North Baja Pipeline, LLC

Original Volume No. 1

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

Original Sheet No. 191 Original Sheet No. 191 : Effective

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

25. FACILITIES CONSTRUCTION AND INTERCONNECTION POLICY

25.1 NBP shall not be obligated to install additional facilities to

provide service under this FERC Gas Tariff provided, however, NBP

may install or Shipper may pay all of the expenses incurred for

installing additional facilities on a nondiscriminatory basis and

under terms that are mutually agreeable. In the event NBP incurs

the cost of installing additional facilities on behalf of a

Shipper, Shipper shall pay, in addition to the rate(s) stated in

the applicable rate schedule, the prorated (based on

Transportation Contract Demand) cost of service attributable to

any such additional facilities until such time as a different

allocation procedure is specified by Commission order.

25.2 Interconnect Policy. NBP will allow any entity to interconnect

with its facilities on a nondiscriminatory basis, subject to the

following conditions:

First, the party seeking the interconnection must be willing to

bear the costs of the construction if NBP performs that task. In

the alternative, the party seeking the interconnection could

construct the facilities itself in compliance with the pipeline's

technical requirements.

Second, the proposed interconnection must not adversely affect the

pipeline's operations.

Third, the proposed interconnection and any resulting

transportation must not diminish service to NBP's existing

customers.

Fourth, the proposed interconnection must not cause NBP to be in

violation of any applicable environmental or safety laws or

regulations with respect to the facilities required to establish

an interconnection with NBP's existing facilities.

Fifth, the proposed interconnection must not cause NBP to be in

violation of its right-of-way agreements or any other contractual

obligations with respect to the interconnection facilities.

(Continued)