Exhibit 10.1.b

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AGL RESOURCES INC. 2007 OMNIBUS PERFORMANCE INCENTIVE PLAN
INCENTIVE STOCK OPTION AGREEMENT

This Agreement between AGL Resources Inc. (the “Company”) and the Recipient sets
forth the terms of an incentive stock option granted under the above-named
Plan.  Capitalized terms used herein and not otherwise defined shall have the
meanings assigned to such terms in the Plan.

Name of
Recipient:  _________________________________                                                                  IncentiveStock
Option No.   ______________________

Date of
Grant:  _________________________________                                                                           Number
of Option Shares:  __________________________

Exercise Price:  $_______________per share (no less than the Fair Market Value
on date of grant)

Exercisability:                                This option shall first become
exercisable as follows:
   Immediately vested and exercisable upon date of grant.

________ percent of option shares vested and exercisable on the first
anniversary of the date of grant; and
        ________ percent of option shares vested and exercisable on each
successive anniversary of the date of grant.

Other:  _______________________________________________________________________________________

Termination of Employment: If you terminate employment by reason of your death,
Disability or Retirement, then upon such termination this option shall vest and
become exercisable with respect to that number of shares originally scheduled to
vest and become exercisable within twelve (12) months following such
termination.  Any remaining portion of this option that was not vested and
exercisable upon such termination of employment shall be forfeited as of the
date of such termination.

If you terminate employment for any other reason, then any portion of this
option that was not vested and exercisable immediately before your termination
of employment shall be forfeited as of the date of your termination of
employment.

Change in Control: Notwithstanding the above, in the event of a Change in
Control of the Company, this option shall become fully vested and exercisable
pursuant to Section 10.2 of the Plan, if (a) it is not assumed or substituted by
the Surviving Entity, or (b) it is assumed or substituted by the Surviving
Entity, but within two years following the Change in Control your employment is
terminated without Cause or you resign for Good Reason.

Term of Exercisability:  Once all or a part of the option becomes exercisable
(i.e. vested), it shall remain exercisable until the earliest of:
 
 
The one-year anniversary of your termination of employment due to death,
Disability or Retirement

 
The date of your termination of employment for any reason other than death,
Disability or Retirement, or termination by the Company without Cause

 
the date that is sixty (60) days following the date of your termination of
employment by the Company without Cause or, if within two years of a Change in
Control, your resignation for Good Reason

 
The date that is [ten (10)] years from the date of grant

 
Other:  _______________________________________________________________________________________

Transferability:
You may transfer the option pursuant only by will or by the laws of descent and
distribution.

This Agreement is subject to the terms and conditions of the Plan.  You have
received a copy of the Plan’s prospectus that includes a copy of the Plan.  By
signing this Agreement, you agree to the terms of the Plan and this Agreement,
which may be amended only upon a written agreement signed by the Company and
you.

This ____ day of __________, 2_______.

AGL RESOURCES
INC.                                                                                                RECIPIENT:

By: Melanie M. Platt, Senior Vice
President                                                                                                           __________________________________________________

 

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