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

First Revised Sheet No. 155
Superseding
Original Sheet No. 155

                   GENERAL TERMS AND CONDITIONS OF SERVICE
                                 (Continued)

16. BALANCING  (Continued)

     16.1  (Continued) 

           (d)  Crediting of Penalties  (Continued)

                 (iii) Timing of Credits. Within forty-five (45) days after 
                       November 1st of each year, NBP shall determine the 
                       total amount of the Net Penalty Revenues received 
                       during the previous 12-month period and the portion of 
                       such amount to be credited to each Shipper.  Such 
                       credits shall be reflected as a credit billing 
                       adjustment on the next bills rendered to the Shippers.  
                       In the event that such credit billing adjustment would 
                       result in a net credit on the total bill to any 
                       Shipper, or in the event the Shipper is no longer a 
                       shipper on NBP system, NBP will pay to such Shipper 
                       its share of the Net Penalty Revenues within fifteen 
                       (15) days after determination of the amount of the 
                       credit due to the Shipper.

                (iv)   Minimum Credit Amount.  NBP shall not be obligated to 
                       issue penalty credits during any year in which Net 
                       Penalty Revenues are less than or equal to $10,000.

           (e)   Imbalance Netting: A Shipper may net imbalances between its 
                 service agreements.


                                                                  (Continued)

Issued by: John A Roscher, Director of Rates & Reguatory Affairs
Issued on: September 9, 2002                  Effective on: August 12, 2002
Filed to comply with order of the Federal Energy Regulatory Commission, Docket 
No. RP02-363-000, issued August 9, 2002
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