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

DESK (SYNTHETIC/PHYSICAL STORAGE BOOK) - w/ [NAME]
Pipeline (w/ Transport)
 |  | 1999-10-31 00:00:00
 | General [NAME]: | If all legs of a transaction are anticipated to occur within one month:
1B.1 | TRADER
[NAME]: |  | Input transaction into Sitara as Exchange Buy(s) & Exchange Sell(s) with a 0 commodity fee
 |  | using CPR Pipeline Exchange as the counterparty.
 |  | Input as Base-Firm or Day-IT only (not as Term-Firm).
 | Fee: | If fee is paid in volumes, input appropriate [NAME] (receipt) and [NAME] (delivery) volumes net of fee.
 |  | If fee is paid in $, input in Sitara on the Storage Capacity deal and one of the Exchange deals.
 |  | The fee is input as an external Exchange Fee on the Exchange Buy if we pay or the Exchange
 |  | Sell if we receive.  (Note:  If payment on inj & w/d, total fee on buy exchange deal.)
 | Other: | Input deal terms in Sitara comment field ("SYNTHETIC," dates, fee, volumes, special instructions).
 |  | Notify logistics of the transactions and work with them to input Storage Capacity deal.
 |  | Attach the Synthetic user tag on the Exchange and Storage deals.
 | 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.
 |  | Complete term sheet and place in the deal ticket basket.
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 basket.
1B.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 $, make sure the fee is on the Exchange Buy and/or Sell.
 |  | Note:  Input of the fee on the Exchange Buy or Sell deal captures the economic impact of the
 |  | parking fee.  The actual expense will be booked to the ledger from the Storage deal.
 | Manual: | Verify that the Exchange deals are updated to reflect the best available volumes scheduled on
 |  | the Storage deal.
 | [NAME]: | No adjustments necessary.
If deal is modified: |  | FOR EAST REGION:  If changes cause duration of deal to extend beyond prompt month,
 |  | perform the "...2B" 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 "...2B" 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.
1B.3 | CONFIRMATIONS
Draft Confirmation: |  | If confirmation is not received from the counterparty, work with trader to draft individualized
 |  | 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.
1B.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.
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) 2B" procedures.  Also,  based on the new "TO DATE" on the Sitara deal,
 |  | modify the contract expiration date in GLOBAL to match the new deal end date.
1B.5 | [NAME]
 |  | 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.
 |  | Review the set up of the pool to verify rates will be charged appropriately for injections and
 |  | withdrawals into and out of the pool.
 |  | The service type will be displayed as set up in Global contracts (Parking, Park and Lend, etc...)
 |  | and selected in Sitara.
 |  | NOTE:   Storage deals do not currently update market and supply positions in [NAME]'s
 |  | Position Manager.  [NAME] deals with a counterparty of CPR Pipeline
 |  | Exchange are input in Sitara to update market and supply positions in the Position
 |  | Manager.  These deals will not bridge to Unify.
 |  | Use your region's Synthetic portfolio to identify all synthetic storage deals and exchange deals.
 |  | Update the Exchange deals to reflect best available volumes scheduled on the Storage deal.
If deal is modified: |  | An amended term sheet will be forwarded by Risk Management.
 |  | If modification causes duration of deal to extend beyond the month, perform the following:
 |  | * Work with trader to change planned gas flow.
 |  | * Perform the "Desk (Synthetic/Physical Storage Book) 2B" procedures.
Manual: |  | Update Exchange Buy and Sell deal volumes to reflect best available volumes.
1B.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.
If deal is modified: |  | An amended term sheet will be forwarded by Risk Management.
 |  | If duration extends beyond the month, perform "Desk (Synthetic/Physical  Storage Book) 2B"
 |  | procedures.
1B.7 | CASH MANAGEMENT
 |  | No Special Handling Required.
1B.8 | CONTROLS GROUP
 |  | No procedures necessary.
1B.9 | VOLUME MANAGEMENT
 |  | No Special Handling Required.
1B.10 | 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.
1B.11 | SHORT-TERM REPORTING
 |  | No special handling necessary.