Pathing Procedures for Buybacks

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}.