North Baja Pipeline, LLC

Original Volume No. 1

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Effective Date: 04/24/2010, Docket: RP10-510-000, Status: Effective

Fourth Revised Sheet No. 105 Fourth Revised Sheet No. 105

Superseding: Third Revised Sheet No. 105

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

1. DEFINITIONS (Continued)

1.30 Negotiated Rate Formula: A rate formula that NBP and a Shipper

have agreed will apply to service under a specific contract under

Rate Schedules FTS-1, ITS-1, PAL-1 which results in a rate where,

for all or a portion of the contract term, one or more of the

individual components of such rate may exceed the maximum rate, or

may be less than the minimum rate, for such component set forth in

NBP's Tariff for the given service.

1.31 Recourse Rate: The applicable maximum rate that would apply to a

service but for the rate flexibility allowed under Paragraph 24 of

this FERC Gas Tariff.

1.32 Commission: The Federal Energy Regulatory Commission.

1.33 Existing Capacity: Capacity that has been in-service beyond the

initial terms of Agreements that originally supported the

construction of such capacity. Existing Capacity additionally

includes capacity that is still within such initial terms where

Shipper Agreements pertaining to the capacity have been terminated

by the pipeline. Existing Capacity additionally includes

unsubscribed capacity created as part of a pipeline expansion

project.

1.34 Expansion Capacity: Original system capacity or capacity that is

added to the pipeline system as part of a system expansion project

where such capacity is still within the initial contract term(s)

of the Agreement(s) that originally supported the construction of

such capacity. Expansion Capacity includes permanent releases of

capacity that are within the initial term of an original Shipper's

contract.

1.35 Cash Out Index Price: The price calculated as the average "SoCal"

price, as reported in Gas Daily's Daily Price Survey, for the

month in which an imbalance occurs.

1.36 Energy Affiliate: The term "Energy Affiliate" shall have the

meaning provided in Commission Order No. 2004, et seq.

1.37 Asset Manager: A party that agrees to manage gas supply and

delivery arrangements, including transportation and storage

capacity, for another party. The asset manager uses released

capacity to serve the gas supply requirements of the releasing

shipper and, when the capacity is not needed for that purpose,

uses the capacity to make releases or bundled sales to third

parties.