TAXES & FEES EXPLANATION

Allied Waste is committed to providing high quality service to our customers. We strive to control our costs in order to provide you exceptional service at reasonable rates. Fuel prices and environmental compliance costs, however, are costs we are unable to unilaterally control. The Fuel/Environmental Recovery Fee is a charge to help us recover these costs, and is identified as a single line item on your invoice. This line item represents two separate charges, a fuel recovery fee and an environmental recovery fee.

Fuel Recovery Fee
On May 1, 2006, Allied Waste updated the Fuel Recovery Fee component of the Fuel/Environmental Recovery Fee. The change increases the previous fuel recovery fee table by 1.25%. This change was made to more appropriately align the fee with the total cost of diesel Allied Waste incurs nationwide. The Fuel Recovery Fee component of the charge references the U.S. Department of Energy diesel price U.S. Average index, which is based on data from the U.S. Energy Information Administration. For additional information on the index, please click on the following link: http://tonto.eia.doe.gov/oog/info/wohdp/diesel_detail_report_combined.asp

The Allied Waste Fuel Recovery Fee component will be updated at the beginning of each month (on or about the 1st of each month). The corresponding diesel rate will be the peak weekly-published price per gallon in the preceding 31-day cycle. For example, if the highest diesel price per gallon were $2.75, based on the updated Allied Waste Fuel Recovery Fee Table, (Click here for Fuel Recovery Fee Table effective May 1st, 2006) the fuel component of the charge would be 9.80% of your invoice amount, excluding taxes. (Click here for the Historical Fuel Recovery Fee Table)

Environmental Recovery Fee
The Environmental Recovery Fee component of the charge is designed to recover the total annualized costs associated with environmental compliance incurred nationwide by Allied Waste. These costs include, but are not limited to, engineering costs, monitoring costs, and environmental systems maintenance. The fee is currently 6% of all invoice charges, excluding tax.

Calculation of Fuel/Environmental Recovery Fee
The Fuel/Environmental Recovery Fee charged on a customers invoice is calculated by adding the percentage from the fuel recovery fee table and the environmental fee and applying it to the total invoice charges.

We appreciate your business and look forward to continuing to serve you and the community. If you have any questions, please contact your local Allied Waste office at the phone number on your invoice.