EXHIBIT 10.19
THE BURLINGTON NORTHERN AND SANTA FE RAILWAY COMPANY
BNSFC 302606 - Amendment 1
REGULATED TRANSPORTATION CONTRACT
Effective Date: 01/01/2001 Expiration Date: 12/31/2013
1. INTRODUCTION
The parties to this Transportation Contract, as named below, desire to amend
said Contract as stated herein, pursuant to 49 U.S.C. 10709.
CALIFORNIA STEEL INDS
THE BURLINGTON NORTHERN AND SANTA FE RAILWAY COMPANY
2. TERM
The term of this Contract is being amended and shall be effective on 01-01-2001
and shall remain in effect through 12-31-2013.
3. TRANSPORTATION SERVICE AGREEMENT
A. The Contract is being amended to delete the current rate structure and
replace with rates and conditions as shown in the Transportation Service
Agreement, attached hereto and by this reference made a part hereof.
B. Amend Section "14" by adding the following at the end of the first paragraph:
"As further clarification with respect to CSI, Force Majeure shall include
any act of God (as defined in section 14 of the contract), acts of public
enemy, war, blockade, insurrection, vandalism, sabotage, fire, accident,
explosion, labor strike or interference, lockout or labor dispute,
governmental order or regulation, or breakage of machinery, and/or any other
causes beyond reasonable control of CSI, which results in the closure,
suspension or material diminishment of operations at CSI's facility. The
Minimum Volume Requirements of CSI during any given year shall be pro-rated
to take into account any period of Force Majeure invoked by either CSI or
BNSF. Any shipment made contrary to the route(s) specified in the Contract or
Amendment due to a Force Majeure invoked by BNSF shall apply in determining
compliance with the minimum percentage requirement.
X. Xxxxxx the second paragraph of Section 18 of the Contract.
4. RIGHTS AND OBLIGATIONS
Nothing in this Amendment shall alter the rights or obligations of the parties,
except as specifically provided for in the above. The terms and conditions of
the Amendment will only apply to shipments tendered on or subsequent to the
effective date of this Amendment.
5. SIGNATURES
Intending to be legally bound, the parties hereto have caused this Contract to
be executed by their representatives as written below:
CALIFORNIA STEEL INDS
By: /s/ X. Xxxxxxxx Xxxxxxxxx
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Title: PRESIDENT & C.E.O.
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Date: 1/15/2001
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THE BURLINGTON NORTHERN AND SANTA FE RAILWAY COMPANY
BNSFC 302606 - Amendment 1
REGULATED TRANSPORTATION CONTRACT
THE BURLINGTON NORTHERN AND SANTA FE RAILWAY COMPANY
By: /s/ Xxxxx X. Xxxxx
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Title: Group V.P. Industrial Products
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Date: 1-15-01
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THE BURLINGTON NORTHERN AND SANTA FE RAILWAY COMPANY
BNSFC 302606 - Amendment 1
REGULATED TRANSPORTATION CONTRACT
*Transportation Service Agreement*
Effective Date: 01/01/2001 Expiration Date: 12/31/2013
CUSTOMER
CALIFORNIA STEEL INDS is the Party entitled to the price(s). PO BOX 5065
FONTANA, CA. 92334-5065
CALIFORNIA STEEL INDS is the Party responsible for the freight charges. Freight
bills will be directed to PO BOX 5065 FONTANA, CA 92334-5065
CALIFORNIA STEEL INDS is the Party who is designated to receive
either notifications of a price authority, amendments, revisions or supplements,
or escalations, or matters pertaining to a Force Majeure or other matters of an
emergency or operating nature. PO BOX 5065 FONTANA, CA. 92334-5065
CALIFORNIA STEEL INDS is a signature Party to the contract. PO BOX 5065 FONTANA,
CA 92334-5065
THE BURLINGTON NORTHERN AND SANTA FE RAILWAY COMPANY is a signature Party
to the contract. PO BOX 961069 FT WORTH, TX 76161-0069
EXHIBIT
-Freight charges must be prepaid.
-Price applies in US funds.
-When BNSF bills CSI, CSI will have up to 15 calendar days from the date of the
freight bill to make payment utilizing Web based "epay" payment option. All
other terms and conditions of the "BNSF Credit Policy" will apply.
-Prices in this Regulated Contract alternate with other Regulated Contracts.
-The Price document number, correct address and patron code must be shown on the
bill of lading to insure accurate billing.
-Price does not apply on shipments accorded transit, inspection, reconsignment,
diversion, or stopping in transit for loading or unloading.
-Prices are subject to BNSF Rules Book 6100-Series.
-Prices are not subject to Fuel Surcharge provisions as described in BNSF Rules
Book 6100.
-BNSF agrees to acquire rail car equipment designed to accommodate the loading
of steel slabs. Such equipment is anticipated to be placed in customer's service
no later than 12-31-2001.
-If CSI or its agent meets its obligations in the next paragraph, BNSF agrees to
place an empty train at CSI's designated loading facility located at the Port of
Long Beach or Los Angeles Harbor, CA at or prior to the time for which CSI or
its agent had ordered placements.
CSI or its agent shall give BNSF notice by a telephone call at 000-000-0000, to
place an empty train, or a portion thereof, at CSI's designated loading
facility at the Port of Long Beach or Los Angeles Harbor, CA no later than 22
hours before the time at which CSI or its agent desires the train to be placed.
If BNSF fails to meet the service commitment as above stated for reasons other
than those set forth in the next paragraph, BNSF agrees to pay CSI the actual
terminal invoice covering the costs incurred by their agent, RDP Terminals, up
to a maximum, of eight (8) hours for each hour or portion there of, that elapse
between the time of actual placement and the time for which placement was
ordered. Notwithstanding the foregoing if BNSF is not able to furnish empty cars
for the 8:00 A.M. or 1:00 P.M. loading shift but telephones CSI's agent (RDP)
not later than 7:00 A.M. of the same day; BNSF agrees to pay CSI the actual
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THE BURLINGTON NORTHERN AND SANTA FE RAILWAY COMPANY
BNSFC 302606 - Amendment 1
REGULATED TRANSPORTATION CONTRACT
terminal invoice covering the costs incurred by the their agent, RDP Terminals
for a total of four (4) hours in lieu of eight (8) hours as provided above.
Provided however that BNSF shall not be obligated to make such payment unless
CSI or its agent has given BNSF notice of CSI's intent to invoke this Section,
within the first two (2) hours of such delay, by telephone call at 000-000-0000
and has followed such notice with a Telefax (fax 000-000-0000).
The service commitment specified above shall not apply where BNSF is unable to
perform due to an Act of God, strikes, lockouts, wrecks, mechanical breakdowns
in equipment or facilities of BNSF, CSI or its agent, or any act of failure to
act on the part of CSI or its agent.
By way of clarification, derailments of empty unit trains, or any portion
thereof, or collisions with other vehicles or objects while enroute to CSI or
its agent at Los Angeles Harbor to meet a prescheduled empty train loading
appointment, shall not constitute grounds for exclusion from Service commitment
requirements and responsibilities.
-If CSI elects to change port of entry from Long Beach or Los Angeles Harbor,
CA. CSI will notify BNSF of such anticipated change at least three (3) months
prior to such change. CSI and BNSF will thence commence negotiations for
transportation charges from the new port of entry.
COMMODITY DEFINITIONS
STCC Description
33123 IRON OR STEEL SHEET OR STRIP PLATED LEADED, PRIMED OR TARRED, OR
PAINTED OR LACQUERED WITH ONE COAT OR BOTH, ONE COLOR ONLY SIDE
3312140 SLABS, IRON OR STEEL, IN THE ROUGH
3312150 BREAKDOWNS, SLAB OR SHEETBARS, IRON OR STEEL, VIZ. UNFINISHED MATERIAL
HAVING VALUE FOR REFOLLING PURPOSES ONLY
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THE BURLINGTON NORTHERN AND SANTA FE RAILWAY COMPANY
BNSFC 302606 - Amendment 1
REGULATED TRANSPORTATION CONTRACT
MATRIX 01
Origin LONG BEACH, CA
LOS ANGELES HARBOR, CA
Destination KAISER, CA
Equipment Price applies in railroad owned or leased equipment.
Price applies in Coil Cars (General Car Types: OC - Open
Coil Cars, CD - Closed Coil Cars, CL - Coil Cars) or
Flat Cars (General Car Type: FP - Flat Pedestal Cars).
Route BNSF
MATRIX 01
Effective Expiration Commodity Base Rate Volume in
Date Date (Per Metric Ton) Metric Tons
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Minimum Weight will be 81.8 Metric Tons per car
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01/01/2001 12/31/2001 33-121-40/50 $4.48 0 to 1,400,000
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01/01/2001 12/31/2001 33-121-40/50 $4.12 over 1,400,000
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01/01/2001 12/31/2001 33-123 $4.70 no volume
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01/01/2002 12/31/2002 33-121-40/50 $4.57 0 to 1,400,000
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01/01/2002 12/31/2002 33-121-40/50 $4.20 over 1,400,000
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01/01/2002 12/31/2002 33-123 $4.79 no volume
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01/01/2003 12/31/2003 33-121-40/50 $4.66 0 to 1,400,000
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01/01/2003 12/31/2003 33-121-40/50 $4.28 over 1,400,000
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01/01/2003 12/31/2003 33-123 $4.88 no volume
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01/01/2004 12/31/2004 33-121-40/50 $4.75 0 to 1,400,000
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01/01/2004 12/31/2004 33-121-40/50 $4.37 over 1,400,000
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01/01/2004 12/31/2004 33-123 $4.98 no volume
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01/01/2005 12/31/2005 33-121-40/50 $4.85 0 to 1,400,000
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01/01/2005 12/31/2005 33-121-40/50 $4.46 over 1,400,000
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01/01/2005 12/31/2005 33-123 $5.08 no volume
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THE BURLINGTON NORTHERN AND SANTA FE RAILWAY COMPANY
BNSFC 302606 - Amendment 1
REGULATED TRANSPORTATION CONTRACT
Effective Expiration Commodity Base Rate Volume in
Date Date (Per Metric Ton) Metric Tons
-------------------------------------------------------------------------------------------
Minimum Weight will be 81.8 Metric Tons per car
01/01/2006 12/31/2006 33-121-40/50 $4.95 0 to 1,400,000
01/01/2006 12/31/2006 33-121-40/50 $4.55 over 1,400,000
01/01/2006 12/31/2006 33-123 $5.18 no volume
01/01/2007 12/31/2007 33-121-40/50 $5.05 0 to 1,400,000
01/01/2007 12/31/2007 33-121-40/50 $4.64 over 1,400,000
01/01/2007 12/31/2007 33-123 $5.28 no volume
01/01/2008 12/31/2008 33-121-40/50 $5.15 0 to 1,400,000
01/01/2008 12/31/2008 33-121-40/50 $4.73 over 1,400,000
01/01/2008 12/31/2008 33-123 $5.39 no volume
01/01/2009 12/31/2009 33-121-40/50 $5.25 0 to 1,400,000
01/01/2009 12/31/2009 33-121-40/50 $4.82 over 1,400,000
01/01/2009 12/31/2009 33-123 $5.50 no volume
01/01/2010 12/31/2010 33-121-40/50 $5.36 0 to 1,400,000
01/01/2010 12/31/2010 33-121-40/50 $4.92 over 1,400,000
01/01/2010 12/31/2010 33-123 $5.61 no volume
01/01/2011 12/31/2011 33-121-40/50 $5.47 0 to 1,400,000
01/01/2011 12/31/2011 33-121-40/50 $5.02 over 1,400,000
01/01/2011 12/31/2011 33-123 $5.72 no volume
01/01/2012 12/31/2012 33-121-40/50 $5.58 0 to 1,400,000
01/01/2012 12/31/2012 33-121-40/50 $5.12 over 1,400,000
01/01/2012 12/31/2012 33-123 $5.83 no volume
01/01/2013 12/31/2013 33-121-40/50 $5.69 0 to 1,400,000
01/01/2013 12/31/2013 33-121-40/50 $5.22 over 1,400,000
01/01/2013 12/31/2013 33-123 $5.95 no volume
(+) Location includes switching limits
*See Matrix Definitions Below
MATRIX 01 DEFINITIONS
Commodities
33123 33123 - IRON OR STEEL SHEET OR
3312140/050 3312140 SLABS, IRON OR STEEL,
3312150 SLAB BKDN IORS
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