Consolidated Glass Corporation

June 20, 2011

To Our Valued Customers:

Through the 2nd quarter of 2011 we have seen a slightincrease in the cost of natural gas and a major increase in the cost of diesel fuel.  Outlined below is the breakdown of the fuel surcharges for the period of July 1, 2011 – September 30, 2011.

The surcharges will be the sum of both elements as outlined below:

  1. Natural Gas

    2. As calculated in the past, this surcharge element for the period commencing July 1, 2011 through September 30, 2011 is based on the previous three months NYMEX average of $4.36 per MMBTU and equates to 2.0% for all glass products invoiced for the next three (3) month period.   (See Appendix A)

    Appendix A

    NYMEX Average Surcharge

    MMBTU

    Per Truck Load

    Glass Surcharge

    $ 2.49

    &

    Below

    $0

    0.0%

    $ 2.50

    to

    $ 2.99

    $100

    0.5%

    $ 3.00

    to

    $ 3.49

    $200

    1.0%

    $ 3.50

    to

    $ 3.99

    $300

    1.5%

    ------

    ---

    ------

    ------

    -----

    $ 4.00

    to

    $ 4.49

    $400

    2.0%

    ------

    ---

    ------

    ------

    -----

    $ 4.50

    to

    $ 4.99

    $500

    2.5%

    $ 5.00

    to

    $ 5.49

    $600

    3.0%

    $ 5.50

    to

    $ 5.99

    $700

    3.5%

    $ 6.00

    to

    $ 6.49

    $800

    4.0%

    $ 6.50

    to

    $ 6.99

    $900

    4.5%

    $ 7.00

    to

    $ 7.49

    $1000

    5.0%

    $ 7.50

    to

    $ 7.99

    $1100

    5.5%

    $ 8.00

    to

    $ 8.49

    $1200

    6.0%

    $ 8.50

    to

    $ 8.99

    $1300

    6.5%

    $ 9.00

    to

    $ 9.49

    $1400

    7.0%

    $ 9.50

    to

    $ 9.99

    $1500

    7.5%

    $10.00

    to

    $10.49

    $1600

    8.0%

    $10.50

    to

    $10.99

    $1700

    8.5%

    $11.00

    to

    $11.49

    $1800

    9.0%

    $11.50

    to

    $11.99

    $1900

    9.5%

    $12.00

    to

    $12.49

    $2000

    10.0%

    $12.50

    to

    $12.99

    $2100

    10.5%

    $13.00

    to

    $13.49

    $2200

    11.0%

    $13.50

    to

    $13.99

    $2300

    11.5%

    $14.00

    to

    $14.49

    $2400

    12.0%

    $14.50

    to

    $15.00

    $2500

    12.5%

    * Above $15.00 - An increase of $100 per truckload (as defined in PPG general terms and conditions) for every $0.50 increase in the NYMEX average futures price for natural gas.

     

  2. Diesel Component

    3. The diesel component will be based on the U.S. mean (average) price of diesel fuel for the previous three (3) month period.  The U.S. mean (average) price is based on the U.S. Department of Energy Information.  The mean (average) of the previous three (3) months is $4.02 per gallon.

    As displayed in Appendix B, this equates to 3.125%, which will be invoiced on all glass products for the next three (3) months.

     

    Appendix B

    Department of Energy

    Retail on Highway Diesel Pricing

    US Mean (average) Fuel Cost per Gallon

    12 Week Mean (average) $3.474 per Gallon

    Dollars per Gallon

    Diesel Fuel Surcharge

    $ 0.00

    to

    $ 1.52

    0%

    $ 1.53

    to

    $ 1.65

    0.625%

    $ 1.66

    to

    $ 1.78

    0.750%

    $ 1.79

    to

    $ 1.91

    0.875%

    $ 1.92

    to

    $ 2.04

    1.000%

    $ 2.05

    to

    $ 2.17

    1.125%

    $ 2.18

    to

    $ 2.30

    1.250%

    $ 2.31

    to

    $ 2.43

    1.375%

    $ 2.44

    to

    $ 2.56

    1.500%

    $ 2.57

    to

    $ 2.69

    1.625%

    $ 2.70

    to

    $ 2.82

    1.750%

    $ 2.83

    to

    $ 2.95

    1.875%

    $ 2.96

    to

    $ 3.08

    2.000%

    $ 3.09

    to

    $ 3.21

    2.125%

    $ 3.22

    to

    $ 3.34

    2.250%

    $ 3.35

    to

    $ 3.47

    2.375%

    $ 3.48

    to

    $ 3.60

    2.50%

    $ 3.61

    to

    $ 3.72

    2.625%

    $ 3.73

    to

    $ 3.85

    2.750%

    $ 3.86

    to

    $ 3.98

    2.875%

    $ 3.87

    to

    $ 3.99

    3.000%

    -------

    ---

    -------

    ------

    $ 4.00

    to

    $ 4.12

    3.125%

    -------

    ---

    -------

    ------

    $ 4.13

    to

    $ 4.25

    3.250%

    $ 4.26

    to

    $ 4.38

    3.375%

    $ 4.39

    to

    $ 4.51

    3.500%

    $ 4.52

    to

    $ 4.64

    3.625%

    $ 4.65

    to

    $ 4.77

    3.750%

    $ 4.78

    to

    $ 4.90

    3.875%

    $ 4.91

    to

    $ 5.13

    4.000%

    $ 5.14

    to

    $ 5.26

    4.125%

    *Above 5.26 - An increase of $25 per truckload for every $0.13 increase in the Department of Energy (DOE) fuel average price for Diesel Fuel.

  3. Total Energy Surcharge

    4. The total energy surcharge will be the sum of both the natural gas and diesel components for April1, 2011 through June 30, 2011.  Natural gas ($4.36 Per MMBTU = 2.0%) + diesel ($4.02 per gallon = 3.125%) = 5.125% Total Energy Surcharge.  The next review will be September 30, 2011.

We appreciate your loyalty and your business.

Sincerely,
Carlo Carmen
Carl Carmen
Sales Manager