If your program uses COPY, BASIS, or REPLACE statements, the LIB compiler option must be in effect.

LIB option syntax

Default is: NOLIB

Abbreviations are: None

For COPY and BASIS statements, you need additionally to define the library or libraries from which the compiler can take the copied code.
Define the libraries by using DD statements, ALLOCATE commands, or environment variables, as appropriate for your environment.
When using JCL, also include a DD statement to allocate SYSUT5.