Mojave Pipeline Company

Second Revised Volume No. 1

Effective Date: 06/03/2010, Docket: RP10-706-000, Status: Effective

First Revised Sheet No. 175 First Revised Sheet No. 175

Superseding: Original Sheet No. 175

RATE SCHEDULE PAL

Interruptible Parking and Lending Service

(Continued)

5. Interruption or Termination of PAL Service (Continued)

5.4 Should Transporter receive a valid PAL nomination complying with a

notification pursuant to Section 5.1 but be unable to confirm or

schedule such nomination, the obligation of Shipper to comply with

that notification, but not the obligation to submit nominations,

shall be suspended until such time as Transporter's operational

conditions permit such nomination to be confirmed and scheduled.

Furthermore, under the circumstances described by Section 5.4, the

penalty provision of Section 5.3 shall not apply until such

nomination is able to be confirmed and scheduled. Additionally,

Transporter and Shipper may mutually agree to extend the agreed

upon term of the PALSA for the amount of time that the transaction

was unable to be scheduled.

5.5 Shipper is required to remove all parked quantities and return all

loaned quantities no later than the termination date of the PALSA.

Upon termination of a PALSA, any parked quantity not removed shall

become the property of Transporter at no cost to Transporter, free

and clear of any adverse claims, and, any loaned quantity not

returned shall be sold to Shipper the highest price, determined as

200% of the Bidweek Price published in Natural Gas Intelligence

Bidweek Survey - Spot Gas Prices as the Southern Cal. Border

Average price, among either:

(a) the month in which the authorized park occurred,

(b) the month in which redelivery of the authorized park was

scheduled but did not occur, or;

In the event parked quantities remain in Transporter's system

and/or loaned quantities have not been returned to Transporter's

system after the expiration of any PALSA executed by Shipper and

Transporter, Transporter and Shipper may mutually agree to an

extended time frame and/or modified terms, including the rate, of

such PALSA, to permit Shipper to payback and/or return such

quantities.

5.6 Shipper or its suppliers shall be responsible for reporting and

payment of any royalty, tax, or other burdens on natural gas

volumes received by Transporter and Transporter shall not be

obligated to account for or pay such burdens.