Spreadsheet: phillip_m_love__30662__SyntheticProc-WK
Sheet: SYNTHETIC STORAGE (1A)

DESK (SYNTHETIC/PHYSICAL STORAGE BOOK) - w/ [NAME]
3rd Party (or Pipeline w/o Transport).
 |  | 1999-10-31 00:00:00
 | General [NAME]: | If all legs of a transaction are anticipated to occur within one month:
1A.1 | TRADER
[NAME]: |  | Input transaction in Sitara as Exchange Buy(s) and Exchange Sell(s) with a 0 commodity fee.
 |  | (A 0 commodity price is required because it reflects actual cash flow (excluding fees).
 |  | Input as Base-Firm or Day-IT only (not as Term-Firm).
 | Fee: | If fee paid in volumes, input contracted receipt and delivery volumes.
 |  | If the fee paid/received in $, input in Sitara as an external Exchange Fee on the Exchange Buy if we
 |  | pay the fee and the Exchange Sell if we receive the fee.
 |  | If fee is to be paid/received with no volume flowing, input fee as a deal level fee (on Terms tab).
 | Other: | Input deal terms in Sitara comment field ("SYNTHETIC," dates, fee, volumes, special instructions).
 |  | Attach the Synthetic user tag on the Exchange deals.
 |  | Complete term sheet and place in the deal ticket basket.
 | Confirmation: | If confirmation is not received from the counterparty:
 |  | * Work with Confirmations group to draft individualized confirmation for deal.
 |  | * Review and approve confirmation (within 24 hours) when provided by Confirmations group.
 |  | If confirmation is received from counterparty, provide copy to Confirmations group.
If deal is modified: |  | If deal is modified, update [NAME] deal to reflect anticipated future flow dates and volumes.
 |  | * Prepare revised term sheet and place in the deal ticket basket.
1A.2 | Risk Management
Trade Capture: |  | Performed by [NAME] for [NAME].  (No data in TAGG)
Economics: |  | Include Exchange Buy & Sell in daily P&L.  Verify that the commodity price is 0.   (NOTE:  The 0
 |  | commodity price bridges to CPR as .001 due to an ERMS limitation.  Unify will have the 0 price as
 |  | required for invoicing and payment.)
 | Fee: | If fee paid in volumes, verify that trader input contracted receipt and delivery volumes on the deals.
 |  | If fee is paid in $, verify fee is input as an Exchange fee on the Exchange Buy or Sell.
 | Manual: | Volumes on the Exchange Buy and [NAME] must be monitored to ensure accuracy of P/L.
 |  | The receipt and delivery volumes should equal unless the contracted rec/del volumes different.
 |  | Discuss any issues with trader and/or Logistics.
 | [NAME]: | No adjustments necessary.
If deal is modified: |  | FOR EAST REGION:  If changes cause duration of deal to extend beyond prompt month,
 |  | perform the "...2A" procedures.  If the duration extends only into prompt month, make sure the
 |  | Sitara deal has been updated to reflect the new anticipated flow dates.  If the prompt month MTM P/L
 |  | is not already included in the desk P/L,begin valuing it immediately so both the receipt and delivery
 |  | legs of the transaction are valued and reported in the desk P/L.
 |  | FOR ALL OTHER REGIONS:   If changes cause duration of deal to extend beyond the current month,
 |  | perform the "...2A" procedures.  Make sure the Sitara deal has been updated to relfect the new
 |  | anticipated flow dates and that the risk is assigned at mid to the cash desk.
1A.3 | CONFIRMATIONS
Draft Confirmation: |  | If confirmation not received from counterparty, work with trader to draft confirmation for deal.
 |  | Forward completed confirmation to trader for review.
 |  | Send confirmation to counterparty (24 hour turnaround).
 |  | If confirmation is received from the counterparty, obtain copy from trader.
If deal is modified: |  | An amended term sheet will be forwarded by Risk Management.
 |  | Work with trader to determine if deal should be reconfirmed.
1A.4 | CONTRACT ADMINISTRATION
Contract: |  | A new Global exchange contract should be created for each agreement with the counterparty.
 |  | The contract will link the Exchange Buy and Sell.
If deal is modified: |  | An amended term sheet will be forwarded by Risk Management.
 |  | If modification causes duration of deal to extend beyond the prompt month, perform the "Desk
 |  | Physical Storage Book) 2A" procedures.  Also,  based on the new "TO DATE" on the Sitara deal,
 |  | modify the contract expiration date in GLOBAL CONTRACTS to match the new deal end date.
1A.5 | [NAME]
Unify/Autonoms Input |  | Schedule transaction as [NAME] and Sell on Exchange contract.
 | Manual: | When scheduling 2nd half of deal, review volumes to make sure contracted volumes are flowing.
 |  | (i.e., Buy(s) & Sell(s)) volumes should equal unless the contracted receipt and delivery volumes
 |  | differ  -  information should be obtained from trader and/or pipeline.
 |  | Notify Economics if gas does not flow as scheduled.
All Desks
If deal is modified: |  | An amended term sheet will be forwarded by Synthetic Storage Coordinator.
 |  | If modification causes duration of deal to extend beyond prompt month, perform the following:
 |  | * Work with trader to change planned gas flow.
 |  | * Perform the "Desk (Synthetic/Physical Storage Book) 2A" procedures.
 |  | * Non-Unify desk move volumes from purchase/sale contract to S3/S4 contract.
Manual: |  | Before bid week & on last day of month, review volumes & work with Economics to ensure volumes
 |  | are properly accounted for (i.e., Buy & Sell volumes should equal unless initial contracted receipt &
 |  | delivery volumes differed).
1A.6 | DEAL VALIDATION
 |  | Attach Exchange contract to [NAME] transaction (Exchange Buy and Exchange Sell).
1A.7 | CASH MANAGEMENT
Fee: |  | No action is required whether ECT pays or receives the fee.
1A.8 | CONTROLS GROUP
 |  | No special handling necessary.
1A.9 | VOLUME MANAGEMENT
 |  | No special handling necessary.
1A.10 | GAS ACCOUNTING
 |  | No special handling necessary.
1A.11 | SHORT-TERM REPORTING
 |  | No special handling necessary.