Energy Surcharge (Natural Gas)
FMC will apply an energy surcharge of US$0.105 per pound (100% basis) or C$273.00 per metric ton on all invoices for hydrogen peroxide in order to partially offset the impact of the rapid increase in natural gas prices. The amount of the surcharge will be held constant through September 30, 2008, and will be modified quarterly thereafter based on the three-month forward average NYMEX Henry Hub gas price (as of the 15th of the month prior to the beginning of the each calendar quarter) as shown in the table below. When natural gas prices return to a level below $5.00 per MMBTU, the surcharge will be removed. We will add the adjustment as a separate line item on your invoice.
Hydrogen Peroxide Energy Surcharge Table
|
Three-month forward average of NYMEX Henry Hub options prices* ($ per MMBTU) |
Following Calendar Quarter Energy Surcharge |
|
U.S. ($/Lb-100%) Canada (C$/MT-100%) |
|
$10.00/MMTBU and above |
$0.01/lb for each $1.00/MMBTU increase |
$26.00/MT for each $1.00/MMBTU increase |
|
$14.00-$14.99 |
$0.115 |
$299.00 |
|
$13.00-$13.99 |
$0.105 |
$273.00 |
|
$12.00-$12.99 |
$0.095 |
$247.00 |
|
Below $5.00 |
Removed |
Removed |
|
3rd Quarter Surcharge |
Average |
|
10.5 cents/lb
$273CDN/MT |
July thru September 2008:
$13.014 USD/MMBTU |
Transportation Fuel Surcharge (Diesel Fuel)
Truck Deliveries
FMC will implement fuel surcharges for truck deliveries based on the Department of Energy's, Energy Information Administration (EIA) prior month’s weekly average U.S. diesel fuel price. The DOE diesel price data is available via the website shown below. The fuel surcharge will be adjusted monthly on the 1st of each month.
The fuel surcharges for truck deliveries will be applied via the following schedule:
|
Truck Fuel Surcharge Matrix |
|
|
|
Cents/Gallon |
Surcharge ($/Shipment) |
|
|
|
|
|
|
Diesel Fuel U.S. Avg |
$/shipment |
|
|
|
|
|
|
|
400.1 - 410.0 |
302 |
|
|
|
|
410.1 - 420.0 |
311 |
|
|
|
|
420.1 - 430.0 |
320 |
|
|
|
|
430.1 - 440.0 |
329 |
|
|
|
|
440.1 - 450.0 |
338 |
|
June Average |
$467.60 |
|
450.1 - 460.0 |
347 |
|
|
|
|
460.1 - 470.0 |
356 |
|
|
|
|
Every 10 c/gal Inc |
Add $9 |
|
July 1st Surcharge |
US$356
CDN$363 |
Website: http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp
Railcar Deliveries
The transportation fuel surcharge for rail deliveries will be based on the average daily West Texas Intermediate (WTI) crude oil price for the month immediately preceding the month for which the surcharge applies. The WTI price data is available at the Department of Energy website via the link shown below. The surcharge on rail will be adjusted monthly on the 1st of each month.
The fuel surcharges for rail deliveries will be applied via the following schedule:
|
Rail Fuel Surcharge Matrix |
|
|
|
|
West Texas Intermediate (WTI) |
Surcharge ($/Shipment) |
|
WTI |
$/shipment |
|
|
|
|
|
|
|
|
|
|
|
$118/barrel |
1,615 |
|
|
|
|
$123/barrel |
1,700 |
|
June Average |
$133.62 |
|
$128/barrel |
1,785 |
|
|
|
|
$133/barrel |
1,870 |
|
July 1st Surcharge |
$1,870US
$1,907CDN |
|
$5/barrel increase |
Add $85 |
|
|
Website: http://www.eia.doe.gov/emeu/international/crude1.html
While FMC has absorbed natural gas and fuel cost increases to date, the magnitude of these cost increases has reached the point where we must take action to offset a portion of the impact.