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. 12 Original Sheet No. 12 : Effective






3. RATES (Continued)


3.6 Backhauls


Backhauls (as defined in Paragraph 1.26 of the General Terms and

Conditions of Service) shall be subject to the same charges as forward

haul (as defined in Paragraph 1.25 of the General Terms and Conditions of

Service) except that no gas shall be retained by NBP for compressor

station fuel, line loss and other unaccounted-for gas. Backhauls are

subject to the operating conditions of NBP's pipeline and will not be

made available to Shipper if NBP determines, in its sole discretion, that

such transportation is operationally infeasible or otherwise not



3.7 Capacity Release


(a) Releasing Shippers:


Shipper shall have the option to release capacity pursuant to the

provisions of NBP's capacity release program as specified in the

General Terms and Conditions of Service. Shipper may release its

capacity, up to Shipper's MDQ under this rate schedule, in

accordance with the provisions of Paragraph 19 of NBP's General

Terms and Conditions of Service of this FERC Gas Tariff, Original

Volume No. 1. Shipper shall pay a fee associated with the

marketing of capacity by NBP (if applicable) in accordance with

Paragraph 19 of the General Terms and Conditions of Service. This

fee shall be negotiated between NBP and the Releasing Shipper. A

Shipper that releases capacity on a temporary basis remains liable

for the payment of all rates and fees incurred under such service

that are not paid by the Replacement Shipper.