North Baja Pipeline, LLC

Original Volume No. 1

Effective Date: 08/12/2002, Docket: RP02-363-000, Status: Effective

Original Sheet No. 10 Original Sheet No. 10 : Effective

RATE SCHEDULE FTS-1

FIRM TRANSPORTATION SERVICE

1. AVAILABILITY

This rate schedule is available to any party (hereinafter called

"Shipper") qualifying for service and who has executed a Firm

Transportation Service Agreement with NBP in the form contained in this

FERC Gas Tariff Original Volume No. 1.

2. APPLICABILITY AND CHARACTER OF SERVICE

This rate schedule shall apply to firm gas transportation services

performed by NBP for Shipper pursuant to the executed Firm

Transportation Service Agreement between NBP and Shipper. NBP shall

receive from Shipper such daily quantities of gas up to the Shipper's

Maximum Daily Quantity (MDQ) as specified in the executed Firm

Transportation Service Agreement between NBP and Shipper plus the

required quantity of gas for fuel and line loss associated with service

under this Rate Schedule FTS-1 and redeliver an amount equal to the

quantity received less the required quantity of gas for fuel and line

loss. Receipt and delivery of gas shall be made in evenly hourly rates

up to a maximum hourly receipt and delivery quantity equal to one

twenty-fourth (1/24th) of a Shipper's MDQ. This transportation service

shall be firm and not subject to curtailment or interruption except as

provided in the General Terms and Conditions of Service.

Firm transportation service shall be subject to all provisions of the

executed Firm Transportation Service Agreement between NBP and Shipper

and the applicable General Terms and Conditions of Service.

3. RATES

Shipper shall pay NBP each month the sum of the Reservation Charge, the

Commodity Charge, plus any applicable Overrun Charge or surcharge for

the quantities of natural gas delivered. The rate(s) set forth in NBP's

Statement of Effective Rates and Charges for Transportation of Natural

Gas in this FERC Gas Tariff, Original Volume No. 1 are applied to

transportation service rendered under this rate schedule.

3.1 Reservation Charge

The Reservation Charge shall be the Shipper's Maximum Daily Quantity

multiplied by the Reservation Rate for service under this Rate Schedule

as set forth on effective Tariff Sheet No. 4.

(Continued)