North Baja Pipeline, LLC

Original Volume No. 1

Effective Date: 10/01/2002, Docket: RP03- 38-000, Status: Effective

First Revised Sheet No. 171 First Revised Sheet No. 171 : Effective

Superseding: Original Sheet No. 171

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

19. CAPACITY RELEASE (Continued)

19.6 Bidding for a Parcel (Continued)

(b) Submitting a Bid (Continued)

A Replacement Shipper cannot request that its bid be

"closed", nor can a Releasing Shipper specify that "closed"

bids be submitted on its releases. A Replacement Shipper

may submit only one bid per Parcel posted at any one point

in time. Bids received after the close of the Bid Period

shall be invalid. The Replacement Shipper may bid for no

more than the quantity of the Parcel posted by the Releasing

Shipper. Simultaneous bids for more than one Parcel are

permitted.

A valid bid to contract for a Parcel must contain the

following information:

(i) Replacement Shipper's legal name, address, telephone

and fax numbers and the name and title of the

individual responsible for authorizing the bid.

(ii) The identification of the Parcel bid on.

(iii) Term of service requested. The term of service must

not exceed the term included in the Parcel.

(iv) Percentage of the applicable maximum rate, as

identified in the Parcel, that Replacement Shipper is

willing to pay, or price in dollars and cents per

Dth/d, as identified in the Parcel, that the

Replacement Shipper is willing to pay. A Replacement

Shipper may not bid below the minimum applicable

charge or rate.

(Continued)