North Baja Pipeline, LLC

Original Volume No. 1

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

Fourth Revised Sheet No. 173 Fourth Revised Sheet No. 173

Superseding: Third Revised Sheet No. 173

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

19. CAPACITY RELEASE (Continued)

19.6 Bidding for a Parcel (Continued)

(d) Withdrawal or Revision of Bids

A previously submitted bid may be withdrawn or revised and

resubmitted at any time prior to the close of the Bid Period

with no obligation on the Replacement Shipper's part. In

accordance with NAESB Standard 5.3.15, Version 1.8, bids

cannot be withdrawn after the bid period ends. Resubmitted

bids must be equal to or greater in value than the initial

bids. Lower valued bids will be invalid. In accordance

with NAESB Standard 5.3.13, Version 1.8, bids should be

binding until written or electronic notice of withdrawal is

received by the capacity release service provider.

19.7 Allocation of Parcels

(a) Primary Allocation

In accordance with NAESB Standard 5.3.3, Version 1.8, winning

bids for Parcels shall be awarded based on one of the

following three (3) options to be selected by the Releasing

Shipper when posting a Parcel:

Option 1 - Highest Rate Equivalent

Bids will be given priority based on the maximum rate bid as

represented by (1) a Replacement Shipper's bid of the

percentage of the Transporter's maximum authorized

reservation charge or a volumetric equivalent of the maximum

reservation charge applicable to the Parcel on a 100% load

factor basis, or (2) a Replacement Shipper's bid in terms of

absolute dollars and cents per Dth.

(Continued)