Leadership for Energy Automated Processing

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

2. 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

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