Energy Surcharge Policy

Dear Valued Customer:

As you probably know, the price of natural gas is a significant component to our mining process and has a substantial impact on the production expenses at our plants.

To address major fluctuations in natural gas costs, we have updated our Energy Surcharge Program. An Energy Surcharge may appear as a separate line on your invoice, depending on the average price of natural gas.

Our primary kiln fuel source is natural gas, which is delivered to our plants via pipeline. These pipelines access gas from multiple distribution points. The price that EP Minerals pays for gas varies day to day based on supply and demand at these distribution points. We calculate a weighted average based on 33.33% share from each daily gas index (Sumas, Opal, Nymex/Henry Hub). The natural gas situation is such that we will begin charging an Energy Surcharge when the average price exceeds $4.40/DTh.

We will provide you with the specific plant information and the related natural gas pricing in the charts below and will continually update that information.

The Energy Surcharge will be applicable to all products and calculated based upon the plant where your products are produced and shipped.

As of March 2019, please review our Energy Surcharge Statement here

Vale and Lovelock Plants:
Natural Gas Average ($/DTh) ESC ($7/ST) ESC ($/MT) ESC (EUR/MT)
4.40 - 5.39 7 7.71 5.63
5.40 - 6.39 14 15.42 11.26
6.40 - 7.39 21 23.13 16.88
7.40 - 8.39 28 30.84 22.51
8.40 - 9.39 35 38.55 28.14
9.40 - 10.39 42 46.26 33.77
10.40 - 11.39 49 53.97 39.39
11.40 - 12.39 56 61.68 45.02
12.40 - 13.39 63 69.39 50.65
13.40 - 14.39 70 77.1 56.28
14.40 - 15.39 77 84.81 61.91
15.40 - 16.39 84 92.52 67.53
16.40 - 17.39 91 100.23 73.16
Clark Plant:
Natural Gas Average ($/DTh) ESC ($4/ST) ESC ($/MT) ESC (EUR/MT)
4.40 - 5.39 4 4.41 3.22
5.40 - 6.39 8 8.82 6.44
6.40 - 7.39 12 13.23 9.66
7.40 - 8.39 16 17.64 12.88
8.40 - 9.39 20 22.05 16.1
9.40 - 10.39 24 26.46 19.32
10.40 - 11.39 28 30.87 22.54
11.40 - 12.39 32 35.28 25.76
12.40 - 13.39 36 39.69 28.98
13.40 - 14.39 40 44.1 32.2
14.40 - 15.39 44 48.51 35.42
15.40 - 16.39 48 52.92 38.64
16.40 - 17.39 52 57.33 41.86

Daily Natural Gas Pricing for Sumas, Opal and Nymex: (updated weekly with pricing for each distribution center and the Energy Surcharge daily average pricing.)

March Daily Natural Gas Pricing
Date Sumas Opal Nymex ESC Average (33.3% Sumas, 33.3% Opal, 33.3% Nymex)
03/01/2019 26.14 3.99 2.97 10.92
03/02/2019 159.27 6.64 3.19 55.80
03/03/2019 159.27 6.64 3.19 55.80
03/04/2019 159.27 6.64 3.19 55.80
03/05/2019 10.00 5.06 4.25 6.37
03/06/2019 5.58 3.28 3.18 3.97
03/07/2019 6.10 3.58 2.95 4.14
03/08/2019 7.50 3.54 2.90 4.60
03/09/2019 24.00 3.41 2.90 10.00
03/10/2019 24.00 3.41 2.90 10.00
03/11/2019 24.00 3.41 2.90 10.00
03/12/2019 3.70 3.592.86 3.35
03/13/2019 3.50 3.45 2.83 3.23
03/14/2019 4.27 3.36 2.87 3.46
03/15/2019 3.54 3.46 2.95 3.28
03/16/2019 3.07 2.97 2.91 2.95
03/17/2019 3.07 2.97 2.91 2.95
03/18/2019 3.07 2.97 2.91 2.95
03/19/2019 2.88 2.85 2.90 2.85
03/20/2019 2.85 2.77 2.92 2.82
03/21/2019 2.70 2.67 2.86 2.72
03/22/2019 2.55 2.43 2.79 2.56
03/23/2019
03/24/2019
03/25/2019
03/26/2019
03/27/2019
03/28/2019
03/29/2019
03/30/2019
03/31/2019
Average 29.11 3.78 3.01 11.84
February Daily Natural Gas Pricing
Date Sumas Opal Nymex ESC Average (33.3% Sumas, 33.3% Opal, 33.3% Nymex)
02/01/2019 3.31 3.21 2.82 3.08
02/02/2019 5.84 3.17 2.70 3.86
02/03/2019 5.84 3.17 2.70 3.86
02/04/2019 5.84 3.17 2.70 3.86
02/05/2019 14.77 4.84 2.57 7.32
02/06/2019 15.85 6.13 2.54 8.09
02/07/2019 23.33 11.50 2.58 12.35
02/08/2019 20.39 17.04 2.62 13.22
02/09/2019 54.20 14.86 2.66 23.77
02/10/2019 54.20 14.86 2.66 23.77
02/11/2019 54.20 14.86 2.66 23.77
02/12/2019 44.32 5.85 2.76 17.47
02/13/2019 37.75 6.00 2.71 15.33
02/14/2019 12.43 8.38 2.61 7.73
02/15/2019 9.50 7.25 2.58 6.38
02/16/2019 9.39 8.36 2.59 6.71
02/17/2019 9.39 8.36 2.59 6.71
02/18/2019 9.39 8.36 2.59 6.71
02/19/2019 9.39 8.36 2.59 6.71
02/20/2019 8.57 8.00 2.69 6.36
02/21/2019 8.40 8.25 2.73 6.40
02/22/2019 5.75 5.64 2.73 4.66
02/23/2019 10.14 4.24 2.74 5.65
02/24/2019 10.14 4.24 2.74 5.65
02/25/2019 10.14 4.24 2.74 5.65
02/26/2019 17.25 4.44 2.84 8.09
02/27/2019 49.00 4.59 2.98 18.67
02/28/2019 12.00 4.03 2.89 6.24
Average 18.98 7.34 2.69 9.57

We at EP Minerals thank you for your business and support and look forward to continuing to work with you.

Al Kaczanowski
Vice President of Global Sales & Marketing
EP Minerals