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Original Sheet No. 7J Original Sheet No. 7J : Superseded






Contract Rate Contract

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

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

Tenaska Marketing Ventures 1951 FT 10,000 North, South, and/or TGT @ Helena See Formula below

Neutral Pooling Area TET @ Bald Knob

(East of Chandler) NGPL @ Hot Spring











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) Texas Gas Zone 1

(2) NorAm Gas Transmission (East)



Provided, however the unit rate per MMBtu of Contract Demand shall not be less than $0.04. In any event, the unit rate per MMBtu of Contract Demand in any Month shall

never be less than 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.