C-TEC Industries, Inc. - Trash Compactors

Overview
GoGreenwithEnvi.com is committed to controlling costs so we can continue to provide you with the best overall value in waste related services. However, rising fuel prices and environmentally related costs are something we cannot control and our Fuel/Environmental Charge is meant to help us cover these increased costs. The Fuel/Environmental Charge is one line item on customer invoices that contains two separate components-a fuel surcharge component and an environmental cost recovery component.

Fuel Component
The fuel 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 will be used for all invoices created during that week. The Collection Fuel Surcharge Table or Disposal Fuel Surcharge Table shows what the fuel 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. For example, if the last reported EIA/DOE national diesel price index immediately preceding your invoice date were $2.00 per gallon, your fuel surcharge would be 5.25% of your invoice charges, excluding taxes.

Environmental Component
GoGreenwithEnvi.com is committed to being a good neighbor to our customers, our employees and our environment. Beginning in March 2007, the environmental component of the Fuel/Environmental Charge increased from 2% to 3% of invoice charges (excluding tax). In addition, we changed the way we account for the environmental component of our Fuel/Environmental Charge.

Previously, the environmental component of the Fuel/Environmental Charge was tied to the increase in GoGreenwithEnvi.coms overall company-wide costs related to environmental compliance, on an annualized basis, since 2002. The revised environmental component of the Fuel/Environmental Charge continues to support our cost associated with environmental compliance, such as landfill development, environmental testing, and maintenance of environmental systems at our facilities. It will now allow us to cover all other costs associated with operating our collection, transfer, recycling, and landfill operations in a safe and environmentally responsible manner and to achieve an acceptable operating margin.

The amount or percentage of the environmental charge is not tied to any specific, direct or indirect, costs to service your account, but to Waste Management's overall costs on a company-wide basis.

Determination of the Fuel/Environmental Charge Amount
The Fuel/Environmental Charge that is included in a customer's invoice is determined by applying the percentage from the Collection Fuel Surcharge Table or Disposal Fuel Surcharge Table to the invoice charges (excluding tax). The 3% environmental component is then applied to the sum of the invoice charges and the fuel surcharge amount, but excluding tax.

Historical Fuel/Environmental Charge values:
For easy reference, the Historical Table shows each Fuel/Environmental Charge issued by since 2005. This table also references the corresponding EIA/DOE value for each week.

Not a Governmental Tax; Future Changes
The Fuel/Environmental Charge is not a tax or surcharge imposed by or remitted to any governmental or regulatory agency; it is our charge. The Fuel/Environmental Charge percentages may be changed at the discretion of GoGreenwithEnvi.com. To the extent required by your applicable customer service terms, the assessment of the Fuel/Environmental Charge and any changes to such charge is effective upon your payment.

Frequently Asked Questions
Q: Why do you charge a fuel surcharge component?
A: 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 vehicles get 3 to 4 miles per gallon and our roll off vehicles around 8. In addition, the third party vendors that transport our waste are charging us a fuel surcharge or additional price for increased fuel costs. The fuel surcharge calculation is tied to the National Average Fuel Index, which puts our Company closer to covering our fuel costs.

Q: If the price of fuel goes down, will my fuel surcharge component go down too?
A: Yes, if the EIA/DOE's National Average price falls, your fuel surcharge component will come down as well. This information is updated weekly. If the cost of diesel fuel decreases, this will affect your fuel surcharge component.

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

Q: What does the Environment Component Cover?
A: The Environmental Component of the Fuel/Environmental Charge covers increased costs and expenses to operate our collection, transfer, recycling, and landfill operations, on a company-wide basis, in a safe and environmentally responsible manner and to achieve an acceptable operating margin. It is not tied to specific environmental compliance costs to service specific customer accounts, but to the overall environmentally related costs to service all GoGreenwithEnvi.com's customers. The environmentally related costs include, among other things, landfill cover material, engineering, testing and maintenance in landfills. In our collection operations these costs include such things as the disposal of tires, batteries, oils and fluids and the monitoring and management of vehicle emissions.

Q: Why did you increase the environmental fee component in March 2007?
A: This increase was necessary for us cover increased costs and expenses to operate our collection, transfer, recycling, and landfill operations, on a company-wide basis, in a safe and environmentally responsible manner and to achieve an acceptable operating margin.

Q: Will the environmental charge component change each month?
A: No. The environmental charge will not fluctuate each month. It is currently set at 3% of all invoice charges, excluding tax. The percentage may be changed periodically if there is a business determination that warrants an increase or decrease in the fee charged.

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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.