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

Original Sheet No. 21

                             RATE SCHEDULE ITS-1
                     INTERRUPTIBLE TRANSPORTATION SERVICE
                                 (Continued)

3.  RATES (Continued)

    3.2   Applicability of Surcharges

          Shipper shall pay all surcharges applicable to the service 
          provided to Shipper as set forth in NBP's FERC Gas Tariff.  Such 
          surcharges shall be deemed to be part of Shipper's Commodity 
          Charge.

    3.3   Discounts

           Shipper shall pay the Maximum Commodity Rate for service under 
           this rate schedule unless NBP offers to discount its rate to 
           Shipper under this rate schedule.  If NBP elects to discount its 
           rate, NBP shall advise Shipper of the effective date of such 
           charge and the quantity of gas so affected, provided, however, 
           such discount shall not be anti-competitive or unduly 
           discriminatory between individual Shippers.  The rate for service 
           under this rate schedule shall not be discounted below the Minimum 
           Commodity Rate set forth on the Statement of Effective Rates and 
           Charges for Transportation of Natural Gas.

    3.4   Negotiated Rates

          Notwithstanding any provision of NBP's Tariff to the contrary, NBP 
          and Shipper may mutually agree in writing to a Negotiated Rate 
          (including a Negotiated Rate Formula) with respect to the rates, 
          rate components, charges, or credits that are otherwise 
          prescribed, required, established, or imposed by this Rate 
          Schedule or by any other applicable provision of NBP's Tariff.

          Such Negotiated Rate shall be set forth in Attachment B to the 
          Interruptible Transportation Service Agreement and NBP shall make 
          any filings with the Commission necessary to effectuate such 
          Negotiated Rate.

          Shippers paying a Negotiated Rate which exceeds the maximum 
          applicable tariff rate shall be considered to be paying the 
          maximum applicable tariff rate for purposes of scheduling, 
          curtailment, and interruption, and calculating the economic value 
          of a request for available or unsubscribed capacity.

                                                                  (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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