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. 22 Original Sheet No. 22 : Effective

RATE SCHEDULE ITS-1

INTERRUPTIBLE TRANSPORTATION SERVICE

(Continued)

3. RATES (Continued)

3.5 Backhauls

Backhauls (as defined in Paragraph 1.26 of the General Terms and

Conditions of Service) shall be subject to the same charges as

forward haul (as defined in Paragraph 1.25 of the General Terms

and Conditions of Service) except that no gas shall be retained by

NBP for compressor station fuel, line loss and other unaccounted-

for gas. Backhauls are subject to the operating conditions of

NBP's pipeline and will not be made available to Shipper if NBP

determines, in its sole discretion, that such transportation is

operationally infeasible or otherwise not available.

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 rates and charges as specified in Paragraph 3 of this rate

schedule. Authorized Overruns shall be subject to the priority of

service provisions of Paragraph 13 of the General Terms and Conditions

of Service.

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 FERC Gas 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

The General Terms and Conditions of Service are applicable to this rate

Schedule, unless otherwise expressed in the executed Interruptible

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

interruptible transportation service rendered under this rate schedule,

and, by this reference, are made a part hereof.