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

Original Sheet No. 30

                             RATE SCHEDULE PAL-1
                         PARKING AND LENDING SERVICE

1.  AVAILABILITY

    This Rate Schedule is available to any party (hereinafter called 
    "Shipper") for the parking and lending of gas from NBP, subject to the 
    following limitations:

    1.1   NBP has determined that it is operationally able to render such 
          service; and

    1.2   Shipper and NBP have executed a PAL Service Agreement.

2.  APPLICABILITY AND CHARACTER OF SERVICE

    2.1   This Rate Schedule shall apply to service, which is rendered by 
          NBP for Shipper pursuant to an executed PAL Service Agreement 
          under this Rate Schedule.

    2.2   Service under this Rate Schedule shall consist of either parking 
          or lending of Gas during any Day or part thereof.  Service 
          rendered by NBP under this Rate Schedule shall be interruptible 
          and shall consist of:

          (a)   Parking Service.  Parking Service is an interruptible 
                service which provides for (1) the receipt by NBP of Gas 
                quantities delivered by Shipper to the Point(s) of Service 
                agreed to by NBP and Shipper for receipt of parked 
                quantities; (2) NBP holding the parked quantities on NBP's 
                pipeline system; and (3) return of the parked quantities to 
                Shipper at the agreed upon time and at the same Point(s) or 
                other mutually agreed upon Point(s), provided, however, that 
                NBP is not obligated to return parked quantities on the same 
                Day and at the same Point the Gas is parked.

          (b)   Lending Service.  Lending Service is an interruptible 
                service which provides for (1) Shipper receiving Gas 
                quantities from NBP at the Point(s) of Service agreed to by 
                NBP and Shipper for delivery of loaned quantities of Gas; 
                and (2) the subsequent return of the loaned quantities of 
                Gas to NBP at the agreed upon time and at the same Point(s) 
                or mutually agreed upon Point(s), provided, however, that 
                NBP is not obligated to accept return of loaned Gas on the 
                same Day and at the same Point the Gas is loaned. 

                                                                  (Continued)

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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