North Baja Pipeline, LLC

Original Volume No. 1

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

Original Sheet No. 109 Original Sheet No. 109 : Effective

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

3. MEASURING EQUIPMENT

3.1 Installation: Unless NBP and Shippers agree otherwise, all gas

volume measuring equipment, devices and materials at the point(s)

of receipt and/or delivery shall be furnished and installed by NBP

at Shipper's expense including the tax-on-tax effect, net of the

present value of any prospective tax depreciation benefits. All

such equipment, devices and materials shall be owned, maintained

and operated by NBP. Shipper may install and operate check-

measuring equipment provided it does not interfere with the use of

NBP's equipment.

3.2 Testing Meter Equipment: The accuracy of either NBP's or

Shipper's measuring equipment shall be verified by test, using

means and methods acceptable to the other party, at intervals

mutually agreed upon, and at other times upon request. Notice of

the time and nature of each test shall be given by the entity

conducting the test to the other entity sufficiently in advance to

permit convenient arrangement for the presence of the

representative of the other entity. If, after notice, the other

entity fails to have a representative present, the results of the

test shall nevertheless be considered accurate until the next

test. If any of the measuring equipment is found to be

registering inaccurately in any percentage, it shall be adjusted

at once to read as accurately as possible. All tests of such

measuring equipment shall be made at the expense of the entity

conducting the same, except that the other entity shall bear the

expense of tests made at its request if the inaccuracy is found to

be two percent (2%) or less.

3.3 Correction and Adjustment: If at any time any of the measuring

equipment is registering inaccurately by an amount exceeding two

percent (2%) at a reading corresponding to the average hourly rate

of flow, the previous readings of such equipment shall be

corrected to zero error for any period definitely known or agreed

upon, or if not so known or agreed upon, the lesser of one-half

(1/2) of the elapsed time since the last test or six (6) months

from the production month with a three-month rebuttal period,

provided, however, that this limitation shall not apply in the

case of a deliberate omission or misrepresentation or mutual

mistake of fact. The parties' other statutory or contractual

rights shall not otherwise be diminished by this limitation. If

the measuring equipment is out-of-service, the volume of gas

delivered during such period shall be determined:

(Continued)