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

Original Sheet No. 152A

                   GENERAL TERMS AND CONDITIONS OF SERVICE
                                 (Continued)

16.  BALANCING (Continued)

     16.1  (Continued) 

           (c)  Actual confirmed receipt quantity exceeds actual delivered 
                quantity

                A net positive imbalance shall exist if the difference 
                between the quantity received (nominated, scheduled, and 
                confirmed) and the quantity delivered, taking into account 
                the reduction in quantity for compressor fuel use, yields a 
                positive result. Commencing upon notification by NBP of the 
                existence of the imbalance, and to the extent that the NBP 
                system is not constrained or its integrity is not threatened 
                and NBP has not issued an Operational Flow Order, Shipper 
                shall have three (3) days to correct the imbalance.



                                                                  (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: January 23, 2004                   Effective on: August 12, 2002
Filed to comply with order of the Federal Energy Regulatory Commission, Docket 
No. RP02-363, et al., issued December 24, 2003