NorAm Gas Transmission Company

Fourth Revised Volume No. 1

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Effective Date: 08/31/1995, Docket: MT95- 13-000, Status: Effective

First Revised Sheet No. 239 First Revised Sheet No. 239 : Superseded

Superseding: Original Sheet No. 239

GENERAL TERMS AND CONDITIONS

(continued)

failure to perform hereunder if such failure is due to

good faith compliance with the requirements of any such

laws, orders, rules or regulations.

17. MARKETING AFFILIATES:

Pursuant to this Tariff, Transporter performs open access

transportation and storage service for various Shippers,

including Transporter's unbundled merchant division and

affiliated marketing companies. Transporter provides such

open access service on a non-discriminatory basis. To

insure that current and prospective Shippers have equal

access to such information as may be required for the

arrangement and ongoing management of their services,

Transporter states:

17.1 Facilities and Personnel. The offices of all of

Transporter's operating personnel engaged in

transportation (including storage)related activities

(including certain purchase and/or sales activities

required of Transporter's operating personnel to

support its transportation activities including,

without limitation, Transporter's monthly cash-

balancing program) are located on separate floors

and/or different cities from (1) the offices of the

operating personnel of the unbundled merchant

division and (2) the offices of the operating

personnel of NorAm Energy Services, Inc. ("NES") and

other affiliated marketing companies (certain such

offices are located in separate buildings or cities).

The offices of Transporter's operating personnel are

located in the NorAm Energy Corp. building at 525

Milam Street, Shreveport, Louisiana 71101 and at 1600

Smith Street, Houston, Texas 77002-7342. Transporter

shares other equipment and facilities which are

provided by the corporate parent, such as a telephone

system and computer mainframe equipment (with access

restricted for marketing affiliates and the unbundled

merchant division to information generated by or for

such entities) but does not share any operating

personnel with any of its marketing affiliates or its

merchant division. One executive of the unbundled

merchant division has an office in Shreveport which

is located on the same floor as Transporter's

executives and other corporate executives.