
Date: Wed, 9 Feb 2000 08:44:00 -0800 (PST)
From: robert.lloyd@enron.com
To: mandy.mackinnon@enron.com, george.grant@enron.com, aimee.lannou@enron.com,
jackie.young@enron.com, susan.trevino@enron.com,
stella.morris@enron.com, kimberly.vaughn@enron.com,
charlotte.hawkins@enron.com, carlos.rodriguez@enron.com,
tom.acton@enron.com
Subject: Pathing Procedures for Buybacks
Cc: pat.clynes@enron.com, rita.wynne@enron.com, daren.farmer@enron.com,
howard.camp@enron.com
Bcc: pat.clynes@enron.com, rita.wynne@enron.com, daren.farmer@enron.com,
howard.camp@enron.com

To path a buyback {MOP; Supply List}  with an existing Market Deal
{typically baseload} please follow these steps:

Theory # 1:   Example; Supply Deal = 5.0/d  & Market Deal = 5.0/d

1.) Attach the Supply Deal with the Market Deal to establish a "buy/sell"
path list contract  oppose to a transport contract.

2.) Path the transaction on the "buy/sell" { or broker the deal}  contract.

3.) This process is applicable only if the Supply Deal and the Market Deal
are the same quantity.

4.) This example will yield a net zero activity in POP.

Theory # 2:  Example ;   Supply Deal = 7.0/d  &  Market Deal = 10.0/d

1)  Follow  steps 1 & 2 in Theory # 1.

2.) Additionally, create a service transportation contract {i.e. K-215}  in
the path list.

2.) Path 7.0 on the "buy/sell" path list contract and  10.0  on the
transport {i.e. K-215} contract.

This procedure will eliminate  an out-of-balance in MOP for both the "Supply
Deal and the Market Deal"  and send 3.0  to POP via x-port K-215.

Note:  Never path a buyback {Supply Deal}  using a receipt transport contact
and the{ Market Deal}  using  a  delivery transport contract.

POP's should only  reflect  the "net" on these two transactions {buyback
and baseload deal}.
