Highway Fuel Surcharge

Effective March 1, 2004, the FEC Railway’s fuel surcharge program will be based on the Department of Energy (DOE) On-Highway Diesel Fuel Price (US Average).

The fuel surcharge program will apply as follows:

“Any Fuel surcharge will be adjusted on a monthly basis.
“The basis for the surcharge will be determined by the U.S. Average price of DOE On-Highway Diesel Fuel for a calendar month, as reported weekly on the US Department of Energy web site (www.eia.doe.gov)

“In the event the average monthly price of Retail On-Highway Diesel Fuel, equals or exceeds $ 1.25 per gallon, a surcharge of beginning at 0.5% will apply.

“For every five cent increase above $1.25 per gallon, the surcharge applied will increase by 0.5%. (See threshold schedule attached for more details).

“When the average DOE price drops below $1.25 per gallon, no fuel surcharge will apply.

“The surcharge will be billed to applicable shipments beginning the second month following the month on which the DOE average price calculation was based. (Example: the average reported DOE price for the month of January 2004 will determine the fuel surcharge applied throughout the month of March 2004.)

This surcharge will become effective with shipments billed on or after March 1, 2004. The surcharge will apply to most FEC Railway pricing documents for local and interline freight movements, with the exception of those which have a fuel surcharge provision or specify otherwise. This program does not affect FEC Railway’s existing Rock, Stone or Intermodal fuel surcharge program.