Performance Materials Energy Surcharge Policy

Diatomaceous Earth Energy Surcharge Policy

Dear Valued Diatomaceous Earth Customer:

The price of natural gas is a significant component to our mining process and has a substantial impact on our plant production costs.

To address major fluctuations in natural gas costs, an Energy Surcharge may appear as a separate line on your invoice, depending on the average price of natural gas. The calculation is based on the monthly weighted average (MWAP) of Sumas (70%) and Opal (30%) with a 1-month lag (i.e. September MWAP is used to calculate November surcharge).

In the event that the MWAP exceeds $4.39/DTh, a surcharge of $10.00/short ton shall apply for each $1.00 tier increase in the MWAP (e.g., MWAP is $4.40-$5.39/DTh, surcharge equals $10.00/short ton; MWAP is $5.40-$6.39/DTh, surcharge equals $20.00/short ton). Surcharge reflected as a separate line item on invoice.

We may also charge an Emergency Energy Surcharge when pricing is below $4.40/DTh, if necessary and due to outside circumstances beyond our control.December 1, 2022 - $10/short ton

March 1, 2023 - $50/short ton

April 1, 2023 - $30/short ton

Geoff Boucher