North Baja Pipeline, LLC

Original Volume No. 1

Effective Date: 08/01/2009, Docket: RP09-689-000, Status: Effective

Third Revised Sheet No. 165 Third Revised Sheet No. 165

Superseding: Second Revised Sheet No. 165

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

19. CAPACITY RELEASE (Continued)

19.3 Notice Requirements

Any Releasing Shipper electing to release capacity shall submit a

notice via NBP's Internet website that it elects to release firm

capacity. The notice shall set forth the following information:

(a) Releasing Shipper's legal name, contract number, and the

name, title, address, telephone number, and fax number of

the individual responsible for authorizing the release of

capacity.

(b) Rate schedule of the Releasing Shipper.

Releasing Shipper has the choice to specify dollars and

cents or percents of maximum tariff rate in the denomination

of bids and all transportation service providers should

support this. Once the choice is made by the Releasing

Shipper, the bids should comport with the choice. In

accordance with NAESB Standard 5.3.27, Version 1.8, for

purposes of bidding and awarding, maximum/minimum rates

specified by the Releasing Shipper should include the tariff

reservation rate and all demand surcharges, as a total

number or as stated separately. If a volumetric rate is

used, Releasing Shipper must indicate whether bids on a

reservation charge basis will be accepted as well and if so

must specify the method of evaluating the two types of bids.

Releasing Shipper also should indicate whether bids will be

accepted on a dollar basis or as a percentage of the

Releasing Shipper's as-billed rate.

(d) Daily quantity of capacity to be released, expressed in

Dth/d, at the designated delivery point(s). (This must not

exceed Releasing Shipper's maximum contract demand available

for capacity release and shall state the minimum quantity

expressed in Dth/d acceptable for release.)

(e) The term of the release, identifying the date release is to

begin and terminate. The minimum release term acceptable to

NBP shall be one (1) day.

(Continued)