$&RPSDFWDQG(IILFLHQW0XOWLEDQG%HDP%DVHGRQD0RGLILHG:-.

$UUD\
/DUU\$-DFREVRQ./-

,QWURGXFWLRQ
$ERXW\HDUVDJR,ZDVORRNLQJIRUDGHVLJQIRUDEHDPDQWHQQDWKDWZRXOGEHVLPSOH
PXOWLEDQGFRPSDFWHDV\WRFRQVWUXFWUHDVRQDEO\HIILFLHQWDQGLQH[SHQVLYH,PQRWDVNLQJ
PXFKDP,"8SWRWKDWWLPH,KDGEHHQXVLQJDVLQJOHGHOWDORRSZKLFKKDGDELGLUHFWLRQDOILJXUH
SDWWHUQWKDWFRYHUHG0XVLQJODGGHUOLQHIHHG,WZDVEDVLFDOO\DIXOOZDYHORRSRQ0
EXWKDGVRPHJDLQRYHUDOGLSROHRQDOOEDQGVIURP0WR0,KDGIRXQGWKDWD0IXOO
ZDYHORRSKDGDYHU\SHFXOLDUUDGLDWLRQSDWWHUQRQ0VRLWZDVQRWVXLWDEOHIRU0
RSHUDWLRQ+RZHYHU,ZDQWHGPRUHJDLQ,FRQVLGHUHGDGHOWDORRSTXDGEXWVLQFH,ZDQWHGWR
KDQJP\ORZEDQGGLSROHIURPWKHWRSRIP\WRZHU,QHHGHGDQDQWHQQDIRUWKHKLJKEDQGVWKDW
ZDVLQDKRUL]RQWDOSODQHDQGZRXOGQRWLQWHUIHUHZLWKDQRWKHUZLUHDQWHQQDEHORZLW

7KH$QWHQQD
2QHRIWKHDQWHQQDGHVLJQV,VWDUWHGPRGHOLQJXVLQJ(=1(&ZDVD:-.DUUD\XVLQJ0
OGLSROHV7KH:-.-RKQ.UDXVVNHOHPHQWDUUD\LVDYHQHUDEOHGHVLJQGDWLQJEDFNWR
WKHVEXWKDVDSSHDUHGLQHYHU\$QWHQQD+DQGERRNVLQFHWKHQDQGKDVHYHQDSSHDUHGLQ
467LQUHFHQW\HDUV7KHFODVVLF-.DUUD\FRQVLVWVRIaOGLSROHVDWWKHORZHVWRSHUDWLQJ
IUHTXHQF\FORVHO\VSDFHGaOZLWKDSKDVLQJOLQHRIWHQRKPODGGHUOLQHFRQQHFWLQJWKH
IHHGSRLQWV7KLVSKDVLQJOLQHLVWZLVWHGWRLPSDUWDSKDVHVKLIWEHWZHHQWKHHOHPHQWV7KH
DQWHQQDLVIHGDWWKHPLGSRLQWRIWKHSKDVLQJOLQHVHHILJXUH,Q.UDXVGD\WKHVHDUUD\VZHUH
IHGZLWKRSHQZLUHIHHGHUVVRPXOWLEDQGRSHUDWLRQZDVUHDGLO\SRVVLEOH$QDUUD\GHVLJQHGIRU
0FRXOGEHXVHGRQ0DQG0QR0DYDLODEOHLQWKDWGD\7KHJDLQZDV
VOLJKWO\KLJKHURQWKHKLJKHUEDQGVGXHWRWKHORQJHUHIIHFWLYHOHQJWK7KHUDGLDWLRQSDWWHUQZDV
ELGLUHFWLRQDODQDUURZILJXUHDQGQHDUO\GELFRXOGEHH[SHFWHGRQWKHORZHVWIUHTXHQF\2I
FRXUVHDEDODQFHGWXQHUZDVUHTXLUHGWRPDWFKWKHRSHQZLUHIHHGOLQHWRWKHWUDQVPLWWHU

,ZDVZLOOLQJWRDFFHSWWKHELGLUHFWLRQDOSHUIRUPDQFHLI,FRXOGJHWUHDVRQDEOHJDLQLQDFRPSDFW
GHVLJQ7KHPRGHOLQJVKRZHGJDLQRIVOLJKWO\XQGHUGELRQ0VORZO\LQFUHDVLQJWRDERXW
GELRQ07KDWZDVDORWEHWWHUWKDQP\ROGGHOWDORRS2IFRXUVH,ZRQGHUHGLIPDNLQJWKH
-.HOHPHQWVORQ0ZRXOGZRUNUHDVRQDEO\ZHOOIURP0WKURXJK0DQGOHDGWR
DQ\HYHQPRUHFRPSDFWGHVLJQDV,KDGIRXQGZLWKP\GHOWDORRS,ZDVDVWRQLVKHGWRILQGWKDW
WKHJDLQZDVHYHQJUHDWHU!GELRQ0WKDQLWKDGEHHQZLWKWKH0OGHVLJQDQGWKDWWKH
UDGLDWLRQSDWWHUQZDVVRPHZKDWXQLGLUHFWLRQDO:LWKIXUWKHUPRGHOLQJ,GLVFRYHUHGWKDWPRYLQJ
WKHIHHGSRLQWRQWKHSKDVLQJOLQHVOLJKWO\DZD\IURPWKHPLGSRLQWaVHHILJXUHLPSURYHG
WKH)%UDWLRVXEVWDQWLDOO\,FRXOGJHWHVVHQWLDOO\WKHVDPHXQLGLUHFWLRQDOUDGLDWLRQSDWWHUQDQG
JDLQDVDIXOOVL]HGHOHPHQW0\DJL,WZDVKDUGWREHOLHYHWKDW,KDGVWXPEOHGRQWR
VRPHWKLQJVRQRYHODQGH[FLWLQJFRQVLGHULQJWKDWWKH:-.DUUD\KDVEHHQDURXQGIRURYHU
\HDUV

7KHSHUIRUPDQFHRIWKLVFRPSDFWDUUD\RQWKHRWKHUEDQGV0ZDVHVVHQWLDOO\OLNHWKH
FODVVLF-.DUUD\DELGLUHFWLRQDOILJXUHSDWWHUQ7KHUHZDVDVOLJKWDV\PPHWU\)%RQ0
RIDERXWGE:HOO,EXLOWWKHEHDPDQGLQVWDOOHGLWRQP\WRZHUDQGLWSHUIRUPHGSUHWW\PXFK
DVWKHPRGHOLQJLQGLFDWHG7KHUHZDVDGLVWLQFW)%QRWLFHDEOHRQ0DQGGHFHQWJDLQRQDOO
EDQGVZLWKQRGLVFHUQDEOH)%RQEDQGVDERYH0,KDYHXVHGWKLVDUUD\IRUQHDUO\\HDUV
QRZ)LJXUHVKRZVP\FXUUHQWLQVWDOODWLRQ

6HYHUDO\HDUVDIWHU,ILUVWPRGHOHGEXLOWDQGLQVWDOOHGWKLVDQWHQQD,ERXJKW/HV0R[RQVERRN
RQ+)$QWHQQDV,QLW,IRXQGWKDWP\GLVFRYHU\ZDVQRWRULJLQDOEXWPHUHO\DYHU\OLWWOH
NQRZQDGDSWDWLRQRIWKH-.DUUD\:KDWDGLVDSSRLQWPHQW/HVDOVRH[SODLQHGKRZLWZRUNHG

7KHFODVVLF:-.DUUD\LVQRWIXQGDPHQWDOO\DUHVRQDQWDQWHQQDHYHQWKRXJKWLWLVFRPSRVHGRI
OHOHPHQWVLQWKHVHQVHWKDWWKHUHDFWLYHFRPSRQHQWRIWKHIHHGSRLQWLPSHGDQFHJRHVWR]HUR
DWWKHIXQGDPHQWDOIUHTXHQF\,QGHHGIRUWKHO0DUUD\WKHIHHGSRLQWUDGLDWLRQUHVLVWDQFHLV
YHU\ORZaRKPDQGWKHUHLVDVLJQLILFDQWDQGVL]HDEOHUHDFWLYHFRPSRQHQW2IFRXUVHLQ
.UDXVGD\HYHU\RQHXVHGWKHYHU\ORZORVVRSHQZLUHIHHGHUVDQGPDWFKLQJVXFKDIHHGSRLQW
LPSHGDQFHZLWKDWXQHUZDVQRSUREOHP,QIDFWWKHIHHGSRLQWLPSHGDQFHRIWKHDUUD\YDULHVDOO
RYHUWKHPDSDVWKHRSHUDWLQJIUHTXHQF\JRHVIURP0WR00RGHOLQJHDVLO\DOORZV
LQYHVWLJDWLRQRIWKHIHHGSRLQWFKDUDFWHULVWLFRIWKLVDGDSWDWLRQVHHILJXUH7KHPRGLILHGDUUD\
LVLQGHHGUHVRQDQWLQWKH0EDQGLQWKHVHQVHWKDWWKHUHDFWLYHFRPSRQHQWJRHVWR]HUREXWWKH
UDGLDWLRQUHVLVWDQFHLVVWLOOYHU\ORZaRKPV7KHUHLVDOVRDQRWKHUSRLQWZKHUHWKHUHDFWLYH
FRPSRQHQWJRHVWR]HURQHDUWKH0EDQG,QWKLVFDVHWKHUDGLDWLRQUHVLVWDQFHLVYHU\KLJK
VHYHUDOWKRXVDQGRKPV/HVH[SODLQHGLWWKLVZD\7KHWRWDOHIIHFWLYHOHQJWKRIWKHHOHPHQWVFDQ
EHILJXUHGDVWKHVXPRIWKHHOHPHQWOHQJWKaSOXVWKHWZLFHWKHSKDVLQJOLQHOHQJWKIURPWKH
HOHPHQWWRWKHIHHGSRLQW:LWKWKHIHHGSRLQWRIIVHW\RXILQGWKDWWKHIURQWHOHPHQWHIIHFWLYH
OHQJWKLVaIHHWDQGWKHEDFNHOHPHQWLVaIHHW7KHVHDUHMXVWWKHOHQJWKVRIDHOHPHQW\DJL
,QGHHGWKHPRGHOLQJVKRZVWKDWNHHSLQJWKHIHHGSRLQWDWWKHFHQWHURIWKHSKDVLQJOLQHDQG
OHQJWKHQLQJWKHEDFNHOHPHQWE\DIRRWDQGVKRUWHQLQJWKHIURQWRQHE\WKHURXJKO\VDPHDPRXQW
SURGXFHVDQHTXLYDOHQWUHVXOWWRPRYLQJWKHIHHGSRLQWDZD\IURPFHQWHUZLWKHTXDOOHQJWK
HOHPHQWV$QGWKHSHUIRUPDQFHRIHLWKHUFRQILJXUDWLRQLVLQGLVWLQJXLVKDEOHIURPDVWDQGDUG
:-.DUUD\RQWKHRWKHUEDQGV6RWDNH\RXUSLFN

0HFKDQLFDO'HWDLOV
,FRQVWUXFWHGWKHHOHPHQWVXVLQJQHVWHGWXELQJUHDGLO\DYDLODEOHIURP7H[DV7RZHUV';
(QJLQHHULQJHWF,QD-.EHDPERWKHOHPHQWVPXVWEHHOHFWULFDOO\LVRODWHGIURPWKHERRP,
DFFRPSOLVKHGWKLVE\XVLQJ39&SLSHURXJKO\ORQJDWWKHFHQWHUDOXPLQXPWXELQJILWV
VQXJJO\LQWRWKH39&,DOVRXVHGDORQJGRZHOLQVLGHWKHDOXPLQXPWXELQJWRVWLIIHQWKH
FHQWHU7KHUHZDVDJDSDWWKHFHQWHUEHWZHHQOHIWDQGULJKWVLGHRIWKHDOXPLQXPWXELQJ7KLV
LQVXODWHGDUUDQJHPHQWZDVFODPSHGWRWKHERRPXVLQJEHDPKDUGZDUHIURP';(QJLQHHULQJ
7KHSKDVLQJOLQHZDVDWWDFKHGZLWKDEUDVVVFUHZWKUHDGLQJWKUXWKH39&LQWRWKHHQGVRIWKH
DOXPLQXPWXELQJWKLVDOVRVHUYHGWRKROGWKHDOXPLQXPWXELQJLQSODFHLQWKH39&VOHHYH

)HHGLQJWKHDQWHQQD
)RUVLQJOHEDQGXVDJHRQ0WKHIHHGSRLQWUDGLDWLRQUHVLVWDQFHRIaRKPVFDQEHVWHSSHGXS
ZLWKDEDOXQWRaRKPVDJRRGPDWFKWRRKPFRD[7KHUHVXOWLVDFRPSDFWEHDP
DUUD\HOHPHQWOHQJWKZLWKWKHJDLQDQG)%FKDUDFWHULVWLFVRIDIXOOVL]HG<DJLW\SHEHDP
2QHFRXOGHYHQHQWHUWDLQWKHSRVVLELOLW\RILQVWDOOLQJDSDUDVLWLFGLUHFWRULQIURQWWRIXUWKHU
LPSURYHJDLQDQG)%MXVWDVSDUDVLWLFHOHPHQWVDUHVRPHWLPHVDGGHGWRORJSHULRGLFDUUD\V

0XOWLEDQGRSHUDWLRQLVSRVVLEOHZLWKWKLVFRPSDFWHOHPHQWDUUD\LIODGGHUIHHGOLQHLVXVHG,Q
RUGHUWRPLQLPL]HIHHGOLQHUDGLDWLRQZKLFKZRXOGDGYHUVHO\DIIHFWWKHGLUHFWLRQDOLW\RIWKHDUUD\
EDODQFHGIHHGOLQHFXUUHQWVDUHDEVROXWHO\HVVHQWLDO7KLVFDQEHDVVXUHGE\XVLQJDFXUUHQWEDOXQ
DWWKHWXQHUDQGVSDFLQJWKHIHHGOLQHZHOODZD\IURPWKHPHWDOWRZHU:LWKRKPODGGHUOLQH
VHHWDEOHWKH6:5DWWKHIHHGSRLQWRQ0LVYHU\KLJKaZKLFKOHDGVWRVLJQLILFDQWORVV
HYHQZLWKWKHEHVWSUHVHQWGD\ODGGHUOLQHaGERYHU7KHRSHQZLUHOLQHRI.UDXVGD\
KDGPXFKOHVVORVVRKPRSHQZLUHIHHGOLQHLVVWLOODYDLODEOHDQGDGYHUWLVHGLQ467WRGD\LI
\RXZDQWWRWU\LW7KHPRGHOLQJVKRZHGWKDWWKH6:5DWWKHIHHGSRLQWGURSSHGVLJQLILFDQWO\RQ
WKHKLJKHUEDQGVVHHWDEOH%\XVLQJDVWHSXSWUDQVIRUPHUDWWKHIHHGSRLQW,ZDVDEOHWR
ORZHUWKH06:5ZKLOHQRWVLJQLILFDQWO\UDLVLQJLWRQWKHRWKHUEDQGV:LWKWKLVDUUDQJHPHQW
WKH6:5ZDVDOZD\VOHVVWKDQRQWKHORZHUEDQGVDQGPXFKOHVVWKDQWKDWRQWKHKLJKHU
RQHV

2QHRIWKHSUREOHPVHQFRXQWHUHGE\DQ\RQHXVLQJODGGHUOLQHWRIHHGDQDQWHQQDZLWKWKHREMHFW
RIPXOWLEDQGRSHUDWLRQVLVWKDWWKHWUDQVIRUPHGLPSHGDQFHDWWKHWXQHURQVRPHEDQGVPD\QRWEH
LQLWVPDWFKLQJUDQJHIRUWKHOHQJWKRIWUDQVPLVVLRQOLQHXVHG,KDYHGHYHORSHGDVFKHPHIRU
KDQGOLQJWKLVSUREOHPWKDWKDVEHHQYHU\VXFFHVVIXO,DPVXUHRWKHUVKDYHIRXQGWKHVDPH
WHFKQLTXHEXW,KDYHQRWVHHQLWGRFXPHQWHGDQ\ZKHUH,UXQWKHVKRUWHVWOHQJWKRIODGGHUOLQH
QHFHVVDU\IRUWKHLQVWDOODWLRQ,I,DPOXFN\WKHWXQHUZLOOPDWFKWKHOLQHRQDOOEDQGVEXWXVXDOO\
,DPQRWDQGWKHUHZLOOEHVRPHEDQGVZKHUH,FDQQRWJHWDJRRGPDWFK,FXWWKUHHSLHFHVRI
ODGGHUOLQHRQHORQJRQHDQGWKLUGORQJ,FDQQRZLQVHUWDQDGGLWLRQDOOHQJWKRI
ODGGHUOLQHIURPWRLQLQFUHPHQWV,KDYHQHYHUKDGDFDVHZKHUHWKHUHZDVQRWVRPH
FRPELQDWLRQLQWKDWUDQJHWKDWOHGWRDVDWLVIDFWRU\PDWFKRQDOOEDQGV

)LJXUHVKRZVKRZ,KDYHLQVWDOOHGWKHRKPODGGHUOLQHRQP\WRZHU,WLVVSDFHGDOLWWOH
RYHUDIRRWDZD\IURPWKHQHDUHVWPHWDOOHJRQWKHWRZHU7KH$QWHQQDKDQGERRNVD\VWKDW
VSDFLQJODGGHUOLQHWLPHVWKHVSDFLQJRIWKHZLUHVLQWKHODGGHUOLQHIURPDPHWDOREMHFWVKRXOG
EHVXIILFLHQWLVRODWLRQIRURKPOLQHWKLVLVa(DUOLHU,KDGXVHGVWDQGDUG79ULEERQ
IHHGOLQHVWDQGRIIVREWDLQHGDW5DGLR6KDFNRQWKHWRZHUZKLFKSURYLGHGWKLVaVWDQGRIIDQG
WKDWKDGSHUIRUPHGVDWLVIDFWRULO\,KDGVSDFHGWKHVHHYHU\XSWKHWRZHU+RZHYHUDIWHUPDQ\
\HDUVWKHVPDOOIOH[LEOHSODVWLFLQVHUWVLQWKHVWDQGRIIVGULHGRXWFUDFNHGDQGIHOORXW5HFHQWO\,
GHFLGHGWRUHSODFHWKHVHZLWK39&VWDQGRIIVVHHQLQWKHILJXUHIHZHUVWDQGRIIVZLWKPXFK
ODUJHUVSDFLQJ7KLVVKRXOGSURYLGHDGHTXDWHVWDQGRIIHYHQLQZLQG\FRQGLWLRQVDQGWKHVHVKRXOG
ODVWDORQJWLPH

7KHPRGHOLQJZDVGRQHXVLQJRKPODGGHUOLQHIRUWKHSKDVLQJOLQHEHWZHHQWKHHOHPHQWV
:LWKWKHYHU\ORZIHHGSRLQWLPSHGDQFH,GHFLGHGWRXVHVRPHWKLQJRIKHDYLHUZLUHJDXJHWR
UHGXFHDQ\SRWHQWLDOORVVHVLQWKHSKDVLQJOLQH,HPSOR\HGDOXPLQXPURGIRUWKHSKDVLQJOLQH
ZLWKMXGLFLRXVO\SODFHGVSDFHUVDQGWZLVWHGRIFRXUVHWRLPSDUWWKHUHTXLUHGSKDVHVKLIW
7KLVLVFRPPRQRQORJSHULRGLFDUUD\V7KLVFDQEHVHHQLQ)LJXUH7KHPRGHOLQJVKRZV
KRZHYHUWKDWWKLVSURYLGHVRQO\DPRGHVWUHGXFWLRQDIHZWHQWKRIDGELQORVVHVRYHUWKH
VWDQGDUGRKPODGGHUOLQHZKLFKZHUHRQO\VHYHUDOWHQWKVRIDGELQWKHILUVWSODFH7KXVWKLV
GHVLJQIHDWXUHZDVSUREDEO\QRWUHTXLUHG



6XPPDU\
7KLVPRGLILHG-.DUUD\IXOILOOVDOORIP\REMHFWLYHVVHWRXWLQWKHLQWURGXFWLRQZLWKWKHDGGLWLRQ
RISURYLGLQJXQLGLUHFWLRQDOSHUIRUPDQFHRQWKHORZHVWEDQGZKLFKZDVXQH[SHFWHG1RLWLVQRW
WKHXOWLPDWHEHDPEXWLWSHUIRUPVYHU\VDWLVIDFWRULO\IRUVRPHWKLQJVRVLPSOHHDV\WRFRQVWUXFW
DQGLQH[SHQVLYH

5HIHUHQFHV
$QWHQQDVIRUDOO$SSOLFDWLRQVUG(GLWLRQ0F*UDZ+LOO-'.UDXV5-0DUKHINDDQG$6
.KDQSIIRXWRISULQWEXWXVHGFRSLHVDYDLODEOHIURP$EHERRNV
4676HSW%XLOGLQJWKH:-.%HDP'DYH6XJJVSII
$QWHQQD+DQGERRNVW(GLWLRQ$55/SIIIRU:-.SUHJDUGLQJVSDFLQJ
VWDQGDUGVIRUODGGHUOLQH
+)$QWHQQDVIRU$OO/RFDWLRQVQG(GLWLRQ56*%DYDLODEOHIURP$55//0R[RQS
ILJ

 O

 7ZLVWHGRKP
 ODGGHUOLQH
 aO &/
 )HHGOLQH
 RURKP
  



 )LJXUH&ODVVLF:-.DUUD\ZLWKOHOHPHQWV


 

 7ZLVWHG
 RKPODGGHUOLQH

 &/
 
 RKP )HHGOLQH
 FRQQHFWHG
 IRUZDUGRI&/



 )LJXUH0PRGLILHG:-.DUUD\



 MN5HVSRQVH MN5HVSRQVH

 
5HVLVWDQFH 5HDFWDQFH



2+06

2+06
 





 
                   
)UHT0+] )UHT0+]

)LJXUH5HDODQGUHDFWLYHFRPSRQHQWVRIWKHPRGLILHG-.DUUD\DVDIXQFWLRQRIIUHTXHQF\
7KHGLDPRQGVVKRZWKHORFDWLRQRIWKHDPDWHXUEDQGVRILQWHUHVW

7DEOH$QWHQQDFKDUDFWHULVWLFVIURP(=1(&
 
IWERRP IWHOHPHQWV IHHGRIIVHW  
)UHHVSDFHPRGHO  5R    
)UHT0+] 5 ; = 5+2 6:5 )*
      
      
      
      
      
















)LJXUH(=1(&IUHHVSDFHD]LPXWKDOUDGLDWLRQSDWWHUQVIRUWKHPRGLILHG-.DUUD\RQ0
DQG0
 

)LJXUH7KHPRGLILHG-.DUUD\RQP\WRZHU7KHODQ\DUGLPPHGLDWHO\EHORZWKHEHDPKROGV
WKHFHQWHURIP\0LQYHUWHGYHH-XVWWRWKHULJKWRIWKHWRZHULVWKHRKPIHHGOLQHIRUWKH
EHDPZKLFKLVVSDFHGDZD\IURPWKHWRZHUE\39&SLSHZLWKDWHHRQWKHHQGWKURXJKZKLFKWKH
IHHGOLQHLVWKUHDGHG7KHUHDUH39&VWDQGRIIVDERXWDSDUWRQWKHWRZHU

 
)LJXUH$FORVHUYLHZRIWKHPLGGOHRIWKHDUUD\7KHEODFNREMHFWMXVWWRWKHOHIWRIWKHPDVW
ERRPMXQFWLRQLVWKHER[FRQWDLQLQJWKHEDODQFHGWUDQVIRUPHU7KLVYLHZDOVRVKRZVPRUH
FOHDUO\WKHWZLVWHGSKDVLQJOLQHPDGHIURPDOXPLQXPURG7KH3OH[LJODVVSDFHUDWWKHWRSRI
WKHPDVWKROGVWKHFHQWHURIWKHSKDVLQJOLQHDERXWDERYHWKHERRP