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. 189 Original Sheet No. 189 : Effective





24. NEGOTIATED RATES (Continued)


24.2 Filing requirement. Unless NBP executes and files a non-

conforming agreement, NBP will submit to the Commission on or

before the commencement of service under a Negotiated Rate

Contract a tariff sheet stating the exact legal name of the

Shipper, Negotiated Rate, the rate schedule, the receipt and

delivery points, the contract quantities and, where applicable,

the Negotiated Rate Formula underlying a Negotiated Rate for any

Negotiated Rate Agreement. The filing will contain a provision

that the Negotiated Rate Agreement does not deviate in any

material respect from the Form of Agreement in the tariff for the

applicable rate schedule.


24.3 Rate Treatment. NBP shall have the right to seek in future

general rate proceedings discount-type adjustments in the design

of its rates related to Negotiated Rate Agreements that were

converted from pre-existing discount Agreements to Negotiated Rate

Agreements. In those situations, NBP may seek a discount-type

adjustment based upon the greater of: (a) the Negotiated Rate

revenue received; or (b) the discounted tariff rate revenues which

otherwise would have been received.


24.4 Limitations. This Paragraph 24 does not authorize NBP to

negotiate terms and conditions of service.


24.5 Capacity Release. Negotiated Rates do not apply as the price cap

for capacity release transactions. Further, capacity release bids

must conform to NBP's applicable tariff rates, as further

described in Paragraph 19.6(b)(iv) of these General Terms and

Conditions of Service.


24.6 Accounting Treatment. NBP shall maintain separate records for all

revenues associated with Negotiated Rate transactions.

Transactions related to Negotiated Rate Agreements, which

originated as a pre-existing discounted service and were

subsequently converted, will be recorded separately from those

originating as Negotiated Rate Agreements. NBP shall record each

volume transported, billing determinants, rate component,

surcharge, and the revenue associated with its Negotiated Rates so

that this information can be filed, separately identified, and

separately totaled, as part of and in the format of Statements G,

I, and J in NBP's next general rate change application.