North Baja Pipeline, LLC

Original Volume No. 1

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

Original Sheet No. 122 Original Sheet No. 122 : Effective

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

9. OPEN SEASON PROCEDURES (Continued)

9.2 Open Seasons for New 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 hold an open season to assess the viability of constructing

facilities necessary to meet additional market demand.

An Open Season for New Capacity will comply with the requirements

of Paragraph 9.1 above, with the following modifications.

(a) NBP will publish its intent to hold an open season for new

capacity in relevant papers and trade press and on its

Internet website.

(b) Open Seasons for new capacity will have a minimum term of

five (5) business days.

(c) After receiving bids from prospective Shippers in an Open

Season, NBP will provide a rationalization period to allow

existing holders of firm capacity an opportunity to meet

market demand demonstrated in the Open Season.

(d) NBP will select bids on a nondiscriminatory basis, provided,

however, NBP reserves the right to select bids in a manner

designed to produce an economic expansion.

9.3 Open Seasons Under Right of First Refusal

Under NBP's Right of First Refusal procedures, open season bids

will be evaluated consistent with the procedures set forth in

Paragraph 9.1 above. Right of First Refusal procedures are set

forth in Paragraph 10 of these General Terms and Conditions of

Service.