NorAm Gas Transmission Company
Fourth Revised Volume No. 1
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Effective Date: 11/01/1997, Docket: RP96-200-026, Status: Effective
First Revised Sheet No. 7M First Revised Sheet No. 7M : Superseded
Superseding: Original Sheet No. 7M
STATEMENT OF NEGOTIATED RATES
Contract Rate Contract
Shipper Name Number Schedule Demand Rate Receipt Point(s) Delivery Point(s)
------------ -------- -------- -------- ----------- ---------------- -----------------
NorAm Energy Services, Inc. 1402 FT 55,000 * See Formula below NNG @ Red Moon CGT @ Perryville
KN Energy ANR @ Perryville
Delhi @ Custer TET @ West Monroe
Enogex @ Lookeba Koch @ West Monroe
El Paso @ Line 2 South Trunkline @ Richland
TGT @ Perryville
Sonat @ Perryville
IMC Sterlington Plant
Formula Rate 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 Index Spread shall be the difference between the Index Prices specified in (1) and (2) below.
(1) The average of ANR Pipeline Company (OK) and Panhandle Eastern Pipeline Company (TOK);
(2) Columbia Gulf Transmission Company (LA) plus $0.03.
If the Index Spread is less than $0.10, then the unit rate per Dth of Contract Demand shall be $0.10. If the Index Spread is greater than Transporter's then-
effective maximum Tariff rate, as shown on its Statement of Effective Rates and Charges for Transportation of Gas, on a unit basis, including all applicable surcharges
("Maximum Rate"), then the unit rate per Dth of Contract Demand shall be (a) the difference between the Index Spread and the Maximum Rate, multiplied by (b) sixty
percent (60%), plus (c) the Maximum Rate. Otherwise, the unit rate per Dth of Contract Demand shall be equal to the Index Spread. In any event, however, the unit
rate per Dth of Contract Demand in any Month shall never be below Transporter's then-effective minimum Tariff rate.
* Only 29,000 Dth/d is subject to the negotiated rate formula.