North Baja Pipeline, LLC

Original Volume No. 1

Effective Date: 10/01/2005, Docket: RP05-630-000, Status: Effective

First Revised Sheet No. 198 First Revised Sheet No. 198 : Effective

Superseding: Original Sheet No. 198

GENERAL TERMS AND CONDITIONS OF SERVICE

(Continued)

37. ANNUAL CHARGE ADJUSTMENT (ACA) PROVISION

37.1 Purpose: NBP shall recover from Shippers the annual charge

assessed to NBP by the Federal Energy Regulatory Commission for

budgetary expenses pursuant to Section 154.402 of the Commission's

regulations and Order No. 472 issued May 29, 1987. NBP shall

recover this charge by means of an Annual Charge Adjustment (ACA);

a per unit rate equivalent to the unit rate assessed against NBP

by the Commission shall be included in NBP's transportation rates.

(During the period that this ACA provision is in effect, NBP shall

not recover in a Natural Gas Act Section 4 rate case annual

charges recorded in FERC Account No. 928 assessed to NBP by the

Commission pursuant to Order No. 472.)

37.2 Filing Procedure: The notice period and proposed effective date

of filings pursuant to this paragraph shall be as permitted under

Section 4 of the Natural Gas Act; provided, however, that any such

filing shall not become effective unless they become effective

without suspension or refund obligation.

37.3 ACA Unit Rate Adjustment: NBP's ACA unit rate shall be the unit

rate used by the Commission to determine the annual charge

assessment to NBP, and shall be reflected in the Statement of

Effective Rates and Charges of this FERC Gas Tariff, Original

Volume No. 1.

37.4 Affected Rate Schedules: The ACA provision shall apply to all

Transportation that involves the physical movement of gas.