North Baja Pipeline, LLC

Original Volume No. 1

Effective Date: 08/12/2002, Docket: RP02-363-000, Status: Effective

Original Sheet No. 167 Original Sheet No. 167 : Effective

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

19. CAPACITY RELEASE (Continued)

19.3 Notice Requirements (Continued)

(o) Recall provisions. These provisions must be objectively

stated, nondiscriminatory, and applicable to all bidders,

operationally and administratively feasible as determined by

NBP and in accordance with NBP's tariff.

(p) The minimum rate (percentage of: reservation charge or a

volumetric equivalent of the maximum reservation charge

applicable to the Parcel on a one hundred percent (100%)

load-factor basis) acceptable to Releaser for this Parcel.

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.

(q) Whether the Releasing Shipper is willing to accept

contingent bids that extend beyond the close of the Bid

Period and, if so, any nondiscriminatory terms and

conditions applicable to such contingencies including the

date by which such contingency must be satisfied (which date

shall not be later than the last day upon which NBP must

award capacity) and whether, or for what time period, the

next highest bidder(s) will be obligated to acquire the

capacity should the winning contingent bidder be unable to

satisfy the contingency specified in its bid.

(r) Whether the Releasing Shipper wants to specify a longer

bidding period for its Parcel than specified at Paragraph

19.8.

19.4 Marketing of Capacity Fee

NBP may act as a facilitator between a Releasing Shipper and a

Replacement Shipper(s) that wishes to contract for that Releasing

Shipper's capacity. All such Parcels must be posted on NBP's

Internet website initially. A posting of a Parcel facilitated by

NBP will include both the Parcel by the Releasing Shipper and the

bid by the Prearranged Shipper. A marketing of capacity fee shall

be negotiated between NBP and Releasing Shipper in a

nondiscriminatory manner. Such a fee will apply when: a

Releasing Shipper requests NBP to market released capacity, NBP

actively markets such capacity beyond posting on the Internet

website, and such marketing results in capacity being released to

a Replacement Shipper.

(Continued)