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

Original Sheet No. 150

                   GENERAL TERMS AND CONDITIONS OF SERVICE
                                 (Continued)

16. BALANCING

    16.1   To the extent possible, imbalance information shall be based upon 
           actual, real-time data.  Balancing of thermally equivalent 
           quantities of gas received and delivered by NBP shall be achieved 
           as nearly as feasible on a daily basis.  Correction of imbalances 
           shall be the responsibility of the Shipper whether or not notified 
           by NBP at the time of incurrence of the imbalance.  Correction of 
           imbalances shall be scheduled with NBP using the nomination 
           process as soon as an imbalance is known to exist based on the 
           best available current data. Nominations to correct imbalances 
           shall have the lowest priority for scheduling purposes and shall 
           be subject to the availability of capacity and other operational 
           constraints for imbalance correction.  If on any day capacity is 
           insufficient to schedule all imbalance nominations, all such 
           nominations shall be prorated accordingly.  To maintain the 
           operational integrity of its system, NBP shall have the right to 
           balance any Shipper's account as conditions may warrant.  
           Imbalances shall exist as defined below and be subject to the 
           applicable charges and penalties if not corrected.

           (a)   Actual delivered quantity exceeds MDQ

                Quantities in excess of Shipper's MDQ shall be transported, 
                 without penalty, 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 for Authorized Overruns shall be the same as the 
                 rates and charges for Interruptible Transportation under 
                 Rate Schedule ITS-1 as set forth on effective Tariff Sheet 
                 No. 4, and such Authorized Overruns shall be subject to the 
                 priority of service provisions of Paragraph 13 of the 
                 General Terms and Conditions of Service. 

                To the extent NBP has facilities in place, NBP may utilize 
                flow control to limit shipper deliveries to contractual MDQ 
                levels when Shipper has not requested Authorized Overrun 
                Service.  


                                                                  (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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