NorAm Gas Transmission Company

Fourth Revised Volume No. 1

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

Original Sheet No. 7I Original Sheet No. 7I : Superseded

STATEMENT OF NEGOTIATED RATES

Contract Rate Contract

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

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

Tenaska Marketing Ventures 1950 FT 10,000 El Paso @ Wheeler CGT @ Perryville See Formula below

ANR @ Perryville

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 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 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 Gulf (Louisiana) plus $0.035

(2) NorAm Gas Transmission (West)

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.