North Baja Pipeline, LLC

Original Volume No. 1

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Effective Date: 09/13/2009, Docket: RP09-902-000, Status: Effective

Second Revised Sheet No. 181 Second Revised Sheet No. 181

Superseding: First Revised Sheet No. 181

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

19. CAPACITY RELEASE (Continued)

19.12 Crediting, Billing Adjustments and Refunds (Continued)

(d) Excess Revenue Credits

Releasing Shipper is entitled to excess revenue credits

resulting when the reservation charge (or equivalent

volumetric rate) revenues actually received by NBP from the

Replacement Shipper(s) exceed the reservation charge (or

equivalent volumetric rate) revenues which would have been

received by NBP from the Releasing Shipper if capacity was

not released.

(e) Refunds

NBP shall track all changes in its rates approved by the

Commission. In the event the Commission orders refunds of

any such rates charged by NBP and previously approved, NBP

shall make corresponding refunds to all affected Shippers

including Shippers receiving capacity release service.

In such instances when rates to Replacement Shippers are

reduced, NBP shall make corresponding adjustments to the

crediting of revenues to Releasing Shippers for the period

such refunds are payable. For capacity release transactions

that are not subject to a rate cap, as described in Section

19.2 of these General Terms and Conditions, the prevailing

rate for the transaction shall be considered just and

reasonable and the Replacement Shipper(s) shall not be

entitled to receive the refunds referenced herein.

(f) Non-Payment or Default by Releasing Shipper

In the event Releasing Shipper's Transportation Service

Agreement is terminated due to non-payment or credit

noncompliance, and notice of termination has been provided to

Replacement Shipper(s) as discussed in Paragraphs 7 and 12 of

these General Terms and Conditions of Service, a Replacement

Shipper that currently holds temporary release capacity has

the right to elect to contract with NBP at the Replacement

Shipper's MDQ for the remaining term of its release contract

and at the lesser of (1) the Releasing Shipper's original

contract rate, or (2) the maximum recourse rate, provided that

the Replacement Shipper meets NBP's creditworthiness standards

for Firm Transportation Service.

(Continued)