North Baja Pipeline, LLC

Original Volume No. 1

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Effective Date: 03/26/2007, Docket: RP07-308-000, Status: Effective

Fourth Revised Sheet No. 134 Fourth Revised Sheet No. 134 : Effective

Superseding: Third Revised Sheet No. 134

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

 

12. CREDITWORTHINESS (Continued)

 

12.4 Creditworthiness for Interruptible Transportation Service

(Continued)

(b) (Continued)

 

(i) Guarantee: Shipper may obtain a guarantee of financial

performance in a form satisfactory to NBP from a

corporate affiliate of the Shipper or a third party,

either of which meets the creditworthiness standard

discussed above. For these Shippers the credit limit

will be based upon the financials of the guarantor. A

form of guarantee is available on NBP's website.

 

(ii) Cash Prepayment: A Shipper may prepay for service via

cleared check or wire transfer. For interruptible

service, the amount of the prepayment must be up to the

maximum amount of service that may be provided in any

three-month period under an interruptible Agreement.

NBP will pay interest on prepayments at the applicable

monthly "Federal Funds (effective)" rate published in

the Federal Reserve Statistical Report H.15.

 

(iii) Letter of Credit: Shipper may post a Letter of Credit

(LC) in a form acceptable to NBP. A form of LC is

available on NBP's website. For interruptible service,

the amount of the LC must be up to the maximum amount

of service that may be provided in any three-month

period under an interruptible Agreement.

 

(iv) Any other security mutually agreed upon by Shipper and

NBP. Such other security shall be accepted on a non-

discriminatory basis.

 

12.5 Creditworthiness for Lending Service

 

The standards for Interruptible Transportation Service apply to

NBP's interruptible PAL-1 Services. For lending service, however,

the collateral requirement under the pre-payment and LC options

includes an amount to adequately account for the value of the gas

being lent.

 

 

(Continued)