North Baja Pipeline, LLC

Original Volume No. 1

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Effective Date: 08/12/2002, Docket: RP02-363-002, Status: Effective

First Revised Sheet No. 155 First Revised Sheet No. 155 : Effective

Superseding: Original Sheet No. 155

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

16. BALANCING (Continued)

16.1 (Continued)

(d) Crediting of Penalties (Continued)

(iii) Timing of Credits. Within forty-five (45) days after

November 1st of each year, NBP shall determine the

total amount of the Net Penalty Revenues received

during the previous 12-month period and the portion of

such amount to be credited to each Shipper. Such

credits shall be reflected as a credit billing

adjustment on the next bills rendered to the Shippers.

In the event that such credit billing adjustment would

result in a net credit on the total bill to any

Shipper, or in the event the Shipper is no longer a

shipper on NBP system, NBP will pay to such Shipper

its share of the Net Penalty Revenues within fifteen

(15) days after determination of the amount of the

credit due to the Shipper.

(iv) Minimum Credit Amount. NBP shall not be obligated to

issue penalty credits during any year in which Net

Penalty Revenues are less than or equal to $10,000.

(e) Imbalance Netting: A Shipper may net imbalances between its

service agreements.

(Continued)