Site not working. PDO Exception in EntityAPIController without executing any code changes, db changes or updates

I have not performed any updates. I have been working on a new install to test upgrades. Production is version 7.8. I installed 7.12 in a subdirectory and copied production files (/sites) to new directory. Was having redirect problems (test site sending me back to production in root) and figured out that I needed to change the base_path in .httaccess to get the test site working. I made this change and ran update.php on the new test site. Executing update.php flipped me back to my root site (production application) with this error. I do not have a clue how to fix. The new test directory (different db) is giving the same error. The production site has been up and running fine for months.

Drupal version 7.8, apache, hosted on bluehost

Additional uncaught exception thrown while handling exception.

Original

PDOException: SQLSTATE[42S22]: Column not found: 1054 Unknown column 'base.access_exposed' in 'field list': SELECT base.id AS id, base.name AS name, base.label AS label, base.plugin AS plugin, base.active AS active, base.weight AS weight, base.status AS status, base.dirty AS dirty, base.module AS module, base.access_exposed AS access_exposed, base.data AS data FROM {rules_config} base WHERE (base.plugin = :db_condition_placeholder_0) AND (base.active = :db_condition_placeholder_1) ; Array ( [:db_condition_placeholder_0] => reaction rule [:db_condition_placeholder_1] => 1 ) in EntityAPIController->query() (line 152 of /home1/efficie7/public_html/sites/all/modules/entity/includes/entity.controller.inc).