North Baja Pipeline, LLC

Original Volume No. 1

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Effective Date: 08/12/2002, Docket: RP02-363-000, Status: Effective

Original Sheet No. 31 Original Sheet No. 31 : Effective

RATE SCHEDULE PAL-1

PARKING AND LENDING SERVICE

(Continued)

2. APPLICABILITY AND CHARACTER OF SERVICE (Continued)

2.2 (Continued)

(c) If the Shipper and NBP agree that Shipper may receive parked

quantities or return loaned quantities at Point(s) other

than the Point(s) of the park or loan, then Shipper and NBP

shall enter into a separate Transportation Agreement(s) to

effectuate receipt or delivery of Gas from or to the new

Point(s).

2.3 Service rendered under this Rate Schedule shall be provided for a

minimum of a one (1) Day term. The term shall be set forth on the

Agreement executed between Shipper and NBP.

2.4 Transportation of Gas quantities for or on behalf of Shipper to or

from the designated Point(s) of Service under the Agreement shall

not be performed under this Rate Schedule. Shipper shall make any

necessary arrangements with NBP and/or third parties to receive or

deliver Gas quantities at the designated Points of Service for

Parking or Lending Service hereunder.

2.5 Services rendered under this Rate Schedule shall be interruptible

and subject to available capacity.

3. RATES

Each Month Shipper shall pay to NBP the following charges for service

under this PAL-1 Rate Schedule:

3.1 Commodity Charges

(a) An Account Balance Charge, as stated on Sheet No. 4, which

shall be paid for each Dekatherm of Gas parked or loaned at

each Point of Service by NBP for or on behalf of the account

of Shipper at the end of any Day during the Month;

(b) Other Applicable Charges or Surcharges. All other

applicable surcharges or charges, as stated on Sheet No. 4

multiplied by each Dekatherm of Gas delivered.

(Continued)