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

Original Sheet No. 10

                             RATE SCHEDULE FTS-1
                         FIRM TRANSPORTATION SERVICE

1.  AVAILABILITY

    This rate schedule is available to any party (hereinafter called 
    "Shipper") qualifying for service and who has executed a Firm 
    Transportation Service Agreement with NBP in the form contained in this 
    FERC Gas Tariff Original Volume No. 1.

2.  APPLICABILITY AND CHARACTER OF SERVICE

    This rate schedule shall apply to firm gas transportation services 
    performed by NBP for Shipper pursuant to the executed Firm 
    Transportation Service Agreement between NBP and Shipper.   NBP shall 
    receive from Shipper such daily quantities of gas up to the Shipper's 
    Maximum Daily Quantity (MDQ) as specified in the executed Firm 
    Transportation Service Agreement between NBP and Shipper plus the 
    required quantity of gas for fuel and line loss associated with service 
    under this Rate Schedule FTS-1 and redeliver an amount equal to the 
    quantity received less the required quantity of gas for fuel and line 
    loss.  Receipt and delivery of gas shall be made in evenly hourly rates 
    up to a maximum hourly receipt and delivery quantity equal to one 
    twenty-fourth (1/24th) of a Shipper's MDQ.  This transportation service 
    shall be firm and not subject to curtailment or interruption except as 
    provided in the General Terms and Conditions of Service.

    Firm transportation service shall be subject to all provisions of the 
    executed Firm Transportation Service Agreement between NBP and Shipper 
    and the applicable General Terms and Conditions of Service.

3.  RATES

    Shipper shall pay NBP each month the sum of the Reservation Charge, the 
    Commodity Charge, plus any applicable Overrun Charge or surcharge for 
    the quantities of natural gas delivered.  The rate(s) set forth in NBP's 
    Statement of Effective Rates and Charges for Transportation of Natural 
    Gas in this FERC Gas Tariff, Original Volume No. 1 are applied to 
    transportation service rendered under this rate schedule.

    3.1   Reservation Charge

    The Reservation Charge shall be the Shipper's Maximum Daily Quantity 
    multiplied by the Reservation Rate for service under this Rate Schedule 
    as set forth on effective Tariff Sheet No. 4.


                                                                  (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: June 6, 2002                       Effective on: August 12, 2002
Filed to comply with order of the Federal Energy Regulatory Commission, Docket 
No. CP01-22-000, et al., issued May 18, 2001, 95 FERC ¶ 61,259
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