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. 192 Original Sheet No. 192 : Effective

 

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

 

25. FACILITIES CONSTRUCTION AND INTERCONNECTION POLICY (Continued)

 

25.3 Operational Balancing Agreements. For the purposes of

minimizing operational conflicts between various natural gas

facilities with respect to the delivery of gas to and from NBP's

facilities, NBP may negotiate and execute Operational Balancing

Agreements ("OBAs") with appropriate parties that operate natural

gas facilities interconnecting with NBP's system. Such OBAs

shall specify the gas custody transfer procedures to be followed

by NBP and the interconnected party for the confirmation of

scheduled quantities to be received by NBP at Receipt Point(s)

and delivered by NBP at Delivery Point(s). Such OBA will provide

that any variance between actual quantities and confirmed

nomination quantities at the point where the OBA is in place for

any Day shall be resolved pursuant to the terms of the OBA, and

the interconnected party shall not be subject to balancing or

scheduling penalties. OBAs are mandatory at all interconnections

between NBP and other interstate or intrastate pipelines. NBP

may, but shall not be required to enter into an OBA with other

interconnected parties.