City Carting

Fuel Surcharge and Environmental Charge (the “FSE Charge”)

Introduction

City Carting & Recycling (“City Carting”) operates a fleet of vehicles and three transfer stations to better service its customers. Recent international events have affected the City Carting cost basis for fuel and environmental compliance. Controlling costs which are internal is a prime concern of City Carting. Fuel prices and environmentally related costs are something we cannot control. Our FSE Charge is intended to defray a part of the increased third party costs. The FSE Charge is an invoice line item and includes the separate components described above.

In addition to drastic increases in the raw cost of fuel which is detailed on page 2, please click any of the following links to see changes effective July 1, 2008 to the Diesel Fuel Tax Rate in CT, notification of a 54% increase in the fuel surcharge imposed on us by the railroad since January 1, 2008 and examples of price increases being handed down to us by our material suppliers.

Environmental

City Carting operates three transfer stations in the State of Connecticut, one of which is rail served, and all of which contribute significantly to the savings in costs of disposal which help City Carting to maintain its competitive prices. City Carting as a green neighbor monitors its environmental compliance effort periodically. The costs of environmental compliance which includes compliance at the rail transfer station is a function of both State and Federal regulations which are imposed on City Carting. City Carting is committed to being a good green neighbor. The environment is important to all of us. The environmental component of the FSE Charge is currently 2 % and is used to support our costs associated with environmental compliance, such as future landfill development, environmental testing and maintenance of environmental systems at our facilities. The FSE Charge will also fund certain costs associated with maintaining and operating our collection, transfer, recycling and landfill operations in an environmentally responsible manner.

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