Gas Escalation clause

[Karen Sullivan]

I am looking for some wording for “gas escalation clause” for transportation contracts.

 

Thank you.

 

 

Karen Sullivan, Sr. Planner

Otsego County Planning & Solid Waste Department

197 Main Street

Cooperstown, NY 13326

(607)547-4225 (T)

(607)547-4285 (F)

www.otsegocounty.com/planning

 

P Please, don't print if you don't have to.

 

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[Dwight Mengel]

Hi Karen,

 

I wrote fuel escalation clauses for two contracts. You must know the average miles per gallon for the vehicles to create the formula. You'll need to test the formula on real data  too. The clause needs to fairly reduce price risk to the operator, else they will inflate the price to account for fuel inflation risk. I'll send the clause when I'm back in the office.

 

Good luck.

 

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[Karen Sullivan]

Thank you Dwight. I will keep an eye out for your e-mail.

 

Karen Sullivan, Sr. Planner

Otsego County Planning & Solid Waste Department

197 Main Street

Cooperstown, NY 13326

(607)547-4225 (T)

(607)547-4285 (F)

www.otsegocounty.com/planning

 

P Please, don't print if you don't have to.

 

[Mengel, Dwight (TOMPKINS)]

Here is Tompkins County’s fuel escalation clause for being an add to or reduction from a price per revenue hour.

 

Additionally, the County agrees to the fuel escalation amount of $.50 per revenue hour for each $.25 increase or decrease in fuel price above or below a baseline of $3.97 per gallon, as determined by the Energy Information Administration average weekly retail price of regular conventional gasoline in New York State, as currently shown on the website: http://www.eia.gov/dnav/pet/pet_pri_gnd_dcus_sny_w.htm

 

 

Example:

1.       The baseline gas price (from 3/19/2012) = $3.97  (The baseline cost per hour reflects the price of gas on March 19, 2012.)

2.       Vehicle (van) gets 15 miles per gallon

3.       Demand response service averages 25 MPH.

4.       1 revenue hour = 25 miles = 1.67 gallons = $6.63 in fuel

 

Escalation chart

$3.97 - $4.219 = $0

$4.23 - $4.479 = +$.50 per revenue hour

$4.48 - $4.729 = +$1.00 per revenue hour

 

De-Escalation chart

$3.97 - $3.721 = $0

$3.72 - $3.471 = ($.50) per revenue hour

$3.47 - $3.221 = ($1.00) per revenue hour

 

I rounded the escalaction amount to +/- $.50 to take into account the prices of gasoline, oils and fluids used in the vehicle.

 

 

Please contact me if you have any questions. Good luck.

 

Dwight Mengel
Chief Transportation Planner
Tompkins County Dept of Social Services

320 W. Martin Luther King Jr. St.

Ithaca, NY 14850
607 274-5605 voice, 607 274-5666 fax

www.tccoordinatedplan.weebly.com

www.mobilitymanager.weebly.com

 

From: Dwight Mengel [mailto:dwight...@gmail.com]
Sent: Friday, March 23, 2012 7:15 PM
To: nymobilit...@googlegroups.com
Cc: Mengel, Dwight (TOMPKINS)
Subject: Re: Gas Escalation clause

 

Hi Karen,

[Karen Sullivan]

Thank you Dwight,

Hope all is well.

 

Karen Sullivan, Sr. Planner

Otsego County Planning & Solid Waste Department

197 Main Street

Cooperstown, NY 13326

(607)547-4225 (T)

(607)547-4285 (F)

www.otsegocounty.com/planning

 

P Please, don't print if you don't have to.

 

[james....@e2taxi.com]

Here are a couple of fuel escalation clauses I have used in the past.
James j McLary
United We Ride Ambassador for Region 2

> <http://www.tccoordinatedplan.weebly.com/>
>
>
> www.mobilitymanager.weebly.com <http://www.mobilitymanager.weebly.com/>

> (607)547-4225 <tel:%28607%29547-4225> (T)
>
> (607)547-4285 <tel:%28607%29547-4285> (F)

>
> www.otsegocounty.com/planning
>
>
>
> P Please, don't print if you don't have to.
>
>
>
>
> Disclaimer:
>
> This communication, including any attachments, may contain confidential
> information and is intended only for
> the individual or entity to whom it is addressed. Any review,
> dissemination,
> or copying of this communication
> by anyone other than the intended recipient is strictly prohibited. If you
> are not the intended recipient, please
> contact the sender by reply e-mail, delete and destroy all copies of the
> original message. No responsibility is
> accepted by Otsego County Government for any loss or damage arising in any
> way from receipt of this
> message.
>
> ** Otsego County's Email System scanned this e-mail for viruses, vandals
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> --
>
> Dwight Mengel
>
> dwight...@gmail.com

James j McLary
Owner, E2Taxi
500 S. Morton Street Suite 025
Bloomington, IN 47403