Reliant Energy Gas Transmission Company

Fourth Revised Volume No. 1

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Effective Date: 02/01/1998, Docket: RP96-200-030, Status: Effective

Sixth Revised Sheet No. 7C Sixth Revised Sheet No. 7C : Superseded

Superseding: Fifth Revised Sheet No. 7C

STATEMENT OF NEGOTIATED RATES

Contract Rate Contract

Shipper Name Number Schedule Demand Receipt Point(s) Delivery Point(s) Rate

------------ -------- -------- -------- ---------------- ----------------- ----

NGC Transportation, Inc. 1935 FT 30,000 El Paso @ Wheeler CGT @ Perryville See Formula below

KN @ Red River ANR @ Perryville

West 1 Pooling Area Koch @ West Monroe

North Pooling Area * Tennessee 100

(East of Chandler) Tennessee 800

South Pooling Area * TET @ West Monroe

(East of Chandler) TGT @ Perryville

West 2 Pooling Area Trunkline @ Richland

Sonat @ Perryville

El Paso @ Wheeler

Formula Rates for Services up to Contract Demand:

The formula rate shall be based on the index prices ("Index Prices") for spot gas delivered to the pipelines at the areas indicated, as published in the first

issue of the Month of Inside FERC's Gas Market Report for the Service Month.

If the information or publication ceases to be published, the parties shall select another mutually agreeable Index Price.

The unit rate per MMBtu of Contract Demand shall be $0.10 per MMBtu plus an additional charge equal to the difference between the Index Price specified in

(2) below minus the Index Price specified in (1) below, provided however, in no instance shall the unit rate per MMBtu of Contract Demand be below $0.10

per MMBtu.

(1) NorAm Gas Transmission (West)

(2) NorAm Gas Transmission (East)

In any event, the unit rate per MMBtu of Contract Demand in any Month shall never be below Transporter's then effective minimum Tariff rate.

* These points are only eligible for negotiated rates when the first issue of the Month of Inside Ferc's Gas Market Report Index Price for NorAm Gas

Transmission (West) is greater than the Index Price for NorAm Gas Transmission (East).