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

First Revised Sheet No. 156
Superseding
Original Sheet No. 156

                   GENERAL TERMS AND CONDITIONS OF SERVICE
                                 (Continued)

16. BALANCING  (Continued)

     16.1  (Continued)

           (f)  Imbalance Trading:

                (i)   A shipper, or its agent, may trade imbalances with 
                      other Shippers, their agents or other third-party 
                      firms that may conduct imbalance trading for Shippers.  

                (ii)  Any trading of imbalances must result in each 
                      Shipper's imbalance decreasing.

                (iii) NBP shall process all imbalance trades at no 
                      additional administrative charge.

                (iv)  Third party imbalance management services will be 
                      accommodated on a nondiscriminatory basis as long as 
                      these services comply with applicable NAESB standards 
                      and do not adversely impact the pipeline's system 
                      operations.  Third party services will be required to 
                      comply with the NAESB Nominations and Confirmation 
                      Time Limits and meet transporter credit requirements 
                      appropriate for the quantity of shipper imbalance gas 
                      for which such third party may be responsible.

          (g)   Posting Imbalance Trades:

                (i)   NBP shall provide free of charge an "Imbalance 
                      Trading" location on its Internet website to allow 
                      posting of imbalances to facilitate trading.

                (ii)  NBP shall post a Shipper's imbalance if the Shipper 
                      provides written authorization to NBP authorizing it 
                      to post such imbalance information on the "Imbalance 
                      Trading" section of its Internet website.

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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