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

Original Sheet No. 161

                   GENERAL TERMS AND CONDITIONS OF SERVICE
                                 (Continued)

18. OPERATIONAL FLOW ORDERS ("OFO")  (Continued)

    18.6  In the event Shipper does not respond to the OFO and NBP believes 
          it is necessary to take actions such as buying or selling gas to 
          maintain system integrity or to prevent interrupting service to 
          another Shipper, NBP shall have the right, but not the obligation, 
          to take such remedial actions as it deems necessary.  If NBP takes 
          these actions, it shall be made whole by the nonresponding Shipper 
          for all costs that NBP incurs either through retention of penalty 
          revenues or by direct reimbursement by Shipper.  NBP shall not be 
          liable for any costs incurred by any Shipper/Operator in complying 
          with an OFO.

    18.7  NBP shall not be responsible for any damages that result from any 
          interruption in Shipper's service that is a result of a Shipper's 
          failure to comply promptly and fully with an OFO and the non-
          complying Shipper(s) shall indemnify NBP against any claims of 
          responsibility.

    18.8  Notwithstanding the foregoing, when Gas supplies necessary to 
          effectuate transportation deliveries are not flowing on the 
          system, NBP will not be responsible for backing up such supplies 
          and the associated deliveries will be subject to interruption.

    18.9  Where a nomination is required by NBP to make an effective 
          physical change necessary to comply with an OFO, unless critical 
          circumstances dictate otherwise, an OFO penalty should not be 
          assessed unless the Shipper is given the opportunity to correct 
          the circumstance giving rise to the OFO and fails to do so, or the 
          action(s) taken fails to do so.  The opportunity to correct the 
          critical circumstance should include the opportunity to:

          (a)    make a nomination, which, once confirmed and scheduled would 
                 cure the circumstance giving rise to the OFO, or

          (b)    take other appropriate action which cures the circumstance 
                 giving rise to the OFO.

          A Shipper's response to an OFO should not be constrained by 
          restrictions on the submittal and processing of intra-day 
          nominations.

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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