North Baja Pipeline, LLC

Original Volume No. 1

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

Original Sheet No. 14 Original Sheet No. 14 : Effective

RATE SCHEDULE FTS-1

FIRM TRANSPORTATION SERVICE

(Continued)

5. FUEL AND LINE LOSS

For all Forward Hauls, Shipper shall furnish to NBP quantities of gas for

compressor station fuel, line loss and other utility purposes, plus other

unaccounted for gas used in the operation of NBP's pipeline system for

the transportation quantities of gas delivered by NBP to Shipper, based

upon the effective fuel and line loss percentages set forth in this

Tariff. No fuel charge shall apply to transactions that do not involve a

forward haul movement of gas.

6. GENERAL TERMS AND CONDITIONS OF SERVICE

All of the General Terms and Conditions of Service are applicable to

this rate schedule, unless otherwise stated in the executed Firm

Transportation Service Agreement between NBP and Shipper. Any future

modifications, additions or deletions to said General Terms and

Conditions of Service, unless otherwise provided, are applicable to firm

transportation service rendered under this rate schedule, and by this

reference, are made a part hereof.