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ENERGY SURCHARGE
 UNITED STATES
October 26, 2008
Dear Valued Customer:
Diatomite, Expanded Perlite and Silicates
The price of natural gas and fuel oil in the United States, and for global hydrocarbon energy in general, has increased to unprecedented levels. The rise in energy prices has had a significant impact on the production costs for all of our plants. As a result, effective October 5, 2005, we have no choice but to implement an energy surcharge which will appear as a separate line item on your invoice.
We will adjust the surcharge monthly based on the trailing average NYMEX Henry Hub natural gas spot market price versus the June 2005 average. This base price is $7.20/MMBTU. The surcharge will be calculated on the 26th of the month proceeding the month of implementation. The chart below outlines the surcharge.There will not be a surcharge for November 2008 as the price fell below our base price of $7.20/MMBTU, calculation details.
Perlite Ore
Effective August 18, 2008, the energy surcharge for all Perlite Ore shipments will be based on the preceding months average Retail On-Highway Diesel Prices for the Rocky Mountain region provided by the Energy Information Administration. Reference the Perlite Ore chart below for the surcharge amount. The surcharge for November 2008 is based on an average diesel price of $3.77/Gallon, calculation details.
Calcined & Flux Calcined Diatomite Filter Aids & Functional
Fillers
(Lompoc & Quincy)
| NYMEX Henry Hub ($/MMBTU) |
ESC ($/MT) |
ESC ($/ST) |
| 7.20 – 8.19 |
7 |
6.35 |
| 8.20 – 9.19 |
14 |
12.70 |
| 9.20 – 10.19 |
21 |
19.05 |
| 10.20 – 11.19 |
28 |
25.40 |
| 11.20 – 12.19 |
35 |
31.75 |
| 12.20 – 13.19 |
42 |
38.10 |
| 13.20 – 14.19 |
49 |
44.45 |
| 14.20 – 15.19 |
56 |
50.80 |
| 15.20 – 16.19 |
63 |
57.15 |
16.20 – 17.19 |
70 |
63.50 |
17.20 – 18.19 |
77 |
69.85 |
18.20 – 19.19 |
84 |
76.20 |
19.20 – 20.19 |
91 |
82.55 |
Natural Diatomite
| NYMEX Henry Hub ($/MMBTU) |
ESC ($/MT) |
ESC ($/ST) |
| 7.20 – 8.19 |
4 |
3.63 |
| 8.20 – 9.19 |
8 |
7.26 |
| 9.20 – 10.19 |
12 |
10.89 |
| 10.20 – 11.19 |
16 |
14.52 |
| 11.20 – 12.19 |
20 |
18.14 |
| 12.20 – 13.19 |
24 |
21.77 |
| 13.20 – 14.19 |
28 |
25.40 |
| 14.20 – 15.19 |
32 |
29.03 |
15.20 – 16.19 |
36 |
32.66 |
16.20 – 17.19 |
40 |
36.29 |
17.20 – 18.19 |
44 |
39.92 |
18.20 – 19.19 |
48 |
43.55 |
19.20 – 20.19 |
52 |
47.18 |
Expanded Perlite
| NYMEX Henry Hub ($/MMBTU) |
ESC ($/MT) |
ESC ($/ST) |
| 7.20 – 8.19 |
5 |
4.54 |
| 8.20 – 9.19 |
10 |
9.07 |
| 9.20 – 10.19 |
15 |
13.61 |
| 10.20 – 11.19 |
20 |
18.14 |
| 11.20 – 12.19 |
25 |
22.68 |
| 12.20 – 13.19 |
30 |
27.22 |
| 13.20 – 14.19 |
35 |
31.75 |
| 14.20 – 15.20 |
40 |
36.29 |
15.20 – 16.19 |
45 |
40.83 |
16.20 – 17.19 |
50 |
45.37 |
17.20 – 18.19 |
55 |
49.91 |
18.20 – 19.19 |
60 |
54.45 |
19.20 – 20.19 |
65 |
58.99 |
Silicates
| NYMEX Henry Hub ($/MMBTU) |
ESC ($/MT) |
ESC ($/ST) |
| 7.20 – 8.19 |
28 |
25.40 |
| 8.20 – 9.19 |
56 |
50.80 |
| 9.20 – 10.19 |
84 |
76.20 |
| 10.20 – 11.19 |
112 |
101.61 |
| 11.20 – 12.19 |
140 |
127.01 |
| 12.20 – 13.19 |
168 |
152.41 |
| 13.20 – 14.19 |
196 |
177.81 |
| 14.20 – 15.20 |
224 |
203.21 |
15.20 – 16.19 |
252 |
228.61 |
16.20 – 17.19 |
280 |
254.01 |
17.20 – 18.19 |
308 |
279.41 |
18.20 – 19.19 |
336 |
304.81 |
19.20 – 20.19 |
364 |
330.21 |
Perlite Ore
(Antonito)
| On-Highway Diesel Price Rocky Mtn ($/Gallon) |
ESC ($/ST) |
| 3.30 - 3.80 |
1.23 |
| 3.81 - 4.30 |
2.50 |
| 4.31 - 4.80 |
3.77 |
| 4.81 - 5.30 |
5.03 |
| 5.31 - 5.80 |
6.30 |
| 5.81 - 6.30 |
7.57 |
| 6.31 - 6.80 |
8.84 |
| 6.81 - 7.30 |
10.10 |
7.31 - 7.80 |
11.37 |
7.81 - 8.30 |
12.64 |
8.31 - 8.80 |
13.91 |
We at World Minerals appreciate your understanding during these
times and look forward to your continued support. Please do not hesitate to
contact your Account Manager should you have any questions.
Sincerely,
Stephen Baimel
Vice President, Sales and Marketing
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