# RecyclingContracts

> Rebate and buy-back contracts for baled cardboard, pallets, totes and other recyclables, explained from the generator’s side. It explains each clause of recycling rebate, buy-back and offtake agreements, decodes formulas from public contracts, and provides a load value calculator and an offer comparer. It publishes no market prices, is not a buyer or broker, and is not legal advice.

Contact: info@recyclingcontracts.com. Last updated 2026-10-28.

## Pricing formulas (the five common shapes)
- Flat price per ton
- Index plus or minus a spread
- Percentage of the index
- Percentage of the index, minus a deduction
- Revenue share of the greater of floor and actual

## Key facts (cited)
- Most US cardboard contracts cite Fastmarkets RISI's monthly OCC (11) assessment: a price range for nine US regions, FOB seller's dock, US dollars per short ton, baled full truckloads, usually published around the 5th of the month; index-linked trades are excluded from the assessment. Source: https://fastmarkets.com/uploads/2025/03/Fastmarket_Price_Methodology_NA_Recovered_Paper_Oct_2024.pdf
- Public formula examples: Boulder County CO pays 50/60/75% of "OBM SW High" minus $43.22 per ton by annual tonnage tier; Steuben County NY compared bids as "PPW OCC (11) Buffalo High" plus or minus a spread; New York OGS pays a revenue-sharing percentage of the greater of a floor price and the actual sale price; Kitsap County WA rebates cardboard on the Pacific Northwest Secondary Material Pricing index for the current month. https://recyclingcontracts.com/public-contracts
- One published mill OCC #11 specification (Kruger, 2019) reserves rejection above 1% prohibitive materials or 5% outthrows including prohibitives, states 8% (±2%) maximum moisture, and a 40,000 lb minimum payload. Source: https://recycling.kruger.com/wp-content/uploads/sites/9/2019/04/Kruger_Recyclage_Specifications_Old_Corrugated_Containers_OCC11_Mars_2019_EN_v1.pdf

## Tools
- [Load value calculator](https://recyclingcontracts.com/calculator): settlement statement for one load from weight, formula, floor, cap, moisture, rejections, freight and equipment.
- [Offer comparer](https://recyclingcontracts.com/compare): net price per ton of up to three offers across a range of index values, with crossover points.
- [Get buyers to bid](https://recyclingcontracts.com/get-bids): a request passed to buyers who bid on the material.

## Clauses
- [§1 Material and specification](https://recyclingcontracts.com/clauses/material-specification): Which grade you are selling, and the quality limits the buyer can hold you to.
- [§2 Pricing formula](https://recyclingcontracts.com/clauses/pricing-formula): How the price per ton (or per unit) is worked out each month.
- [§3 Index reference](https://recyclingcontracts.com/clauses/index-reference): Which published price the formula reads, for which region, side of the range and month.
- [§4 Floor and cap](https://recyclingcontracts.com/clauses/floor-and-cap): The minimum the buyer pays when the formula falls, and any ceiling when it rises.
- [§5 Freight and pickup](https://recyclingcontracts.com/clauses/freight-and-pickup): Who moves the material, at whose cost, and how often trailers are swapped.
- [§6 Baler and equipment](https://recyclingcontracts.com/clauses/equipment): Who supplies the baler or compactor, what it costs, and what happens when it breaks.
- [§7 Load minimums](https://recyclingcontracts.com/clauses/load-minimums): The minimum weight or count per pickup, and the charge for a light load.
- [§8 Contamination and rejection](https://recyclingcontracts.com/clauses/contamination-and-rejection): What happens when a load misses the specification: downgrade, claim or rejection.
- [§9 Moisture](https://recyclingcontracts.com/clauses/moisture): The moisture limit, how it is measured, and how wet weight is deducted.
- [§10 Weights, tickets and audit](https://recyclingcontracts.com/clauses/weights-and-tickets): Whose scale sets the paid weight, what ticket you get, and your right to check.
- [§11 Payment terms](https://recyclingcontracts.com/clauses/payment-terms): When you are paid, how (cheque, transfer or credit), and what the statement shows.
- [§12 Title and risk](https://recyclingcontracts.com/clauses/title-and-risk): When the material stops being yours, and who carries the loss if a trailer burns.
- [§13 Term and renewal](https://recyclingcontracts.com/clauses/term-and-renewal): How long the agreement runs, and whether it renews itself.
- [§14 Exclusivity and first refusal](https://recyclingcontracts.com/clauses/exclusivity): Whether all your material must go to this buyer, and whether it can match other bids.
- [§15 Termination and disputes](https://recyclingcontracts.com/clauses/termination): How either side can end the agreement early, and what happens when you disagree.

## Reference
- [How OCC indexes work](https://recyclingcontracts.com/indexes)
- [Public contracts, decoded](https://recyclingcontracts.com/public-contracts)
- [Glossary](https://recyclingcontracts.com/glossary)
- [Baled cardboard (OCC)](https://recyclingcontracts.com/materials/cardboard-bales): Priced per ton, usually off a regional monthly index. Weight, moisture and contamination drive the money.
- [Used wood pallets](https://recyclingcontracts.com/materials/pallets): Priced per pallet by grade and size. Sorting rules and culls decide the money.
- [Gaylord boxes](https://recyclingcontracts.com/materials/gaylord-boxes): Reusable boxes are bought per box by size, wall count and condition. Damaged ones go to the bale.
- [IBC totes](https://recyclingcontracts.com/materials/ibc-totes): Bought per tote by condition and prior contents. Residue rules can decide whether they can be shipped at all.
- [Steel, plastic and fiber drums](https://recyclingcontracts.com/materials/drums): Bought per drum by material, head type and prior contents, or as scrap when not reusable.
- [Stretch film (LDPE wrap)](https://recyclingcontracts.com/materials/stretch-film): Baled clear film is sold by weight. Colour, labels, tape and dirt decide whether anyone pays for it.

## Templates
- [Rebate agreement term sheet](https://recyclingcontracts.com/templates/term-sheet) ([plain text](https://recyclingcontracts.com/templates/term-sheet.txt)): One page that pins down every term that moves the money, before anyone drafts a contract.
- [Bid request to buyers](https://recyclingcontracts.com/templates/bid-request) ([plain text](https://recyclingcontracts.com/templates/bid-request.txt)): A request for offers that makes every buyer price the same material, volume and terms.
- [Monthly settlement check](https://recyclingcontracts.com/templates/settlement-check) ([plain text](https://recyclingcontracts.com/templates/settlement-check.txt)): A checklist to reconcile each rebate statement against your tickets and the contract.

## What this site does not do
- It does not publish index values or market prices.
- It does not buy, sell or broker material, and names no buyer.
- It does not give legal advice.

Full text: https://recyclingcontracts.com/llms-full.txt