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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
Current Report Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act
Date of Report (Date of earliest event reported): December 4, 1998
The Burlington Northern and Santa Fe Railway Company
(Exact Name of Registrant as Specified in Its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
1-6324 41-6034000
(Commission File Number) (I.R.S. Employer
Identification No.)
2650 Lou Menk Drive, Fort Worth, Texas 76131-2830
(Address of Principal Executive Offices) (Zip Code)
(817) 352-6856
(Registrant's Telephone Number, Including Area Code)
(Not Applicable)
(Former Name or Former Address, If Changed Since Last Report)
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INFORMATION TO BE INCLUDED IN THE REPORT
Item 5. Other Events
The Company disclosed in its Form 10-K for the year ended December 31,
1997, that it had been advised that it was a target of a Grand Jury
investigation in the United States District Court for the Eastern District of
Missouri with respect to former railcar cleaning activities conducted by
independent contractors hired by the Company's predecessors at a rail siding
near Cherryville, Missouri. The Missouri Department of Natural Resources ("DNR")
was also investigating the matter as to possible violations of state
environmental protection laws and the Company has been implementing remediation
plans developed in conjunction with DNR.
On December 4, 1998, the Company entered a plea in federal district court
to one felony count under the federal Comprehensive Environmental Response,
Compensation and Liability Act for failure to immediately report to the federal
government a release of a reportable quantity of lead sulfide and one
misdemeanor count under the Clean Water Act for a negligent discharge of a
pollutant into a waterway. The Company agreed in the settlement to pay a fine of
$7 million and to make restitution payments to the State of Missouri of $3
million, and committed to spend $9 million in remediation costs in connection
with its ongoing remediation efforts. In the plea agreement, the parties agreed
that the Company had taken remedial safety and procedural actions in an effort
to reduce the likelihood of recurrence of such matters.
In addition, the Company has negotiated a settlement with the State of
Missouri that requires a payment of $900,000 in penalties and $500,000 in
natural resource damage. With the public comment period having ended January 21,
1999, the Company is executing the settlement agreement for entry by the court
as a consent decree. Implementation costs of the investigation and remediation
activities pursuant to the consent decree are not considered material. The
Company considers the federal Grand Jury matter to be terminated, and all
pending related matters, including personal injury claims received from certain
individuals residing at or near the area, are not considered material.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE BURLINGTON NORTHERN AND SANTA FE
RAILWAY COMPANY
(Registrant)
Date: February 4, 1999 By: /s/ Thomas N. Hund
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(Signature)
Thomas N. Hund
Vice President and
Controller
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE BURLINGTON NORTHERN AND SANTA FE
RAILWAY COMPANY
(Registrant)
Date: February 4, 1999 By: _______________________________
(Signature)
Thomas N. Hund
Vice President and
Controller
