You need to change that INCLUDE= to an OMIT= to test for space at the start of the extended record. Or change the code to PUSH a SEQ not an ID and INCLUDE= for two. Then you don't need the SECTIONs anyway.
Any records you don't want from the original input, you use INCLUDE COND=/OMIT COND=. Any records you don't want after they have arrived at OUTFIL processing, you use INCLUDE=/OMIT=.
You need to go through that Getting Started guide.
PS. I see I was answering a different question earlier. Sorry about that. You don't need the '/' operator at all here, as you are turning two into one (where two exist as a pari) not splitting one into two... so it's even simpler. The BUILD you need to just to rearrange the data how you want it and to ingore the extened SEQ-field.