North Baja Pipeline, LLC

Original Volume No. 1

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Effective Date: 06/22/2009, Docket: RP09-608-000, Status: Effective

Original Sheet No. 117B Original Sheet No. 117B

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

8. AVAILABILITY OF TRANSPORTATION (Continued)

8.1 Firm Transportation Service (Continued)

(b) Future Sales of Capacity (Continued)

If NBP sells capacity on a pre-arranged basis, it will post the

terms of the pre-arranged transaction and other parties will

have an opportunity to bid on the capacity. At the time NBP

enters into a pre-arranged service agreement, NBP will post a

notice on its Internet website indicating that the pre-arranged

capacity will be subject to an open bidding process within

three (3) business days, even if such capacity has already been

subject to an open season bidding process and is currently

posted as available capacity. If another party submits a bid

with a higher incremental economic value, the pre-arranged

Shipper will have a one-time right to match the higher bid in

order to retain the capacity. If the pre-arranged Shipper

elects not to match a higher competing bid, the capacity will

be awarded to the highest creditworthy bidder in accordance

with Paragraph 9.1(d). If there is an open season ongoing for

certain capacity, NBP will not enter into a pre-arranged deal

for that capacity during the open season.

NBP will separately identify on its Internet website all

capacity that is anticipated to become available and is not

subject to a right of first refusal or unilateral evergreen

provision. NBP will not enter into any pre-arranged deals for

capacity that has not previously been posted on its Internet

website.

Capacity that is reserved pursuant to this Paragraph 8.1(b)

will be made available for transportation service on an

interim basis up to the commencement date of the service

agreement for the future capacity sale. For such interim

service agreements, NBP reserves the right to limit Shipper

extension rights, including the right of first refusal, within

the service agreement. Transporter will indicate in any open

season posting of this capacity any limitations on extension

rights that will apply to such interim transportation service.

(Continued)