<PAGE>   1
PORTIONS OF THIS EXHIBIT IDENTIFIED BY "***" HAVE BEEN DELETED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED,
AND THE FREEDOM OF INFORMATION ACT.

                                                                 EXHIBIT 10(e)-4





                         GAS SALE AND PURCHASE CONTRACT


                                     BETWEEN

                          CORAL ENERGY RESOURCES, L.P.

                                    AS SELLER

                                       AND

                         MOBILE GAS SERVICE CORPORATION

                                    AS BUYER

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                         <C>
ARTICLE I.

         DEFINITIONS .........................................................1

ARTICLE II.

         SOURCES OF GAS ......................................................2

ARTICLE III.

         RESERVATIONS ........................................................2

ARTICLE IV.

         QUANTITY ............................................................3

ARTICLE V.

         PRICES ..............................................................4

ARTICLE VI.

         DELIVERY POINTS .....................................................5

ARTICLE VII.

         DELIVERY CONDITIONS .................................................5

ARTICLE VIII.

         FORCE MAJEURE .......................................................6

ARTICLE IX.

         ACCOUNTING ..........................................................7

ARTICLE X.

         TERM ................................................................8

ARTICLE XI

         INDEMNIFICATION .....................................................8

ARTICLE XII

         WARRANTY ............................................................8

ARTICLE XIII.

         ADDRESSES AND NOTICES ...............................................8

ARTICLE XIV.

         SUCCESSORS AND ASSIGNS ..............................................9

ARTICLE XV.

         MISCELLANEOUS ......................................................10

ARTICLE XVI.

         CONFIDENTIALITY ....................................................11
</TABLE>

<PAGE>   3


                         GAS SALE AND PURCHASE CONTRACT

         THIS CONTRACT, entered into as of July 1, 2000, by and between CORAL
ENERGY RESOURCES, L.P. ("Seller") and MOBILE GAS SERVICE CORPORATION ("Buyer").

                                   WITNESSETH:

         WHEREAS, Seller desires to sell and deliver natural gas to Buyer and
Buyer desires to purchase and receive natural gas from Seller upon the terms and
conditions set out herein.

         NOW, THEREFORE, in consideration of the mutual benefits and covenants
contained herein, Seller and Buyer agree as follows:

                                   ARTICLE I.
                                   DEFINITIONS

                  1.1 DEFINITIONS. Except where the context otherwise indicates
         another or different meaning or intent, the following words and terms
         as used herein shall be construed to have the meanings indicated:

                  (a) "Btu" means British Thermal Unit and, if appropriate, also
         means the plural thereof.

                  (b) "Commodity Price" means the base price per MMBtu as
         determined pursuant to Sections 5.2, 5.3, 5.4, hereof.

                  (c) "Daily Contract Entitlement" or "DCE" means the daily
         quantity of gas to be made available to Buyer for nomination pursuant
         to Section 4.1 hereof.

                  (d) The word "day" means 24 consecutive hours, coextensive
         with a "day" as defined by the Transporter. The date of a day shall be
         that of its beginning.

                  (e) "FERC" means the Federal Energy Regulatory Commission and
         any successor thereto.

                  (f) The word "gas" means natural gas, whether produced with
         oil or from gas or gas-condensate wells.

                  (g) "MMBtu" means 1,000,000 Btu.

                  (h) The word "month" means a period beginning on the first day
         of a calendar month and ending immediately prior to the first day of
         the next succeeding calendar month.

                  (i) "Nominated Quantity" means the quantity of gas, in MMBtu
         per day, nominated by Buyer for a given month pursuant to Section 4.3
         hereof.


<PAGE>   4


                  (j) "Reservation Charge" means the fee paid Seller to make
         available for Buyer's nomination a quantity of gas equal to the DCE for
         the term of this Contract. Such fee shall be calculated pursuant to the
         provisions of Section 5.1 hereof.

                  (k) "Transporter" means the pipeline used by Buyer to
         transport gas delivered hereunder.

                  (l) The word "year" means a period of 365 consecutive days
         from the first day of the month following the month in which the
         initial nomination is made hereunder, provided that any year which
         contains the date February 29 shall consist of 366 days.

                  (m) "Yellowhammer Plant" means the Yellowhammer Treating Plant
         located approximately fifteen miles south of Interstate 10 or state
         road 193 near Mobile, Alabama.

                                   ARTICLE II.
                                 SOURCES OF GAS

                  2.1 POOL COMPOSITION. The gas delivered hereunder will be
         provided from any or all of Seller's sources of gas (the "Pool"). Buyer
         understands and agrees that Seller may, at any time and from time to
         time, add to or subtract from the sources comprising the Pool, at
         Seller's sole discretion and for any reason. Buyer shall have no rights
         whatsoever with respect to any particular source of gas in the Pool at
         any time.

                  2.2 SUPPLY SHORTAGE MITIGATION. Notwithstanding the provisions
         of Section 2.1, the parties intend that deliveries hereunder will be
         made at the Yellowhammer Plant. Each party agrees to work to mitigate
         the effect of any reduction in deliveries at the Yellowhammer Plant
         resulting from force majeure events by seeking alternate supplies and
         by seeking to arrange for deliveries at other locations on Buyer's
         pipeline system. Seller may, but shall not be obligated, to deliver gas
         at any other delivery locations.

                  2.3 REMEDY. Anything in this Contract to the contrary
         notwithstanding, Buyer's sole and exclusive remedy, whether at law or
         in equity, against Seller for Seller's failure to tender gas for
         delivery under this Contract shall be for the remedies set forth in
         Section 4.4 hereof.

                                  ARTICLE III.
                                  RESERVATIONS

                  3.1 RIGHTS. With respect to any lands from which gas in the
         Pool is produced, Seller expressly reserves to itself, its successors
         and assigns, and to each of its gas suppliers, the following rights and
         such quantities of gas sufficient to satisfy such rights:

                  (a) The right to operate such lands free from any control by
         Buyer, including, without limitation, the right (but never the
         obligation) to drill new wells, to repair and rework


                                        2
<PAGE>   5



         old wells, to abandon any well and to renew, surrender, release or
         terminate any lease (in whole or in part), covering such lands,

                  (b) The right to deliver gas to lessors of leases on such
         lands in quantities sufficient to fulfill lease obligations from time
         to time,

                  (c) The right to use gas for development and operation of such
         lands, including (but not limited to) the use of gas for fuel, drilling
         (including gas drilling), deepening, reworking, compressing, gas
         lifting, processing, treating, cycling, repressuring or other
         supplemental recovery operations,

                  (d) The right to form or participate in the formation of any
         unit or units, including (but not limited to) any fieldwide unit or
         units, and thereafter to increase or decrease the size of any unit so
         formed and to dissolve any unit or units so formed.

                  (e) The right to process gas prior to delivery and to extract
         components other than methane.

                                   ARTICLE IV.
                                    QUANTITY

                  4.1 DAILY CONTRACT ENTITLEMENT. Seller agrees that it shall
         have available for nomination by Buyer each month a Daily Contract
         Entitlement of *** MMBtu's per day ***. Seller's obligation to deliver
         gas shall not exceed, on any day, the Nominated Quantity.

                  4.2 MINIMUM QUANTITY. Subject to the provisions of Sections
         4.3, 4.4, and 4.5, Buyer shall, on each day during the term hereof,
         take the Nominated Quantity.

                  4.3 NOMINATION. Buyer shall notify Seller, at least six work
         days prior to the beginning of each month in which deliveries are to
         occur, of the quantity of gas in MMBtu per day Buyer desires to take
         delivery of during the succeeding month ("Nominated Quantity") not to
         exceed the DCE. *** Buyer may, on any *** days of each month, at its
         sole option and on 24 hours' prior notice to Seller, request an
         increase in the Nominated Quantity by an amount up to*** ("Call
         Quantity"). Buyer shall not have the right to vary the Nominated
         Quantity ***.

                  4.4 FAILURE TO DELIVER. If Seller fails to tender for delivery
         all or part of the Nominated Quantity and if such failure is not the
         result of force majeure, then the parties shall remedy the failure to
         tender for delivery solely and exclusively through the actions set out
         below:

                  (a) Buyer may charge Seller, and Seller shall pay after
         billing thereof, the difference between the Commodity Price or the
         Alternate Commodity Price, as applicable, which would have been paid
         hereunder for the undelivered gas and such higher price, if any,


                                        3
<PAGE>   6

         which Buyer reasonably paid to obtain gas supplies to replace the
         undelivered gas from third party suppliers.

                  4.5 FAILURE TO TAKE. If Buyer fails to take delivery, when
         available, of the Nominated Quantity and if such failure is not the
         result of force majeure, then:

                  (a) as to any *** during any month of *** of the Nominated
         Quantity, *** shall *** to ***, *** of the Nominated Quantity and the
         quantities actually delivered *** of the Commodity Price or Alternate
         Commodity Price, whichever is applicable;

                  (b) as to failures to nominate the maximum DCE and failures to
         take the Nominated Quantity, any and all such gas shall be deemed
         released for the month or the remainder thereof by Buyer for Seller to
         dispose of as Seller sees fit.

                  4.6 LIMITATION OF LIABILITY. NOTWITHSTANDING ANYTHING TO THE
         CONTRARY, NEITHER PARTY SHALL BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL,
         PUNITIVE, EXEMPLARY, OR INDIRECT DAMAGES, LOST PROFITS, OR OTHER
         BUSINESS INTERRUPTION DAMAGES, IN TORT OR CONTRACT.

                                   ARTICLE V.
                                     PRICES

                  5.1 RESERVATION CHARGE. Buyer shall pay Seller each month a
         Reservation Charge calculated as *** multiplied by the DCE for the
         relevant month, multiplied by the number of days in the month.

                  5.2 COMMODITY PRICE. Subject to the further provisions hereof,
         for each MMBtu of gas delivered or for which payment is due hereunder,
         Buyer shall pay Seller a price to be agreed upon between the parties on
         or before the sixth working day prior to the end of a month preceding
         deliveries ("Commodity Price"), provided that if the parties fail to
         reach agreement as to a Commodity Price, such price shall be determined
         in accordance with Section 5.3.

                  5.3 ALTERNATE COMMODITY PRICE. If the parties fail to agree on
         a Commodity Price pursuant to Section 5.2, Buyer and Seller agree to
         use an alternate price ("Alternate Commodity Price") to be determined
         monthly for the Nominated Quantity which shall be based on the index of
         *** as published by *** in the first issue of each month of deliveries.
         Buyer and Seller also agree to use an alternate price for the Call
         Quantity ("Call Quantity Alternate Commodity Price") to be determined
         daily based on the average of the high and low common prices of the***
         as published by *** in the issue on the day of delivery***.

                  5.4 REDETERMINATION OF ALTERNATE COMMODITY PRICE OR CALL
         QUANTITY ALTERNATE COMMODITY PRICE. If at any time and from time to
         time *** ceases publication or materially changes the index of prices
         on which the Alternate Commodity Price or Call Quantity Alternate
         Commodity Price is based, then the Parties agree to select a different


                                       4

<PAGE>   7

          publication or index from which to derive a pricing index, as similar
          as possible to the indices selected under this Contract.

                  5.5 BUYER'S PRICE OPTION. If, at any time and from time to
         time, any regulatory agency having jurisdiction over Buyer specifically
         disallows the inclusion in Buyer's resale rates of an amount per MMBtu
         paid for gas hereunder, then Buyer may elect to terminate this Contract
         effective upon a date at least 30 days after written notice to Seller.
         If Buyer's election to terminate falls between November 1 and the next
         succeeding April 1, the parties agree to continue performance of this
         Contract until April 1, or such earlier date as is set forth in notice
         from Buyer to Seller. In no event, however, shall Seller be required to
         reduce any price, to refund any amount paid, or to bear any interest or
         other cost as a result of any such disallowance.

                  5.6 SELLER'S PRICE OPTION. If, at any time, Seller is not
         permitted by applicable law, order or rule to collect any part of a
         price effective hereunder or any part of such price is subject to a
         possible refund obligation, then Seller may reduce such price, or part
         thereof, to that which is collectible without refund or Seller may
         terminate this Contract by giving 30 days' prior written notice to
         Buyer. If Seller's election to terminate falls between November 1 of a
         year and April 1 of the next succeeding year, the parties agree to
         continue performance of this Contract until April 1, provided, however,
         if the applicable law, order or rule is from an Alabama regulatory or
         legislative body, this Contract shall be terminable, on Seller's
         notice, effective as of the date of such law, order or rule.

                                   ARTICLE VI.
                                 DELIVERY POINTS

                  6.1 DELIVERY POINTS. Gas shall be delivered at the
         interconnection of the facilities of Transporter and Shell's
         Yellowhammer Plant or at such other points as are agreed (each of which
         shall be a "Delivery Point").

                  6.2 TITLE. Title to the gas delivered, sold, and purchased
         hereunder shall pass from Seller to Buyer at the Delivery Point.

                                  ARTICLE VII.
                               DELIVERY CONDITIONS

                  7.1 FACILITIES. Neither Seller nor Buyer shall be required to
         construct additional facilities at the Delivery Point.

                  7.2 CONDITIONS OF DELIVERY. Gas delivered hereunder shall meet
         the applicable conditions of quality as defined in *** pipeline tariff
         and pressure as required from time to time by the operator of the
         facilities at the Delivery Point. Neither Party has the obligation to
         compress gas for delivery or receipt hereunder. EXCEPT FOR THE
         FOREGOING EXPRESS QUALITY SPECIFICATIONS OF THIS SECTION BUYER ACCEPTS
         THE


                                        5
<PAGE>   8

          GAS "AS-IS" AND "WITH ALL FAULTS" AND SELLER EXPRESSLY NEGATES ALL
          OTHER WARRANTIES, INCLUDING MERCHANTABILITY OR FITNESS FOR A
          PARTICULAR PURPOSE, EXPRESS OR IMPLIED WITH RESPECT TO THE GAS."

                  7.3 METERING. Gas delivered hereunder shall be measured in
         accordance with the standards used by the operator of the facilities at
         the Delivery Point.

                  7.4 BTU CONTENT. The Btu content of the gas delivered
         hereunder shall be determined at the Delivery Point each month based
         upon the average Btu content per cubic foot of all gas delivered during
         such month. The results of tests for Btu content per cubic foot of gas
         shall be adjusted to reflect actual conditions of gas at the Delivery
         Point. The parties agree to rely upon the results of tests conducted by
         Transporter.

                                  ARTICLE VIII.
                                  FORCE MAJEURE

                  8.1 DEFINITION. The term "force majeure" means acts of God,
         strikes, lockouts or other industrial disturbances, acts of the public
         enemy, wars, blockades, insurrections, riots, epidemics, landslides,
         lightning, earthquakes, fires, hurricanes, (and evacuations of
         platforms due to threats of hurricanes) storms, floods, washouts, civil
         disturbances, explosions, breakage, accidents to machinery or lines of
         pipe, freezing of wells or lines of pipe, delay in obtaining or failure
         to obtain materials, equipment, easements, franchises, or permits,
         failure or refusal of any person to transport gas delivered or to be
         delivered hereunder, and any other causes, (except financial), whether
         of a kind herein enumerated or otherwise, not reasonably within the
         control of the party claiming suspension by reason of force majeure and
         which, by exercise of due diligence, such party is unable to prevent or
         overcome. The term "force majeure" also means actions of any
         governmental authority having jurisdiction over Buyer or Seller (or
         over a person transporting gas for or selling gas to either of them)
         which result in conditions, limitations, rules, or regulations that
         materially impair either Buyer's or Seller's ability to perform,
         including, but not limited to, actions effecting the emergency
         diversion of gas or limiting uses of gas, but such term does not
         include actions of any governmental authority affecting the price or
         prices paid or payable hereunder.

                  8.2 EFFECT. If either party is rendered unable, wholly or in
         part, by force majeure to carry out its obligations (other than
         financial obligations) under this Contract, it is agreed that, on such
         party's giving notice and reasonably full particulars of such force
         majeure in writing or by telegram or telecopy to the other party within
         a reasonable time after the occurrence of the cause relied upon, the
         obligations of both parties, insofar as they are affected by such force
         majeure, shall be suspended during the continuance of any inability so
         caused, but for no longer period, and such cause shall so far as
         possible be remedied with all reasonable dispatch. When Seller gives
         notice of force majeure, the obligation of Buyer to pay a portion of
         the Reservation Charge under Section 5.1 shall be waived in an amount


                                        6
<PAGE>   9

         equal to the Reservation Charge multiplied by the Nominated Quantity
         which was scheduled but not delivered.

                  8.3 STRIKES AND LOCKOUTS. The settlement of strikes, lockouts,
         or industrial disputes or disturbances shall be entirely within the
         discretion of the party having the difficulty, and the above
         requirement that any force majeure shall be remedied with all
         reasonable dispatch shall not require the settlement of strikes,
         lockouts, or industrial disturbances by acceding to the demands of any
         opposing party therein when that course is deemed inadvisable in the
         sole discretion of the party having the difficulty.

                                   ARTICLE IX.
                                   ACCOUNTING

                  9.1 PAYMENTS FOR GAS. Seller shall furnish or cause to be
         furnished, by the 15th day of the month next following the month in
         which a charge is incurred, a bill setting forth the Reservation
         Charge, the quantity of gas nominated and the amount due therefor, and
         any other charges or fees owed by Buyer. Not later than the 25th day of
         the month in which Seller has so billed Buyer, Buyer shall pay Seller
         by wire transfer all undisputed amounts; provided, if Seller's bill is
         delayed beyond the 15th day of such month, Buyer's payment of such bill
         shall not be due until ten days after receipt of such bill. All
         disputed amounts shall be resolved and paid or credited as soon as
         possible.

                  9.2 AUDITING. Each party shall have the right at reasonable
         hours to examine the books, records, and charts of the other party to
         the extent necessary to verify the accuracy of any statement, payment,
         calculation or determination made pursuant to the provisions of this
         Contract provided that neither party shall be required to reveal
         documents or information which it deems confidential. If any such
         examination shall reveal, or if either party shall discover, any error
         or inaccuracy in its own or the other party's statement, payment,
         calculation or determination, then proper adjustment and correction
         thereof shall be made as promptly as practicable after notice thereof,
         except that no adjustment or correction shall be made unless notice of
         any such error or inaccuracy is given within twelve months of the end
         of the year during which such error or inaccuracy occurred.

                  9.3 FAILURE TO PAY. Unless based on a good faith dispute, if
         either party fails to pay the full amount payable to the other party
         hereunder when due, interest on undisputed amounts shall accrue and be
         payable from the date on which payment was due until the date payment
         is made. The rate of such interest shall be two percent above the prime
         rate quoted from time to time by the Chase Manhattan Bank, N.A., or
         successor thereto, provided that the interest rate hereunder shall
         never exceed the highest rate of interest permitted by applicable law.
         If any such failure to pay continues for 30 days after written protest
         by the party entitled to such payment, such party may suspend its
         deliveries or receipts of gas hereunder, as the case may be, and may
         terminate this Contract with prior written notice to the non-paying
         party, provided that such termination shall not be effective prior to
         the date of suspension of deliveries or receipts of gas. Subject to
         Article II Section 2.3, the exercise


                                        7
<PAGE>   10

          of any such right shall be in addition to any and all remedies
          available to the party to which payment is due.

                                   ARTICLE X.
                                      TERM

                  10.1 CONTRACT TERM. This Contract shall be effective on July
         1, 2000, and shall extend through ***.

                  10.2 TERMINATION RIGHTS. If, at any time, either party or its
         parent or affiliate is materially affected by any law, order or rule in
         a manner which such affected party, in its sole discretion, finds
         unacceptable, then the party so affected may suspend performance under
         this Contract for the duration of such law, order, or rule by written
         notice to the other party. The party receiving notice of suspended
         performance shall have the right, on thirty days' prior written notice,
         to cancel this Contract.

                  10.3 NOTICES OF CANCELLATION. Notwithstanding any provision to
         the contrary, any notice of cancellation by either party hereto shall
         be effective on the first day of the month following the end of any
         specified notice period.

                                   ARTICLE XI.
                                 INDEMNIFICATION

                  11.1 INDEMNIFICATION. As between the parties hereto, Seller
         shall be in control and possession of gas and responsible for any
         injuries, claims, liabilities or damages caused thereby until the gas
         has been delivered to Buyer at the Delivery Point, and, after such
         delivery, Buyer shall be in control and possession of the gas and
         responsible for any injuries, claims, liabilities or damages caused
         thereby. The party so in possession and control of the gas shall
         indemnify the other party in respect to any injuries, claims,
         liabilities or damages occurring while the gas is in the former party's
         possession and control.

                                  ARTICLE XII.
                                    WARRANTY

                  12.1 WARRANTY. Seller warrants title to the gas delivered
         hereunder, the right to sell the same, and that it is free from all
         liens and adverse claims.

                                  ARTICLE XIII.
                              ADDRESSES AND NOTICES

                  13.1 ADDRESSES. All notices to be given hereunder shall be in
         writing via mail or fax and shall be addressed to the respective
         parties at the addresses stated below or to such other addresses as
         they shall respectively designate hereafter in writing from time to
         time:


                                        8
<PAGE>   11



                  To Seller:                Coral Energy Resources, L.P.
                                            909 Fannin, Suite 700
                                            Houston, Texas, 77010
                                            Attention: Trading Administration
                                              & Analysis
                                            Facsimile: (713) 767-5644

                  To Buyer:                 Mobile Gas Service Corporation
                                            ATTN.  Mr. J. Harris Oswalt
                                            P.O. Box 2248
                                            Mobile, AL  36652
                                            Facsimile: (334) 476-8292


For the purpose of payments as described in Section 9.1:

                  To Seller:                Coral Energy Resources, L.P.
                  by wire transfer:         Chase Manhattan Bank, NY
                                            ABA Number  021000021
                                            Account No. 323863876

                  To Buyer:                 Mobile Gas Service Corporation
                                            P.O. Box 2248
                                            Mobile, AL  36652


                  13.2 NOTICES. All notices required or permitted to be given
         under this Contract shall be in writing and addressed as set forth
         above or to such other address as either party may designate by like
         notice and shall be given by personal delivery or transmitted by telex,
         or other electronic medium, or by mail, postage prepaid, to the
         addresses of the parties shown above. Notice by personal delivery or
         electronic medium shall be effective when received, and notice by mail
         shall be effective when deposited, postage prepaid, with the United
         States Postal Service.

                                  ARTICLE XIV.
                             SUCCESSORS AND ASSIGNS

                  14.1 BINDING OF TERMS. All the terms and conditions of this
         Contract shall extend to and be binding upon the respective successors
         and assigns of the parties hereto.


                                        9

<PAGE>   12


                  14.2 ASSIGNMENTS. The rights and obligations of either party
         hereunder shall not be assigned without the prior written consent of
         the other party, which consent shall not be unreasonably withheld.

                                   ARTICLE XV.
                                  MISCELLANEOUS

                  15.1 WAIVER. No waiver by Buyer or Seller of any default of
         the other party under this Contract shall operate as a waiver of any
         subsequent default, whether of a like or a different character.

                  15.2 PERFORMANCE. Any provision herein which requires action
         by either party where a performance date is not specified shall require
         performance of such action within a reasonable time.

                  15.3 DRAFTING. As between the parties hereto, it shall be
         conclusively presumed that each and every provision of this Contract
         was drafted jointly by Seller and Buyer.

                  15.4 PARTIES' AGENTS. The parties recognize that persons other
         than Seller or Buyer may perform some of the obligations imposed upon
         Seller or Buyer in this Contract. Any reference to either Buyer or
         Seller herein shall be deemed to include such other persons, but each
         party hereto shall remain at all times responsible to the other for the
         performance of all obligations. Notwithstanding the above, in the event
         that Buyer should at any time during the term of the Contract allow a
         third party, whether an affiliate or otherwise, to manage the Contract
         on Buyer's behalf, then Seller at its sole option, may demand a
         redetermination of the Reservation Charge upon prior written notice to
         Buyer. The parties agree to negotiate in good faith to arrive at a
         mutually agreeable redetermined Reservation Charge within thirty (30)
         days of Seller's demand.

                  15.5 MERGER. This Contract sets forth all understandings
         between the parties respecting the subject matter of this transaction,
         and all prior agreements, understandings,


                                       10
<PAGE>   13

          and representations, whether oral or written, representing this
          subject matter are merged into and superseded by this Contract. No
          modifications or amendment of this Contract shall be binding on either
          party unless in writing and signed by the party to be bound.

                                  ARTICLE XVI.
                                 CONFIDENTIALITY

                  16.1 CONFIDENTIALITY. Each Party agrees that it will maintain
         this Contract and all parts and contents thereof in strictest
         confidence and that it will not cause or permit disclosure to any third
         party of this Contract or of the contents thereof, except for such
         information as may be necessary to arrange for transportation, without
         the prior express written consent of the other party; provided,
         however, that such third party restriction does not apply to an
         affiliated company of either party. Disclosure to a third party is
         restricted by and permitted only to the extent to which either party is
         required to disclose all or part of this specific Contract by a statute
         or by a court, or agency, or other governmental body exercising
         jurisdiction over the subject matter hereof, by order, or by regulation
         or other compulsory process (including, but not limited to, deposition,
         subpoena, interrogatory, or request for production of documents). A
         party may file the contract with its Form 10-K and other applicable
         filings with the Security and Exchange Commission of the United States
         of America to the extent the disclosure is required by applicable laws
         or regulations; provided, however, such party shall delete pricing and
         volume information from the filing if allowed by such applicable laws
         and regulations.

                  16.2 NOTICE. If either party is or becomes aware of a statute,
         regulation, order, other compulsory process, or a judicial or
         governmental proceeding that has resulted or may result in such
         compulsory disclosure, it shall so notify the other party immediately
         and shall provide a copy of the order, regulation or compulsory process
         as soon as it is available. Each party further agrees to cooperate to
         the fullest extent in seeking confidential status to protect any
         material so disclosed.


                                       11

<PAGE>   14


                  16.3 COUNSEL. The parties hereto acknowledge that independent
         legal counsel may, from time to time, be provided with a copy of the
         Contract and agree that such disclosure does not require express
         written consent, provided that such counsel affirms in writing to its
         client that it agrees to abide by the terms and conditions of this
         Article XVI.

                  16.4 This Agreement is subject to approval by the Alabama
         Public Service Commission ("APSC") . Buyer shall notify Seller of such
         APSC approval or disapproval with ten (10) days of Buyer's
         notification. Seller and Buyer shall each have the opportunity for
         (thirty) 30 days after receipt of Buyer's notice to offer to the other
         changes to the Contract to remedy the reasons for the disapproval. If
         no mutual agreement is reached within such thirty (30) days, then this
         Contract shall terminate on the last day of the month following one
         month after receipt of such notification from Buyer. Buyer shall remain
         liable to seller in accordance with all provisions of the Contract
         prior to such termination.


                     REMAINING PAGE LEFT BLANK INTENTIONALLY


                                       12

<PAGE>   15


         IN WITNESS WHEREOF, this Contract is executed as of the date first
above written.


                                          CORAL ENERGY RESOURCES L.P.


                                        By:  /s/ Steve Widener
                                             Vice President




                                         MOBILE GAS SERVICE CORPORATION


                                        By:  /s/ Gerald S. Keen
                                             Vice President, Operations







      Signature page to Gas Sale and Purchase Contract dated July 1, 2000.


                                       13