Energy/Environmental Surcharge: General Information

Overview

Liquid Environmental Solutions is committed to controlling costs so we can continue to provide you with the best overall value in liquid waste related services. Other than investments, Liquid Environmental Solutions is purposefully making towards cleaner technologies and reducing our overall impact on the environment, rising fuel prices and environmental compliance-related costs are something we cannot fully control. Our Energy/Environmental Charge is meant to help us cover these increased costs and achieve an acceptable operating margin. The Energy/Environmental Charge is one line item on customer invoices that contains two separate components-an energy surcharge component and an environmental cost recovery component. However, while this charge is used to help us recoup environmental and energy costs, the amounts collected are not segregated or earmarked specifically for payment of environmental costs or fuel purchases.

Energy Component

The energy surcharge calculation is tied directly to the national average price of diesel fuel as reported weekly by the Energy Information Administration of the U.S. Department of Energy (“EIA/DOE”) in its Weekly Retail On-Highway Diesel Prices Index. This index is objective, publicly available and widely recognized in the trucking and transportation industries. This change will ensure that you, our valued customer, will pay a fuel surcharge that is currently adjusted, easy to calculate, and equitable to you and the Company.

The EIA/DOE average is published each Monday and LES will use the published average from the last Monday of every month to calculate the energy charge for the following month. The Liquid Environmental Solutions surcharge tables show what the energy surcharge, as a percentage of your monthly or other periodic invoice charges, before taxes, would be based upon the last reported EIA/DOE national diesel price index prior to your invoice date.

Environmental and Regulatory Recovery Component

Liquid Environmental Solutions is committed to being a good neighbor to our customers, our team members and our environment. Liquid Environmental Solutions is not immune to rising costs. Our company incurs significant costs in municipal manifest costs, wastewater discharge expenses, permitting fees and waste disposal surcharges every year. The Environmental and Regulatory Recovery Component of the Energy/Environmental and Regulatory Recovery Charge is an amount or percentage of all invoice charges including the fuel surcharge (excluding taxes) that was implemented in February 2008 to help cover any and all costs and expenses to operate our collection, transfer, processing and disposal operations, on a company-wide basis, in a safe and environmentally responsible manner, and to achieve an acceptable operating margin. The amount or percentage of the environmental and regulatory charge is not tied to any specific, direct or indirect, costs to service your individual account.

Determination of the Energy/ Environmental and Regulatory Recovery Amount

The Energy/Environmental and Regulatory Recovery Charge that is included in a customer’s invoice is determined by applying the percentage from the Liquid Environmental Solutions Energy Surcharge Table to the invoice charges (excluding tax). The environmental component (9.8% for Commercial and 6.4% for Industrial) is then applied to the sum of the invoice charges and the energy surcharge amount, but excluding taxes

Determination of the Energy/Environmental Charge Amount

The Energy/Environmental Charge that is included in a customer’s invoice is determined by applying the percentage from the Liquid Environmental Solutions Energy Surcharge Table to the invoice charges (excluding tax). The 9.8% (Commercial) or 6.4% (Industrial) environmental component is then applied to the sum of the invoice charges and the energy surcharge amount, but excluding taxes. For example: the environmental component for a bill that totals $100.00 before tax for services and $4.00 for the energy surcharge would see only an additional $10.19 for Commercial or $6.67 for Industrial.

Not a Governmental Tax; Future Changes

The Energy/Environmental Charge is not a tax or surcharge imposed by or remitted to any governmental or regulatory agency; it is our charge. The Energy/Environmental Charge percentages may be changed at the discretion of Liquid Environmental Solutions. To the extent required by your applicable customer service terms, your consent to the assessment of the Energy/Environmental Charge, and any changes to such charge, is effective upon your payment.

FAQs

Question 1

If the price of fuel goes down, will my energy surcharge component go down too?
Answer: Yes, because the charge is tied to EIA/DOE index, if the EIA/DOE’s national average diesel price falls, your energy surcharge component will come down as well. This information is updated weekly.

Question 2

Why do you charge an energy surcharge component?
Answer: The fluctuation in the cost of diesel fuel today makes it difficult for our Company to recover fuel expenses in standard operating margins. Our commercial and industrial vehicles that run on diesel get approximately 5 miles per gallon.

Question 3

How can I access the EIA/DOE Weekly Retail On-Highway Diesel Prices Index?
Answer: Here is the link to the EIA/DOE. This site is updated every Monday evening.

Question 4

What does the environmental and regulatory recovery component cover?
Answer: Liquid Environmental Solutions is committed to being a good neighbor to our customers, our team members and our environment. Liquid Environmental Solutions is not immune to rising costs. Our company incurs significant costs in municipal manifest costs, wastewater discharge expenses, permitting fees and waste disposal surcharges every year. The Environmental and Regulatory Recovery Component of the Energy/Environmental and Regulatory Recovery Charge is an amount or percentage of all invoice charges including the fuel surcharge (excluding taxes) that was implemented in February 2008 to help cover any and all costs and expenses to operate our collection, transfer, processing and disposal operations, on a company-wide basis, in a safe and environmentally responsible manner, and to achieve an acceptable operating margin. The amount or percentage of the environmental and regulatory charge is not tied to any specific, direct or indirect, costs to service your individual account.

Question 5

Will the environmental charge component change each month?
Answer: No. The Energy/Environmental and Regulatory Recovery Charge that is included in a customer’s invoice is determined by applying the percentage from the Liquid Environmental Solutions Energy Surcharge Table to the invoice charges (excluding tax). The percentage (9.8% for Commercial; 6.4% Industrial) of the environmental component is then applied to the sum of the invoice charges and the energy surcharge amount, but excluding taxes.


Have further questions?
Please contact us at 1-866-694-7327 or customerservice@liquidenviro.com. As always, we thank you for your business, and we appreciate your continued support of our efforts to remain a leader in environmental protection and compliance.