Ownership Submission
FORM 3
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
  FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
2. Date of Event Requiring Statement (Month/Day/Year)
02/09/2009
3. Issuer Name and Ticker or Trading Symbol
USG CORP [USG]
(Last)
(First)
(Middle)
95 WELLINGTON STREET WEST, SUITE 800
4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director __X__ 10% Owner
_____ Officer (give title below) _____ Other (specify below)
5. If Amendment, Date Original Filed(Month/Day/Year)
(Street)

TORONTO, A6 M5J 2N7
6. Individual or Joint/Group Filing(Check Applicable Line)
___ Form filed by One Reporting Person
_X_ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Beneficially Owned
1.Title of Security
(Instr. 4)
2. Amount of Securities Beneficially Owned
(Instr. 4)
3. Ownership Form: Direct (D) or Indirect (I)
(Instr. 5)
4. Nature of Indirect Beneficial Ownership
(Instr. 5)
Common Stock, $0.10 par value (?Shares?) 7,111,500
I
see footnote (1)

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. SEC 1473 (7-02)
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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 4)
2. Date Exercisable and Expiration Date
(Month/Day/Year)
3. Title and Amount of Securities Underlying Derivative Security
(Instr. 4)
4. Conversion or Exercise Price of Derivative Security 5. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 5)
6. Nature of Indirect Beneficial Ownership
(Instr. 5)
Date Exercisable Expiration Date Title Amount or Number of Shares
10% Contingent Convertible Senior Notes due 2018 (?Notes?) 02/09/2009   (2) Common Stock, $0.10 par value 8,771,930 $ (3) I see footnote (4)

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
95 WELLINGTON STREET WEST
SUITE 800
TORONTO, A6 M5J 2N7
    X    
ODYSSEY RE HOLDINGS CORP
300 FIRST STAMFORD PLACE
STAMFORD, CT 06902
    X    
ODYSSEY AMERICA REINSURANCE CORP
300 FIRST STAMFORD PLACE
STAMFORD, CT 06902
    X    

Signatures

/s/ Paul Rivett, Vice President 02/19/2009
**Signature of Reporting Person Date

/s/ Donald L. Smith, Senior Vice President 02/19/2009
**Signature of Reporting Person Date

/s/ Donald L. Smith, Senior Vice President 02/19/2009
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 5(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) 4,518,600 Shares are held by Odyssey America Reinsurance Corporation, 2,379,900 Shares are held by United States Fire Insurance Company, 32,800 Shares are held by Lombard General Insurance Company of Canada and 180,200 Shares are held by pension plans of certain subsidiaries of Fairfax Financial Holdings Limited.
(2) The Notes are convertible into Shares at the option of the holder thereof at any time prior to the close of business on the business day immediately preceding December 1, 2018, the maturity date of the Notes.
(3) The Notes are convertible into Shares based on an initial conversion price of $11.40 per Share, subject to adjustment under certain circumstances.
(4) $50,000,000 aggregate principal amount of Notes is held by Fairfax (Barbados) International Corp., $23,000,000 aggregate principal amount of Notes is held by Odyssey America Reinsurance Corporation, $23,000,000 aggregate principal amount of Notes is held by United States Fire Insurance Company, $1,000,000 aggregate principal amount of Notes is held by Falcon Insurance Company (Hong Kong) Limited and $3,000,000 aggregate principal amount of Notes is held by the pension plans of certain subsidiaries of Fairfax Financial Holdings Limited.

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