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

Original Sheet No. 32

                             RATE SCHEDULE PAL-1
                         PARKING AND LENDING SERVICE
                                 (Continued)

3.  RATES (Continued)

    3.2   Fuel: Shipper shall not be required to furnish fuel for service 
          under this Rate Schedule.

    3.3   Third Party Charges: Shippers will be responsible for delivering 
          their Gas into and receiving their Gas from NBP's facilities.  If 
          the Shipper requests, NBP may contract with Third Parties in order 
          to transport or store the Shipper's Gas on Third Party facilities.  
          In that event, the Shipper will reimburse NBP for all charges NBP 
          is billed by the Third Party as well as for the cost of fuel.

    3.4   Negotiated Rates: Shipper and NBP may mutually agree, pursuant to 
          the provisions of Paragraph 24 of the General Terms and Conditions 
          of Service, to a negotiated rate, which rate shall be less than, 
          equal to, or greater than NBP's Maximum Rate.  Such rates may be 
          based upon a rate design other than Straight Fixed Variable (SFV).  
          Such negotiated rate shall be set forth in the executed PAL 
          Service Agreement, and in NBP's FERC Gas Tariff. 


4.  OPERATIONAL REQUIREMENTS OF NBP

    4.1    Shipper may be required, upon notification from NBP, to cease or 
           reduce deliveries to, or receipts from, NBP hereunder within a Day 
           consistent with NBP's operating requirements.  Further, Shipper 
           may be required to return loaned quantities or remove parked 
           quantities upon notification by NBP.  Such notification shall at a 
           minimum be provided by posting on NBP's Internet website, and may 
           also be provided by other means of communication.  NBP's 
           notification shall specify the timeframe within which parked 
           quantities shall be removed and/or loaned quantities shall be 
           returned, consistent with NBP's operating conditions, but in no 
           event shall the specified time be sooner than the next day after 
           NBP's notification, subject to the following conditions:

                                                                  (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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