North Baja Pipeline, LLC

Original Volume No. 1

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

Original Sheet No. 194 Original Sheet No. 194 : Effective

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

29. ARBITRATION

Any arbitration provided for or agreed to by Shipper and NBP shall be

conducted in accordance with the following procedures and principles:

The arbitration shall be held under the auspices of the Arbitration

Regulations of the International Arbitration Court of the International

Chamber of Commerce. Any arbitration shall be conducted in the English

language and shall occur in San Diego, California. The decision by the

arbitrators on the questions submitted shall be in writing and become

part of the agreement between the parties. No arbitration panel shall

maintain continuing jurisdiction over the parties or the agreement after

the decision has been rendered. Upon the written demand of either NBP

or Shipper and within ten (10) days from the date of such demand, each

entity shall appoint an arbitrator and the two arbitrators so appointed

shall promptly thereafter appoint a third. Unless otherwise determined

by the arbitrators, the fees and expenses of the arbitrator named for

each party shall be paid by that party and the fees and expenses of the

third arbitrator shall be paid in equal proportion by both NBP and

Shipper.

30. GOVERNMENTAL REGULATIONS

These General Terms and Conditions of Service, the rate schedules to

which they apply, and any executed Transportation Service Agreement are

subject to valid laws, orders, rules and regulations of duly constituted

authorities having jurisdiction.

31. WAIVER OF DEFAULT

No waiver by either NBP or Shipper of any default by the other in the

performance of any provisions of an executed Transportation Service

Agreement shall operate as a waiver of any continuing or future default,

whether of a like or different character.

(Continued)