Spreadsheet: phillip_m_love__30662__SyntheticProc-WK
Sheet: SYNTHETIC STORAGE (2B)

DESK (SYNTHETIC/PHYSICAL STORAGE BOOK) - w/ [NAME]
Pipeline (w/ Transport)
 |  | 1999-10-31 00:00:00
 | General [NAME]: | If the transaction is completed any time during the month prior to bidweek, and one of
 |  | or all of the leg(s) occurs in a future month;
2B.1 | TRADER
[NAME]: |  | Input the entire transaction as Exchange Buy(s) or Sell(s) with CPR Pipeline Exchange and
 |  | the appropriate ECT - Synthetic business unit and risk assignment at mid market to the cash
 |  | desk.  The commodity fee should be input as 0 to reflect actual cash flow (excluding fees).
 |  | Notify logistics of the transactions and create Storage Capacity deal.
 | Fee: | If fee is paid in volumes, net against appropriate position (Buy/Sell).
 |  | If the fee is monetary, input on the Storage Capacity deal.
 |  | NOTE:  The fee does not need to be input on the Exchange deals if it is input into TAGG as
 |  | a physical annuity.  The economic impact to the desk is captured via the TAGG leg.
 |  | If a fee only is to be paid or received with no volume flowing, input the fee as a deal level fee.
 | Other: | Input terms in Sitara comment field (note "SYNTHETIC," dates, fee, volumes, special instructions)
 |  | and corresponding leg Sitara #.
 |  | Attach the Synthetic user tag on the Exchange and Storage deals.
 |  | Complete term sheet.  (Remember to include the Sitara deal numbers on the term sheet.)
 |  | 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 review with Synthetic Storage Coordinator.
2B.2 | Risk Managment
Trade Capture:
TAGG Input: |  | Input all legs as Buys & Sells and price as: .0001 (price), -.0001 (basis) & .0001 (phys. [NAME].)
 |  | in the appropriate book for your region. | Determine what book
 | Fee: | If fee is paid in $, input as separate leg as purchase physical annuity using 3rd party name.
 |  | If fee is paid in $, input as separate leg as sales physical annuity using 3rd party name.
 |  | If fee structure includes reimbursement of fee from a 3rd party (other than the pipeline), input
 |  | separate purchase physical annuity for reimbursement using 3rd party name.
 | Modification: | If volumes do not flow as scheduled (as notified by Economics) or deal terms are modified,
 |  | unwind applicable leg(s) and rebook as separate leg(s).
Sitara: |  | Verify trader input per deal number(s) provided on term sheet.
Other: |  | Verify that Synthetic user tag on the Exchange and Storage deals.
 |  | Input TAGG# on Sitara deal in SCI.
Economics: |  | Include current month position(s) in daily P&L as Buy(s)/Sell(s) at Index plus mid-market
 |  | adjustment.  Make sure Mid-Market Index is correctly related to the TAGG deal.  If not, correct
 |  | the physical risk assignment on the Sitara deal to get the correct mid market index into CPR.
 |  | Include future month position(s) in daily P&L at Index + mid-market adjustment during bid
 |  | week when they become prompt month positions.
 | Fee: | If fee paid in $, it is a physical annuity. No separate reporting necessary.  (The Exchange Fee
 |  | on the Sitara Exchange Buy and/or Sell deals bridges only to the CPR backscreen only and
 |  | is not included in intramonth economics.)
 |  | If fee includes 3rd party reimbursement, it is a physical annuity.  No separate reporting necessary.
 | Manual: | Use Unify Calendar View Screen in Inventory List to ensure that [NAME] and Sell
 |  | expected volumes are updated to reflect best available volumes from the Storage deal.
 |  | Before bid week and at month-end, review deal volumes in Sitara to determine if any changes.
 |  | Discuss any issues with trader and/or Logistics.  Verify revisions to term sheets as needed.
 | Flash: | No special procedures necessary.
2B.3 | CONFIRMATIONS
Draft Confirmation: |  | If confirmation not received from the 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.
2B.4 | CONTRACT ADMINISTRATION
 |  | Obtain pipeline contract number from scheduler.
 |  | If new 3rd party contract number is assigned by the pipeline, Global needs to set up new
 |  | Storage contract with park and loan as an offered service.
 |  | Notify scheduler when contract set-up is complete.
2B.5 | [NAME]
Unify Desks |  | Verify that the necessary Storage deal has been entered in Sitara.  Review it for accuracy.
 |  | The Storage deal will bridge to Unify after a Global contract has been attached.
 |  | The storage contract will display in Unify Path Manager and automatically create a storage pool.
 |  | Path into or away from this pool to satisfy the volumetric requirements of the exchange transaction.
 |  | Review the set up of the pool to verify rates will be charged appropriately for injections and
 |  | withdrawals into and out of the storage pool.
 |  | The service type will be displayed as set up in Global contracts (Parking, Park&Lend, etc...)
 |  | Update the Exchange deals to reflect best available volumes scheduled on the Storage deal.
 |  | NOTE:   Storage deals do not currently update market and supply positions in [NAME]'s
 |  | Position Manager.  The exchange deals with the counterparty of CPR Pipeline
 |  | Exchange should be input into [NAME] to update market and supply positions.
 |  | These deals do not bridge to Unify.
 |  | Use your region's Synthetic portfolio to identify all synthetic storage deals and exchange deals.
2B.6 | DEAL VALIDATION
 |  | Attach contract to Storage Capacity deal.  No contract is attached to the Exchange Buy & Sell.
 |  | Note:  The CPR Pipeline Exchange counterparty will not bridge to Unify.
 |  | Make sure that the Synthetic user tag is attached to the Exchange deals and the Storage deal.
2B.8 | CASH MANAGEMENT
 |  | No Special Handling Required.
2B.9 | CONTROLS GROUP
 |  | No procedures necessary.
2B.10 | VOLUME MANAGEMENT
 |  | No Special Handling Required.
2B.11 | GAS ACCOUNTING
 |  | Use Volume Mgmt Report 10, End of Month Accounting Balance Close Report Detail, to identify
 |  | parking, lending, wheeling, or park&loan contracts.  Do not value the "parking" storage pools.
2B.12 | SHORT-TERM REPORTING
Valuation: |  | No special handling necessary.
Liquidations: |  | Treat all liquidations related to the TAGG # on the term sheet like a regular physical liquidation.