NorAm Gas Transmission Company

Fourth Revised Volume No. 1

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Effective Date: 04/01/1997, Docket: RP96-200-020, Status: Effective

Substitute Fifth Revised Sheet No. 7B Substitute Fifth Revised Sheet No. 7B : Superseded

Superseding: Fifth Revised Sheet No. 7B

STATEMENT OF NEGOTIATED RATES

Contract Rate Contract

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

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

Enron Capital & Trade Resources 1962 FT 10,000 KN @ Red River CGT @ Perryville See Formula below

Corp. West 1 Pooling Area ANR @ Perryville

Koch @ West Monroe

Tennessee 100

Tennessee 800

TET @ West Monroe

TGT @ Perryville

Trunkline @ Richland

Sonat @ Perryville

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 (2) minus (1) 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 (1) below.

(1) The arithmetic average of: ANR Pipeline Co. (Oklahoma), Panhandle Eastern Pipeline Co. (Texas, Oklahoma (mainline)), and NorAm Gas Transmission

(West)

(2) Columbia Gulf Transmission Co. plus $0.03

If the Index Spread is less than or equal to $0.0237, then the unit rate per MMBtu of Contract Demand shall be comprised of a Reservation Charge of $0.015

per MMBtu and a commodity rate of $0.0087 per MMBtu. If the Index Spread is greater than the Maximum Tariff Rate on a unit basis, then the unit rate per

MMBtu of Contract Demand shall be (a) the difference between the Index Spread and the Maximum Tariff Rate multiplied by (b) seventy five Percent (75%) plus

the Maximum Tariff Rate. Otherwise, the unit rate per MMBtu of Contract Demand shall be equal to the Index Spread. 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.