North Baja Pipeline, LLC

Original Volume No. 1

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

Third Revised Sheet No. 168 Third Revised Sheet No. 168

Superseding: Second Revised Sheet No. 168

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

19. CAPACITY RELEASE (Continued)

19.5 Posting of a Parcel

The posting of a Parcel constitutes an offer to release the

capacity provided a willing Replacement Shipper submits a valid

bid consistent with NBP's General Terms and Conditions of Service.

The posting must contain the information contained in Paragraph

19.3. Any specific conditions posted by the Releasing Shipper

must be operationally feasible, nondiscriminatory to other

shippers, and in conformance with NBP's tariffs. If the Parcel is

being released as a Secondary Release, then any recall provisions

included in the primary release which may affect the re-release of

this capacity must be included in the terms and conditions of the

Secondary Release. Each Parcel will be reviewed by NBP prior to

posting on the Internet website for bidding. The receipt of a

valid release will be acknowledged in the form of an email to the

Releasing Shipper.

It is the Releasing Shipper's sole responsibility to provide

release and Prearranged Shipper bid information in advance of the

close of the Posting Period.

Releasing Shippers who elect to include, as part of their release,

nondiscriminatory recall provisions and/or special terms and

conditions are required to submit their request to release

capacity by at least two (2) business days before the close of the

Posting Period as stated in Paragraph 19.8. This is to ensure

adequate time for NBP to review and validate that any recall

and/or special terms and conditions are not discriminatory.

All Prearranged Shipper bids are subject to the Prearranged

Shipper(s) meeting the preliminary qualifications as defined in

Paragraph 19.6(a) for Replacement Shippers.

A Parcel may be revised or withdrawn by the Releasing Shipper at

any time prior to the close of the Posting Period. A Parcel

cannot be revised after the close of the Posting Period. In

accordance with NAESB Standard 5.3.14, Version 1.8, offers should

be binding until written or electronic notice of withdrawal is

received by the capacity release service provider.

(Continued)