North Baja Pipeline, LLC

Original Volume No. 1

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

Original Sheet No. 33 Original Sheet No. 33 : Effective

RATE SCHEDULE PAL-1

PARKING AND LENDING SERVICE

(Continued)

4. OPERATIONAL REQUIREMENTS OF NBP

4.1 (Continued)

(a) In the event that the specified time for removal or return

of Gas quantities is the next Day, the timeframe for

required removal or return shall begin from the time that

Shipper receives notice from NBP. Notices provided after

business hours for the next Day will be provided to Shipper

via Electronic Communication. In the event that Shipper

makes a timely and valid nomination in response to

notification by NBP to remove parked quantities and/or

return loaned quantities, Shipper shall be deemed to have

complied with NBP's notification; and

(b) Unless otherwise agreed by Shipper and NBP: (i) any parked

quantity not nominated for removal within a timeframe

specified by NBP's notice shall become the property of NBP

at no cost to NBP free and clear of any adverse claims; (ii)

any loaned quantity not returned within the timeframe

specified by NBP's notice shall be sold to Shipper at one

hundred and fifty percent (150%) of the average weekly price

of gas as calculated in Paragraph 4.3 below.

4.2 In the event parked quantities remain in NBP's Pipeline System

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

System at the expiration of any Agreement executed by Shipper and

NBP, NBP and Shipper may mutually agree to an extended timeframe

and/or modified terms, including the rate, of such Agreement. In

the event that Shipper and NBP are unable to come to such

Agreement, NBP shall notify Shipper, and Shipper shall nominate

for removal of the parked quantities and/or return of the loaned

quantities within the timeframe specified in NBP's notice, which

in no instance shall be less than one (1) Day. Any parked

quantity not nominated for removal within the timeframe specified

by NBP's notice shall become the property of NBP at no cost to

NBP, free and clear of any adverse claims. Any loaned quantities

not nominated to be returned within the time frame specified by

NBP's notice shall be sold to Shipper at one hundred and fifty

percent (150%) of the average weekly price of gas as calculated in

Paragraph 4.3 below.

(Continued)