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Montana Rail Link will assess fuel surcharge on a mileage basis for all local shipments (origin and destination on MRL). All other interline traffic is subject to mileage or percentage based fuel surcharge as determined by the type of shipment and the originating railroad’s fuel surcharge policies.
Shipments made pursuant to pricing documents referring hereto will be subject to a Mileage Based Fuel Surcharge (MBFS), when applicable. The MBFS will be calculated by multiplying the applicable fuel surcharge per mile times the number of miles per shipment.
The applicable fuel surcharge per mile, as shown in the Fuel Surcharge Table, will be determined by using the U. S. Average Price of Retail On-Highway Diesel Fuel (HDF). When the HDF monthly average equals or exceeds $2.50 per gallon, in the second calendar month prior to the month in which the MBFS applies, an MBFS will be applied to the total freight charges for each shipment waybill dated on or after the 1st day of the second following calendar month. Contracts signed prior to January 1, 2011 will be subject to a $1.25 strike price fuel surcharge.
The MBFS will be adjusted monthly. The Fuel Surcharge Table will be subject to periodic review. The MBFS shall be included on the invoice for freight charges for each shipment. Miscellaneous and accessorial charges will not be subject to MBFS.
The source for the price of HDF will be the U. S. Department of Energy's EIA Retail On-Highway Diesel Prices Report, whose U.S. weekly average price is available on
their web site.
Mileage calculations between stations on MRL will be based on shortest main-line route mileage. Customers can compute mileage between MRL-served points using the
mileage inquiry. The mileage calculation will apply between each shipment's billed origin and destination.