North Baja Pipeline, LLC

Original Volume No. 1

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

Original Sheet No. 172 Original Sheet No. 172 : Effective

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

19. CAPACITY RELEASE (Continued)

19.6 Bidding for a Parcel (Continued)

(b) Submitting a Bid (Continued)

(v) The quantity desired not to exceed the quantity

contained in the Parcel, expressed on a Dth/d

delivered basis and greater than the minimum quantity

acceptable to Replacement Shipper.

(vi) A statement as to whether or not Replacement Shipper

is an affiliate of the Releasing Shipper.

(vii) An affirmative statement that Replacement Shipper

agrees to be bound by the terms and conditions of Rate

Schedule FTS-1 and NBP's capacity release provisions

in its tariff.

(viii) Whether the bid is a contingent bid and the

contingencies which must be satisfied by the date

specified by the Releasing Shipper in its posting of

the Parcel.

The receipt of a valid bid by NBP will be acknowledged by

the Issuance of a bid confirmation in the form of an email

to the Replacement Shipper. It is the Replacement Shipper's

sole responsibility to verify the correctness of the

submitted bid and to take any corrective action necessary by

resubmitting a bid when notified of an invalid or incomplete

bid by NBP via the Internet website. This must be done

before the close of the Bid Period.

(Continued)