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. 138 Original Sheet No. 138 : Effective

GENERAL TERMS AND CONDITIONS OF SERVICE

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13. PRIORITY OF SERVICE

Firm service shall have the highest priority on NBP's System. From time

to time, NBP may not have sufficient capacity to accommodate all

nominations for firm service through a given segment of its pipeline,

Receipt Point, or Delivery Point. In that event, NBP shall schedule

firm service using the following priorities.

13.1 Firm Scheduling Priorities Through Pipeline Segments

NBP shall first schedule nominations for service within a

Shipper's Primary Path. In the event NBP has insufficient

capacity to schedule all nominations for service within Shippers'

Primary Paths, NBP shall schedule service to Shippers nominating

for service along Primary Paths on a pro rata basis in accordance

with each Shipper's MDQ.

NBP will next schedule nominations for service outside a Shipper's

Primary Path. In the event NBP has insufficient capacity to

schedule all nominations for service outside of Shippers' Primary

Paths, NBP shall schedule service to Shippers nominating for

service outside of their Primary Paths on a pro rata basis in

accordance with each Shipper's MDQ.

NBP will next schedule nominations for service within a Shipper's

Reverse Path. In the event NBP has insufficient capacity to

schedule all nominations for service within Shippers' Reverse

Paths, NBP shall schedule service to Shippers nominating for

service along Reverse Paths on a pro rata basis in accordance with

each Shipper's MDQ.

13.2 Firm Scheduling Priorities Through Receipt Point Constraints

First, NBP shall schedule service to those Shippers for whom the

constrained receipt point is a Primary Receipt Point, up to each

Shipper's MDQ at that point (plus an allowance for fuel). In the

event full service cannot be provided to Shippers holding Primary

Receipt Point rights, service will be scheduled on a pro rata

basis based on each Shipper's primary MDQ at that point.

NBP shall then schedule service to those Shippers for whom the

constrained receipt point is a Secondary Receipt Point within that

Shipper's Primary Path. In the event full service cannot be

provided, service will be scheduled on a pro rata basis based on

each Shipper's MDQ.

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