North Baja Pipeline, LLC

Original Volume No. 1

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

Original Sheet No. 139 Original Sheet No. 139 : Effective

GENERAL TERMS AND CONDITIONS OF SERVICE

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13. PRIORITY OF SERVICE (Continued)

13.2 Firm Scheduling Priorities Through Receipt Point Constraints

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Last, NBP shall then schedule service to those Shippers for whom

the constrained receipt point is a Secondary Receipt Point outside

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.

13.3 Firm Scheduling Priorities Through Delivery Points

NBP shall first schedule service to those Shippers for whom the

constrained Delivery Point is a Primary Delivery Point, up to each

Shipper's MDQ at that point. In the event full service cannot be

provided to Shippers holding Primary Delivery Point rights,

service will be scheduled on a pro rata basis based on each

Shipper's MDQ at that point.

NBP shall then schedule service to those Shippers for whom the

constrained Delivery point is a Secondary Delivery 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.

Last, NBP shall then schedule service to those Shippers for whom

the constrained Delivery point is a Secondary Delivery Point

outside 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.

13.4 Scheduling Priority For Capacity Release

The Scheduling Priorities set out in Paragraph 13.1 above also

apply for capacity released under NBP's Capacity Release Program,

and are subject to the terms and conditions as specified in an

executed firm service agreement between NBP and Shipper. All

service under the capacity release program shall be considered

firm for purposes of priority of service.

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