Reliant Energy Gas Transmission Company

Fourth Revised Volume No. 1

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Effective Date: 05/01/1997, Docket: RP96-200-021, Status: Effective

First Revised Sheet No. 7K First Revised Sheet No. 7K : Superseded

Superseding: Original Sheet No. 7K

STATEMENT OF NEGOTIATED RATES

Contract Rate Contract

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

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

TPC Corporation 1956 FT 10,000 North and/or TGT @ Perryville See Formula below

South Pooling Area ANR @ Perryville

(East of Chandler) Koch @ West Monroe

Trunkline @ Richland

Tennessee 100

Tennessee 800

CGT @ Perryville

Tetco @ West Monroe

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 Index Spread shall be (a) the difference between the Index Prices specified in (1) and (2) below, less (b) the Compressor Fuel Value. The Compressor Fuel

Value shall be calculated by multiplying the applicable Compressor Fuel percentage as authorized and in effect from time to time in Transporter's Tariff times

the Index Price set forth in (2) below. An additional $0.04 per MMBtu shall be added to the monthly unit rate per MMBtu of Contract Demand as described below

for deliveries to Columbia Gulf at Perryville.

(1) Texas Gas Transmission, Zone 1 + $0.015;

(2) NorAm Gas Transmission (East)

If the Index Spread is less than $0.02, then the unit rate per MMBtu of Contract Demand shall be $0.02. If the Index Spread is greater than or equal to $.02

but less than or equal to Transporter's then effective maximum Tariff rate, as shown on its Statement of Effective Rates and Charges for Transportation of Gas,

on a unit basis (the "Maximum Rate"), then the unit rate per MMBtu of Contract Demand shall be the Index Spread. If the Index Spread is greater than the

Maximum Rate, then the unit rate per MMBtu of Contract Demand shall be (a) the difference between the Index Spread and the Maximum Rate, multiplied by (b)

Sixty Percent (60%), plus (c) the Maximum Rate. In any event, however, the unit rate per MMBtu of Contract Demand in any Month shall never be below

Transporter's then effective minimum Tariff rate.

As a condition for receiving the negotiated rates at eligible Secondary Delivery Points, Shipper shall notify Transporter by 9:00 a.m. on the day prior to the

proposed flow at a Secondary Delivery Point if any Secondary Delivery Points will be nominated.