NorAm Gas Transmission Company

Fourth Revised Volume No. 1

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Effective Date: 02/01/1997, Docket: RP96-200-017, Status: Effective

First Revised Sheet No. 7F First Revised Sheet No. 7F : Superseded

Superseding: Original Sheet No. 7F

STATEMENT OF NEGOTIATED RATES

Contract Rate Contract

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

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

Texaco Natural Gas, Inc. 1852 FT 10,000 East of Chandler CGT @ Perryville See Formula below

Carthage Plant ANR @ Perryville

TET @ West Monroe

Koch @ West Monroe

Trunkline @ Richland

Tennessee 100

Tennessee 800

Sonat @ Perryville

Formula Rates for Services up to Contract Demand:

The Formula Rate will be based on the following index prices as reflected for spot gas delivered to the pipelines at the points indicated ("Index Price").

The Index Spread shall be equal to (a) the differential between (1) and (2) below, less (b) the Compressor Fuel Value calculated as described below.

(Shipper provides Compressor Fuel in-kind, pursuant to the FERC Gas Tariff of NGT).

(1) NorAm Gas Transmission Company East (as published in the first monthly issue of Inside FERC's Gas Market Report for the Service Month) plus $0.03;

(2) Columbia Rayne (as published in the first monthly issue of Natural Gas Intelligence for the Service Month).

The Compressor Fuel Value shall be calculated by multiplying the applicable Compressor Fuel percentage as specified and in effect from time to time in

NGT's Tariff times the Index Price set forth in (1) above.

If the Index Spread is less than $0.08 per MMBtu (hereinafter $0.08 per MMBtu shall be referred to as the "Floor Rate"), then the unit rate per MMBtu of

Contract Demand shall be the Floor Rate. If the unit rate is greater than $0.08 per MMBtu and less than or equal to $0.2828 per MMBtu, then the applicable

unit rate shall be the Index Spread.

If the Index Spread is greater than $0.2828 per MMBtu, (hereinafter $0.2828 per MMBtu shall be referred to as the "Threshold"), then the unit rate per MMBtu

of Contract Demand shall be (a) the difference between the Index Spread and Threshold, (b) multiplied by sixty percent (60%), (c) plus the Threshold.