Message-ID: <30606387.1075854028067.JavaMail.evans@thyme>
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
Mime-Version: 1.0
Content-Type: text/plain; charset=us-ascii
Content-Transfer-Encoding: 7bit
Bcc: pat.clynes@enron.com, rita.wynne@enron.com, daren.farmer@enron.com, 
	howard.camp@enron.com
X-From: Robert E Lloyd
X-To: Mandy MacKinnon, George Grant, Aimee Lannou, Jackie Young, Susan D Trevino, Stella L Morris, Kimberly Vaughn, Charlotte Hawkins, Carlos J Rodriguez, Tom Acton
X-cc: Pat Clynes, Rita Wynne, Daren J Farmer, Howard B Camp
X-bcc: 
X-Folder: \Darren_Farmer_Dec2000\Notes Folders\All documents
X-Origin: Farmer-D
X-FileName: dfarmer.nsf

 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}.   