North Baja Pipeline, LLC

Original Volume No. 1

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

Original Sheet No. 193 Original Sheet No. 193 : Effective

GENERAL TERMS AND CONDITIONS OF SERVICE

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26. WARRANTY OF ELIGIBILITY FOR TRANSPORTATION

Any Shipper transporting gas on the NBP system under this FERC Gas

Tariff, Original Volume No. 1 warrants for itself, its successors and

assigns, that it will have at the time of delivery of the gas to NBP

hereunder good title to such gas and that it will retain good title to

such gas during the time the gas is in possession of NBP. Shipper

further warrants for itself, its successors and assigns that all gas

delivered to NBP for transportation hereunder is eligible for the

requested transportation in interstate commerce under applicable rules,

regulations or orders of the FERC, or other agency having jurisdiction.

Shipper will indemnify NBP and hold it harmless from all suits, actions,

damages, costs, losses, expenses (including reasonable attorney fees) and

costs connected with regulatory proceedings, arising from breach of this

warranty.

27. POSSESSION OF GAS AND RESPONSIBILITY

NBP shall be deemed to be in control and possession of, and responsible

for, all gas delivered from the time that such gas is received by it at

the point of receipt to the time that it is delivered at the point of

delivery.

28. INDEMNIFICATION

Shipper agrees to indemnify and hold harmless NBP, its officers, agents,

employees and contractors against any liability, loss or damage

whatsoever occurring in connection with or relating in any way to the

executed Transportation Service Agreement, including costs and attorneys'

fees, whether or not such liability, loss or damage results from any

demand, claim, action, cause of action, or suit brought by Shipper or by

any person, association or entity, public or private, that is not a party

to the executed Transportation Service Agreement, where such liability,

loss or damage is suffered by NBP, its officers, agents, employees or

contractors as a direct or indirect result of any breach of the executed

Transportation Service Agreement or sole or concurrent negligence or

gross negligence or other tortuous act(s) or commission(s) by Shipper,

its officers, agents, employees or contractors.

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