North Baja Pipeline, LLC

Original Volume No. 1

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Effective Date: 08/12/2002, Docket: RP02-363-008, Status: Effective

Original Sheet No. 152A Original Sheet No. 152A : Effective

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

16. BALANCING (Continued)

16.1 (Continued)

(c) Actual confirmed receipt quantity exceeds actual delivered

quantity

A net positive imbalance shall exist if the difference

between the quantity received (nominated, scheduled, and

confirmed) and the quantity delivered, taking into account

the reduction in quantity for compressor fuel use, yields a

positive result. Commencing upon notification by NBP of the

existence of the imbalance, and to the extent that the NBP

system is not constrained or its integrity is not threatened

and NBP has not issued an Operational Flow Order, Shipper

shall have three (3) days to correct the imbalance.

(Continued)