North Baja Pipeline, LLC

Original Volume No. 1

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

Third Revised Sheet No. 182 Third Revised Sheet No. 182

Superseding: Second Revised Sheet No. 182

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

19. CAPACITY RELEASE (Continued)

19.12 Crediting, Billing Adjustments and Refunds (Continued)

(f) Non-Payment or Default by Releasing Shipper (Continued)

NBP shall designate that the Election Period for Replacement

Shipper(s) will be a minimum of one (1) business day for

release capacity held for up to one (1) month; a minimum of

three (3) business days for release capacity held for greater

than one (1) month but less than one (1) year; and a minimum

of five (5) business days for release capacity held for one

(1) year or more.

If a Replacement Shipper does not elect to contract with NBP

at its replacement MDQ for the remaining term of its release

contract and at the rate level that the Releasing Shipper

originally contracted for, NBP shall have the right to

terminate the Replacement Shipper's Transportation Service

Agreement and offer such capacity through an open season

posting that will subject the capacity to competitive

bidding. NBP shall provide fifteen (15) days notice to

Replacement Shipper(s) and the Commission that service will

terminate pursuant to this paragraph. In the event

Transporter terminates service, Transporter may exercise all

remedies available to it hereunder, at law or in equity.

Replacement Shippers with prospective claims to temporary

release capacity where the temporary release occurs at least

one (1) year following the termination of the Releasing

Shipper's contract will not have rights to such capacity.

Prospective claims to permanent releases of capacity will be

honored to the extent that a Replacement Shipper meets NBP's

creditworthiness standards for Firm Transportation Service.

19.13 Adoption of NAESB Capacity Release Standards

The following NAESB Standards are adopted by, and clarify, the

capacity release provisions set forth in this Paragraph 19.

Unless otherwise specified, all standards are Version 1.8:

5.3.1; 5.3.4; 5.3.5; 5.3.9; 5.3.11; 5.3.12; 5.3.16; and 5.3.19

(Continued)