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

Original Sheet No. 138

                   GENERAL TERMS AND CONDITIONS OF SERVICE
                                 (Continued)

13. PRIORITY OF SERVICE

    Firm service shall have the highest priority on NBP's System. From time 
    to time, NBP may not have sufficient capacity to accommodate all 
    nominations for firm service through a given segment of its pipeline, 
    Receipt Point, or Delivery Point.  In that event, NBP shall schedule 
    firm service using the following priorities.

     13.1  Firm Scheduling Priorities Through Pipeline Segments

           NBP shall first schedule nominations for service within a 
           Shipper's Primary Path.  In the event NBP has insufficient 
           capacity to schedule all nominations for service within Shippers' 
           Primary Paths, NBP shall schedule service to Shippers nominating 
           for service along Primary Paths on a pro rata basis in accordance 
           with each Shipper's MDQ.

           NBP will next schedule nominations for service outside a Shipper's 
           Primary Path. In the event NBP has insufficient capacity to 
           schedule all nominations for service outside of Shippers' Primary 
           Paths, NBP shall schedule service to Shippers nominating for 
           service outside of their Primary Paths on a pro rata basis in 
           accordance with each Shipper's MDQ.

          NBP will next schedule nominations for service within a Shipper's 
          Reverse Path. In the event NBP has insufficient capacity to 
          schedule all nominations for service within Shippers' Reverse 
          Paths, NBP shall schedule service to Shippers nominating for 
          service along Reverse Paths on a pro rata basis in accordance with 
          each Shipper's MDQ.

     13.2 Firm Scheduling Priorities Through Receipt Point Constraints

          First, NBP shall schedule service to those Shippers for whom the 
          constrained receipt point is a Primary Receipt Point, up to each 
          Shipper's MDQ at that point (plus an allowance for fuel).  In the 
          event full service cannot be provided to Shippers holding Primary 
          Receipt Point rights, service will be scheduled on a pro rata 
          basis based on each Shipper's primary MDQ at that point.

          NBP shall then schedule service to those Shippers for whom the 
          constrained receipt point is a Secondary Receipt Point within that 
          Shipper's Primary Path.  In the event full service cannot be 
          provided, service will be scheduled on a pro rata basis based on 
          each Shipper's MDQ.

                                                                  (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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