North Baja Pipeline, LLC

Original Volume No. 1

Effective Date: 02/28/2003, Docket: RP02-363-006, Status: Effective

Second Revised Sheet No. 135 Second Revised Sheet No. 135 : Effective

Superseding: First Revised Sheet No. 135

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

12. CREDITWORTHINESS (Continued)

12.5 Creditworthiness for Lending Service (Continued)

The amount of security necessary to collateralize lent gas will be

up to Shipper's maximum quantity times the average annual "SoCal"

price, as reported in Gas Daily's Daily Price Survey, for the

preceding calendar year ended October 31.NBP shall have no

obligation to lend any quantity of gas beyond amounts for which

NBP holds collateral.

12.6 Creditworthiness for Firm and Interruptible Transportation

Services

(a) Shipper's total collateral requirement is the amount

necessary to collateralize all of a Shipper's firm and

interruptible transportation agreements.

(b) For purposes of this FERC Gas Tariff, Original Volume No. 1,

the insolvency of a Shipper shall be evidenced by the filing

by such Shipper or any parent entity thereof (hereinafter

collectively referred in this paragraph to as "the Shipper")

of a voluntary petition in bankruptcy or the entry of a

decree or order by a court having jurisdiction in the

premises adjudging the Shipper as bankrupt or insolvent, or

approving as properly filed a petition seeking

reorganization, arrangement, adjustment or composition of or

in respect of the Shipper under the Federal Bankruptcy Act or

any Act or any other applicable federal or state law, or

appointing a receiver, liquidator, assignee, trustee,

sequestrator (or other similar official) of the Shipper or

composition of or in respect of the Shipper under the Federal

Bankruptcy Act or any Act or any other applicable federal or

state law, or appointing a receiver, liquidator, assignee,

trustee, sequestrator (or other similar official) of the

Shipper or of any substantial part of its property, or the

ordering of the winding-up liquidation of its affairs, with

said order or decree continuing unstayed and in effect for a

period of sixty (60) consecutive days.

(Continued)