North Baja Pipeline, LLC

Original Volume No. 1

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

First Revised Sheet No. 160 First Revised Sheet No. 160 : Effective

Superseding: Original Sheet No. 160

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

18. OPERATIONAL FLOW ORDERS ("OFO") (Continued)

18.3 (Continued)

NBP will post information about the status of operational

variables that will determine when an OFO will begin and end. NBP

will post a notice on its website informing Shipper(s) when any

OFO in effect will be canceled. Following the issuance of an OFO,

NBP will post information on the factors that caused the OFO to be

issued and then lifted as soon as it is available.

18.4 Except in cases where the curtailment of interruptible services

would not alleviate the causes or conditions necessitating the

issuance of an OFO, NBP will, where practicable, curtail

interruptible services prior to issuing an OFO. NBP shall not be

required to curtail interruptible services to individual Shippers

when curtailment of service to those Shippers would not affect the

OFO.

18.5 Upon the issuance of an OFO by NBP, it shall be incumbent upon

Shipper to adjust Gas supplies as directed within the time frame

specified in the OFO. Failure to comply in a timely fashion with

an OFO may result in an immediate interruption of all or a portion

of Shipper's service and cause Shipper to incur a penalty of $25

per Dth plus the Spot Index Price (equal to the SoCal Gas large

packages price as reported in Gas Daily's Daily Price Survey) per

Dth for all quantities in excess of that allowed under the OFO.

The payment of unauthorized overrun penalties does not create the

right to exceed the levels established by an OFO.

(Continued)