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

Original Sheet No. 131A

                   GENERAL TERMS AND CONDITIONS OF SERVICE
                                 (Continued)

12. CREDITWORTHINESS (Continued)

     12.3  (Continued)

           reduction in SMSO. NBP is only permitted to recover the cost of 
           Expansion Capacity on lateral facilities once through either 
           transportation rates or, in the event of shipper default, by means 
           of the security provided through this provision.

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: December 13, 2007                  Effective on: January 14, 2008