1 June 2004 CPR Introduces New Fuel Surcharge Program Calgary - Faster response to price fluctuations in volatile fuel market.   Canadian Pacific Railway (TSX/NYSE: CP) announced it has implemented a new fuel surcharge program. The program enables the railway to adjust its rates more quickly as fuel prices move up and down in today's volatile market. It also provides customers with surcharges that are more closely tied to current fuel prices.   The new surcharge program, effective today, will be based on the monthly average price of West Texas Intermediate (WTI) crude oil, instead of a quarterly average WTI price. Once the previous calendar month's average WTI price has been calculated, customers will have the current month to convert their payment systems to account for a rate adjustment. The surcharge will flow through to customers in the following month.   The fuel surcharge will be 2 percent of the freight charge when the WTI monthly average price reaches US$24 per barrel, and will be 4 percent of the freight charge when the WTI reaches US$27 per barrel. It will increase by 0.4 percent for each additional $1 in the WTI above US$27. The surcharge will be reversed based on the same thresholds to reflect reductions in the WTI monthly average price.   CPR's fuel surcharge program applies to published tariff rates, new rate quotations and contracts renewals.