NorAm Gas Transmission Company

Fourth Revised Volume No. 1

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

Sixth Revised Sheet No. 7A Sixth Revised Sheet No. 7A : Superseded

Superseding: Fifth Revised Sheet No. 7A

STATEMENT OF NEGOTIATED RATES

Contract Rate Contract

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

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

El Paso Energy Marketing 1964 FT 20,000 El Paso @ Elk City CGT @ Perryville See Formula below

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.

(1) Columbia Gulf Transmission +$0.03;

(2) The arithmetic average of NorAm Gas Transmission - West, ANR Pipeline - Oklahoma, and Panhandle Eastern Pipeline - Texas, Oklahoma.

If the Index Spread is less than $0.04, then the unit rate per MMBtu of Contract Demand shall be $0.04. If the Index Spread is greater than or equal to $.04

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.