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

Original Sheet No. 22

                             RATE SCHEDULE ITS-1
                     INTERRUPTIBLE TRANSPORTATION SERVICE
                                 (Continued)

3.  RATES (Continued)

    3.5   Backhauls

          Backhauls (as defined in Paragraph 1.26 of the General Terms and 
          Conditions of Service) shall be subject to the same charges as 
          forward haul (as defined in Paragraph 1.25 of the General Terms 
          and Conditions of Service) except that no gas shall be retained by 
          NBP for compressor station fuel, line loss and other unaccounted-
          for gas.  Backhauls are subject to the operating conditions of 
          NBP's pipeline and will not be made available to Shipper if NBP 
          determines, in its sole discretion, that such transportation is 
          operationally infeasible or otherwise not available.

4.  AUTHORIZED OVERRUNS

    Quantities in excess of Shipper's MDQ shall be transported when capacity 
    is available on the NBP system and when the provision of such Authorized 
    Overruns shall not affect any Shipper's rights on the NBP system. 
    Authorized Overruns are interruptible in nature.  The rate charged shall 
    be the rates and charges as specified in Paragraph 3 of this rate 
    schedule. Authorized Overruns shall be subject to the priority of 
    service provisions of Paragraph 13 of the General Terms and Conditions 
    of Service.  

5.  FUEL AND LINE LOSS

    For all Forward Hauls, Shipper shall furnish to NBP quantities of gas 
    for compressor station fuel, line loss and other utility purposes, plus 
    other unaccounted for gas used in the operation of NBP's pipeline system 
    for the transportation quantities of gas delivered by NBP to Shipper, 
    based upon the effective fuel and line loss percentages set forth in 
    this FERC Gas Tariff.  No fuel charge shall apply to transactions that 
    do not involve a forward haul movement of gas.

6.  GENERAL TERMS AND CONDITIONS OF SERVICE

    The General Terms and Conditions of Service are applicable to this rate 
    Schedule, unless otherwise expressed in the executed Interruptible 
    Transportation Service Agreement between NBP and Shipper.  Any future 
    modifications, additions or deletions to said General Terms and 
    Conditions of Service, unless otherwise provided, are applicable to 
    interruptible transportation service rendered under this rate schedule, 
    and, by this reference, are made a part hereof.

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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