LOUISVILLE & INDIANA RAILROAD COMPANY

FREIGHT TARIFF LIRC 8200

RATES, RULES AND REGULATIONS
GOVERNING APPLICATION
OF
FUEL SURCHARGE

FUEL SURCHARGE TARIFF

Except where expressly provided to the contrary, rates and provisions contained herein also apply on intrastate traffic.

ISSUED:  April 12, 2007                                            EFFECTIVE:  May 2, 2007
                   

ISSUED BY

A. J. Malthaner, Director of Marketing

Louisville & Indiana Railroad Company

500 Willinger Lane

Jeffersonville, IN  47130

RULES AND OTHER GOVERNING PROVISIONS
RULES AND REGULATIONS - GENERAL

ITEM 10

SUPPLEMENTS AND REISSUES

When reference is made in this tariff, or supplements, to other publications for rates or other information, it includes, “Supplements thereto or successive issues thereof”

Where reference is made in this tariff to items, it includes “reissues” of such items.

ITEM 15
METHOD OF CANCELING ITEMS

As this tariff is supplemented, numbered items with letter suffixes cancel correspondingly numbered items in the original tariff or in a prior supplement.  Letter suffixes will be used in alphabetical sequence starting with A.  Example: Item 100-A cancels Item 100 and Item 300-B cancels Item 300-A in a prior supplement, which in turn, canceled Item 300.

FUEL SURCHARGES

ITEM 100

Application: This publication applies to: (1) all regulated common carrier linehaul tariff rates existing or established by LIRC on or after May 2, 2007; and (2) all linehaul freight rates and charges with respect to exempt traffic, and linehaul freight rates and charges in contracts, private price quotations or other pricing documents, that both reference this publication and are entered into or issued and effective on or after May 2, 2007.

LIRC will apply a fuel surcharge to the linehaul freight charge(s) based on the monthly average price of U.S. No. 2 Diesel Retail Sales by All Sellers (Cents per Gallon) On-Highway Diesel (ORD).

The source for the price of OHD is the U.S. Department of Energy’s EIA Retail On-Highway Diesel Prices Report, US Average, whose monthly average price is available under “2-M Diesel Prices — All Types” at http://tonto.eia.doe.gov/oog/info/wohdp/diesel_detail_report_combined.asp.

In calculating the ORD Average Price, the average price will be rounded to the nearest 1/10th of a cent applying conventional rounding principles.  The fuel surcharge will be $.01 per mile for every $.04 per gallon, or portion thereof, by which the OHD Average Price for the calendar month two months prior to the calendar month of shipment exceeds 199.9 cents.

If DOE-EIA ceases publication of the above information, LIRC will employ a suitable
substitute source of price or measure.

When the monthly average price of OHD equals or exceeds $2.00 in the second calendar month prior to the month in which the fuel surcharge is applied, the fuel surcharge rate per mile as shown in the OHD Fuel Surcharge Table will be applied to the linehaul freight charge.  For example, the surcharge amount in April will be calculated from the monthly U. S. average OHD price during February.  Rail mileage is calculated using 3rd party software PC*Miler / Rail Version 13 (ALK Technologies) on each linehaul movement, calculating total trip length for all carriers in the route, from origin to interchanges, to destination.  Fractions of a mile will be rounded to the next highest number.  For example, if the actual linehaul mileage is 1500.1 miles, the surcharge will be applied for 1501 miles.  Where the rail miles are not available through PC*Miler, LIRC will calculate and publish the mileage independently.

For example: When the OHD rate is $2.49, the fuel surcharge for a linehaul movement of 1,500 miles would be $.13 x 1,500 = $195.

The date of surcharge shall be applied as follows:

The following table reflects a sampling of the fuel surcharge within the included OHD Average Price ranges.

The fuel surcharge will be $.25 per mile plus $.01 per mile for every $.04 per gallon, or portion thereof, by which the OHD Average Price exceeds 299.9 cents.

Notification of any fuel surcharge changes will be posted on LIRC website @ www.anacostia.com