North Baja Pipeline, LLC

Original Volume No. 1

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

Original Sheet No. 13 Original Sheet No. 13 : Effective

RATE SCHEDULE FTS-1

FIRM TRANSPORTATION SERVICE

(Continued)

3. RATES (Continued)

3.7 Capacity Release (Continued)

(b) Replacement Shippers:

Shipper may receive released capacity service under this rate

schedule pursuant to Paragraph 19 of the General Terms and

Conditions of Service and is required to execute a service

agreement in the form contained for capacity release under Rate

Schedule FTS-1 in this FERC Gas Tariff, Original Volume No. 1.

Shipper shall pay NBP each month for transportation service under

this rate schedule and as set forth in NBP's current Statement of

Effective Rates and Charges for Transportation of Natural Gas in

this FERC Gas Tariff, Original Volume No. 1. Charges to be paid

shall be the sum of the Reservation Charge, Commodity Charge, and

other applicable surcharges or penalties.

4. AUTHORIZED OVERRUNS

Quantities in excess of Shipper's MDQ shall be transported when capacity

is available on the NBP system and when the provision of such Authorized

Overruns shall not affect any Shipper's rights on the NBP system.

Authorized Overruns are interruptible in nature. The rate charged shall

be the same as the rates and charges for interruptible transportation

under Rate Schedule ITS-1 as set forth on effective Tariff Sheet No. 4,

and such Authorized Overruns shall be subject to the priority of service

provisions of Paragraph 13 of the General Terms and Conditions of

Service.

(Continued)