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. 187 Original Sheet No. 187 : Effective







23.1 If either party shall fail to perform any obligation imposed upon

it by these General Terms and Conditions of Service or by an

executed Transportation Service Agreement, and such failure shall

be caused, or materially contributed to, by force majeure, such

failure shall be deemed not to be a breach of the obligation of

such party, but such party shall use reasonable diligence to put

itself in a position to carry out its obligations. Force majeure

means any acts of God, strikes, lockouts, or other industrial

disturbances, acts of public enemies, sabotage, wars, blockades,

insurrections, riots, epidemics, landslides, lightning,

earthquakes, floods, storms, fires, washouts, extreme heat, cold or

freezing weather, arrests and restraints of rulers and people,

civil disturbances, explosions, breakage of or accident to

machinery or lines of pipe, hydrate obstructions of lines of pipe,

inability to obtain pipe, materials or equipment, legislative,

administrative or judicial action which has been resisted in good

faith by all reasonable legal means, any acts, omissions or

causes whether of the kind herein enumerated or otherwise not

reasonably within the control of the party invoking this

paragraph and which by the exercise of due diligence such party

could not have prevented, the necessity for making repairs to,

replacing, or reconditioning machinery, equipment, or pipelines

not resulting from the fault or negligence of the party invoking

this paragraph. Nothing contained herein shall be construed to

require either party to settle a strike or lockout by acceding

against its judgment to the demands of the opposing parties.


23.2 No such cause as described in Paragraph 23.1 affecting the

performance of either party shall continue to relieve such party

from its obligation after the expiration of a reasonable period of

time within which by the use of due diligence such party could

have remedied the situation preventing its performance, nor shall

any such cause relieve either party from any obligation unless

such party shall give notice thereof in writing to the other party

with reasonable promptness; and like notice shall be given upon

termination of such cause.


23.3 No cause whatsoever, including without limitation the failure of

NBP to perform including the causes specified in Paragraph 23.1,

shall relieve Shipper from its obligations to make payments due,

including the payments of reservation charges for the duration of

such cause.