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

First Revised Sheet No. 7
Superseding
Original Sheet No. 7

                   STATEMENT OF EFFECTIVE RATES AND CHARGES

             NEGOTIATED RATE AGREEMENTS UNDER RATE SCHEDULE FTS-1

                  Explanatory Footnotes for Negotiated Rates
                           Under Rate Schedule FTS-1

1/  This contract does not deviate in any material aspect from the Form of 
    Service Agreement in this Tariff.

2/  Unless otherwise noted, all Shippers pay North Baja Pipeline, LLC's 
    maximum Reservation Charge, Delivery Charge, ACA, and contribute fuel in-
    kind in accordance with this Tariff.

3/  The transportation rate under this Agreement is a negotiated rate 
    consisting of a monthly reservation fee equal to $0.1237 times 30.4 days 
    for each month, plus a volumetric rate of $0.0038 per Dth, plus ACA, plus 
    an allowance for fuel, line loss and unaccounted for gas as set forth in 
    the Tariff.  This rate shall be fixed for the term of this Agreement.

    The Maximum Daily Quantities will vary over the term of this Agreement as 
    follows:
                                  MDQ Dth/d
            09/01/02 - 12/31/02     98,000 
            01/01/03 - 12/31/03     63,000
            01/01/04 - 12/31/04     71,000
            01/01/05 - 12/31/05     74,000
            01/01/06 - 12/31/06     77,000
            01/01/07 - 12/31/07     80,000
            01/01/08 - 12/31/08     83,000
            01/01/09 - 12/31/09     85,000

4/  The transportation rate under this Agreement is a negotiated rate 
    consisting of a monthly reservation fee equal to $0.1237 times 30.4 days 
    for each month, plus a volumetric rate of $0.0038 per Dth, plus ACA, plus 
    an allowance for fuel, line loss and unaccounted for gas as set forth in 
    the Tariff.  This rate shall be fixed for the term of this Agreement.

    The Maximum Daily Quantities will vary over the term of this Agreement as 
    follows:
                                  MDQ Dth/d
            09/01/02 - 12/31/02     32,000 
            01/01/03 - 12/31/03     67,000
            01/01/04 - 12/31/04     99,000
            01/01/05 - 12/31/05     96,000
            01/01/06 - 12/31/06    133,000
            01/01/07 - 12/31/07    130,000
            01/01/08 - 12/31/08    127,000
            01/01/09 - 12/31/09    125,000
            01/01/10 - 08/31/22    210,000

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: January 30, 2004                   Effective on: September 1, 2002
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