North Baja Pipeline, LLC

Original Volume No. 1

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

Original Sheet No. 176 Original Sheet No. 176 : Effective

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

19. CAPACITY RELEASE (Continued)

19.7 Allocation of Parcels (Continued)

(d) Confirmation of Allocation

Upon each completion of an allocation, the successful Replacement

Shipper(s) will be notified of the terms under which they have

contracted for the awarded Parcel. The notification will be

provided in the form of an e-mail to the Replacement Shipper(s).

Such notification will be sent within one (1) hour of completion

of the allocation. The notice will include the Replacement

Shipper's Rate Schedule FTS-1 service agreement number and the

pertinent terms of the Replacement Shipper's bid as well as any

additional terms specified by the Releasing Shipper. The

Releasing Shipper will be notified of the terms under which its

Parcel has been awarded. The notification will be provided in

the form of an email to the Releasing Shipper. The notification

will include all of the pertinent terms of the Releasing

Shipper's Parcel.

(e) Purging of Expired Bids

All unfulfilled bids, as well as any unfulfilled portions of

bids, which receive a partial award, will become ineffective as

of the completion of bid reconciliation and the close of the Bid

Period. Each unsuccessful Replacement Shipper that has bid shall

receive a notice by email indicating the ineffectiveness of the

bid.

(Continued)