----

|   | Company’s      audit committee is responsible for, among other  things: |
|--------|-------------------------------------------------------------------------------|

|   | 审计委员会的责任如下: |
|--------|------------------------------------------------------------------------------------------|

|   |   •      appointing the independent auditor; |
|--------|--------------------------------------------------------------|

|  |   | 任命独立审计师; |
|--|--------|------------------------------------------------------------------|

|   |   •      pre-approving all auditing and non-auditing services permitted to be      performed by the independentauditor; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   |     预先批准由独立审计师履行所许可的所有审计和非审计服务; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   •      annually reviewing the independent auditor’s report describing the      auditing firm’s internal quality-control procedures, any material issues      raised by the most recent internal quality-control review, or peer review,      of the independent auditor and all relationships between the independent      auditor and our company; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |     每年审核独立审计师的报告,此报告说明了审计公司的内部控制程序,任何由独立审计师近期内部控制审核或同等审核所提出重要问题,以及独立审计师和公司之间的关系; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   •      reviewing with the independent auditor any audit problems or difficulties      and management’s responses; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   |    与独立审计师一同审核任何审计问题或难题以及管理层的回复 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   •      reviewing and discussing the annual audited financial statements with      management and the independentauditor; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   |    与管理层和独立审计师一同审核并讨论年度审计的财务报表; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   •      reviewing and discussing with management and the independent auditor major      issues regarding accounting principles and financial statement      presentations; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |    与管理层和独立审计师共同审核并讨论关于会计原则和财务报表陈述的主要问题; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   •      reviewing reports prepared by management or the independent auditor      relating to significant financial reporting issues and      judgments; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |    审核由管理层或独立审计师关于重大财务报告问题和判定而准备的报告; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   •      discussing earnings press releases with management, as well as financial      information and earnings guidance provided to analysts and rating      agencies; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |     与管理层讨论收益新闻稿,以及提供给分析师和评级机构的财务信息和收益指导; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   •      reviewing with management and the independent auditor the effect of      regulatory and accounting initiatives, as well as off-balance sheet      structures, on our financialstatements; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |    与管理层和独立审计师一同审核会计调整对公司财务报表以及资产负债表结构的影响; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   •      discussing policies with respect to risk assessment and risk management      with management, internal auditors and the independent      auditor; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |     与管理层、内部审计师和独立审计师讨论关于风险评估和风险管理的政策; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   •      timely reviewing reports from the independent auditor regarding all      critical accounting policies and practices to be used by our company, all      alternative treatments of financial information within U.S. GAAP that have      been discussed with management and all other material written      communications between the independent auditor and    management; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |    及时审核独立审计师出具的关于公司所使用的全部重要会计政策和惯例的报告,已经与管理层讨论过的美国公认会计准则认定的财务信息的全部选择性对待,以及独立审计师与管理层之间所有其他书面沟通材料; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   •      establishing procedures for the receipt, retention and treatment of      complaints received from our employees regarding accounting, internal      accounting controls, or auditing matters, and the confidential, anonymous      submission by our employees of concerns regarding questionable accounting      or auditing matters; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |    为收据、公司员工收到的关于会计、内部会计控制,或审计事项的投诉保存和对待、以及保密、和由公司雇员匿名提交的关于可疑的会计或审计事项的关注; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   •      annually reviewing and reassessing the adequacy of our audit committee      charter; |
|--------|---------------------------------------------------------------------------------------------------------------|

|   |    每年审核并再评估公司审计委员会章程的充分性; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   •      such other matters that are specifically delegated to our audit committee      by our board of directors from time totime; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   |    由董事会向审计委员会特别委派的其他事项; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   •      meeting separately, periodically, with management, internal auditors and      the independent auditor; and |
|--------|-------------------------------------------------------------------------------------------------------------------------------------|

|   |     与管理层、内部审计师和独立审计单独的定期会议; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   •      reporting regularly to the full board of  directors. |
|--------|-------------------------------------------------------------------------------|

|   |    向董事会全体董事定期报告。 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

|  | (a) | Independent      Director will perform services as is consistent with Independent      Director's position with the Company, as required and authorized by the      By-Laws and Certificate of Incorporation of the Company, and in accordance      with high professional and ethical standards and all applicable laws and      rules and regulations pertaining the Independent Director's performance      hereunder, including without limitation, laws, rules and regulations      relating to a public company.独立董事将会服从所有公司的章程与条例,并且运用职业道德标准以及所有适用的法律法规来约束其行为。 |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (b) | Independent      Director is solely responsible for taxes arising out of any compensation      paid by the Company to the Independent Director under this Agreement, and      the Independent Director understands that he/she will be issued a U.S.      Treasury form 1099 for any compensation paid to him/her by the Company,      and understands and agrees that the Company shall comply with any tax or      withholding obligations as required by applicable law from time to time in      connection with thisAgreement. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 根据此协议,独立董事将对其自身所有与薪资有关的税务负责。 |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | Company      may offset any and all monies payable to Independent Director to the      extent of any monies owing to the Company from the Independent      Director. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |   | 如果独立董事欠公司任何款项,公司将从薪资中予以扣除。 |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | The      rules and regulations of the Company notified to the Independent Director,      from time to time, apply to the Independent Director. Such rules and      regulations are subject to change by the Company in its sole discretion.      Notwithstanding the foregoing, in the event of any conflict or      inconsistency between the terms and conditions of this Agreement and rules      and regulations of the Company, the terms of this Agreement      control. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |   | 公司的规章条例对独立董事适用,并且公司可以根据需要修正规章条例。如果任何公司的规章条例与此协议的条款有所冲突,应以此协议条款为准。 |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|  | (a) | Expiration      of the Independent Director's term as a director of the      Company; |
|--|-----|---------------------------------------------------------------------------------------|

|  | (b) | Removal      of the Independent Director as a director of the Company, upon proper      board action or stockholder action in accordance with the By-Laws and      Certificate of Incorporation of the Company and applicable      law; |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 经由董事会或股东根据公司章程解除独立董事职位; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (c) | Resignation      of the Independent Director as a director of the Company      upon  written notice to the Board of Directors of the Company;      or |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | Termination      of this Agreement by the Company, in the event any of the requirements      specified in Section 3 hereof is not satisfied, as determined by the      Company in its solediscretion. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 在第三部分要求未满足的情况下,公司可以单方面解除与独立董事的雇佣协议。 |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (i) | If      to Independent Director, to: |
|--------|-----|--------------------------------------|

| China      Natural Gas, Inc.                                    |   | Independent      Director                                       |
|-----------------------------------------------------------------|--------|-----------------------------------------------------------------|
|                                                            |   |                                                            |
| /S/                                                             |   | /S/                                                             |
| ————————— |   | ————————— |
| Name:  Qinan      Ji                                  |   | Name:                                                           |
|                                                            |   | 姓名:                                        |
| Title:      CEO & Chairman                                  |   |                                                            |

----

|   | I. | POSITION: |
|--------|----|-----------|

----

|   | II. | COMPENSATION: |
|--------|-----|---------------|

----

| AGREED:      China Natural Gas, Inc.                                                             |   | AGREED:      Independent Director                                      |
|--------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|
| 同意:中国天然气有限公司 |   | 同意:独立董事               |
|                                                                                             |   |                                                                   |
| /S/                                                                                              |   | /S/                                                                    |
| —————————                                  |   | —————————— |
| 签名                                                                                 |   |                                                                   |
| Name:  Qinan      Ji                                                                   |   | Name:                                                                  |
| Title:      CEO and Chairman                                                                     |   | 姓名:                                               |
| 姓名:                                                                         |   |                                                                   |
| 职务:                                                                         |   |                                                                   |

----