Also, the SMACNA Manual finds it as an acceptable alternative, but those guys don't put their drawings or specs online to see, so you have to own the CD or book. I agree that the exposed caulk, even if the best available is used, will dry out and deteriorate, yet if the sealant is sandwiched in behind the metal and the chimney, then it is not getting degraded by the UV Rays of the sun and will remain a long lasting compression seal, as long as the sheet metal is anchored properly to the masonry structure. I will save the information about backer rods for a future discussion. 2 problems with reglet mounted flashings: A) If individual step reglet counter-flashings are installed, each step hads a verical seam prone top potential wind and moisture migration. B) Cutting the reglet just a hair too deep can bypass the integrity of the masonry structure and allow seepage to enter through the cut and wick downward through the porosity of the masonry products, but now have an easier bypass for a more fluid and direct passageway. Ed