Prepared by Kevin McEwan 12/20/2017

LGE Rate Adjustment Worksheet Contract PAL-C-0750

Adjustment Date 1/1/2018

Page1

These Rates ADc ly On AR Tons Shipped Lass Than or Eaual to 2,000,000 Annual Tons These Rates Apply On All Tons Shlccad In Excess of 2,000,000 Annual Tons OrirJln McHenn1 Warrior Dotfki Orklln

Contract Basa Rate $5.44 .,... $5.52 _. $6.02 ,,... Contract Base Rate AILF Adlustment $0.05 ' $0.05 "' $0.06 - AILF Adlustment

Adjusted Prtea $5A9 , $5.57 , $6.08 .,,, Adjusted Price

Fuel Surcharae $0.09 ' $0,13 ;' $0.15 ,,,.,. Fuel Surcharge

New Total {Adiusfed Price+ SICJ $5.51 $5.10 I $8.23 New Total ( Adlusted Price+ S/CJ - - -.r AILF Ad{uatment Calcullti9Da

First Quarter 2017 AILF Index 100.5 CurrentAILF Index 101.5

Resulting Adjustment Percent 1.00%

Fuel Surchame Calcu,atlon I Formula: ({APPG • BPPGI • FUlm Contract Base Price Par Gallon $1.58 - $1.56 r

Actual Price Per Gallon $2.05 ,.. $2.05 ;' Fuel Usage (gallons) 1964 ~ 2603 .,,

Tonnage 10,200 ,,. 10,200 r Resulting Surcharge per Ton $0.09 ,,.. $0.13 /

/

$1.56 -$2.05 .... 3021 .,.

10,2001"" $0.15 ...-

«~ 1~-~-,7

McHenrv Wanfor Dotlkl $4.74 $4.90 $6.40 $0.05 $0.05 $0.05 $4.79 $4.95 $5.45

$0.09 $0.13 $0.15

"·" $5.0I $5.60

~ ~ =-,... -c:r ,... f""t-

= i,,.,i

.Q!!! Vendor 11/13/2017 Petroleum Traders 11/15/2017 Heritage Petroleum 11/21/2017 Heritage Petroleum 11/30/2017 Heritage Petroleum

November 2017 FUEL PURCHASES Gallons Cost

29893 45015 60006 45340

Average Price 61585.56 93415.13

120858.08 93545.49

180,254 $369,404.26

2.06 2.08 2.01 2.06

Date

200301 200302 200303 2003Q4

200401 200402 200403 200404 2005Q1 200502 200503 2005Q4 2006Q1 200602 2006Q3 200604 200701 200702 200703 200?04 200801 200802 2008Q3 2008Q4

200901 200902 200903 200904

201001 201002 201003 201004 201101 201102 201103 201104

201201 201202 2012Q3 201204

ALL-INCLUSIVE INDEX LESS FUEL Wl1HFORECASTERRORADJUS1MEN1

4Q/2017 = 100.0

All-tF

68.0 68.3 68.8 69.6

69.5 69.7 71.3 72.3 73.0 74.1 74.6 73.9

75.7 75.6 76.3 77.0

n.s 78.2 78.6 80.1 80.8 81.5 82.6 86.7 86.9 85.5 86.3 88.1

88.1 88.9 89.5 90.2

92.2 92.7 94.3 93.4 93.5 95.0 96.1 95.6

Forecast Error

AcOustmenl

0.0 0.0 0.0 0.0

0.0 0.0 0.3 0.7

-0. f 0.1 0.4

-0.4

-0.4 0.3

--0.4 0.3

0.0 -0.3 0.2 0.0

-0.2 --0.2 0.1 0.4 0.7

-1.7 -1.6 -0.3

0.4 0.3 0.4

-0,2

-1 .0 0.4 0.3 0.4

--0.4 -o.s· 0.3 0.0

AU-L.F Wlth

Forecast Error Ml.

68.0 68.3 68.8 69.6

69.5 69.7 71.6 73.0

72.9 74.2 75-0 73.5

75.3 75.9 75.9 n.3 77.5 77.9 78.8 80.1 80.8 81.3 82.7 87.1 87.6 83.8 84.7 85.8 88.5 89.2 89.9 90.0

81.2 93.1 94.6 93.8 93.1 94.5 96.4 95.6

Forecast AII-LF EITor With

Date AII-LF Adjustment Error AdJ

2013Q1 95.4 -0.5 94.9 201302 95.2 0.0 952 201303 96.1 0.4 965 201304 95.3 -0.1 95.2 2014Q1 95.3 o.o 95.3 201402 96.3 0.1 96.4 201403 97.0 0.2 97.2 201404 96.3 -0.3 96.D

201501 98.0 -0.1 97.9 201502 97.5 o.o 97.5 201503 97.4 -0.3 97.1 201504 9T.8 0.1 97.9

201601 91>.2 0.4 99.6 201602 99.0 -(>.1 98.9 201603 99.0 0.0 99.0 201604 97.7 0.1 97.8

201701 100.6 -0.1 100.5 201702 100.7 0.2 100.8 2017Q3 100.9 0.4 101.3 ,fO:!i~ _gg_ a~l. .)CID.f! 201801 101.4 0.1 101.5

Thia Index was reteased lleglnrm,g 201801. Eafller quarta,s were resla1ed only far c:ompallSon PUIJIOlles.

PADUCAH and LOUISVILLE RAILWAY L 17008-PAL-C-0750 / 1st QTR 2018 ADJUSTMENT Rates for First 2,000,000 tons Annually

Q1·2018 All lncluslve Index less Fuel Base Value Q1/2D17 -All inclusive Index less Fuel CHANGE Adjustment Factor

101.5 100.5

1 1.00%!

Mill Creek 1st Qtr. 2018 Origins Base Rate Adjustment Adj. Base Rates Surcharge

Wanfor Mine. KY $5.52 $0.08 $5.58 $0.13 Ootlkl, KY $6.02 $0.06 $8.08 $0.15 McHenry,KY $SM $0.05 $5.48 $0.09

ALL-INCLUSIVE INDEX LESS FUEL WITHFORECASTERRORADJUSTMENT

4012017 "' 100.0

AIH.F "-It WIIII F- AIM.F

Eni,r "-"' EnDr WIii ea. AII-LF ~Ul EnorAIQ. 0.. AII-LF ~ Enar"4

IOlll9Q1 118.0 0.0 111.D 201aa, 9S,4 .0.8 114.11 2coaa2 68.3 0.0 111.S 20,~ 85.2 IMI 85.2 2003Q) 18.8 0.0 IIU 201305 116.1 OA 1111.5 2ll03Q4 69.8 0.0 ... , 201304 85.ll -0.1 15.2 2004Q1 118.5 D,O 69.11 20'401 8$.3 D.(I 95.3 2IJIMQJ 18.7 0.0 Q.7 li01402 89.3 0,1 88A 211C1403 71.3 o.a 71.8 201401 rn.o 0,2 111.2 2004CM n..s o.r TU 201,4QC 88.3 -0.3 88.0 21JO&Q1 73..D ~., 72.11 2015Qt 111.0 .0,1 tr.I ZCNl5Q2 74.1 o., 14.2 201102 97.$ 0.0 91.6 Z005Q3 74.tl Cl.A 'II.Cl 201~ 91.4 -0.3 17,1 ZOD&Q4 78.9 -o.• TU 201SO. 11.8 0.1 .,.. 211D&Q1 tl.1 -a.4 7U 201801 119.2 OA ••• 2D08Q2 75.8 a.a 'PU 201802 911.0 .0.1 ea.a 2908Q3 nu -0.4 75.9 201803 11111.0 0.0 99.0 2CI06Q4 77.0 0..3 77.S 201904 rn:, 0.1 91.8 2007Q1 17.i 0.0 77.5 201701 100.8 -0.1 100.6 2GG702 18.Z ~ 77,8 201702 100.7 0.2 1911.11 2011703 111.& 0.2 11.a 2D17m 100.8 0,4 1tl1.3 20D1Q4 tlD,I 0.0 80.1 ~!~_ •. •=~., ..... ,M._ .~!P'>:P 20CIIQ1 80.11 -a.t ao.e 2011Q1 1111A D,1 101.8 2II08Q2 81.5 -D.2 11,a ~ 82.B C>.1 au 200804 811.7 0;4 87.I 20CIIQ1 .... 0 ,7 87.8 20890Z 85.5 •1.7 83.9 20090a ea.a ., .. M.7 2llD8Q4 88.1 -o.a IS.ti ZD10Q1 81.1 0.4 88.1 201002 ae.1 0.1 88.2 201UOJ at.& 0.4 .. , 201~ 90.2 ~.2 80.D 201101 112.:Z •l,O 111.2 2011Qi 112.7 0,'4 Ns1 701103 1M a o.:i M,I 201104 113.4 0.4 93.8

201201 llH -OA 811 201202 95,0 ~ 94.5 201203 INU 0..$ 95.4 20120,t i56 0.0 86.6

- - --THI lndllc - nl..- llclglnnlng 2018Q1. Easllat qumleta _. noMled only for compan..,,, """"*9,

0-mber IO, 2017

~RalH

$1.71 ~ $6.23 $5.118

PADUCAH and LOUISVILLE RAILWAY L 17008-PAL-C-0750 / 1st QTR 2018 ADJUSTMENT

Quarterly Fuel Surcharge: APG - BPG x F / T Base Price (10/1/2016): $1.56 per gallon Actual Price: Actual price per gallon at Paducah, KY Tenninal F= 1,964 gallons for McHenry; avg. fuel usage F= 2,603 gallons for Warrior; avg. fuel usage F= 3,021 gallons for Dotlkl; avg. fuel usage T = 10,200 tons of coal per unit train.]

Base Price per gallon $1.56 Actual Price per gallon (November 2018) $2.05 Fuel Usage McHenry 1964 Fuel Usage Warrior 2603 Fuel Usage Dotlkl 3021 Tons per Unit Train 10200 Resulting Fuel Surcharge Adj - McHenry $0.09 Resultlng Fuel Surcharge Adj .. Warrior $0.13 Resulting Fuel Surcharge Adj - Dotikl $0.15

November 2017 Fuel Purchases

DATE GALLONS COST $PER GALLON 11/13/2017 29,893 $81,585.56 $2.08 11/15/2017 45,015 $93,415.13 $2.08 11/21/2017 60,006 $120,858.08 $2.01 11/30/2017 45,340 $93,545.49 $2.08

180,254 $369,404.26 $2.05

Prepared by Kevin McEwan 12/20/2017

LGE Rate Adjustment Worksheet Contract PAL-C.0750

Adjustment Date 111/2018

Page 1

These Rates Aooly On All Tons Shipped Lau Than or 1:aual to 2,000,000 Annual Tons These Rates Al:J ply On All Tons Shlooed In Excess of 2,000,000 Annual Tons Origin McHenry Warrior Dotlki Origin

Contract Basa Rate $5.44 .., $5.52 - $6.02 ,.- Contract Base Rate AILF Adjustment $0.05 ' $0.05 -' $0.06 .- AILF Adjustment

Adluatod Pnce $5A9 , $5.57 ~ $6.08 ,.. Adjusted Price

Fuel Surcharqe $0.09 ,. $0.13 ,,; $0.15 , Fuel Surcha11ie

New Total ( Adfusfed Price + SICJ $5.51 $5.10 $6.23 New Total (Ad/usted Price+ SIC) -- - ~ AILF Adluatment Calcultffons

First Quarter 2017 AILF Index 100.5 Current AILF Index 101.5

Resulting Adjustment Percent 1.00%

Fuel Surcharge Caleulatlon (Fonnula; l(APPG • BPPGI * FUlfT'l Contract Base Price Per Gallon $1.68 - $1.56 r

Actual Price Per Gallon S2.06 ,. $2.05 r Fuel Usage (gallons) 1964 r 2603 ..,

Tonnage 10,200 ,.. 10,200 r Resulting Surcharge per Ton $0.09 .,,.. $0.13 ;'

./

$1.56 -$2.05--3021 ,.-

10,200,.-$0.16 ...-

«~ 1j-8{.-17

Mottenry Warrior Dotlki $4.74 $4.90 $5.40 $0.05 $0.05 $0.05 $4.79 $4.95 $5.45

$0.09 $0.13 S0.15

u .11 $5.0B $5.60

Date Vendor 11/13/2017 Petroleum Traders 11/15/2017 Heritage Petroleum 11/21/2017 Heritage Petroleum 11/30/2017 Heritage Petroleum

November 2017 FUEL PURCHASES Gallons ~

29893 45015 60006 45340

Average Price 61585.56 93415.13

120858.08 93545.49

180,254 $369,404.26

2.06 2.08 2.01 2.06

12.

200301 200302 200303 2003Q4

200401 200402 200403 2004Q4

200501 200502 2005Q3 2005Q4

2006Q1 200602 200603 200804

2007Q1 2007Q2 200703 200704

200801 200802 200803 200804

200901 200902 2009Q3 200904

201001 201002 201003 201004

201101 201102 201103 201104

201201 201202 201203 2012Q4

ALL-INCLUSIVE INDEX LESS FUEL Wl1HFORECASTERRORADJU81MEN1

4Q/2017 = 100.0

All-l.F

68.0 68.3 68.8 69.6

69.5 69.7 71.3 72.3

73.0 74.1 74.6 73.9

75.7 75.6 76.3 71.0 77.5 78.2 78.6 80.1 80.8 81.5 82.6 86.7

86.9 85.5 86.3 86.1

8&.1 88.9 89.5 90.2

92.2 92.7 94.3 93.4

93.5 95.0 96.1 95.6

Forecast Eiror

A@IS!ment

0.0 0.0 0.0 0.0

0.0 0.0 0.3 0.7

-0.1 0.1 0.4

-0.4

-0.4 0.3

-0.4 0.3

0.0 -0.3 0.2 0.0

-0.2 -0.2 0.1 0.4

0.7 -1.7 -1.6 -0.3

0.4 0.3 0.4

-0.2

-1 .0 0.4 0.3 0.4

-0.4 -o.5· 0.3 0.0

AU-U= With

Forecast EITor A<IJ.

68.0 68.3 ea.a 69.6

69.5 69.7 71.6 73.0

72.9 74.2 75.0 73.5

75.3 75.9 75.9 n.3 n .s 77.9 78.8 80.1 80.6 81.3 82.7 87.1

87.6 83.8 84.7 85.8

88.5 89.2 89.9 90.0

81.2 93.1 94.6 83.8

83.1 94.5 96.4 95.6

Forecast AII-LF Error With

Dale AII-LF Adjustment Emir Adj

2013Q1 95.4 -0.5 94.9 201302 95.2 0.0 95.2 201303 96.1 0.4 96.5 201304 95.3 -0.1 95.2

2014Q1 95.3 0.0 95.3 201402 96.3 0.1 96.4 2014Q3 97.0 0.2 97.2 201404 96.3 -0.3 96.0

201501 98.0 -0. 1 97.9 201502 97.5 0.0 97.5 201503 97.4 -0.3 97.1 201504 97.8 0.1 97.9

201601 99.2 0.4 99.6 201602 99.0 -0.1 98.9 201603 99.0 0.0 99.0 201604 97.7 0.1 97.6

201701 100.6 -0.1 100.5 201702 100.7 02 100.9 201703 100.9 0.4 101.3 201704 ,::,~ ;.:- -~g_ JH. _ _:IQO.~ 2018Q1 101.4 0.1 101.5

This Index was released beginning 2'11801. Earller quarteis were reslale.d only for camparl8on PLIIJIOSIS.

PADUCAH and LOUISVILLE RAILWAY L 17008-PAL-C-0750 I 18t QTR 2018 ADJUSTMENT Rates for First 2,000,000 tons Annually

Q1•2018 All Inclusive Index leas Fuel Base Value Q112017 • All incluslve Index Ins Fuel CHANGE Adjustment Factor

101.5 100.6

1 1.00%!

Mm Creak 1st Qtr. 2018 Origins Base Rate Adjustment Adj, Base Rates Surcharge

Warrior Mine, KY $5.52 $0.06 $5.58 $0.13 Dotlki,KY $6.D2 $0.06 $6.08 $0.16 McHenry, KY $5.44 $0.05 $5A8 $0.09

ALUNCLUSIVE INDEX LESS FUEL WITHFORECASTERRORADJUSTMENT

40/2017 .. 100.0

AIM.F ,,_ WHn Fcncast AIM.F Enl,t ,,._.. linw WIii

Dale AIIU' AlfUllfflllllt EnorAIQ. Dul ~-LF ~ EnarA4,

200301 118.0 0.0 ea.a zu1aa1 91.4 -0.1 94.11 200302 18.3 0.0 88.3 zo,~ 116.l! 0.0 95.2 2003Q3 18.8 0.0 88.8 211130& 811.1 0.4 118.11 2II03Q4 69.G 0.0 eu 201304 85.3 -0.1 '5.2 2004Qt 118.5 a.o II.Ii 20MQ1 81.2 DAI BU 200402 a,7 0.0 .. , 201402 eu o., 118A 200403 71.., o.a TUI 111114QS 17.0 OJ! lll'.2 200404 7U o.r 73JI 201o!Q4 '8.3 -G.3 ea.o 20lloQ1 73.0 -0,t n.s 201!5Q1 '8.0 -0,1 ar.1 2005Q2 14.1 O.t 74.Z ZOIIQZ 97.5 0.0 97.6 200503 74.8 0.4 7U 2015Q3, .,... ,0,3 IT.I 200IIQ4 n.e -0.4 TS.& i!GISCM 111..8 0.1 17.1 2D08Q1 fl.7 .QA 11.S 201801 ll9J! 0.4 au 20D8Q2 76.8 D.3 16.11 201802 81.0 41 la.I ~ n.a -0.4 15.11 2018Q3 81.0 0.0 ffJI IIIID6Q4 11.0 Q.ll 77.JI 201804 '161:1 0.1 11.1 2Dll7Q1 77.5 0.0 71,S 201101 100.& -0.1 100.& 20IITQ2 18.2 ..o,a 77.8 2017Q2 100.7 0.2 180.9 200'103 1U o.2 78.8 20111» 100.1 0.4 101.3 2007Q4 BO., OJ) 811,1 ~J?!f_~ !\ -= 1!9.7 ..:.:. ~- .• !~-P 20Cl8Q1 80.8 -0.2 eo.e 20111Q1 10t,tl 0,1 101,1 2DOBQ2 81.5 -0.2 a1.a :IIICIIQ3 82.8 0.1 12.7 200804 88.1 0,4 87.t 2DCIIQ1 81.8 0.7 11.11 ZIHIIQ2 15.5 .,.1 113.B ~ 81.3 -1.8 M.1 20DIIQ4 11,1 -0.3 85.11 201001 88.1 Cl.A 11.6 201002 .... o.a 88.2 2~1003 au °'" aJI 20100'1 9(1,2 -0.2 90.0 201101 82.2 .,.o 81.2 2011Q2 111,7 OA 93.1 2011Q3 1M 3 0.3 au 201104 il3.• 0.4 81.8 201201 135 ,0.4 811 201202 95,0 ,Q,6 94.5 2012ca H1 o.a eu 20,:10<1 95,6 0.0 911.8 . Tllllrllilll-reloambastnnltlg201BQ1. Ealller...,,_wttereuladanfylarOQmllari11G11"""""8S,

o-raber 211, 2011

NewRatN

$5.71 ~ $8.23 tl.58

PADUCAH and LOUISVIUE RAILWAY L 17008-PAL-C-0750 / 1st QTR 2018 ADJUSTMENT

Quarterly Fuel Surcharge: APG - BPG x F / T Base Price (10/1/2016): $1.56 per gallon Actual Price: Actual price per gallon at Paducah, KY Terminal F• 1,964 gallons for McHenry; avg. fuel usage F• 2,603 gallons for Warrior; avg. fuel usage F= 3,021 gallons for Dotiki; avg. fuel usage T = 10,200 tons of coal per unit train.]

Base Price per gallon $1.56 Actual Price per gallon (November 2018) $2.05 Fuel Usage McHenry 1964 Fuel Usage Warrior 2603 Fuel Usage Dotlkl 3021 Tons per Unit Train 10200 Resulting Fuel Surcharge Adj • McHenry $0.09 Resulting Fuel Surcharge Adj - Warrior $0.13 Resulting Fuel Surcharge Adj - Dotikl $0.15

November 2017 Fuel Purchases

DATE GALLONS COST $PER GALLON 11/13/2017 29,893 $61,585.56 $2.06 11/15/2017 45,015 $93,415.13 $2.08 11/21/2017 60,006 $120,858.08 $2.01 11/30/2017 45,340 $93,545.49 $2.06

180,254 $369,404.26 $2.05