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, an Energy Surcharge may appear as a separate line on your invoice, depending on the average price of natural gas. Please see our table below.
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). We will have an Energy Surcharge when pricing exceeds $4.40/dTh. We may also charge an Emergency Energy Surcharge when pricing is below $4.40/dTH if absolutely necessary because of outside circumstances beyond our control.
The Energy Surcharge will be applicable to all products and calculated based upon the plant where your products are produced and shipped.
Vice President of Global Sales