North Baja Pipeline, LLC

Original Volume No. 1

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Effective Date: 11/15/2004, Docket: RP05- 25-003, Status: Effective

Second Revised Sheet No. 116.a Second Revised Sheet No. 116.a : Effective

Superseding: First Revised Sheet No. 116.a

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

 

7. PAYMENT (Continued)

 

7.6 Reservation Charge Credit (Force Majeure): (Continued)

 

reservation charges including applicable reservation-based

surcharges shall not apply to the quantity of gas not delivered by

NBP within the Shipper's Firm Daily Volume; provided, however, that

these charges shall not be eliminated to the extent that the

shipper utilizes secondary point service.

 

7.7 Reservation Charge Credit (Non-Force Majeure): As used in this

Paragraph 7.7, Firm Daily Volume shall mean the volume of gas which

NBP is obligated to deliver on a firm basis at Shipper's firm

delivery point(s) on a Gas Day, based on confirmable nominations

for firm service within Shipper's Maximum Daily Quantity. Except as

provided for in Paragraph 7.6 of these General Terms and Conditions

of Service, in the event NBP fails to deliver on any Gas Day under

any firm contract at least 98% of Shipper's Firm Daily Volume, then

the applicable reservation charges including applicable

reservation-based surcharges shall not apply to the quantity of gas

not delivered by NBP within the Shipper's Firm Daily Volume;

provided, however, that these charges shall not be eliminated to

the extent that the shipper utilizes secondary point service.