----

----

----

----

| x | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|---------------------------------------------------------------------------------------------------|

| o | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|----------------------------------------------------------------------------------------------------|

| Delaware                                                                |   | 41-6034000                                    |
|-------------------------------------------------------------------------|--------|-----------------------------------------------|
| (State      or other jurisdictionof      incorporation or organization) |   | (I.R.S.      EmployerIdentification      No.) |

| Class                              |    | SharesOutstanding      atJuly      16, 2008 |
|------------------------------------|--------------|---------------------------------------------|
|                               |         |                                        |
| Common      stock, $1.00 par value |    | 1,000 shares                           |

----

T

able 

|  PART      I   |  FINANCIAL      INFORMATION                                     |  PAGE |
|--------------------------|----------------------------------------------------------------------|------------|
| Item 1.                  | Financial Statements.                                                | 3          |
| Item 2.                  | Management’s Narrative Analysis of Results of      Operations. | 25         |
| Item 4T.                 | Controls and Procedures.                                             | 30         |
|  PART      II  |  OTHER      INFORMATION                                         |       |
| Item 1.                  | Legal Proceedings.                                                   | 31         |
| Item 6.                  | Exhibits.                                                            | 31         |
| Signatures               |                                                                 | S-1        |
| Exhibits                 |                                                                 | E-1        |

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Table of Contents 

PART 

|                                                                                                                                                                                                                      |    | Three      Months Ended |   |   | Six      Months Ended |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|-------------------------|--------|--------|-----------------------|--------|
|                                                                                                                                                                                                                      |    | June      30,           |   |   | June      30,         |   |
|                                                                                                                                                                                                                      |    | 2008                    |   |   | 2007                  |   |   | 2008 |   |   | 2007 |   |
|                                                                                                                                                                                                                      |    |                    |   |   | (As      Adjusted)a   |   |   |   |   |   | (As      Adjusted)a |   |
| Revenues                                                                                                                                                                                                                  | $  |                    | 4,420  |   | $                |   | 3,797 |   | $  |   | 8,631 |   | $  |   | 7,399 |   |
|                                                                                                                                                                                                                      |    |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:                                                                                                                                                                                                  |    |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Fuel                                                                                                                                                                                                                      |    |                    | 1,245  |   |                  |   | 771 |   |   |   | 2,254 |   |   |   | 1,423 |   |
| Compensation      and benefits                                                                                                                                                                                            |    |                    | 947    |   |                  |   | 919 |   |   |   | 1,924 |   |   |   | 1,846 |   |
| Purchased      services                                                                                                                                                                                                   |    |                    | 522    |   |                  |   | 502 |   |   |   | 1,041 |   |   |   | 1,002 |   |
| Depreciation      and amortization                                                                                                                                                                                        |    |                    | 349    |   |                  |   | 321 |   |   |   | 690 |   |   |   | 628 |   |
| Equipment      rents                                                                                                                                                                                                      |    |                    | 223    |   |                  |   | 237 |   |   |   | 453 |   |   |   | 469 |   |
| Materials      and other                                                                                                                                                                                                  |    |                    | 423    |   |                  |   | 199 |   |   |   | 676 |   |   |   | 479 |   |
| Total      operating expenses                                                                                                                                                                                             |    | 3,709                   |   |   | 2,949                 |   |   | 7,038 |   |   | 5,847 |   |
| Operating      income                                                                                                                                                                                                     |    |                    | 711    |   |                  |   | 848 |   |   |   | 1,593 |   |   |   | 1,552 |   |
| Interest      expense                                                                                                                                                                                                     |    |                    | 30     |   |                  |   | 25 |   |   |   | 57 |   |   |   | 46 |   |
| Interest      income, related parties                                                                                                                                                                                     |    |                    | (2     | )      |                  |   | (48 | ) |   |   | (7 | ) |   |   | (97 | ) |
| Other      expense, net                                                                                                                                                                                                   |    | 6                       |   |   | 9                     |   |   | 9 |   |   | 17 |   |
|                                                                                                                                                                                                                      |    |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Income      before income taxes                                                                                                                                                                                           |    |                    | 677    |   |                  |   | 862 |   |   |   | 1,534 |   |   |   | 1,586 |   |
| Income      tax expense                                                                                                                                                                                                   |    | 260                     |   |   | 331                   |   |   | 590 |   |   | 610 |   |
| Net      income                                                                                                                                                                                                           | $  |                    | 417    |   | $                |   | 531 |   | $  |   | 944 |   | $  |   | 976 |   |
| a Prior      year numbers have been adjusted for the merger of BNSF Acquisition, Inc.      into BNSF Railway Company. See Note 1 to the Consolidated      Financial Statements for additional information. |    |

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Table of Contents 

|                                                                                                                                                                                                                      |    | June      30, |   |   | December 31,   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|---------------|--------|--------|---------------------|--------|
|                                                                                                                                                                                                                      |    | 2008          |   |   | 2007                |   |
|                                                                                                                                                                                                                      |    |          |   |   | (As      Adjusted)a |   |
| ASSETS                                                                                                                                                                                                                    |    |          |   |   |                |   |
| Current      assets:                                                                                                                                                                                                      |    |          |   |   |                |   |
| Cash      and cash equivalents                                                                                                                                                                                            | $  |          | 58     |   | $              |   | 24 |   |
| Accounts      receivable, net                                                                                                                                                                                             |    |          | 895    |   |                |   | 805 |   |
| Materials      and supplies                                                                                                                                                                                               |    |          | 688    |   |                |   | 579 |   |
| Current      portion of deferred income taxes                                                                                                                                                                             |    |          | 329    |   |                |   | 282 |   |
| Other      current assets                                                                                                                                                                                                 |    | 578           |   |   | 325                 |   |
|        Total current assets                                                                                                                                                                                          |    |          | 2,548  |   |                |   | 2,015 |   |
|                                                                                                                                                                                                                      |    |          |   |   |                |   |   |   |
| Property      and equipment, net                                                                                                                                                                                          |    |          | 30,124 |   |                |   | 29,560 |   |
| Other      assets                                                                                                                                                                                                         |    | 2,332         |   |   | 1,953               |   |
| Total      assets                                                                                                                                                                                                         | $  |          | 35,004 |   | $              |   | 33,528 |   |
|                                                                                                                                                                                                                      |    |          |   |   |                |   |   |   |
| LIABILITIES      AND STOCKHOLDER’S EQUITY                                                                                                                                                                           |    |          |   |   |                |   |   |   |
| Current      liabilities:                                                                                                                                                                                                 |    |          |   |   |                |   |   |   |
| Accounts      payable and other current liabilities                                                                                                                                                                       | $  |          | 2,950  |   | $              |   | 2,822 |   |
| Long-term      debt due within one year                                                                                                                                                                                   |    | 230           |   |   | 210                 |   |
|        Total current liabilities                                                                                                                                                                                     |    |          | 3,180  |   |                |   | 3,032 |   |
|                                                                                                                                                                                                                      |    |          |   |   |                |   |   |   |
| Long-term      debt                                                                                                                                                                                                       |    |          | 1,490  |   |                |   | 1,511 |   |
| Deferred      income taxes                                                                                                                                                                                                |    |          | 8,759  |   |                |   | 8,519 |   |
| Casualty      and environmental liabilities                                                                                                                                                                               |    |          | 1,014  |   |                |   | 843 |   |
| Pension      and retiree health and welfare liability                                                                                                                                                                     |    |          | 454    |   |                |   | 444 |   |
| Employee      separation costs                                                                                                                                                                                            |    |          | 73     |   |                |   | 77 |   |
| Other      liabilities                                                                                                                                                                                                    |    | 1,651         |   |   | 1,578               |   |
| Total      liabilities                                                                                                                                                                                                    |    | 16,621        |   |   | 16,004              |   |
| Commitments      and contingencies (see Notes 2, 4 and 5)                                                                                                                                                                 |    |          |   |   |                |   |   |   |
| Stockholder’s      equity:                                                                                                                                                                                          |    |          |   |   |                |   |   |   |
| Common      stock, $1 par value, 1,000 shares authorized;issued      and outstanding and paid-in capital                                                                                                                  |    |          | 6,331  |   |                |   | 6,331 |   |
| Retained      earnings                                                                                                                                                                                                    |    |          | 12,734 |   |                |   | 11,797 |   |
| Intercompany      notes receivable                                                                                                                                                                                        |    |          | (591   | )      |                |   | (456 | ) |
| Accumulated      other comprehensive loss                                                                                                                                                                                 |    | (91           | )      |   | (148                | )      |
| Total      stockholder’s equity                                                                                                                                                                                     |    | 18,383        |   |   | 17,524              |   |
| Total      liabilities and stockholder’s equity                                                                                                                                                                     | $  |          | 35,004 |   | $              |   | 33,528 |   |
| a Prior      year numbers have been adjusted for the merger of BNSF Acquisition, Inc.      into BNSF Railway Company. See Note 1 to the Consolidated      Financial Statements for additional information. |    |

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| Six      Months Ended June 30,                                                                                                                                                                                            |    | 2008  |    |    | 2007           |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|------------|---------|---------|---------------------|--------|
|                                                                                                                                                                                                                      |    |       |    |    | (As      Adjusted)a |   |
| OPERATING ACTIVITIES                                                                                                                                                                                                 |    |       |    |    |                |   |
|     Net Income                                                                                                                                                                                             | $  | 944        |    | $  | 976            |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities:                                                                                                                               |    |       |    |    |                |   |
| Depreciation      and amortization                                                                                                                                                                                        |    |       | 690     |    |                |   | 628 |   |
| Deferred      income taxes                                                                                                                                                                                                |    |       | 154     |    |                |   | 142 |   |
| Employee      separation costs paid                                                                                                                                                                                       |    |       | (7      | )       |                |   | (10 | ) |
| Long-term      casualty and environmental liabilities, net                                                                                                                                                                |    |       | 191     |    |                |   | 33 |   |
| Other,      net                                                                                                                                                                                                           |    |       | (12     | )       |                |   | 49 |   |
| Changes      in current assets and liabilities:                                                                                                                                                                           |    |       |    |    |                |   |   |   |
| Accounts      receivable, net                                                                                                                                                                                             |    |       | (90     | )       |                |   | (41 | ) |
| Materials      and supplies                                                                                                                                                                                               |    |       | (109    | )       |                |   | (34 | ) |
| Other      current assets                                                                                                                                                                                                 |    |       | (175    | )       |                |   | (125 | ) |
| Accounts      payable and other current liabilities                                                                                                                                                                       |    | 101        |    |    |                | (123   | ) |
| Net      cash provided by operating activities                                                                                                                                                                            |    | 1,687      |    |    | 1,495               |   |
| INVESTING      ACTIVITIES                                                                                                                                                                                                 |    |       |    |    |                |   |   |   |
| Capital      expenditures                                                                                                                                                                                                 |    |       | (1,042  | )       |                |   | (1,152 | ) |
| Net      increase in intercompany notes receivable                                                                                                                                                                        |    |       | – |    |                |   | (73 | ) |
| Construction      costs for facility financing obligation                                                                                                                                                                 |    |       | (17     | )       |                |   | (9 | ) |
| Other,      net                                                                                                                                                                                                           |    |       | (387    | )       |                |   | (159 | ) |
| Net      cash used for investing activities                                                                                                                                                                               |    | (1,446     | )       |    | (1,393              | )      |
| FINANCING      ACTIVITIES                                                                                                                                                                                                 |    |       |    |    |                |   |   |   |
| Net      increase in short-term bank borrowings                                                                                                                                                                           |    |       | 8       |    |                |   | – |   |
| Payments      on long-term debt                                                                                                                                                                                           |    |       | (109    | )       |                |   | (93 | ) |
| Proceeds      from facility financing obligation                                                                                                                                                                          |    |       | 29      |    |                |   | – |   |
| Net      increase in intercompany notes receivable                                                                                                                                                                        |    |       | (135    | )       |                |   | – |   |
| Net      increase in intercompany notes payable                                                                                                                                                                           |    |       | – |    |                |   | 1 |   |
| Other,      net                                                                                                                                                                                                           |    |       | – |    |                |   | (1 | ) |
| Net      cash used for financing activities                                                                                                                                                                               |    | (207       | )       |    | (93                 | )      |
| Increase      in cash and cash equivalents                                                                                                                                                                                |    |       | 34      |    |                |   | 9 |   |
| Cash      and cash equivalents:                                                                                                                                                                                           |    |       |    |    |                |   |   |   |
| Beginning      of period                                                                                                                                                                                                  |    | 24         |    |    | 20                  |   |
| End      of period                                                                                                                                                                                                        | $  | 58         |    | $  |                | 29     |   |
| SUPPLEMENTAL      CASH FLOW INFORMATION                                                                                                                                                                                   |    |       |    |    |                |   |   |   |
| Interest      paid, net of amounts capitalized                                                                                                                                                                            | $  |       | 49      |    | $              |   | 35 |   |
| Income      taxes paid, net of refunds                                                                                                                                                                                    | $  |       | 521     |    | $              |   | 445 |   |
| Non-cash      asset financing                                                                                                                                                                                             | $  | 61         |    | $  | 116                 |   |
| a Prior      year numbers have been adjusted for the merger of BNSF Acquisition, Inc.      into BNSF Railway Company. See Note 1 to the Consolidated      Financial Statements for additional information. |    |

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|                                                                                                                                                                                                                             |   | Common      Stock and Paid-in Capital |    |    | Retained      Earnings |   |    | Inter-CompanyNotesReceivable |   |   | Accumulated      Other Comprehensive Loss |   |   | Total      Stockholder’s Equity |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|---------|---------|------------------------|--------|---------|------------------------------|--------|--------|-------------------------------------------|--------|--------|---------------------------------------|---------|
| Balance      at December 31, 2007, as adjusted                                                                                                                                                                              |   | $                                     | 6,331   | a  |                   | $      | 11,797  | a                            |   | $      | (456                                      | )      |   | $                                     | (148    | ) |   | $ | 17,524 | a  |
| Adjustment      to change the measurement date pursuant to Statement of Financial      Accounting Standards (SFAS) No. 158                                                                                                       |   |                                  | – |    |                   |   | (7      | )                            |   |   | –                                   |   |   |                                  | 2       |   |   |   | (5 | ) |
| Adjustment      to initially apply SFAS No. 158 to equity method investees                                                                                                                                                       |   |                                  | – |    |                   |   | – |                         |   |   | –                                   |   |   |                                  | (2      | ) |   |   | (2 | ) |
| Change      in intercompany notes receivable                                                                                                                                                                                     |   |                                  | – |    |                   |   | – |                         |   |   | (135                                      | )      |   |                                  | – |   |   |   | (135 | ) |
| Comprehensive      income:                                                                                                                                                                                                       |   |                                  |    |    |                   |   |    |                         |   |   |                                      |   |   |                                  |    |   |   |   |   |   |
| Net      income                                                                                                                                                                                                                  |   |                                  | – |    |                   |   | 944     |                         |   |   | –                                   |   |   |                                  | – |   |   |   | 944 |   |
|          Amortization of prior service costs and actuarial losses, net of tax      expense of $2                                                                                                                  |   |                                  | – |    |                   |   | – |                         |   |   | –                                   |   |   |                                  | 4       |   |   |   | 4 |   |
|          Gain on derivative instruments and other items, net of tax expense of      $34                                                                                                                           |   |                                  | – |    |                   |   | – |                         |   |   | –                                   |   |   |                                  | 53      |   |   |   | 53 |   |
|                  Total comprehensive income                                                                                                                               |   |                                  |    |    |                   |   |    |                         |   |   |                                      |   |   |                                  |    |   |   |   | 1,001 |   |
| Balance      at June 30, 2008                                                                                                                                                                                                    |   | $                                     | 6,331   |    |                   | $      | 12,734  |                         |   | $      | (591                                      | )      |   | $                                     | (91     | ) |   | $ | 18,383 |   |
|                                                                                                                                                                                                                             |   |                                  |    |
| a Prior      year numbers have been adjusted for the merger of BNSF Acquisition, Inc.      into BNSF Railway Company. See Note 1 to the Consolidated      Financial Statements for additional  information.  |

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Table of Contents 

| Consolidated      Statement of IncomeThree      Months Ended June 30, 2007 |   |   | As      Reported |   |   |   | Impact      of Adjustment |   |   |   | As      Adjusted |   |
|----------------------------------------------------------------------------|--------|--------|------------------|--------|--------|--------|---------------------------|--------|--------|--------|------------------|--------|
| Revenues                                                                   |   | $      | 3,795            |   |   | $      | 2                         |   |   | $      | 3,797            |   |
| Total      operating expenses                                              |   |   | 2,949            |   |   |   | –                   |   |   |   | 2,949            |   |
| Operating      income                                                      |   |   | 846              |   |   |   | 2                         |   |   |   | 848              |   |
| Income      before income taxes                                            |   |   | 860              |   |   |   | 2                         |   |   |   | 862              |   |
| Income      tax expense                                                    |   |   | 330              |   |   |   | 1                         |   |   |   | 331              |   |
| Net      income                                                            |   | $      | 530              |   |   | $      | 1                         |   |   | $      | 531              |   |
|                                                                       |   |
| Consolidated      Statement of IncomeSix      Months Ended June 30, 2007   |   |   | As      Reported |   |   |   | Impact      of Adjustment |   |   |   | As      Adjusted |   |
| Revenues                                                                   |   | $      | 7,396            |   |   | $      | 3                         |   |   | $      | 7,399            |   |
| Total      operating expenses                                              |   |   | 5,847            |   |   |   | –                   |   |   |   | 5,847            |   |
| Operating      income                                                      |   |   | 1,549            |   |   |   | 3                         |   |   |   | 1,552            |   |
| Income      before income taxes                                            |   |   | 1,583            |   |   |   | 3                         |   |   |   | 1,586            |   |
| Income      tax expense                                                    |   |   | 609              |   |   |   | 1                         |   |   |   | 610              |   |
| Net      income                                                            |   | $      | 974              |   |   | $      | 2                         |   |   | $      | 976              |   |

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Table of Contents 

| Consolidated      Balance SheetDecember      31, 2007        |   |   | As      Reported |   |   |   | Impact      of Adjustment |   |   |   | As      Adjusted |   |
|--------------------------------------------------------------|--------|--------|------------------|--------|--------|--------|---------------------------|--------|--------|--------|------------------|--------|
| Property      and equipment, net                             |   | $      | 29,513           |   |   | $      | 47                        |   |   | $      | 29,560           |   |
| Other      assets                                            |   |   | 1,927            |   |   |   | 26                        |   |   |   | 1,953            |   |
| Total      assets                                            |   |   | 33,455           |   |   |   | 73                        |   |   |   | 33,528           |   |
|                                                         |   |   |             |   |   |   |                      |   |   |   |             |   |
| Accounts      payable and other current liabilities          |   |   | 2,848            |   |   |   | (26                       | )      |   |   | 2,822            |   |
| Total      current liabilities                               |   |   | 3,058            |   |   |   | (26                       | )      |   |   | 3,032            |   |
|                                                         |   |   |             |   |   |   |                      |   |   |   |             |   |
| Deferred      income taxes                                   |   |   | 8,501            |   |   |   | 18                        |   |   |   | 8,519            |   |
| Total      liabilities                                       |   |   | 16,012           |   |   |   | (8                        | )      |   |   | 16,004           |   |
|                                                         |   |   |             |   |   |   |                      |   |   |   |             |   |
| Common      stock issued and outstanding and paid-in capital |   |   | 6,286            |   |   |   | 45                        |   |   |   | 6,331            |   |
| Retained      earnings                                       |   |   | 11,761           |   |   |   | 36                        |   |   |   | 11,797           |   |
| Total      stockholder’s equity                        |   |   | 17,443           |   |   |   | 81                        |   |   |   | 17,524           |   |
| Total      liabilities and stockholder’s equity        |   | $      | 33,455           |   |   | $      | 73                        |   |   | $      | 33,528           |   |

| Consolidated      Statement of Cash FlowsSix      Months Ended June 30, 2007                                     |   |   | As      Reported |   |   |   | Impact      of Adjustment |   |   |   | As      Adjusted |   |
|------------------------------------------------------------------------------------------------------------------|--------|--------|------------------|--------|--------|--------|---------------------------|--------|--------|--------|------------------|--------|
| Net      income                                                                                                  |   | $      | 974              |   |   | $      | 2                         |   |   | $      | 976              |   |
| Accounts      receivable, net      a                                                                             |   |   | (39              | )      |   |   | (2                        | )      |   |   | (41              | )      |
| Net      cash provided by operating activities                                                                   |   | $      | 1,495            |   |   | $      | –                   |   |   | $      | 1,495            |   |
| a Comparative prior period amounts      have been reclassified to conform to the current      presentation. |   |

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| Ÿ   | Level      1–Quoted prices for identical assets or liabilities in active markets that      the Company has the ability to access at the measurement    date. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ÿ   | Level      2–Quoted prices for similar assets or liabilities in active markets;      quoted prices for identical or similar assets or liabilities in markets      that are not active; and model-derived valuations in which all significant      inputs are observable market data. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ÿ   | Level      3–Valuations derived from valuation techniques in which one or more      significant inputs areunobservable. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents 

|                                    |   | Three      Months EndedJune      30,  |    |   | Six      Months Ended June      30, |   |
|-----------------------------------------|--------|--------------------------------------------|---------|--------|-------------------------------------|--------|
|                                    |   | 2008                                       |    |   | 2007                                |   |   | 2008 |   |   | 2007 |   |
| Hedge      benefit (loss)               |   | $                                          | 23      |   |                                | $      | (2 | ) |   | $ | 33 |   |   | $ | 24 |   |
| Ineffective      portion of open hedges |   |                                       | – |   |                                |   | 1 |   |   |   | – |   |   |   | – |   |
| Tax      effect                         |   | (9                                         | )       |   | –                             |   |   | (13 | ) |   | (9 | ) |
| Hedge      benefit (loss), net of tax   |   | $                                          | 14      |   |                                | $      | (1 | ) |   | $ | 20 |   |   | $ | 15 |   |

|                                           |   | June      30, |    |   | December      31, |   |
|------------------------------------------------|--------|---------------|---------|--------|-------------------|--------|
|                                           |   | 2008          |    |   | 2007              |   |
| Short-term      fuel-hedging asset             |   | $             | 84      |   |              | $      | 29 |   |
| Long-term      fuel-hedging asset              |   |          | 42      |   |              |   | 10 |   |
| Ineffective      portion of open hedges        |   |          | – |   |              |   | – |   |
| Tax      effect                                |   | (49           | )       |   | (15               | )      |
| Amount      included in AOCL, net of tax       |   | $             | 77      |   |              | $      | 24 |   |
|                                           |   |          |    |   |              |   |   |   |
| Settled      fuel-hedging contracts receivable |   | $             | 23      |   |              | $      | $6 |   |

|                                 |   | Quarter      Ending  |        |   |              |
|--------------------------------------|--------|---------------------------|--------|--------|-------------------|
| 2008                                 |   | September      30,        |   |   | December      31, |   |   | Total  |   |
| HO      Swaps                        |   |                      |   |   |              |   |   |   |   |   |
| Gallons      hedged (in millions)    |   |                      | 8.23   |   |              |   | 8.99 |   |   |   | 17.22 |   |
| Average      swap price (per gallon) |   | $                         | 2.42   |   |              | $ | 2.47 |   |   | $ | 2.45 |   |
| Fair      value (in millions)        |   | $                         | 13     |   |              | $ | 14 |   |   | $ | 27 |   |

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Table of Contents 

|                                         |   | Quarter      Ending  |   |   |              |   |
|----------------------------------------------|--------|---------------------------|--------|--------|-------------------|--------|
| 2008                                         |   | September      30,        |   |   | December      31, |   |   | Total |   |
| WTI      Swaps                               |   |                      |   |   |              |   |   |   |   |
| Barrels      hedged (in thousands)           |   |                      | 230    |   |              |   | 230 |   |   |   | 460 |   |
| Equivalent      gallons hedged (in millions) |   |                      | 9.66   |   |              |   | 9.66 |   |   |   | 19.32 |   |
| Average      swap price (per barrel)         |   | $                         | 63.70  |   |              | $      | 63.70 |   |   | $ | 63.70 |   |
| Fair      value (in millions)                |   | $                         | 18     |   |              | $      | 18 |   |   | $ | 36 |   |
|                                         |   |                      |   |   |              |   |   |   |   |   |   |   |
| WTI      Costless Collars                    |   |                      |   |   |              |   |   |   |   |   |   |   |
| Barrels      hedged (in thousands)           |   |                      | 420    |   |              |   | 130 |   |   |   | 550 |   |
| Equivalent      gallons hedged (in millions) |   |                      | 17.64  |   |              |   | 5.46 |   |   |   | 23.10 |   |
| Average      cap price (per barrel)          |   | $                         | 137.18 |   |              | $      | 135.41 |   |   | $ | 136.76 |   |
| Average      floor price (per barrel)        |   | $                         | 125.70 |   |              | $      | 124.34 |   |   | $ | 125.38 |   |
| Fair      value (in millions)                |   | $                         | 2      |   |              | $      | 1 |   |   | $ | 3 |   |

|                                         |   | Quarter      Ending |   |   |          |   |
|----------------------------------------------|--------|---------------------|--------|--------|---------------|--------|
| 2009                                         |   | March      31,      |   |   | June      30, |   |   | September      30, |   |   | December      31, |   |   | Annual |   |
| WTI      Swaps                               |   |                |   |   |          |   |   |   |   |   |   |   |   |   |   |
| Barrels      hedged (in thousands)           |   |                | 100    |   |          |   | 100 |   |   |   | 100 |   |   |   | 160 |   |   |   | 460 |   |
| Equivalent      gallons hedged (in millions) |   |                | 4.20   |   |          |   | 4.20 |   |   |   | 4.20 |   |   |   | 6.72 |   |   |   | 19.32 |   |
| Average      swap price (per barrel)         |   | $                   | 65.10  |   |          | $      | 65.10 |   |   | $ | 65.10 |   |   | $ | 76.24 |   |   | $ | 68.97 |   |
| Fair      value (in millions)                |   | $                   | 8      |   |          | $      | 8 |   |   | $ | 7 |   |   | $ | 10 |   |   | $ | 33 |   |
|                                         |   |                |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| WTI      Costless Collars                    |   |                |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Barrels      hedged (in thousands)           |   |                | 185    |   |          |   | 185 |   |   |   | 135 |   |   |   | 135 |   |   |   | 640 |   |
| Equivalent      gallons hedged (in millions) |   |                | 7.77   |   |          |   | 7.77 |   |   |   | 5.67 |   |   |   | 5.67 |   |   |   | 26.88 |   |
| Average      cap price (per barrel)          |   | $                   | 136.52 |   |          | $      | 135.79 |   |   | $ | 136.95 |   |   | $ | 136.66 |   |   | $ | 136.43 |   |
| Average      floor price (per barrel)        |   | $                   | 125.53 |   |          | $      | 125.02 |   |   | $ | 126.29 |   |   | $ | 126.00 |   |   | $ | 125.64 |   |
| Fair      value (in millions)                |   | $                   | 1      |   |          | $      | 1 |   |   | $ | <1 |   |   | $ | <1 |   |   | $ | 3 |   |

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|                                         |   | Quarter      Ending |   |   |          |   |
|----------------------------------------------|--------|---------------------|--------|--------|---------------|--------|
| 2010                                         |   | March      31,      |   |   | June      30, |   |   | September      30, |   |   | December      31, |   |   | Annual |   |
| WTI      Swaps                               |   |                |   |   |          |   |   |   |   |   |   |   |   |   |   |
| Barrels      hedged (in thousands)           |   |                | 160    |   |          |   | 90 |   |   |   | 90 |   |   |   | 90 |   |   |   | 430 |   |
| Equivalent      gallons hedged (in millions) |   |                | 6.72   |   |          |   | 3.78 |   |   |   | 3.78 |   |   |   | 3.78 |   |   |   | 18.06 |   |
| Average      swap price (per barrel)         |   | $                   | 76.06  |   |          | $      | 84.73 |   |   | $ | 84.69 |   |   | $ | 84.68 |   |   | $ | 81.49 |   |
| Fair      value (in millions)                |   | $                   | 10     |   |          | $      | 5 |   |   | $ | 5 |   |   | $ | 4 |   |   | $ | 24 |   |

|                                       |   | June      30, 2008 |   |   | December      31, 2007 |   |
|--------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
| Unrecognized      gain on closed hedges    |   | $                       | 1      |   |                   | $      | 1 |   |
| Tax      effect                            |   | –                 |   |   | –                |   |
| Unrecognized      gain in AOCL, net of tax |   | $                       | 1      |   |                   | $      | 1 |   |

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| 4. | Debt |
|----|------|

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|                                                                   |   | Guarantees                             |   |                            |   |
|------------------------------------------------------------------------|--------|----------------------------------------|--------|---------------------------------|--------|
|                                                                   |   | BNSF      Railway Ownership Percentage |   | PrincipalAmount      Guaranteed |   | MaximumFuture      Payments |   | MaximumRecourseAmounta |   | Remaining      Term(in      years) |   | Capitalized      Obligations |   |
| Kinder      Morgan Energy Partners, L.P.                               |   | 0.5%                                   |   | $                               | 190    |   | $ | 190 |   | $ | – |   | Termination      of Ownership |   | $ | – |   |
| Kansas      City Terminal Intermodal Transportation Corporation        |   | 0.0%                                   |   | $                               | 56     |   | $ | 79 |   | $ | 79 |   | 10 |   | $ | 29 | b |
| Westside      Intermodal Transportation Corporation                    |   | 0.0%                                   |   | $                               | 39     |   | $ | 59 |   | $ | – |   | 15 |   | $ | 33 | b |
| The      Unified Government of Wyandotte County/Kansas City, Kansas    |   | 0.0%                                   |   | $                               | 12     |   | $ | 18 |   | $ | – |   | 15 |   | $ | 10 | b |
| Chevron      Phillips    Chemical      Company, LP |   | 0.0%                                   |   |                            | N/Ad   |   |   | N/Ad |   |   | N/Ad |   | 9 |   | $ | 13 | c |
| Various      lessors(Residual      value guarantees)                   |   | 0.0%                                   |   |                            | N/A    |   | $ | 271 |   | $ | 271 |   | Various |   | $ | 68 | c |
| All      other                                                         |   | 0.0%                                   |   | $                               | 5      |   | $ | 6 |   | $ | 2 |   | Various |   | $ | – |   |

| a      Reflects the maximum amount the Company could recover from a third party      other than the counterparty. |
|-------------------------------------------------------------------------------------------------------------------|

| b      Reflects capitalized obligations that are recorded on the Company’s      Consolidated Balance Sheets. |
|--------------------------------------------------------------------------------------------------------------------|

| c      Reflects FASB Interpretation (FIN) 45, Guarantor’s Accounting and      Disclosure Requirements for Guarantees, asset and corresponding      liability for the fair value of these  guarantees. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                            |   | Three      Months EndedJune      30, |    |   | Six      Months Ended June      30, |   |
|---------------------------------|--------|--------------------------------------|---------|--------|-------------------------------------|--------|
|                            |   | 2008                                 |    |   | 2007                                |   |   | 2008 |   |   | 2007 |   |
| Beginning      balance          |   | $                                    | 266     |   |                                | $      | 301 |   |   | $ | 270 |   |   | $ | 306 |   |
| Accruals                        |   |                                 | – |   |                                |   | – |   |   |   | – |   |   |   | – |   |
| Payments                        |   | (5                                   | )       |   | (4                                  | )      |   | (9 | ) |   | (9 | ) |
| Ending      balance at June 30, |   | $                                    | 261     |   |                                | $      | 297 |   |   | $ | 261 |   |   | $ | 297 |   |

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|                                                 |   | Three      Months EndedJune      30,  |   |   | Six      Months EndedJune      30, |   |
|------------------------------------------------------|--------|--------------------------------------------|--------|--------|------------------------------------|--------|
|                                                 |   | 2008                                       |   |   | 2007                               |   |   | 2008 |   |   | 2007 |   |
| Claims      unresolved at beginning of period        |   |                                       | 1,827  |   |                               |   | 1,941 |   |   |   | 1,781 |   |   |   | 1,975 |   |
| Claims      filed                                    |   |                                       | 109    |   |                               |   | 93 |   |   |   | 272 |   |   |   | 232 |   |
| Claims      settled, dismissed or otherwise resolved |   | (136                                       | )      |   | (104                               | )      |   | (253 | ) |   | (277 | ) |
| Ending      balance at June 30,                      |   |                                       | 1,800  |   |                               |   | 1,930 |   |   |   | 1,800 |   |   |   | 1,930 |   |

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|                            |   | Three      Months EndedJune      30, |   |   | Six      Months EndedJune      30, |   |
|---------------------------------|--------|--------------------------------------|--------|--------|------------------------------------|--------|
|                            |   | 2008                                 |   |   | 2007                               |   |   | 2008 |   |   | 2007 |   |
| Beginning      balance          |   | $                                    | 454    |   |                               | $      | 434 |   |   | $ | 439 |   |   | $ | 439 |   |
| Accruals                        |   |                                 | 56     |   |                               |   | 46 |   |   |   | 102 |   |   |   | 93 |   |
| Payments                        |   | (36                                  | )      |   | (43                                | )      |   | (67 | ) |   | (95 | ) |
| Ending      balance at June 30, |   | $                                    | 474    |   |                               | $      | 437 |   |   | $ | 474 |   |   | $ | 437 |   |

|                                                 |   | Three      Months EndedJune      30,  |   |   | Six      Months EndedJune      30, |   |
|------------------------------------------------------|--------|--------------------------------------------|--------|--------|------------------------------------|--------|
|                                                 |   | 2008                                       |   |   | 2007                               |   |   | 2008 |   |   | 2007 |   |
| Claims      unresolved at beginning of period        |   |                                       | 3,972  |   |                               |   | 3,222 |   |   |   | 3,322 |   |   |   | 3,130 |   |
| Claims      filed                                    |   |                                       | 913    |   |                               |   | 945 |   |   |   | 2,447 |   |   |   | 1,866 |   |
| Claims      settled, dismissed or otherwise resolved |   | (944                                       | )      |   | (1,036                             | )      |   | (1,828 | ) |   | (1,865 | ) |
| Ending      balance at June 30,                      |   |                                       | 3,941  |   |                               |   | 3,131 |   |   |   | 3,941 |   |   |   | 3,131 |   |

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|                            |   | Three      Months EndedJune      30, |   |   | Six      Months EndedJune      30, |   |
|---------------------------------|--------|--------------------------------------|--------|--------|------------------------------------|--------|
|                            |   | 2008                                 |   |   | 2007                               |   |   | 2008 |   |   | 2007 |   |
| Beginning      balance          |   | $                                    | 376    |   |                               | $      | 370 |   |   | $ | 380 |   |   | $ | 318 |   |
| Accruals                        |   |                                 | 182    |   |                               |   | 7 |   |   |   | 197 |   |   |   | 74 |   |
| Payments                        |   | (13                                  | )      |   | (15                                | )      |   | (32 | ) |   | (30 | ) |
| Ending      balance at June 30, |   | $                                    | 545    |   |                               | $      | 362 |   |   | $ | 545 |   |   | $ | 362 |   |

|                                        |   | Three      Months EndedJune      30, |    |   | Six      Months EndedJune      30, |   |
|---------------------------------------------|--------|--------------------------------------|---------|--------|------------------------------------|--------|
| BNSF      Sites                             |   | 2008                                 |    |   | 2007                               |   |   | 2008 |   |   | 2007 |   |
| Number      of sites at beginning of period |   |                                 | 346     |   |                               |   | 368 |   |   |   | 346 |   |   |   | 375 |   |
| Sites      added during the period          |   |                                 | 6       |   |                               |   | 7 |   |   | 12 |   |   |   | 12 |   |
| Sites      closed during the period         |   | (2                                   | )       |   | (28                                | )      |   | (8 | ) |   | (40 | ) |
| Number      of sites at June 30,            |   |                                 | 350     |   |                               |   | 347 |   |   |   | 350 |   |   |   | 347 |   |
|                                        |   |                                 |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|                                        |   | Three      Months EndedJune      30, |    |   | Six      Months EndedJune      30, |   |
| Superfund      Sites                        |   | 2008                                 |    |   | 2007                               |   |   | 2008 |   |   | 2007 |   |
| Number      of sites at beginning of period |   |                                 | 20      |   |                               |   | 20 |   |   |   | 20 |   |   |   | 20 |   |
| Sites      added during the period          |   |                                 | – |   |                               |   | – |   |   |   | – |   |   |   | – |   |
| Sites      closed during the period         |   | –                              |    |   | –                            |   |   | – |   |   | – |   |
| Number      of sites at June 30,            |   |                                 | 20      |   |                               |   | 20 |   |   |   | 20 |   |   |   | 20 |   |

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| Six      Months Ended June 30,       |   | 2008   |   |   | 2007   |   |
|--------------------------------------|--------|--------|--------|--------|--------|--------|
| Beginning      balance at January 1, |   | $      | 91     |   |   | $      | 107 |   |
| Accruals                             |   |   | 3      |   |   |   | 5 |   |
| Payments                             |   | (7     | )      |   | (10    | )      |
| Ending      balance at June 30,      |   | $      | 87     |   |   | $      | 102 |   |

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|                                |   | Pension      Benefits                |   |
|-------------------------------------|--------|--------------------------------------|--------|
|                                |   | Three      Months EndedJune      30, |   |   | Six      Months EndedJune      30, |   |
| Net      Periodic Cost              |   | 2008                                 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
| Service      cost                   |   | $                                    | 6      |   |   | $ | 6 |   |   | $ | 12 |   |   | $ | 12 |   |
| Interest      cost                  |   |                                 | 25     |   |   |   | 25 |   |   |   | 51 |   |   |   | 49 |   |
| Expected      return on plan assets |   |                                 | (28    | ) |   |   | (27 | ) |   |   | (56 | ) |   |   | (53 | ) |
| Amortization      of net loss       |   | 4                                    |   |   | 9 |   |   | 8 |   |   | 18 |   |
| Net      periodic benefit cost      |   | $                                    | 7      |   |   | $ | 13 |   |   | $ | 15 |   |   | $ | 26 |   |

|                                    |   | Retiree      Health and Welfare Benefits |    |
|-----------------------------------------|--------|------------------------------------------|---------|
|                                    |   | Three      Months EndedJune      30,     |    |   | Six      Months EndedJune      30, |   |
| Net      Periodic Cost                  |   | 2008                                     |    |   | 2007 |   |   | 2008 |   |   | 2007 |   |
| Service      cost                       |   | $                                        | – |   |   | $ | 1 |   |   | $ | 1 |   |   | $ | 2 |   |
| Interest      cost                      |   |                                     | 5       |   |   |   | 4 |   |   |   | 9 |   |   |   | 8 |   |
| Amortization      of net loss           |   |                                     | 1       |   |   |   | 2 |   |   |   | 2 |   |   |   | 3 |   |
| Amortization      of prior service cost |   | (2                                       | )       |   | (2 | ) |   | (4 | ) |   | (4 | ) |
| Net      periodic benefit cost          |   | $                                        | 4       |   |   | $ | 5 |   |   | $ | 8 |   |   | $ | 9 |   |

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|                                                                                                                     |   |    | Three      Months Ended June      30, |   |   | Six      Months Ended June      30, |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|---------|---------------------------------------|--------|--------|-------------------------------------|--------|
|                                                                                                                     |   |    | 2008                                  |   |   | 2007                                |   |   | 2008 |   |   | 2007 |   |
| Net      income                                                                                                          |   | $  |                                  | 417    |   | $                              |   | 531 |   | $  |   | 944 |   | $  |   | 976 |   |
| Other      comprehensive income:                                                                                         |   |    |                                  |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
|     Amortization      of prior service costs and actuarial losses, net of tax (see Note      7) |   |    |                                  | 2      |   |                                |   | 5 |   |   |   | 4 |   |   |   | 10 |   |
| Gain      on derivative instruments and other items, net of tax (see Note      2)                                        |   |    |                                  | 44     |   |                                |   | 7 |   |   |   | 53 |   |   |   | – |   |
| Unrealized      gain on securities held by equity method investees, net of    tax                                        |   |    | 1                                     |   |   | –                             |   |   | – |   |   | – |   |
| Total      comprehensive income                                                                                          |   | $  |                                  | 464    |   | $                              |   | 543 |   | $  |   | 1,001 |   | $  |   | 986 |   |

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Management’s 

|                          |   |    | Revenues(in      millions) |   |   | Cars      / Units(in      thousands) |   |   | Average      RevenuePer      Car / Unit |   |
|-------------------------------|--------|---------|----------------------------|--------|--------|--------------------------------------|--------|--------|-----------------------------------------|--------|
|                          |   |    | 2008                       |   |   | 2007                                 |   |   | 2008                                    |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
|                          |   |    |                       |   |   |                                 |   |   |                                    |   |
| Consumer      Products        |   | $  |                       | 2,957  |   | $                               |   | 2,712  |                                    |   |   | 2,401 |   |   |   | 2,575 |   | $  |   | 1,232 |   | $  |   | 1,053 |   |
| Industrial      Products      |   |    |                       | 1,985  |   |                                 |   | 1,796  |                                    |   |   | 825 |   |   |   | 821 |   |   |   | 2,406 |   |   |   | 2,188 |   |
| Coal                          |   |    |                       | 1,856  |   |                                 |   | 1,536  |                                    |   |   | 1,223 |   |   |   | 1,205 |   |   |   | 1,518 |   |   |   | 1,275 |   |
| Agricultural      Products    |   |    | 1,694                      |   |   | 1,236                                |   |   | 546                                     |   |   | 487 |   |   | 3,103 |   |   | 2,538 |   |
| Total      Freight Revenues   |   |    |                       | 8,492  |   |                                 |   | 7,280  |                                    |   |   | 4,995 |   |   |   | 5,088 |   | $ |   | 1,700 |   | $  |   | 1,431 |   |
| Other      Revenues           |   |    | 139                        |   |   | 119                                  |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Operating Revenues |   | $  |                       | 8,631  |   | $                                    |   | 7,399  |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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Controls 

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Legal 

Exhibits

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SIGNATURES

| BNSF      Railway Company(Registrant) |
|---------------------------------------|
|                                  |   |   |
| By:                                   |   | /s/    Thomas      N. Hund         |
|                                  |   | Thomas      N. HundExecutive      Vice President and Chief Financial Officer(On      behalf of the Registrant andas      principal financial officer) |

| Dated:  July      24, 2008 |
|--------------------------------------|

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BNSF 

|   |   |   |                                                                                                                |   | Incorporated by      Reference(if      applicable) |
|--------|--------|--------|---------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|
|   |   |   | Exhibit Number and      Description                                                                                 |   | Form                                               | File      Date | File      No. | Exhibit |
|   |   |   |                                                                                                                |   |                                               |   |   |   |
|   | 3.1    |   | Restated      Certificate of Incorporation of BNSF Railway Company, dated January 17,      2005.                    |   | 10-Q                                               | 7/26/2005 | 001-06324 | 3.1 |
|   |   |   |                                                                                                                |   |                                               |   |   |   |
|   | 3.2    |   | By-Laws      of BNSF Railway Company, as amended August 30, 2005.                                                   |   | 10-Q                                               | 10/25/2005 | 001-06324 | 3.1 |
|   |   |   |                                                                                                                |   |                                               |   |   |   |
|   | 12.1   |   | Computation of Ratio of Earnings to Fixed      Charges.*                                                            |   |                                               |   |   |   |
|   |   |   |                                                                                                                |   |                                               |   |   |   |
|   | 31.1   |   | Principal Executive Officer’s Certifications Pursuant to      Section 302 of the Sarbanes-Oxley Act of 2002.* |   |                                               |   |   |   |
|   |   |   |                                                                                                                |   |                                               |   |   |   |
|   | 31.2   |   | Principal Financial Officer’s Certifications Pursuant to      Section 302 of the Sarbanes-Oxley Act of 2002.* |   |                                               |   |   |   |
|   |   |   |                                                                                                                |   |                                               |   |   |   |
|   | 32.1   |   | Certification Pursuant to 18 U.S.C. § 1350 (Section 906      of the Sarbanes-Oxley Act of 2002).*              |   |                                               |   |   |   |
|   |   |   |                                                                                                                |   |                                               |   |   |   |
|   |   |   |                                                                                                                |   |                                               |   |   |   |

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