Rule explanation, thanks

[MarkyD]

Hi people,

First, read this about 8belles, then I have a question:

First of all, Larry and I agree that she has the talent and proven past performances to compete in the Derby. There are a couple question marks. Number one issue concerns her initial break from the gate. She does not break well and if she got an outside post position, our chance of doing well would be severely compromised. The second issue is her current training. I will rely on Larry to decide how well she is training. He will start galloping her himself today. He will know by getting on her. She has to be training like she is sitting on a huge performance. She has to have a good breeze or two. Larry will take her to Churchill soon and see how well she handles the track. If Larry tells me she likes the track surface and is training forwardly, I have decided I will enter the Oaks on Tuesday and the Derby on Wednesday. I will then have the option, after seeing our post position in the Derby, to run in either race. If we draw a decent post in the Derby, she will race there. If we draw a bad post in our opinion, she will run in the Oaks. This is within the rules and it is not poor sportsmanship. It would be prohibited by the racing officials if they didn't want it to happen. Only a filly can do this. I feel very fair about doing this. Time will tell. Larry has to be behind me 110%. I will not enter her in the Derby unless Larry thinks we have a good chance of winning. That is the whole story on Eight Belles. Anything else that you read contradicting that is not true. It is a terrific position to be in. She is a very talented and beautiful filly.

So what happens if he says no after draw. Does it drop to 19 field, or next in line has option and is stuck with her post?
I have not been following horses long enough to understand.

Thanks.