North Baja Pipeline, LLC

Original Volume No. 1

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Effective Date: 10/25/2004, Docket: RP04-607-000, Status: Effective

First Revised Sheet No. 166 First Revised Sheet No. 166 : Effective

Superseding: Original Sheet No. 166

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

19. CAPACITY RELEASE (Continued)

19.3 Notice Requirements (Continued)

(f) Whether the Releasing Shipper is willing to consider release

for a shorter period of time than that specified in (e)

above and if so, the minimum acceptable period of release.

(g) The receipt and delivery point(s).

(h) Whether Option 1, 2, or 3 shall be used to determine the

highest valued bid (see Paragraph 19.7(a) for a description

of bid evaluation Options 1, 2, and 3).

(i) Whether the Releasing Shipper wants NBP to market its

released capacity.

(j) Whether the Releasing Shipper requests to waive the

creditworthiness requirements and agrees in such event to

remain liable for all charges.

(k) Whether Releasing Shipper is an energy affiliate or other

affiliate of NBP.

(l) If release is a prearranged release, the Prearranged Shipper

must be qualified pursuant to the criteria of Paragraph

19.6(a) unless waived above. Releasing Shipper shall

include the Prearranged Shipper bid information pursuant to

Paragraph 19.6(b) with its release information and shall

indicate whether the Prearranged Shipper is affiliated with

NBP or the Releasing Shipper.

(m) Any special nondiscriminatory terms and conditions

applicable to the release, such as whether the Replacement

Shipper will be prohibited from changing Primary Points.

(n) Tie-breaker method preferred: (1) pro rata, (2) lottery,

(3) order of submission (first-come/first-serve), (4) other.

Other method must be objectively stated, administratively

feasible as determined by NBP and nondiscriminatory. If no

method is selected, the system defaults to pro rata.

(Continued)