----

----

----

----

| 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 14, 2009 |
|-------------------------------|--------------|-----------------------------------|
| Common stock, $1.00 par value |    | 1,000 shares                 |

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Table

|       |                                                            |   |
|------------|-----------------------------------------------------------------|--------|
| PART I     | FINANCIAL INFORMATION                                           | PAGE   |
|       |                                                            |   |
| Item 1.    | Financial Statements.                                           | 3      |
| Item 2.    | Management’s Narrative Analysis of Results of Operations. | 26     |
| Item 4.    | Controls and Procedures.                                        | 31     |
|       |                                                            |   |
| PART II    | OTHER INFORMATION                                               |   |
|       |                                                            |   |
| Item 6.    | Exhibits.                                                       | 32     |
| Signatures |                                                            | S-1    |
| Exhibits   |                                                            | E-1    |

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Table of Contents

Financial Statements

|                                                                                            |   |   |  Three Months Ended |   |   |  Six Months Ended |    |
|-------------------------------------------------------------------------------------------------|--------|--------|--------------------------|--------|--------|------------------------|---------|
|                                                                                            |   |   |  June 30,           |   |   | June 30,               |    |
|                                                                                            |   |   | 2009                     |   |   | 2008                   |    |   | 2009 |   |   | 2008 |   |
| Revenues                                                                                        |   | $      | 3,275                    |   | $      | 4,420                  |    | $ | 6,658 |   | $ | 8,631 |   |
|                                                                                            |   |   |                     |   |   |                   |    |   |   |   |   |   |   |
| Operating expenses:                                                                             |   |   |                     |   |   |                   |    |   |   |   |   |   |   |
| Compensation and benefits                                                                       |   |   | 818                      |   |   | 947                    |    |   | 1,680 |   |   | 1,924 |   |
| Fuel                                                                                            |   |   | 509                      |   |   | 1,291                  |    |   | 1,123 |   |   | 2,336 |   |
| Purchased services                                                                              |   |   | 462                      |   |   | 522                    |    |   | 938 |   |   | 1,041 |   |
| Depreciation and amortization                                                                   |   |   | 378                      |   |   | 349                    |    |   | 748 |   |   | 690 |   |
| Equipment rents                                                                                 |   |   | 196                      |   |   | 223                    |    |   | 397 |   |   | 453 |   |
| Materials and other                                                                             |   |   | 120                      |   |   | 377                    |    |   | 319 |   |   | 594 |   |
| Total operating expenses                                                                        |   |   | 2,483                    |   |   | 3,709                  |    |   | 5,205 |   |   | 7,038 |   |
|             Operating income             |   |   | 792                      |   |   | 711                    |    |   | 1,453 |   |   | 1,593 |   |
| Interest expense                                                                                |   |   | 35                       |   |   | 30                     |    |   | 77 |   |   | 57 |   |
| Interest income, related parties                                                                |   |   | –             |   |   | (2                     | )  |   |  – |   |   | (7 | )  |
| Other expense, net                                                                              |   |   | –             |   |   | 6                      |    |   | 3 |   |   | 9 |   |
|                                                                                            |   |   |                     |   |   |                   |    |   |   |   |   |   |   |
| Income before income taxes                                                                      |   |   | 757                      |   |   | 677                    |    |   | 1,373 |   |   | 1,534 |   |
| Income tax expense                                                                              |   |   | 293                      |   |   | 260                    |    |   | 525 |   |   | 590 |   |
|                Net income |   | $      | 464                      |   | $      | 417                    |    | $ | 848 |   | $ | 944 |   |
|                                                                                            |   |

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Table of Contents

|                                                                                           |   |   | June 30, |   |   | December 31, |   |
|------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|-------------------|--------|
|                                                                                           |   |   | 2009     |   |   | 2008              |   |
|                                                                                           |   |   |     |   |   |
| ASSETS                                                                                         |   |   |     |   |   |
| Current assets:                                                                                |   |   |     |   |   |
| Cash and cash equivalents                                                                      |   | $      | 9        |   | $      | 209               |   |
| Accounts receivable, net                                                                       |   |   | 839      |   |   | 873               |   |
| Materials and supplies                                                                         |   |   | 533      |   |   | 524               |   |
| Current portion of deferred income taxes                                                       |   |   | 401      |   |   | 434               |   |
| Other current assets                                                                           |   |   | 475      |   |   | 337               |   |
|   Total current assets                                                                    |   |   | 2,257    |   |   | 2,377             |   |
|                                                                                           |   |   |     |   |   |              |   |
| Property and equipment, net of accumulated depreciation of $10,209and $9,908, respectively     |   |   | 31,731   |   |   | 30,838            |   |
| Other assets                                                                                   |   |   | 3,110    |   |   | 2,910             |   |
| Total assets                                                                                   |   | $      | 37,098   |   | $      | 36,125            |   |
|                                                                                           |   |   |     |   |   |              |   |
| LIABILITIES AND STOCKHOLDER’S EQUITY                                                     |   |   |     |   |   |              |   |
| Current liabilities:                                                                           |   |   |     |   |   |              |   |
| Accounts payable and other current liabilities                                                 |   | $      | 2,701    |   | $      | 3,114             |   |
| Long-term debt due within one year                                                             |   |   | 288      |   |   | 254               |   |
|   Total current liabilities                                                               |   |   | 2,989    |   |   | 3,368             |   |
|                                                                                           |   |   |     |   |   |              |   |
| Long-term debt                                                                                 |   |   | 2,145    |   |   | 1,821             |   |
| Deferred income taxes                                                                          |   |   | 9,090    |   |   | 8,672             |   |
| Pension and retiree health and welfare liability                                               |   |   | 1,020    |   |   | 1,047             |   |
| Casualty and environmental liabilities                                                         |   |   | 949      |   |   | 959               |   |
| Employee separation costs                                                                      |   |   | 65       |   |   | 57                |   |
| Other liabilities                                                                              |   |   | 1,736    |   |   | 1,835             |   |
|       Total liabilities                                          |   |   | 17,994   |   |   | 17,759            |   |
| 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                                                                              |   |   | 13,700   |   |   | 12,852            |   |
| Intercompany notes receivable                                                                  |   |   | (322     | )      |   | (6                | )      |
| Accumulated other comprehensive loss                                                           |   |   | (605     | )      |   | (811              | )      |
| Total stockholder’s equity                                                               |   |   | 19,104   |   |   | 18,366            |   |
| Total liabilities and stockholder’s equity                                               |   | $      | 37,098   |   | $      | 36,125            |   |
|                                                                                           |   |

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Table of Contents

| Six Months Ended June 30,                                                         |   |    | 2009    |   |    | 2008    |   |
|-----------------------------------------------------------------------------------|--------|---------|---------|--------|---------|---------|--------|
|                                                                              |   |    |    |   |    |    |   |
| OPERATING ACTIVITIES                                                              |   |    |    |   |    |    |   |
|     Net income                                                |   |  $ | 848     |   |  $ | 944     |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |    |    |   |    |    |   |
| Depreciation and amortization                                                     |   |    | 748     |   |    | 690     |   |
| Deferred income taxes                                                             |   |    | 316     |   |    | 154     |   |
| Employee separation costs paid                                                    |   |    | (6      | )      |    | (7      | )      |
| Long-term casualty and environmental liabilities, net                             |   |    | (30     | )      |    | 191     |   |
| Other, net                                                                        |   |    | (29     | )      |    | (12     | )      |
| Changes in current assets and liabilities:                                        |   |    |    |   |    |    |   |
| Accounts receivable, net                                                          |   |    | 91      |   |    | (90     | )      |
| Change in accounts receivable sales program                                       |   |    | (50     | )      |    | – |   |
| Materials and supplies                                                            |   |    | (9      | )      |    | (109    | )      |
| Other current assets                                                              |   |    | (164    | )      |    | (175    | )      |
| Accounts payable and other current liabilities                                    |   |    | (233    | )      |    | 52      |   |
|  Net cash provided by operating activities                                   |   |    | 1,482   |   |    | 1,638   |   |
| INVESTING ACTIVITIES                                                              |   |    |    |   |    |    |   |
| Capital expenditures                                                              |   |    | (1,079  | )      |    | (1,042  | )      |
| Construction costs for facility financing obligation                              |   |    | (31     | )      |    | (17     | )      |
| Acquisition of equipment pending financing                                        |   |    | (456    | )      |    | (430    | )      |
| Proceeds from sale of assets financed                                             |   |    | 368     |   |    | 190     |   |
| Other, net                                                                        |   |    | (94     | )      |    | (98     | )      |
|  Net cash used for investing activities                                      |   |    | (1,292  | )      |    | (1,397  | )      |
| FINANCING ACTIVITIES                                                              |   |    |    |   |    |    |   |
| Net increase in short-term bank borrowing                                         |   |    | – |   |    | 8       |   |
| Payments on long-term debt                                                        |   |    | (122    | )      |    | (109    | )      |
| Proceeds from facility financing obligation                                       |   |    | 51      |   |    | 29      |   |
| Net increase in intercompany notes receivable classified as equity                |   |    | (316    | )      |    | (135    | )      |
| Other, net                                                                        |   |    | (3      | )      |    | – |   |
|  Net cash used for financing activities                                      |   |    | (390    | )      |    | (207    | )      |
|  (Decrease) increase in cash and cash equivalents                            |   |    | (200    | )      |    | 34      |   |
|  Cash and cash equivalents:                                                  |   |    |    |   |    |    |   |
| Beginning of period                                                               |   |    | 209     |   |    | 24      |   |
| End of period                                                                     |   | $       | 9       |   | $       | 58      |   |
| SUPPLEMENTAL CASH FLOW INFORMATION                                                |   |    |    |   |    |    |   |
| Interest paid, net of amounts capitalized                                         |   | $       | 52      |   | $       | 49      |   |
| Income taxes paid, net of refunds                                                 |   | $       | 356     |   | $       | 521     |   |
| Non-cash asset financing                                                          |   | $       | 433     |   | $       | 61      |   |

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Table of Contents

|                                                                                             |   | Common Stock and Paid-in Capital |    |   | Retained Earnings |   |    | Inter-CompanyNotesReceivable |   |   | Accumulated Other Comprehensive Loss |   | Total Stockholder’s Equity |   |
|--------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|-------------------|--------|---------|------------------------------|--------|--------|--------------------------------------|--------|----------------------------------|--------|
| Balance at December 31, 2008                                                                     |   | $                                | 6,331   |   |              | $      | 12,852  |                         |   | $      | (6                                   | )      |                             | $      | (811 | ) | $ | 18,366 |   |
| Change in intercompany notes receivable                                                          |   |                             | – |   |              |   | – |                         |   |   | (316                                 | )      |                             |   | – |   |   | (316 | )  |
| Comprehensive income:                                                                            |   |                             |    |   |              |   |    |                         |   |   |                                 |   |                             |   |   |   |   |   |   |
|          Net income                                      |   |                             | – |   |              |   | 848     |                         |   |   | –                              |   |                             |   | – |   |   | 848 |   |
|  Change in unrecognized prior service credit and actuarial losses, net of tax expense of $4 |   |                             | – |   |              |   | – |                         |   |   | –                              |   |                             |   | 6 |   |   | 6 |   |
|  Fuel hedge mark-to-market and other items, net of tax expense of $122                      |   |                             | – |   |              |   | – |                         |   |   | –                              |   |                             |   | 200 |   |   | 200 |   |
|         Total comprehensive income                       |   |                             |    |   |              |   |    |                         |   |   |                                 |   |                             |   |   |   |   | 1,054 |   |
| Balance at June 30, 2009                                                                         |   | $                                | 6,331   |   |              | $      | 13,700  |                         |   | $      | (322                                 | )      |                             | $      | (605 | ) | $ | 19,104 |   |
|                                                                                             |   |                             |    |
|                                                                                             |   |

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Table of Contents

|                       |   | June 30,2009 |   |   | December 31,2008 |   |
|----------------------------|--------|--------------|--------|--------|------------------|--------|
| Short-term hedge asset     | $      | 2            |   | $      | −          |   |
| Long-term hedge asset      |   | 8            |   |   | −          |   |
| Short-term hedge liability |   | (91          | )      |   | (279             | )      |
| Long-term hedge liability  |   | (53          | )      |   | (193             | )      |
| Total derivatives          | $      | (134         | )      | $      | (472             | )      |

| Fair Value of Derivative Instruments                                             |                                                                                                                                    |
|----------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|
|                                                                             |                                                                                                                                    |
|    Asset Derivatives                                                   |                                                                                                                                    |
|                                                                             |                                                                                                                                    |   |   |   |
|                                                                             |                  Balance Sheet                          |   | June 30, |   |   | December 31, |   |
|                                                                             |              Location                                                       |   | 2009 |   |   | 2008 |   |
| Derivatives designated as hedging instruments under SFAS No. 133                 |                                                                                                                                    |   |   |   |   |
| Fuel Contracts                                                                   | Other current assets                                                                                                                    | $ | 4 |   | $ | − |   |
| Fuel Contracts                                                                   | Other assets                                                                                                                            |   | 13 |   |   | − |   |
| Fuel Contracts                                                                   | Accounts payable and other current liabilities                                                                                          |   | 4 |   |   | − |   |
| Fuel Contracts                                                                   | Other liabilities                                                                                                                       |   | 2 |   |   | − |   |
| Total Asset Derivatives designated as hedging instruments under SFAS No. 133     |                                                                                                                                    | $ | 23 |   | $ | − |   |
|                                                                             |                                                                                                                                    |
|         Liability Derivatives                 |                                                                                                                                    |
|                                                                             |                                                                                                                                    |   |   |   |   |
|                                                                             |                   Balance Sheet                    |   | June 30, |   |   | December 31, |   |
|                                                                             |                       Location |   | 2009 |   |   | 2008 |   |
| Derivatives designated as hedging instruments under SFAS No. 133                 |                                                                                                                                    |   |   |   |   |   |   |
| Fuel Contracts                                                                   | Other current assets                                                                                                                    | $ | 2 |   | $ | − |   |
| Fuel Contracts                                                                   | Other assets                                                                                                                            |   | 5 |   |   | − |   |
| Fuel Contracts                                                                   | Accounts payable and other current liabilities                                                                                          |   | 95 |   |   | 279 |   |
| Fuel Contracts                                                                   | Other liabilities                                                                                                                       |   | 55 |   |   | 193 |   |
| Total Liability Derivatives designated as hedging instruments under SFAS No. 133 |                                                                                                                                    | $ | 157 |   | $ | 472 |   |

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Table of Contents

| The Effect of Derivative Instruments Gains and Lossesfor the Three Month Periods Ended June 30, 2009 and 2008 |
|---------------------------------------------------------------------------------------------------------------|

| Derivatives in SFAS No. 133 Cash Flow Hedging Relationships |   |   |  Amount of Gain or (Loss) Recognized in OCI on Derivative(Effective Portion) |   | Location of Gainor (Loss) Recognized from AOCL into Income |   |   | Amount of Gain or (Loss) Recognized from AOCL into Income(Effective Portion) |   | Location of Gain Recognized in Income on Derivative |   |   | Amount of Gain Recognized in Income on Derivative(Ineffective Portion and AmountExcluded fromEffectiveness Testing)a |   |
|-------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------|--------|------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------|--------|-----------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------|--------|
|                                                        |   |   | 2009                                                                              |   |                                                       | 2008   |   |                                                                              |   |                                                | 2009   |   |                                                                                                                      | 2008   |   |   |   |   | 2009 |   | 2008 |   |
| FuelContracts                                               |   | $      | 204                                                                               |   | $                                                          | 96     |   | Fuel expense                                                                      |   | $                                                   | (60    | )      | $                                                                                                                         | 23     |   | Fuel expense |   | $ | 15 |   | $ | − |   |
| Total derivatives                                           |   | $      | 204                                                                               |   | $                                                          | 96     |   |                                                                              |   | $                                                   | (60    | )      | $                                                                                                                         | 23     |   |   |   | $ | 15 |   | $ | − |   |

| The Effect of Derivative Instruments Gains and Lossesfor the Six Month Periods Ended June 30, 2009 and 2008 |
|-------------------------------------------------------------------------------------------------------------|

| Derivatives in SFAS No. 133 Cash Flow Hedging Relationships |   |   | Amount of Gain or (Loss) Recognized in OCI on Derivative(Effective Portion) |   | Location of Gainor (Loss) Recognized from AOCL into Income |   |   | Amount of Gain or (Loss) Recognized from AOCL into Income(Effective Portion) |   | Location of Gain Recognized in Income on Derivative |   |   | Amount of Gain Recognized in Income on Derivative(Ineffective Portion and AmountExcluded fromEffectiveness Testing)a |   |
|-------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------|--------|-----------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------|--------|-----------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------|--------|
|                                                        |   |   | 2009                                                                        |   |                                                            | 2008   |   |                                                                                   |   |                                                | 2009   |   |                                                                                                                      | 2008   |   |   |   |   | 2009 |   |   | 2008 |   |
| FuelContracts                                               |   | $      | 172                                                                         |   | $                                                               | 120    |   | Fuel expense                                                                           |   | $                                                   | (166   | )      | $                                                                                                                         | 33     |   | Fuel expense |   | $ | 16 |   | $ | − |   |
| Total derivatives                                           |   | $      | 172                                                                         |   | $                                                               | 120    |   |                                                                                   |   | $                                                   | (166   | )      | $                                                                                                                         | 33     |   |   |   | $ | 16 |   | $ | − |   |

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|                                   |   |   | June 30, |   |   | December 31, |   |
|----------------------------------------|--------|--------|----------|--------|--------|--------------|--------|
|                                   |   |   | 2009     |   |   | 2008         |   |
|                                   |   |   |     |   |   |         |   |
| Settled fuel-hedging contracts payable |   | $      | (60      | )      | $      | (38          | )      |

|                            |   | Quarter Ending |   |     |   |
|---------------------------------|--------|----------------|--------|----------|--------|
| 2010                            |   | March 31,      |   | June 30, |   | September 30, |   | December 31, |   | Annual |   |
| HO Swaps                        |   |           |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Gallons hedged (in millions)    |   |           | 4.00   |     |   | 6.15 |   |   | 4.00 |   |   | 4.20 |   |   | 18.35 |   |
| Average swap price (per gallon) |   | $              | 1.74   |     | $      | 1.76 |   | $ | 1.81 |   | $ | 1.87 |   | $ | 1.79 |   |
| Fair value (in millions)        |   | $              | 1      |     | $      | 1 |   | $ | 1 |   | $ | 1 |   | $ | 4 |   |

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Table of Contents

|                            |   | Quarter Ending |   |     |   |
|---------------------------------|--------|----------------|--------|----------|--------|
| 2011                            |   | March 31,      |   | June 30, |   | September 30, |   | December 31, |   | Annual |   |
| HO Swaps                        |   |           |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Gallons hedged (in millions)    |   |           | 6.70   |     |   | 6.70 |   |   | 6.00 |   |   | 6.00 |   |   | 25.40 |   |
| Average swap price (per gallon) |   | $              | 1.86   |     | $      | 1.85 |   | $ | 1.91 |   | $ | 1.97 |   | $ | 1.90 |   |
| Fair value (in millions)        |   | $              | 2      |     | $      | 2 |   | $ | 2 |   | $ | 2 |   | $ | 8 |   |

|                            |   | Quarter Ending |   |
|---------------------------------|--------|----------------|--------|
| 2012                            |   | March 31,      |   |
| HO Swaps                        |   |           |   |   |
| Gallons hedged (in millions)    |   |           | 15.20  |   |
| Average swap price (per gallon) |   | $              | 2.06   |   |
| Fair value (in millions)        |   | $              | 4      |   |

|                                    |   | Quarter Ending |   |         |   |   |
|-----------------------------------------|--------|----------------|--------|--------------|--------|--------|
| 2009                                    |   | September 30,  |   | December 31, |   |   | Total |   |
| WTI Swaps                               |   |           |   |         |   |   |   |   |
| Barrels hedged (in thousands)           |   |           | 1,240  |         |   | 1,425  |   |   | 2,665 |   |
| Equivalent gallons hedged (in millions) |   |           | 52.08  |         |   | 59.85  |   |   | 111.93 |   |
| Average swap price (per barrel)         |   | $              | 75.09  |         | $      | 75.72  |   | $ | 75.43 |   |
| Fair value (in millions)                |   | $              | (5     | )            | $      | (4     | ) | $ | (9 | ) |
|                                    |   |           |   |         |   |   |   |   |   |   |
| WTI Costless Collars                    |   |           |   |         |   |   |   |   |   |   |
| Barrels hedged (in thousands)           |   |           | 520    |         |   | 475    |   |   | 995 |   |
| Equivalent gallons hedged (in millions) |   |           | 21.84  |         |   | 19.95  |   |   | 41.79 |   |
| Average cap price (per barrel)          |   | $              | 135.82 |         | $      | 135.46 |   | $ | 135.65 |   |
| Average floor price (per barrel)        |   | $              | 125.55 |         | $      | 125.38 |   | $ | 125.47 |   |
| Fair value (in millions)                |   | $              | (28    | )            | $      | (25    | ) | $ | (53 | ) |

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Table of Contents

|                                    |   | Quarter Ending |   |     |   |
|-----------------------------------------|--------|----------------|--------|----------|--------|
| 2010                                    |   | March 31,      |   | June 30, |   | September 30, |   | December 31, |   | Annual |   |
| WTI Swaps                               |   |           |   |     |   |   |   |   |   |   |   |
| Barrels hedged (in thousands)           |   |           | 1,210  |     |   | 1,110 |   |   | 1,125 |   |   | 1,235 |   |   | 4,680 |   |
| Equivalent gallons hedged (in millions) |   |           | 50.82  |     |   | 46.62 |   |   | 47.25 |   |   | 51.87 |   |   | 196.56 |   |
| Average swap price (per barrel)         |   | $              | 85.05  |     | $      | 87.89 |   | $ | 87.82 |   | $ | 86.27 |   | $ | 86.71 |   |
| Fair value (in millions)                |   | $              | (13    | )        | $      | (14 | ) | $ | (13 | ) | $ | (11 | ) | $ | (51 | ) |
|                                    |   |           |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| WTI Costless Collars                    |   |           |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Barrels hedged (in thousands)           |   |           | 420    |     |   | 420 |   |   | 420 |   |   | 320 |   |   | 1,580 |   |
| Equivalent gallons hedged (in millions) |   |           | 17.64  |     |   | 17.64 |   |   | 17.64 |   |   | 13.44 |   |   | 66.36 |   |
| Average cap price (per barrel)          |   | $              | 78.23  |     | $      | 79.79 |   | $ | 81.33 |   | $ | 82.84 |   | $ | 80.40 |   |
| Average floor price (per barrel)        |   | $              | 72.35  |     | $      | 73.84 |   | $ | 75.15 |   | $ | 76.54 |   | $ | 74.34 |   |
| Fair value (in millions)                |   | $              | (1     | )        | $      | (1 | ) | $ | (1 | ) | $ | (1 | ) | $ | (4 | ) |

|                                    |   | Quarter Ending |   |     |   |
|-----------------------------------------|--------|----------------|--------|----------|--------|
| 2011                                    |   | March 31,      |   | June 30, |   | September 30, |   | December 31, |   | Annual |   |
| WTI Swaps                               |   |           |   |     |   |   |   |   |   |   |   |
| Barrels hedged (in thousands)           |   |           | 870    |     |   | 880 |   |   | 885 |   |   | 935 |   |   | 3,570 |   |
| Equivalent gallons hedged (in millions) |   |           | 36.54  |     |   | 36.96 |   |   | 37.17 |   |   | 39.27 |   |   | 149.94 |   |
| Average swap price (per barrel)         |   | $              | 87.12  |     | $      | 86.52 |   | $ | 86.80 |   | $ | 87.07 |   | $ | 86.88 |   |
| Fair value (in millions)                |   | $              | (8     | )        | $      | (7 | ) | $ | (7 | ) | $ | (7 | ) | $ | (29 | ) |
|                                    |   |           |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| WTI Costless Collars                    |   |           |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Barrels hedged (in thousands)           |   |           | 200    |     |   | 200 |   |   | 200 |   |   | 200 |   |   | 800 |   |
| Equivalent gallons hedged (in millions) |   |           | 8.40   |     |   | 8.40 |   |   | 8.40 |   |   | 8.40 |   |   | 33.60 |   |
| Average cap price (per barrel)          |   | $              | 84.00  |     | $      | 84.70 |   | $ | 85.39 |   | $ | 86.10 |   | $ | 85.05 |   |
| Average floor price (per barrel)        |   | $              | 77.75  |     | $      | 78.40 |   | $ | 79.05 |   | $ | 79.70 |   | $ | 78.73 |   |
| Fair value (in millions)                |   | $              | (1     | )        | $      | (1 | ) | $ | (1 | ) | $ | (1 | ) | $ | (4 | ) |

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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%                              |   | $                          | 52     |   | $ | 72 |   | $ | 72 |   | 9 |   | $ | 27 | b |
| Westside Intermodal Transportation Corporation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 0.0%                              |   | $                          | 37     |   | $ | 55 |   | $ | – |   | 14 |   | $ | 30 | b |
| The Unified Government of Wyandotte County/Kansas City, Kansas                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 0.0%                              |   | $                          | 12     |   | $ | 17 |   | $ | – |   | 14 |   | $ | 9 | b |
| Chevron Phillips  Chemical Company, LP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 0.0%                              |   |                       | N/Ad   |   |   | N/Ad |   |   | N/Ad |   | 8 |   | $ | 12 | c |
| Various lessors(Residual value guarantees)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 0.0%                              |   |                       | N/A    |   | $ | 270 |   | $ | 270 |   | Various |   | $ | 68 | c |
| All other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 0.0%                              |   | $                          | 4      |   | $ | 4 |   | $ | 1 |   | 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.d There is no cap to the liability that can be sought from BNSF Railway for BNSF Railway’s negligence or the negligence of the indemnified party. However, BNSF Railway could receive reimbursement from certain insurance policies if the liability exceeds a certain amount. |   |

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|                       |   | Three Months Ended |   |   | Six Months Ended |   |
|----------------------------|--------|--------------------|--------|--------|------------------|--------|
|                       |   | June 30,           |   |   | June 30,         |   |
|                       |   | 2009               |   |   | 2008             |   |   | 2009      |   |   | 2008 |   |
| Beginning balance          | $      | 247                |   | $      | 266              |   | $ | 251 |   | $ | 270 |   |
| Accruals                   |   | –            |   |   | –          |   |   | – |   |   | – |   |
| Payments                   |   | (3                 | )      |   | (5               | )      |   | (7 | ) |   | (9 | )  |
| Ending balance at June 30, | $      | 244                |   | $      | 261              |   | $ | 244 |   | $ | 261 |   |

|                                            |   | Three Months Ended June 30, |   | Six Months Ended June 30, |   |
|-------------------------------------------------|--------|----------------------------------|--------|---------------------------|--------|
|                                            |   | 2009                             |   | 2008                      |   | 2009 |   |   | 2008  |   |
| Claims unresolved at beginning of period        |   | 1,822                            |   | 1,827                     |   | 1,833 |   |   | 1,781 |   |
| Claims filed                                    |   | 57                               |   | 109                       |   | 147 |   |   | 272 |   |
| Claims settled, dismissed or otherwise resolved |   | (129                             | )      | (136                      | )      | (230 | )  |   | (253 | ) |
| Claims unresolved at June 30,                   |   | 1,750                            |   | 1,800                     |   | 1,750 |   |   | 1,800 |   |

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|                       |   | Three Months Ended June 30, |   |   | Six Months Ended June 30,   |   |
|----------------------------|--------|-----------------------------|--------|--------|---------------------------------------|--------|
|                       |   | 2009                        |   |   | 2008                             |   |   | 2009  |   |   | 2008  |   |
| Beginning balance          | $      | 441                         |   | $      | 454                                   |   | $ | 442 |   | $ | 439 |   |
| Accruals                   |   | 26                          |   |   | 56                                    |   |   | 54 |   |   | 102 |   |
| Payments                   |   | (31                         | )      |   | (36                                   | )      |   | (60 | ) |   | (67 | ) |
| Ending balance at June 30, | $      | 436                         |   | $      | 474                                   |   | $ | 436 |   | $ | 474 |   |

|                                            |   | Three Months Ended June 30,  |   |   | Six Months Ended June 30,  |   |
|-------------------------------------------------|--------|-----------------------------------|--------|--------|-------------------------------------------|--------|
|                                            |   | 2009                         |   |   | 2008                                 |   |   | 2009  |   |   | 2008  |   |
| Claims unresolved at beginning of period        |   | 3,216                             |   |   | 3,972                                     |   |   | 3,349 |   |   | 3,322 |   |
| Claims filed                                    |   | 732                               |   |   | 913                                       |   |   | 1,457 |   |   | 2,447 |   |
| Claims settled, dismissed or otherwise resolved |   | (793                              | )      |   | (944                                      | )      |   | (1,651 | ) |   | (1,828 | ) |
| Claims unresolved at June 30,                   |   | 3,155                             |   |   | 3,941                                     |   |   | 3,155 |   |   | 3,941 |   |

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|                       |   |   |  Three Months EndedJune 30, |   |   |  Six Months EndedJune 30, |   |
|----------------------------|--------|--------|----------------------------------|--------|--------|--------------------------------|--------|
|                       |   |   | 2009                             |   |   | 2008                           |   |   | 2009 |   |   | 2008 |   |
| Beginning balance          |   | $      | 550                              |   | $      | 376                            |   | $ | 546 |   | $ | 380 |   |
| Accruals                   |   |   | (3                               | )      |   | 182                            |   |   | 28 |   |   | 197 |   |
| Payments                   |   |   | (18                              | )      |   | (13                            | )      |   | (45 | ) |   | (32 | ) |
| Ending balance at June 30, |   | $      | 529                              |   | $      | 545                            |   | $ | 529 |   | $ | 545 |   |

|                                   |   |  Three Months Ended June 30, |   |   |  Six Months Ended June 30, |   |
|----------------------------------------|--------|----------------------------------------|--------|--------|--------------------------------------|--------|
| BNSF Railway Sites                |   | 2009                              |   |   | 2008                                 |   |   | 2009 |   |   | 2008 |   |
| Number of sites at beginning of period |   | 335                                    |   |   | 346                                  |   |   | 336 |   |   | 346 |   |
| Sites added during the period          |   | 3                                      |   |   | 6                                    |   |   | 9 |   |   | 12 |   |
| Sites closed during the period         |   | (20                                    | )      |   | (2                                   | )      |   | (27 | ) |   | (8 | ) |
| Number of sites at June 30,            |   | 318                                    |   |   | 350                                  |   |   | 318 |   |   | 350 |   |

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| Six Months Ended June 30,       |   | 2009 |   |   | 2008 |   |
|---------------------------------|--------|------|--------|--------|------|--------|
| Beginning balance at January 1, | $      | 79   |   | $      | 91   |   |
| Accruals                        |   | 9    |   |   | 3    |   |
| Payments                        |   | (6   | )      |   | (7   | )      |
| Ending balance at June 30,      | $      | 82   |   | $      | 87   |   |

|                           |   | Pension Benefits            |   |
|--------------------------------|--------|-----------------------------|--------|
|                           |   | Three Months Ended June 30, |   |   | Six Months EndedJune 30, |   |
| Net Cost                       |   | 2009                        |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Service cost                   |   | $                           | 7      |   |   | $ | 6 |   |   | $ | 14 |   |   | $ | 12 |   |
| Interest cost                  |   |                        | 25     |   |   |   | 25 |   |   |   | 51 |   |   |   | 51 |   |
| Expected return on plan assets |   |                        | (26    | ) |   |   | (28 | ) |   |   | (53 | ) |   |   | (56 | ) |
| Amortization of net loss       |   |                        | 6      |   |   |   | 4 |   |   |   | 12 |   |   |   | 8 |   |
| Net cost recognized            |   | $                           | 12     |   |   | $ | 7 |   |   | $ | 24 |   |   | $ | 15 |   |

|                                 |   | Retiree Health and Welfare Benefits |   |
|--------------------------------------|--------|-------------------------------------|--------|
|                                 |   | Three Months Ended June 30,    |   |   | Six Months EndedJune 30, |   |
| Net Cost                             |   | 2009                                |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Service cost                         |   | $                                   | 1      |   |   | $ | – |   |   | $ | 1 |   |   | $ | 1 |   |
| Interest cost                        |   |                                | 3      |   |   |   | 5 |   |   |   | 7 |   |   |   | 9 |   |
| Amortization of net loss             |   |                                | 1      |   |   |   | 1 |   |   |   | 1 |   |   |   | 2 |   |
| Amortization of prior service credit |   |                                | (2     | ) |   |   | (2 | ) |   |   | (3 | ) |   |   | (4 | ) |
| Net cost recognized                  |   | $                                   | 3      |   |   | $ | 4 |   |   | $ | 6 |   |   | $ | 8 |   |

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|                                                                                                              |   | Three Months Ended June 30, |    |   | Six Months Ended June 30, |   |
|-------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|--------|---------------------------|--------|
|                                                                                                              |   | 2009                        |    |   | 2008                      |   |   | 2009 |   |   | 2008 |   |
| Net income                                                                                                        |   | $                           | 464     |   |                      | $      | 417 |   |   | $ | 848 |   |   | $ | 944 |   |
| Other comprehensive income:                                                                                       |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|     Change in unrecognized prior service credit and actuarial losses, net of tax (see Note 7) |   |                        | 3       |   |                      |   | 2 |   |   |   | 6 |   |   |   | 4 |   |
| Fuel hedge mark-to-market and other items, net of tax (see Note 2)                                                |   |                        | 155     |   |                      |   | 44 |   |   |   | 200 |   |   |   | 53 |   |
| Unrealized gain on securities held by equity method investees, net of tax                                         |   |                        | – |   |                      |   | 1 |   |   |   | – |   |   |   | – |   |
| Total comprehensive income                                                                                        |   | $                           | 622     |   |                      | $      | 464 |   |   | $ | 1,054 |   |   | $ | 1,001 |   |

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Management’s

|                     |   |  Revenues(in millions) |   |    |  Cars / Units(in thousands) |   |   |  Average RevenuePer Car / Unit |   |
|--------------------------|--------|-----------------------------|--------|---------|----------------------------------|--------|--------|-------------------------------------|--------|
|                     |   | 2009                        |   |    | 2008                             |   |   | 2009                                |   |   | 2008 |   |   | 2009 |   |   |  2008 |   |
|                     |   |                        |   |    |                             |   |   |                                |   |   |   |   |   |   |   |   |   |   |
| Consumer Products        | $      | 2,089                       |   |  $ | 2,957                            |   |   | 1,934                               |   |   | 2,401 |   |  $ | 1,080 |   | $ | 1,232 |   |
| Coal                     |   | 1,738                       |   |    | 1,856                            |   |   | 1,216                               |   |   | 1,223 |   |   |   1,429 |   |   | 1,518 |   |
| Industrial Products      |   | 1,405                       |   |    | 1,985                            |   |   | 580                                 |   |   | 825 |   |   |   2,422 |   |   | 2,406 |   |
| Agricultural Products    |   | 1,297                       |   |    | 1,694                            |   |   | 439                                 |   |   | 546 |   |   |   2,954 |   |   | 3,103 |   |
| Total Freight Revenues   |   | 6,529                       |   |    | 8,492                            |   |   | 4,169                               |   |   | 4,995 |   |  $ | 1,566 |   | $ | 1,700 |   |
| Other Revenues           |   | 129                         |   |    | 139                         |   |   |                                |   |   |   |   |   |   |   |   |   |
| Total Operating Revenues | $      | 6,658                       |   |  $ | 8,631                       |   |   |                                |   |   |   |   |   |   |   |   |   |

|                 |   | 2009   |   |   | 2008   |   |
|----------------------|--------|--------|--------|--------|--------|--------|
|                 |   |   |   |   |   |   |
| Total fuel expense a | $      | 1,123  |   | $      | 2,336  |   |
| BNSF fuel surcharges | $      | 547    |   | $      | 1,463  |   |

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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 23, 2009 |
|---------------------------------|

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Exhibit 

|   |   |   |                                                                                                           |   | 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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