North Baja Pipeline, LLC

Original Volume No. 1

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Effective Date: 09/01/2002, Docket: RP02-363-009, Status: Effective

First Revised Sheet No. 7 First Revised Sheet No. 7 : Effective

Superseding: Original Sheet No. 7

STATEMENT OF EFFECTIVE RATES AND CHARGES

NEGOTIATED RATE AGREEMENTS UNDER RATE SCHEDULE FTS-1

Explanatory Footnotes for Negotiated Rates

Under Rate Schedule FTS-1

1/ This contract does not deviate in any material aspect from the Form of

Service Agreement in this Tariff.

2/ Unless otherwise noted, all Shippers pay North Baja Pipeline, LLC's

maximum Reservation Charge, Delivery Charge, ACA, and contribute fuel in-

kind in accordance with this Tariff.

3/ The transportation rate under this Agreement is a negotiated rate

consisting of a monthly reservation fee equal to $0.1237 times 30.4 days

for each month, plus a volumetric rate of $0.0038 per Dth, plus ACA, plus

an allowance for fuel, line loss and unaccounted for gas as set forth in

the Tariff. This rate shall be fixed for the term of this Agreement.

The Maximum Daily Quantities will vary over the term of this Agreement as

follows:

MDQ Dth/d

09/01/02 - 12/31/02 98,000

01/01/03 - 12/31/03 63,000

01/01/04 - 12/31/04 71,000

01/01/05 - 12/31/05 74,000

01/01/06 - 12/31/06 77,000

01/01/07 - 12/31/07 80,000

01/01/08 - 12/31/08 83,000

01/01/09 - 12/31/09 85,000

4/ The transportation rate under this Agreement is a negotiated rate

consisting of a monthly reservation fee equal to $0.1237 times 30.4 days

for each month, plus a volumetric rate of $0.0038 per Dth, plus ACA, plus

an allowance for fuel, line loss and unaccounted for gas as set forth in

the Tariff. This rate shall be fixed for the term of this Agreement.

The Maximum Daily Quantities will vary over the term of this Agreement as

follows:

MDQ Dth/d

09/01/02 - 12/31/02 32,000

01/01/03 - 12/31/03 67,000

01/01/04 - 12/31/04 99,000

01/01/05 - 12/31/05 96,000

01/01/06 - 12/31/06 133,000

01/01/07 - 12/31/07 130,000

01/01/08 - 12/31/08 127,000

01/01/09 - 12/31/09 125,000

01/01/10 - 08/31/22 210,000