NorAm Gas Transmission Company

Fourth Revised Volume No. 1

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

Second Revised Sheet No. 7G Second Revised Sheet No. 7G : Superseded

Superseding: First Revised Sheet No. 7G

STATEMENT OF NEGOTIATED RATES

Contract Rate Contract

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

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

Williams Energy Services 1960 FT 20,000 North Pooling Area (East MRT @ Glendale See Formula below

Company Of Chandler) NGPL @ Hot Springs

Formula Rates for Secondary Deliveries:

The formula rates for such secondary deliveries in the quantities specified in (b)(i) and (ii) below shall be based on the daily prices ("Daily Prices") for

spot gas delivered to the pipelines at the areas indicated, as published for the day of gas flow, and 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. Such formula

rates shall be the higher of (a) or (b), as follows:

(a) The sum of $0.05, plus fifty percent of (i) the difference between the Index Price specified in (x) below, minus the Index Price specified

in (y) below, less (ii) 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 specified in (y) below. Provided,

however, the amount remaining when (ii) is subtracted from (i) shall never be more than $0.17 less Compressor Fuel Value, nor less than $0.08.

(x) Texas Gas Transmission, Zone SL

(y) NorAm Gas Transmission, East

(b) The applicable Daily Price described in (i) or (ii) below, less the Daily Price described in (iii) below, adjusted for Compressor Fuel

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

the Daily Price set forth in (iii) below, all multiplied by eighty-five percent (85%).

(i) For secondary deliveries at MRT @ Glendale up to 5,000 MMBtu/d - Gas Daily North Louisiana MRT Mainline Midpoint;

(ii) For secondary deliveries at NGPL @ Hot Springs up to 10,000 MMBtu/d - Gas Daily East Texas North Louisiana Area NGPL Texas, Oklahoma

Midpoint;

(iii) Gas Daily Oklahoma NorAm North/South Midpoint.

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

if the Secondary Delivery Points specified above will be nominated.