NorAm Gas Transmission Company

Fourth Revised Volume No. 1

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

Original Sheet No. 7E.01 Original Sheet No. 7E.01 : Superseded

STATEMENT OF NEGOTIATED RATES

Contract Rate Contract

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

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

Conoco, Inc. 1552 FT 10,316 Goldsby Plant CGT @ Perryville See Formula below

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,

as published in the first monthly issue of Inside FERC's Gas Market Report for the Service Month, ("Index Price"). The Index Spread

shall be equal to (a) the amount remaining when the Index Price specified in (1) below is subtracted from the Index Price specified in

(2) below, less (b) the Compressor Fuel Value calculated as described below.

(1) ONG-Oklahoma, plus $0.04;

(2) Columbia Gulf Transmission Company - Louisiana, plus $0.035.

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 $0.01 per MMBtu (hereinafter referred to as the "Base Rate"), then the rate per MMBtu of Contract

Demand shall be the Base Rate. If the Index Spread is equal to or greater than the Base Rate, but less than or equal to NGT's

then-current maximum applicable unit rate, calculated on an assumed 100% load factor basis, including all applicable charges, for

Rate Schedule FT service (herein the "Maximum"), then the rate per MMBtu of Contract Demand shall be the Index Spread. If the Index

Spread is greater than the Maximum, then the rate per MMBtu of Contract Demand shall be the Maximum plus seventy percent (70%) of

the amount of the Index Spread exceeding the Maximum.