ESBD_File_336483_ATTACHMENT 5 Fuel Adjustment Chart.docx

Fuel adjustment policy

Attachment 7

FUEL ADJUSTMENT POLICY/CHART

Since the cost of fuel is an important variable cost for all contractors, the following are the procedures to determine the fee surcharge as follows:

1. The Weekly Retail On-Highway price for diesel for Gulf Coast as reported on the Department of Energy’s (DOE) Energy Information Website (EIA) would be used to determine the price per gallon of fuel. The EIA website address is http//: www.eia.doe.gov

2. Based on historical averages, fuel surcharges will not apply unless fuel prices reach $ 3.50 per gallon or more for four consecutive weeks. In order to reduce fuel surcharge fluctuations, fuel prices must remain in brackets either higher or lower than the current level for four consecutive weeks prior to effecting an adjustment.

3. Adjustment Schedule

(Cents per Case)

For example, if the price of fuel had been between $ 3.80 and $ 3.94 per gallon and the price goes above $ 3.95 per gallon, the price of fuel must remain at $

3.95 per gallon or higher for four consecutive weeks before a fuel surcharge increase can be implemented.

4. Operator must be notified at least one (1) week prior to any adjustment in the fuel surcharge, and any such notification may be given by email.

5. For the initial implementation of the fuel surcharge, the fuel surcharge will be set based on the average fuel price for the four-week period immediately preceding the surcharge implementation date.

6. The fuel surcharge will be billed as a separate line item at the bottom of the Operator’s invoices.