Question-and-Answer Session
Operator
(Operator Instructions) And our first question will come from Scott Levine with JP Morgan.
Scott Levine - JP Morgan
Good morning.
John Casella
Good Morning.
Scott Levine - JP Morgan
I was hoping now you might be able to talk a little bit more in detail on solid waste pricing trends, it's being normalized for what's going on with Pine Tree anecdotally. Are you seeing any weakening in either the fraction of the disposal sites of the business in [Linear] region?
John Casella
I think it's, clearly from our perspective flat, MSW pricing is flat down slightly. I think the majority of the impact from a pricing standpoint is clearly on construction, demolition side.
Scott Levine - JP Morgan
So within the last cyclical business lines no appreciable change versus what we've seen in the last few quarters.
John Casella
I think that’s [area].
Scott Levine - JP Morgan
Okay.
John Casella
No appreciable change on the MSW pricing.
Scott Levine - JP Morgan
Got it. Could you remind us, turning to fuel, you’ve seen a move up in diesel prices, can you remind us of your surcharge capabilities how much you are recovering? Within what time frame, any lags so and so forth?
John Casella
Sure, our surcharge we’re recovering the cost we’re tied to the National Diesel Index. We’ve had the surcharge in place for 3 or 4 years now. It works very well, I think what, we certainly recover all the cost, the issue clearly though is that you are not covering the margins so you have slight margin deterioration even though you are recovering the cost from a fuel perspective.
Scott Levine - JP Morgan
Okay, one last one. It sounded like you said on the incremental contribution from the new landfills $22 million it seems, it sounded as though you guys have been saying $24 million, has there been any change there and if so, where is that coming from?
John Casella
Well, I think it's fair to say that from an economic perspective $22 million to $24 million is still a hard target, perhaps from an economy standpoint we may see some weakness there, continued weakness from a C&D pricing standpoint, but I think we’re clearly, I think reflecting that from an economic standpoint particularly on the C&D side that we're likely to be $22 million to $24 million.
Scott Levine - JP Morgan
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