Item 4G - Attachmet A - Premier Magnesia, LLC- Thioguard Annual Contract Pricing
May 16, 2023
Ms. Jason Arellano
Wastewater Supervisor
1950 E. Continental Blvd
Southlake, TX 76092
817.748.8080
jarellano@ci.southlake.tx.us
Re: Premier Magnesia, LLC – Thioguard® Services – Southlake Pricing Documentation
Dear Mr. Arellano:
Thioguard® is proven to be the highest quality technical grade magnesium hydroxide slurry available that is
manufactured through a proprietary process for conditioning in municipal water and wastewater treatment. It
utilizes a safe, non-hazardous engineered slurry similar in appearance and chemistry to milk of magnesia. Properly
applied to municipal wastewater collection systems and plants, it has been satisfactorily demonstrated to safely
treat and control hydrogen sulfide gas, organic odors, collection system infrastructure corrosion, total gas
emissions, FOG, nutrients, struvite, biosolids, to improve dewatering efficiencies and enhanced biosolids for land
fertilization.
As you know, all manufacturers and service suppliers have experienced unprecedented increases in the cost of
production, transportation, and personnel costs. Last year we honored pricing in hopes that inflation would not
continue to climb. This year we are faced with a situation that requires a substantial increase. The major indices
that affect our business have increased substantially from December 2020 through December 2022, as
demonstrated in the bullet points below and the charts attached to this letter:
o PCU OMFG: 29.47% (All manufacturing)
o PCU 325: 24.39% (Chemical manufacturing)
o PCU 484: 35.27% (Truck Transportation)
o PCU 482: 14.55% (Line Haul Railroads)
§ AVG of the above (4) PPI: 25.92% - 8.30% (2020-2022 increase) = 17.62%
Premier requests a 9.1% increase to $3.65 per gallon for a one-year extension period.
As mentioned before, the U. S. Bureau of Labor Statistics charts are attached. Premier Magnesia values the City of
Southlake as a customer and looks forward to being your odor, corrosion, and plant alkalinity supplier in the
future.
Best Regards,
J. Peter Ahl
V.P. and General Manager
Premier Magnesia, LLC
610.420.7500
pahl@premiermagnesia.com
mg-water.com
• PPI PCUOMG: Total manufacturing industries, not seasonally adjusted:
o U.S. Bureau of Labor Statistics link: PPI PCU OMFG
§ December-2020: 192.7
§ December-2022: 249.5
• Diff: 56.8 or 29.47%
• PPI PCU325: Chemical mfg., not seasonally adjusted:
o U.S. Bureau of Labor Statistics link: PPI PCU 325
§ Average-2020: 289.0
§ Average-2022: 359.5
• Diff: 70.5 or 24.39%
• PPI PCU484: Truck Transportation, not seasonally adjusted:
o U.S. Bureau of Labor Statistics link: PPI PCU 484
§ December-2020: 146.0
§ December-2022: 197.5
• Diff: 57.5 or 35.27%
• PPI PCU482: Line-haul railroads, not seasonally adjusted:
o U.S. Bureau of Labor Statistics link: PPI PCU482 Line-haul railroads
§ December-2020: 220.7
§ December-2022: 252.9
• Diff: 32.2 or 14.58%