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North Baja Pipeline, LLC
FERC Gas Tariff
Original Volume No. 1

Original Sheet No. 8B

                   STATEMENT OF EFFECTIVE RATES AND CHARGES

             NEGOTIATED RATE AGREEMENTS UNDER RATE SCHEDULE FTS-1

                  Explanatory Footnotes for Negotiated Rates
                           Under Rate Schedule FTS-1

6/  (Continued)

         The Western Zone is defined as 115 degrees, 41 minutes, 21 seconds 
         west longitude, west to the interconnection with Transportadora de 
         Gas Natural de Baja California;

         The Mexicali Zone is defined as 115 degrees, 41 minutes, 21 seconds, 
         east to 115 degrees, 11 minutes, 50 seconds west longitude;

         A Third Party Shipper is defined as a shipper that is either the 
         owner, operator, or fuel supplier to electric generation facilities, 
         or affiliates of NBP or GB.

    (2)  The New Rate shall only apply for the duration of the term of 
         service provided to the Third Party Shipper, but in no event shall 
         apply beyond the term of this rate protection provision.
    (3)  This provision terminates December 31, 2017.  If the capacity held 
         by Shipper is permanently assigned or released to a similarly-
         situated replacement shipper, the rate protection provision shall be 
         extended to such replacement shipper.


7/  The transportation rate under this Agreement is a negotiated rate 
    consisting of a monthly reservation fee equal to $0.1147 times 30.4 days 
    for each month, times the then current Maximum Daily Quantity, plus a 
    volumetric rate of $0.0036 per Dth plus fuel, line loss and unaccounted 
    for gas as set forth in the Tariff and any and all applicable surcharges.  
    This rate shall be fixed for the term of this Agreement.

    The Maximum Daily Quantities will vary over the term of this Agreement as 
    follows:
                                    MDQ Dth/d
            01/01/03 - 02/28/03       30,000
            03/01/03 - 03/31/03       45,000
            04/01/03 - 04/30/03       85,000
            05/01/03 - 12/31/23      105,000

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: July 26, 2005                      Effective on: July 27, 2005
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