NorAm Gas Transmission Company

Fourth Revised Volume No. 1

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Effective Date: 09/01/1997, Docket: RP96-200-025, Status: Effective

Fifth Revised Sheet No. 7E Fifth Revised Sheet No. 7E : Superseded

Superseding: Fourth Revised Sheet No. 7E

STATEMENT OF NEGOTIATED RATES

Contract Rate Contract

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

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

Aquila Energy Marketing 1949 FT 25,000 Aquila Elk City CGT @ Perryville See Formula below

Corp. El Paso @ Elk City ANR @ Perryville

Transok - Waggs Koch @ West Monroe

Tennessee 100

Tennessee 800

Trunkline @ Richland

TET @ West Monroe

TGT @ Perryville

Sonat @ Perryville

Formula Rates for Services up to Contract Demand:

The formula rate shall be based on the following index prices ("Index Prices"):

i) For the Index Price in item (1) below, for spot gas delivered to the pipelines at the areas indicated, as published in the first weekly issue of Natural

Gas Intelligence Gas Price Index , "Contract Index", for the Service Month and

ii) For the Index Price in item (2) below, 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 (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 Rayne plus $0.01

(2) Panhandle Eastern Pipeline Co. (Texas, Oklahoma)

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.

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.