).

(e) A long pool engineer whose rotation is affected by the provisions of Section 3 and 4 shall be restored to proper turn (i.e., original rotation) at the next terminal if possible (if this is an away-from-home terminal and the engineer is not rested in time to be restored, he will be restored to turn upon arrival at the home terminal) if he does not tie up at the final terminal in the same original order-of-standing that he had when last called at the home terminal.

Each engineer arriving at either terminal must register his pool number and will be marked up at the bottom of the list except when he is entitled to "restoration of turn or when he has bypassed some other engineer who is entitled to restoration of turn under the provisions of this Section.

(f) When a long pool engineer is deadheaded out of one terminal via a mode other than a freight train, any question about being bypassed by a working long pool engineer, or vice versa, shall be determined on the basis of their proper order at the initial terminal.

Section 4. (a) Long pool engineers may be called to "deadhead out of turn" from-their away-from-home terminal, at any time after their arrival, regardless of their standing in relation to at-home engineers and the normal pool rotation, except they must be called first-in first-out in relation to other long pool engineers with the same home terminal. Not more than two away-from-home engineers may be called consecutively, under this provision, before calling an at-home engineer. (See Examples No's 2 and 3 under Section 2.)

(b) When two long pool engineers are to be called for the same train (one to work and one to deadhead), if one of the engineers is not rested and the other one is rested, the rested engineer will work the train and the un rested engineer will deadhead. (Note exception in E-3 following Section 2(h)). Otherwise, applicable BLE-NP schedule rules will apply.

Letter of Understanding concerning "Deadheading Out of Turn"

Section 5. (a) Engineers assigned in this long pool service will be permitted to lay off and report only at the home terminal of the pool turn, except they may lay off (but cannot report) at the away-from-home terminal in cases of sickness or other personal emergency.

(b) Unclaimed temporary vacancies occurring on these long pool turns at their home terminal will be filled by the engineers' extra list headquartered at that point. When it becomes necessary to use an emergency engineer because the engineers' extra list is exhausted, emergency engineers will be called in the following manner:

(1) Use the demoted engineer assigned to the turn on which the engineer vacancy exists.

(2) `If none, use the senior rested and available demoted engineer assigned to another turn with the same home terminal in that same long pool, whose turn is on the active list.

(3) If none, use same as Item (2) except on inactive list.

(4) If none, use the senior qualified, rested and available demoted engineer in other road service assigned at that headquarters point.

(5) If none, use the senior qualified, rested and available demoted engineer who is assigned in yard service at that vacancy point.

(c) If a long pool engineer lays off account sickness or other personal emergency at the away-from-home terminal, the vacancy will be filled in the following manner:

(1) Use the demoted engineer assigned to the turn on which the engineer vacancy exists.

(2) If none, use the senior rested demoted engineer who is available at that point who is assigned on another turn with the same home terminal in the same long pool.

(3) If none, use a qualified engineer from the extra board at the vacancy point and upon his arrival at the opposite terminal , then deadhead him back to his home extra board point.

Section 6. (a) Long pool engineers (including demoted engineers assigned in this service) will not be used in other engineer service except when there is no other engineer (including demoted engineers) from that seniority district, who is headquartered and available at that source of supply, for the other service.

(b) An engineer (or demoted engineer) assigned in this long pool service who is used in other service because no other engineer is available (as defined in Paragraph (a), above) will be paid not less than he would have earned had he remained on his long pool turn. However, an engineer who is used in other service contrary to the prohibition contained in Paragraph (a), above, will be allowed actual earnings plus what he would have earned on his regular pool turn, except when such use was because of an emergency requiring his immediate use (emergency meaning conditions such as acts of God, wrecks, washouts, floods and fires which interfere with the operation of trains or endanger lives or property).

(c) Long pool engineers called in this interseniority district service will not be tied up between designated terminals of their runs or turned back to initial terminal, except when their movement is prevented (e.g., derailment of their trains), or their route to destination is obstructed or impassable (e.g., wrecks or washouts). If the engineer is returned to his initial terminal for these reasons, he shall be paid continuous miles for the trip terminal-until-return (but not less than the one-way straightaway mileage Superior to Dilworth or vice versa) or hours if greater, and the engineer shall be restored to first-out positionon the active list (available after rested). Subject to the foregoing exceptions, long pool engineers will not be tied up en route or turned back to their initial terminal.

(d) Long pool engineers who are tied up under the Hours of Service Law (as contemplated by the agreement rule) will be transported back to their initial terminal or on to their final terminal, as soon as possible except that when such engineers are tied up en route because their train's movement is prevented or their route is obstructed or impassable, they may be required to take rest and then handle their train to their original destination.

(e) All necessary relief work as a result of the Hours of Service Law will be manned by either short pool or extra crews called from the final terminal of the train (Dilworth or Superior). provided the relief crews do not operate through Staples, or, by long pool crews from the initial terminal of the train (Dilworth or Superior), subject to the Carrier's continued right, under the provisions of Article VIII of the July 26, 1978 National Agreement, to use yard crews to perform such work within the 15-mile road-yard service zones.

(f) If an engineer who is working (or deadheading) in this long pool service is tied up under the Hours of Service Act before completing the trip, he will be paid on a minute basis at the rate of 3/16 of the basic daily rate per hour (12-1/2 MPH for deadheading) applicable to his trip from the expiration of the legally permissible "on duty" hours until he arrives at (1) the fixed on/off duty point in either Dilworth or Superior, or (2) a location where lodging and meals are available, whichever occurs first. The provisions of Article II (Expenses Away From Home) of the June 25, 1964 National Agreement, as amended, and BN Labor Agreement 8/1/80 apply to (2), above.

(g) It is understood that the extended through freight runs, referred to herein, are bona fide through freights and it is not intended that these runs be required to perform station or industry switching. If, however, such service is required of an engineer, he will be allowed the additional time consumed with a minimum of one hour at the pro rate rate for the trip for each occurrence (i.e., each station where such is required), in addition to all other compensation for the day or trip. (h) In the application of initial terminal delay rules, the phrase "train leaves the terminal" means when the train actually starts on its road trip from the track where the train is first made up. However, if the train is moved off the assembly track for the convenience of the Carrier and not with the intent of making a continuous outbound move, initial terminal time will continue until continuous outbound move is started. The continuous move is not disrupted when a train is stopped to permit the lining of a switch or because the block is against them.

(i) Nothing contained in this agreement is intended to prohibit these long pool turns from being used on trains that traverse only part of the specified long pool territory provided they are then transported forward to the opposite terminal as contemplated by Paragraph (c), above. Likewise, nothing in this agreement is intended to prohibit these long pool turns and other crews from exchanging or combining trains, destined for the same terminals, en route, consistent with Section 15 of this agreement.

Section 7. The mileage on this interseniority district service for equalization purposes only is as follows:

Superior - Stales

Staples - Dilworth

TOTAL

151.9 miles

106.9 miles

258.8 mi1es

(59%) (Lake Superior Seniority District)

(41%) (Minnesota Seniority District)

(100%)

For pay purposes, mileage will be computed on time table distances (Rule 63).

Equalization will be accomplished as indicated in the following chart:

Total Number
Of Engineers Needed

1 Engineer
2 Engineers
3 Engineers
4 Engineers
5 Engineers
6 Engineers
7 Engineers
8 Engineers
9 Engineers
10 Engineers
11 Engineers
12 Engineers
13 Engineers
14 Engineers
15 Engineers
16 Engineers
17 Engineers
18 Engineers
19 Engineers
20 Engineers
21 Engineers
22 Engineers
23 Engineers
24 Engineers
25 Engineers
26 Engineers
27 Engineers
28 Engineers
29 Engineers
30 Engineers

Superior
(Lake Superior District)

1
1
2
2
3
4
4
5
5
6
6
7
8
8
9
9
10
11
11
12
12
13
14
14
15
15
16
17
17
18

Dilworth
(Minnesota District)

0
1
1
2
2
2
3
3
4
4
5
5
5
6
6
7
7
7
8
8
9
9
9
10
10
11
11
11
12
12

(More than 30 Engineers, the same formula to be applied)

Section 8. (a) Engineers deadheading in this long pool service will be paid under schedule agreement rules, except that all deadhead mileage over 100 miles will be paid at the deadhead rate established for the first 100 miles. If deadheading by a mode other than a train, they will be paid the shortest rail mileage between the two points via the route over which they operate trains. (However, when deadheading via other than a common carrier vehicle, if that vehicle diverts from a usual highway route in order to deliver employees or materials to an out-of-the way station, they will be allowed actual miles traveled for the deadheading, if greater.)

(b) All miles run over 100 shall be paid for at the mileage rate established at the basic rate of pay for the first 100 miles or less.

(c) Engineers working in this long pool service will have a fixed point for going on and off duty in both Superior and Dilworth. The fixed point may be changed by the Carrier giving 10 days' advance written notice.

(d) Normally, engineers working or deadheading via freight train in this long pool crew service will not be permitted to stop their train for the purpose of taking a meal but, instead, will be allowed $3.85. However, if an engineer requests to be permitted to leave his train in order to eat en route and if he is granted permission to do so, he will not be entitled to the $3.85 allowance. If the meal allowance of $3.85, now provided for in the National Agreement pertaining to expenses away from home is subsequently increased, the amount provided for in this paragraph will be increased to the same extent.

Section 9. (a) Suitable lodging (as defined in BN Labor Agreement 8/1/80) shall be provided at Superior and Dilworth for long pool engineers who are at their assignment's away-from-home terminal. When the lodging is 3/4 mile or more from the on and off-duty point, the Carrier will provide suitable transportation in both directions. At such location, if transportation is not available within 30 minutes following the time the engineer is released from duty, the engineer will be paid on a minute basis at the pro rata rate of the last service (or deadheading) performed, for all time in excess of 30 minutes, until transportation is provided. If rooms are not available when an engineer arrives at lodging facility, the engineer will be paid on a minute basis, at the pro rata rate of the last service (or deadheading) performed, for all time in excess of 30 minutes until a room is available or he commences duty or deadhead, whichever occurs first.

(b) At the away-from-home terminal , when the nearest acceptable restaurant facility is 3/4 mile or more from the designated lodging facility, Carrier will provide transportation between such restaurant facility and lodging facility and vice versa so that engineers may obtain a meal upon arrival and meal prior to departure, each trip.

(c) Engineers who are performing this long pool service will be allowed payment for meals at the away-from-home terminal in accordance with national agreement provisions, except that if held 28 hours or more they will be allowed an additional meal allowance.

Section 10. Disciplinary hearings or investigations involving an engineer in this interseniority district service will normally beheld at the engineer's home terminal except when there are other principals who live elsewhere. However, if the investigation is held at a location other than the engineer's home terminal, he will be paid for travel time and the time consumed by the investigation on a minute basis at the pro rata rate of pay which he received for the last previous service performed unless it is established in the investigation that the engineer was guilty of a rules violation which results in suspension or discharge. However, should an engineer lose a trip as a result of attending an investigation which does not establish a rule violation which results in suspension or discharge, he will be allowed not less than the earnings of the engineer who relieved him. Should an engineer be tied up at the location where the investigation is held the provisions of Article II (Expenses Away From Home) of the June 25, 1964 Agreement, as amended, will apply. Transportation to and from investigations held at other than home terminal will be provided by the Carrier.

Section 11. Engineers who are required to deadhead over the expanded district under the provisions of this agreement, will be provided with reasonable comfort while so deadheading. Whenever an engineer is required to deadhead on a freight train, comfortable seating for both the working crew of the train and the engineer being deadheaded will be provided. If a caboose of the type now in service is used, no more than one crew will be deadheaded on the working caboose.

Section 12. (a) Engineers will be furnished a locker and adequate wash room facilities at both terminals in the immediate vicinity of the on/off duty point. Size of lockers to be 21" x 18" x 72".

(b) The following items on locomotives used in this interseniority district service will be maintained in proper condition:

(i) Operable speed recorders on lead unit
(ii) Cab heaters
(iii) Cab weather stripping
(iv) Windshield and wiper
(v) Drinking water and operable cooler
(vi) Toilet facilities
(vii) Working radio on operating (lead) unit

Engineers will report defects of items listed above on proper form supplied for such purpose. Notation by engineers of defects will contain sufficient detail to enable prompt identification and correction of such defects.

Section 13. Tn this interseniority district service, engineers will not be expected to qualify themselves on their own time over territory with which they are not acquainted. The Carrier will provide pilots, who shall be engineers from the engineers' working lists when available for such service, or wi11 pay engineers on a mileage basis to make qualifying trips. To initially expedite their qualifications, for the first 45 days the Carrier may utilize engineers assigned to this long pool service, augmenting them by using extra engineers, to make combination qualifying/piloting trips- After an extra engineer becomes qualified on the territory, he may be bypassed on the extra board, in order to facilitate the qualification of another extra engineer.

The Carrier may work such a pilot for the entire trip or only the portion on which he is needed, and in the latter instance may work and/or transport that pilot straightaway or turnaround with more than one crew Con a continuous-time or mileage basis) and without regard to the terminal release rules except at Superior and Dilworth.

The Carrier will determine the number of trips an engineer should make to become qualified.

Section 14. If any agreement is reached in negotiations between the Brotherhood of Locomotive Engineers and the National Railway Labor Conference which amends Article VIII of the May 13, 1971 Agreement and such amendments improve conditions provided for in this agreement, those provisions will supersede the provisions of this agreement.

Section 15. (a) Except as specifically provided herein, nothing contained herein shall be construed as modifying, amending or superseding any of the provisions of schedule agreements between the BLE and former Northern Pacific Railway Company or this Carrier, and the Merger Protection Agreements as implemented between this Carrier and the Brotherhood of Locomotive Engineers.

(b) This interseniority district service may be inaugurated upon 15 days advance written notice by the Carrier.

Section 16. This agreement shall remain in effect until changed under the provisions of the Railway Labor Act, as amended.