Customers

Carload Mileage Based Standard HDF Fuel Surcharge

Union Pacific's carload mileage based standard HDF fuel surcharge program is based on the Department of Energy (DOE) On-Highway Diesel Fuel Price (US Average). Information about actual fuel surcharges applied and details about the program are included below.

This fuel surcharge program will apply as follows:

• Fuel surcharge will be adjusted on a monthly basis.
• The basis for the surcharge will be determined by the U.S. Average price of DOE On-Highway Diesel Fuel for a calendar month, as reported weekly on the U.S. Department of Energy Web site (www.eia.doe.gov).
• In the event the average monthly price of Retail On-Highway Diesel Fuel, equals or exceeds $2.30 per gallon, a surcharge beginning at $0.05 per mile will apply.
• For every five cent increase above $2.30 per gallon, the surcharge applied will increase by $0.01 per mile. See threshold schedule for more details.
• When the average DOE price drops below $2.30 per gallon, no fuel surcharge will apply.
• The surcharge will be billed to applicable shipments beginning the second month following the month on which the DOE average price calculation was based. (Example: the average reported DOE price for the month of February 2007 would determine the fuel surcharge applied throughout the month of April 2007.)
• PC*Miler Rail product (FNII) will be used to calculate total miles. If interline price routing is involved, mileages will be calculated via the revenue route junction(s) of the price used to rate the shipments.
• Fractions of dollars resulting from the application of a fuel surcharge will be dropped if less than fifty (50) cents and increased to the next whole dollar if fifty (50) cents or more.

This surcharge will become effective with shipments billed on or after April 26, 2007. The surcharge will initially apply to most Union Pacific regulated public pricing documents for local and interline freight movements.

The fuel surcharge will be applied to the line haul freight charge(s) that make reference to this fuel cost recovery program.

This program does not affect UP's existing Intermodal surcharge program.

The DOE price is reported weekly on the U.S. Department of Energy Web site.

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Fuel Surcharge Rate