1. Leadership for Energy Automated Processing
May 27th, 2008
CAPP Presentation
Crude Oil Committee – Calgary

2. presentation is to provide mutual
Objective
The objective of this
presentation is to provide mutual
awareness between
LEAP and CAPP.

3. What is LEAP? LEAP - Leadership in Energy Automation and Processing
A non-profit organization
Focus on Energy Trading
Global scope
Comprised of industry working groups to improve energy trading
Executive committee and by-laws

4. Members Addax BV Curacao Arcadia Barclays Bank BP Camin Cargo
Cargill International SA
Chevron
Citibank N.A.
Deloitte
Depository Trust & Clearing Corporation
Deutsche Bank
ESS
Glencore Ltd.
Hess Corporation
Intercontinental Exchange
Intertek USA Inc.
Inspectorate
J. Aron & Company
JP Morgan Chase
Koch Supply & Trading LP
Mercuria Energy Holding BV
Morgan Stanley
Nexen Inc.
PMI Comercio Internacional S.A. de C.V.
Saracen Merchant Energy LP
Sempra Energy Trading
SGS Group Management SA
Shell Trading US
StatoilHydro ASA
Sungard Consulting
Totsa Total Oil Trading SA
Transport4

5. Mission Statement
Mission Statement: to promote efficient and reliable transaction processing within the energy trading industry by means of automation and standardization.

6. Energy Trading - Initiatives
Promote data automation and standards
Fill the gaps in automation and standardization which includes contracts
Develop contract standards to allow for electronic confirmation and electronic settlement of trades
Work with system vendors on a neutral basis to ensure they use the same data standards

7. Standard Contracts
Release V2.0 of the LEAP Master Agreement for Crude Oil and Refined Products (U.S.) in Nov., 2007
International Swap and Derivatives Association (ISDA) is working with LEAP to publish an Oil Annex
Canadian sub-committee will be releasing the Canadian Addendum to V2.0 of the LEAP Master Agreement in June, 2008

8. Benefits of Standard Contracts
Independent and neutral contract
Industry standard reference point (95%) standard terms and conditions
Able to customize (5%) if required
Significantly reduces time required to negotiate contracts
Reduces legal costs associated
Allows electronic confirmation of energy trades and operational excellence

9. Benefits of Electronic Confirmation
Electronic matching of deals identifies trade capture error rates (10 – 20%*)
Firm acceptance of deal terms under agreed terms and conditions
Faster acceptance, facilitates audits
Eliminates manual processes
Reduces paper flow time and costs
4 companies using eConfirm in the U.S. for physical crude oil trades
*Source: ISDA Benchmark Study 2007

10. Error Rates
*Source: ISDA Benchmark Study 2007

11. Canadian Sub-Committee
Canadian Sub-Committee Members include:
Nexen, BP, Shell, Chevron, J Aron/GS, Morgan Stanley, Total, Barclays, Mercuria
The Canadian Addendum appends to the LEAP Master Agreement to include Canadian terms, i.e. Alberta law, credit provisions (CCAA, BIA), tax, currency, exchange rates

12. How it works
The Canadian Addendum appends to the LEAP Master Agreement if executed
One set of Special Provisions allows companies to customize these terms
The master contract terms then apply to applicable transactions with the parties
Without eConfirm there are still benefits of shorter contracts that bind the parties under fully agreed terms
Schedule J of ICE eConfirm allows parties to confirm electronically

13. More About LEAP Other Global LEAP Initiatives:
Contract Committee - Rotterdam Barge Agreement (North West Europe)
Electronic Bills of Lading (Marine)
Certificates Quantity & Quality (Marine)
Reference Data
Scheduling Initiatives (Transport4)
Settlement Committee

14. Membership
Membership is not required to use the LEAP Master Agreement, but it is required to participate in committees
Membership Types:
Full Membership (board members)
Regular Membership (committees)
Service Membership (vendors)
Associate Membership (UK - Energy Institute)

15. CONTACT INFORMATION
Cdn. Addendum:
Karen Mikkelborg
LEAP Master
Kevin Jandora
Mary Dortenzio