North Baja Pipeline, LLC

Original Volume No. 1

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Effective Date: 01/14/2008, Docket: RP08-118-000, Status: Effective

First Revised Sheet No. 118 First Revised Sheet No. 118 : Effective

Superseding: Original Sheet No. 118

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

8. AVAILABILITY OF TRANSPORTATION (Continued)

8.1 Firm Transportation Service (Continued)

(c) Construction of New Firm Capacity

In the event NBP receives requests for firm transportation

service in excess of available firm capacity, or market

circumstances otherwise indicate that additional capacity

may be desired, NBP may construct facilities necessary to

meet additional market demand. Prior to constructing new

capacity, NBP shall hold an Open Season as set forth in

Paragraph 9 below to solicit Requests for Service utilizing

capacity that may be constructed. NBP shall have no

obligation to construct facilities if, in NBP's sole

determination, such facilities are not economically

justifiable.

8.2 Interruptible Service

The provisions of this Paragraph 8.2 shall be applicable to

interruptible transportation service under Rate Schedule ITS-1

contained in this FERC Gas Tariff Original Volume No. 1.

(a) Interruptible transportation service under this Tariff shall

be provided when, and to the extent that, capacity is

available on NBP's existing facilities, which capacity is

not subject to a prior claim under a pre-existing agreement

pursuant to Rate Schedule FTS-1 or under another class of

firm service.

(b) A shipper receiving service under Rate Schedule ITS-1 that

maintains compliance with NBP's creditworthiness

requirements may renew or extend its contract term pursuant

to a rollover or evergreen provision of the Service

Agreement. NBP will offer rollover or evergreen provisions

to similarly situated shippers on a nondiscriminatory basis.

8.3 In the event that natural gas tendered by Shipper to NBP at the

receipt point(s) for transportation, or delivered by NBP to

Shipper (or for Shipper's account) at the delivery point(s), is

commingled with other natural gas at the time of measurement, the

determination of deliveries applicable to Shipper shall be made in

accordance with operating arrangements satisfactory to Shipper,

NBP and any third party transporting to or from NBP's system.