1
        UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                    WASHINGTON, D. C.  20549
                            FORM 10-Q

(Mark One)
[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
     SECURITIES  EXCHANGE ACT OF 1934
     For the quarterly period ended June 30, 2000

                               OR

[   ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
      SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______________ to _______________
     Commission file number 1-4169

               TEXAS GAS TRANSMISSION CORPORATION
     (Exact name of registrant as specified in its charter)

           Delaware                        61-0405152
     (State or other jurisdiction of     (I.R.S. Employer
     incorporation or organization)     Identification No.)


 3800 Frederica Street, Owensboro, Kentucky              42301
       (Address of principal executive offices)        (Zip Code)

 Registrant's telephone number, including area code: (270) 926-8686


Indicate  by check mark whether the registrant (1) has filed  all
reports  required  to be filed by Section  13  or  15(d)  of  the
Securities  Exchange Act of 1934 during the preceding  12  months
(or  for such shorter period that the registrant was required  to
file  such  reports),  and (2) has been subject  to  such  filing
requirements for the past 90 days.  Yes  X    No_

Indicate the number of shares outstanding of each of the issuer's
classes  of  common  stock,  as of the latest  practicable  date.
1,000 shares as of August 9, 2000

REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS
H(1)(a)  and (b) OF FORM 10-Q AND IS THEREFORE FILING  THIS  FORM
WITH THE REDUCED DISCLOSURE FORMAT.
<PAGE>
               TEXAS GAS TRANSMISSION CORPORATION

                        TABLE OF CONTENTS



                                                        Page

                 Part I.  Financial Information

Item 1.  Financial Statements

     Consolidated Balance Sheets .......................................   3

     Consolidated Statements of Income .................................   5

     Consolidated Statements of Cash Flows..............................   6

     Condensed Notes to Consolidated Financial Statements...............   7

Item 2.Management's Narrative Analysis of the Results of Operations ....  12


                   Part II.  Other Information

Item 6. Exhibits and Reports on Form 8-K................................  14

Signature ..............................................................  15






Certain  matters  discussed in this report, excluding  historical
information, include forward-looking statements.  Although  Texas
Gas   Transmission  Corporation  believes  such   forward-looking
statements are based on reasonable assumptions, no assurance  can
be  given that every objective will be achieved.  Such statements
are  made  in reliance on the "safe harbor" protections  provided
under  the  Private  Securities Reform Act of  1995.   Additional
information about issues that could lead to material  changes  in
performance  is contained in Texas Gas Transmission Corporation's
1999 Annual Report on Form 10-K and 2000 First Quarter Report  on
Form 10-Q.
<PAGE>
                 PART I - FINANCIAL INFORMATION


Item 1.   Financial Statements

               TEXAS GAS TRANSMISSION CORPORATION

                   CONSOLIDATED BALANCE SHEETS
                     (Thousands of Dollars)
                           (Unaudited)
<TABLE>
<CAPTION>
                                            June 30,   December 31,
                    ASSETS                    2000         1999
<S>
Current Assets:                            <C>          <C>
 Cash and cash equivalents                  $     52     $    266
 Receivables:
   Trade                                       1,465        7,011
   Affiliates                                  1,338        1,056
   Other                                          81          219
 Gas Receivables:
   Transportation and exchange                 2,849        1,300
   Storage                                     6,167           93
 Advances to affiliates                       75,698       73,765
 Inventories                                  15,736       15,627
 Deferred income taxes                        10,081       10,992
 Costs recoverable from customers             12,705       13,714
 Gas stored underground                        5,600       10,409
 Other                                           997        1,483
   Total current assets                      132,769      135,935

Investments, at cost                             249          367

Property, Plant and Equipment, at cost:
   Natural gas transmission plant            972,501      960,208
   Other natural gas plant                   151,092      149,602
                                           1,123,593    1,109,810
Less - Accumulated depreciation and
  amortization                               155,318      146,245
    Property, plant and equipment, net       968,275      963,565

Other Assets:
  Gas stored underground                      76,863      110,961
  Costs recoverable from customers            47,389       48,482
  Prepaid Pension                             29,383       27,071
  Other                                       11,419       11,323
    Total other assets                       165,054      197,837

    Total Assets                          $1,266,347   $1,297,704
</TABLE>
 The accompanying condensed notes are an integral part of these
               consolidated financial statements.
<PAGE>
               TEXAS GAS TRANSMISSION CORPORATION

                   CONSOLIDATED BALANCE SHEETS
                     (Thousands of Dollars)
                           (Unaudited)
<TABLE>
<CAPTION>


                                                 June 30,   December 31,
LIABILITIES AND STOCKHOLDER'S EQUITY               2000        1999
<S>                                             <C>        <C>
Current Liabilities:
 Payables:
   Trade                                         $  1,134   $  3,160
   Affiliates                                       8,670     10,071
   Other                                            4,822      5,633
 Gas Payables:
   Transportation and exchange                      1,234     15,387
   Storage                                          1,051     13,453
 Accrued taxes                                     25,168     21,964
 Accrued interest                                   6,557      6,557
 Accrued payroll and employee benefits             32,775     37,734
 Other accrued liabilities                         13,682     11,661
   Total current liabilities                       95,093    125,620

Long-Term Debt                                    250,701    250,860

Other Liabilities and Deferred Credits:
 Deferred income taxes                            173,481    168,824
 Postretirement benefits other than pensions       37,017     38,505
 Pension Plan Costs                                29,383     27,071
 Other                                             25,523     25,184
   Total other liabilities and deferred credits   265,404    259,584

Contingent Liabilities and Commitments               -          -

Stockholder's Equity:
 Common stock, $1.00 par value, 1,000 shares
   authorized, issued and outstanding                   1          1
 Premium on capital stock and other paid-in
   capital                                        627,046    627,046
 Retained earnings                                 28,102     34,593
   Total stockholder's equity                     655,149    661,640

   Total Liabilities and Stockholder's Equity  $1,266,347  $1,297,704
</TABLE>


 The accompanying condensed notes are an integral part of these
               consolidated financial statements.
<PAGE>
               TEXAS GAS TRANSMISSION CORPORATION

                CONSOLIDATED STATEMENTS OF INCOME
                     (Thousands of Dollars)
                           (Unaudited)
<TABLE>
<CAPTION>

                                   Three Months Ended      Six Months Ended
                                        June 30,                June 30,
                                   2000          1999      2000        1999
<S>                                 <C>       <C>       <C>        <C>
Operating Revenues:
 Gas transportation                  $ 48,633  $ 50,912  $132,996   $138,303
 Gas storage                              557       613     1,281      1,269
 Other                                  1,613       448     2,732        769
   Total operating revenues            50,803    51,973   137,009    140,341

Operating Costs and Expenses:
 Cost of gas transportation             1,850     2,045     2,006      3,804
 Operation and maintenance             12,518    11,513    23,583     23,147
 General and administrative            11,321    12,978    26,109     26,395
 Depreciation and amortization         11,139    11,104    22,521     22,137
 Taxes other than income taxes          3,468     3,254     7,645      7,543
   Total operating costs and expenses  40,296    40,894    81,864     83,026

Operating Income                       10,507    11,079    55,145     57,315

Other (Income) Deductions:
 Interest expense                       4,944     4,958     9,920      9,833
 Interest income                       (1,629)     (958)   (3,135)    (1,994)
 Miscellaneous other (income)
   deductions, net                        (52)      (68)       32         (8)
    Total other deductions              3,263     3,932     6,817      7,831

Income Before Income Taxes              7,244     7,147    48,328     49,484

Provision for Income Taxes              2,911     2,859    18,819     19,703

Net Income                           $  4,333  $  4,288  $ 29,509   $ 29,781

</TABLE>
 The accompanying condensed notes are an integral part of these
               consolidated financial statements.
<PAGE>

               TEXAS GAS TRANSMISSION CORPORATION
              CONSOLIDATED STATEMENTS OF CASH FLOWS
                      (Thousands of Dollars)
                           (Unaudited)
<TABLE>
<CAPTION>

                                                 Six Months Ended June 30,
                                                      2000        1999
<S>                                                  <C>       <C>
OPERATING ACTIVITIES:
 Net income                                           $ 29,509  $ 29,781
 Adjustments to reconcile to cash provided
  from operations:
   Depreciation and amortization                        22,521    22,137
   Provision for deferred income taxes                   5,568     6,366
   Changes in receivables sold                          (9,600)   (6,600)
   Changes in receivables                                7,661     9,459
   Changes in inventories                                 (109)      (61)
   Changes in other current assets                       6,304    (1,332)
   Changes in payables                                 (14,336)   (4,249)
   Changes in accrued liabilities                      (14,890)  (24,967)
   Other, including changes in noncurrent assets
    and liabilities                                     26,529     7,069
     Net cash provided by operating activities          59,157    37,603

FINANCING ACTIVITIES:
 Dividends and returns of capital                      (36,000)  (39,000)
      Net cash used in financing activities            (36,000)  (39,000)

INVESTING ACTIVITIES:
 Property, plant and equipment:
  Capital expenditures, net of allowance for funds
    used during construction                           (20,911)  (20,078)
  Proceeds from sales and salvage values,
    net of costs of removal                               (527)   (2,368)
 Advances to affiliates, net                            (1,933)   23,750
  Net cash provided by (used in) investing activities  (23,371)    1,304

Decrease in cash and cash equivalents                     (214)      (93)

Cash and cash equivalents at beginning of period           266       201

Cash and cash equivalents at end of period             $    52   $   108
</TABLE>
 The accompanying condensed notes are an integral part of these
               consolidated financial statements.
<PAGE>
              TEXAS GAS TRANSMISSION CORPORATION
      CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           (Unaudited)


A.  Corporate Structure and Control and Basis of Presentation

  Corporate Structure and Control

    Texas  Gas  Transmission Corporation  and  its  wholly  owned
subsidiary, TGT Enterprises, Inc., (collectively, Texas Gas)  are
wholly  owned by Williams Gas Pipeline Company, which is a wholly
owned subsidiary of The Williams Companies, Inc. (Williams).

  Basis of Presentation

    The consolidated financial statements have been prepared from
the  books  and  records  of Texas Gas  without  audit.   Certain
information   and  footnote  disclosures  normally  included   in
consolidated  financial statements prepared  in  accordance  with
generally  accepted accounting principles have been condensed  or
omitted.    The  accompanying  unaudited  consolidated  financial
statements  include  all adjustments, both normal  recurring  and
others,  which,  in  the opinion of Texas  Gas'  management,  are
necessary  to present fairly its financial position at  June  30,
2000,  and  results of operations for the three  and  six  months
ended  June 30, 2000 and 1999, and cash flows for the six  months
ended  June  30,  2000  and 1999.  These  consolidated  financial
statements  should  be  read in conjunction  with  the  financial
statements,  notes  thereto and management's  narrative  analysis
contained in Texas Gas' 1999 Annual Report on Form 10-K and Texas
Gas' 2000 First Quarter Report on Form 10-Q.

   Certain reclassifications have been made in the 1999 financial
statements to conform to the 2000 presentation.

  Seasonal Variatio

   Operating income may vary by quarter.  Based on current  rate
structure, Texas Gas experiences higher operating income  in  the
first  and  fourth quarters as compared to the second  and  third
quarters.


B.  Contingent Liabilities and Commitments

 Regulatory and Rate Matters and Related Litigation

    FERC Order 637

    On February 9, 2000, the FERC issued a final rule, Order 637,
in  which  FERC  adopted  certain  policies  that  it  finds  are
necessary to adjust its current regulatory model to the needs  of
the evolving markets, but determined that any fundamental changes
to  its regulatory policy will be considered after further  study
and  evaluation of the evolving marketplace.  Most significantly,
<PAGE>
in  Order 637, the FERC (i) revised its pricing policy to  waive,
for  a two-year period, the maximum price ceilings for short-term
releases  of  capacity of less than one year,  and  (ii)  permits
pipelines to file proposals to implement seasonal rates for short-
term  services and term-differentiated rates, subject to  certain
requirements including the requirement that a pipeline be limited
to  recovering its annual revenue requirement under those  rates.
Texas  Gas  will  be required to submit an Order  637  compliance
filing  by  August 15, 2000, which will contain pro forma  tariff
sheets  designed to comply with certain directives in  the  order
regarding the conduct of daily business transactions.

   FERC Order 636

   Effective  November  1,  1993,  Texas  Gas  restructured  its
business  to  implement the provisions of FERC Order 636,  which,
among other things, required pipelines to unbundle their merchant
role  from  their transportation services. FERC  Order  636  also
provides  that  pipelines should be allowed  the  opportunity  to
recover all prudently incurred transition costs which, for  Texas
Gas,  are primarily related to gas supply realignment (GSR) costs
and  unrecovered  purchased gas costs. Certain aspects  of  Texas
Gas' FERC Order 636 restructuring are under appeal.

   In  September  1995, Texas Gas received FERC  approval  of  a
settlement  agreement which resolves all issues  regarding  Texas
Gas'  recovery of GSR costs.  To date, Texas Gas has  paid  $76.2
million  and collected $66.4 million, plus interest,  related  to
GSR costs.  Texas Gas expects to pay no more than $80 million for
GSR  costs,  primarily as a result of contract terminations,  and
has  provided  reserves for the remaining GSR  costs  it  may  be
required  to pay, as well as a regulatory asset for the estimated
future amounts recoverable.

   General Rate Issues

   On April 28, 2000, Texas Gas filed a general rate case (Docket
No.  RP00-260) which will be effective November 1, 2000,  subject
to  refund.   This  new  rate case reflects  a  requested  annual
revenue  increase of approximately $81 million,  based  on  filed
rates,  primarily attributable to increases in the  utility  rate
base, depreciation expense, rate of return and related taxes, and
revised  system rate design quantities.  Texas Gas also  proposes
in   this   new   rate  case  to  implement  value-based,   term-
differentiated  seasonal rates for short-term services  effective
November  1,  2000, as permitted by FERC Order 637.  On  May  31,
2000,  the  Commission issued its "Order Accepting and Suspending
Tariff  Sheets Subject to Refund, Rejecting Other Tariff  Sheets,
and   Establishing  Hearing  and  Settlement  Procedures"   which
permitted the filing to take effect November 1, 2000, subject  to
refund,  and established administrative procedures for the  case.
Although  the case was set for hearing, the hearing was  held  in
abeyance pending the filing of additional information related  to
the  value-based rate proposal for short-term firm transportation
service.   Texas Gas made that supplemental filing  on  June  30,
2000.   The  case is in the initial stages of discovery  under  a
procedural    schedule   designed   to   facilitate    settlement
negotiations.
<PAGE>

   Royalty Claims and Producer Litigation

   In  connection  with  Texas  Gas'  renegotiations  of  supply
contracts  with  producers  to  resolve  take-or-pay  and   other
contract  claims, Texas Gas has entered into certain  settlements
which  may  require the indemnification by Texas Gas  of  certain
claims for royalties which a producer may be required to pay as a
result  of  such settlements.  Texas Gas has been made  aware  of
demands  on  producers for additional royalties and  may  receive
other  demands  which could result in claims  against  Texas  Gas
pursuant  to  the  indemnification provision in its  settlements.
Indemnification for royalties will depend on, among other things,
the specific lease provisions between the producer and the lessor
and  the  terms of the settlement between the producer and  Texas
Gas.

   In  June 1999, Texas Gas filed to recover approximately  $1.3
million  (75%) of such costs pursuant to the provisions  of  FERC
Order  528.  The FERC approved the filing, subject to conditions,
which allows for a surcharge on all mainline throughput beginning
July  1, 1999, to run through a twelve-month period.  As of  June
30,  2000,  the Company has fully recovered the $1.3 million  and
has filed to remove the surcharge from its effective rates as  of
July  1, 2000.  Texas Gas has provided reserves for the estimated
settlement costs of other royalty claims and litigation.

   Environmental Matters

    As of June 30, 2000, Texas Gas had a reserve of approximately
$1.5  million  for estimated costs associated with  environmental
assessment and remediation, including remediation associated with
the historical use of polychlorinated biphenyls and hydrocarbons.
This estimate depends upon a number of assumptions concerning the
scope  of  remediation that will be required at certain locations
and the cost of remedial measures to be undertaken.  Texas Gas is
continuing   to   conduct  environmental   assessments   and   is
implementing  a variety of remedial measures that may  result  in
increases or decreases in the total estimated costs.

     Texas  Gas  currently  is  either  named  as  a  potentially
responsible   party  or  has  received  an  information   request
regarding  its  potential involvement at  certain  Superfund  and
state  waste disposal sites.  The anticipated remediation  costs,
if  any,  associated with these sites have been included  in  the
reserve discussed above.

    Texas Gas is also subject to the federal Clean Air Act  (CAA)
and   the  CAA  Amendments  of  1990  (Amendments)  which   added
significant  provisions  to  the  existing  federal   CAA.    The
Amendments require the Environmental Protection Agency  (EPA)  to
promulgate  new  regulations pertaining to  mobile  sources,  air
toxics, areas of ozone non-attainment, and acid rain.  Texas  Gas
operates  facilities in some areas designated  as  non-attainment
for  the  current ozone standard and is aware that  the  EPA  may
designate  additional non-attainment areas during 2000 which  may
potentially  impact  Texas  Gas  operations.   Emission   control
modifications  of  compression equipment  located  at  facilities
required  to  comply  with current federal  CAA  provisions,  the
Amendments, and State Implementation Plans for NOx reductions are
estimated  to cost in the range of $6 million to $14  million  by
May 2003 and will be recorded as additions to property, plant and
equipment  as  the  facilities  are  added.   If  EPA  designates
additional  new non-attainment areas in 2000 which  impact  Texas
<PAGE>
Gas'  operations,  the cost of additions to property,  plant  and
equipment  is expected to increase; however, Texas Gas is  unable
at this time to estimate with any certainty the cost of additions
that  may  be required.  Moreover, new regulations pertaining  to
Hazardous Air Pollutants (HAPs) are anticipated to be promulgated
by November 2000 which will require emission controls in addition
to  the  controls mentioned above.  Texas Gas cannot predict  the
costs  with  any  certainty  at  this  time  resulting  from  the
installation  of  these controls.  The effective compliance  date
for  the HAPs regulations and installation of associated controls
is anticipated to be November 2003.

    Texas  Gas  considers  environmental assessment,  remediation
costs,  and  costs associated with compliance with  environmental
standards  to be recoverable through rates, as they  are  prudent
costs  incurred in the ordinary course of business.   The  actual
costs  incurred will depend on the actual amount  and  extent  of
contamination discovered, the final cleanup standards mandated by
the EPA or other governmental authorities, and other factors.

   Other Legal Issues

   In  1998,  the  United States Department of Justice  informed
Williams  that Jack Grynberg, an individual, had filed claims  in
the  United  States District Court for the District  of  Colorado
under  the False Claims Act against Williams and certain  of  its
wholly owned subsidiaries including Texas Gas.  Mr. Grynberg  has
also   filed  claims  against  approximately  300  other   energy
companies  and  alleges that the defendants  violated  the  False
Claims  Act  in connection with the measurement and  purchase  of
hydrocarbons.   The  relief sought is an  unspecified  amount  of
royalties  allegedly not paid to the federal  government,  treble
damages,  a civil penalty, attorneys' fees, and costs.  On  April
9,  1999, the United States Department of Justice announced  that
it  was  declining  to intervene in any of the Grynberg  qui  tam
cases,  including the actions filed against the Williams entities
in the United States District Court for the District of Colorado.
On  October  21,  1999,  the  Panel on Multi-District  Litigation
transferred all of the Grynberg qui tam cases, including the ones
filed  against Williams, to the United States District Court  for
the  District  of  Wyoming for pre-trial  purposes.   Motions  to
dismiss  the  complaints, filed by various  defendants  including
Williams, are pending.

   Summary of Contingent Liabilities and Commitments

   While  no assurances may be given, Texas Gas does not believe
that the ultimate resolution of the foregoing matters taken as  a
whole,  based  on advice from counsel and after consideration  of
amounts  accrued,  insurance coverage,  potential  recovery  from
customers  or  other indemnification arrangements,  will  have  a
materially   adverse  effect  on  Texas  Gas'  future   financial
position, results of operations or cash flow requirements.

C.   Adoption of Accounting Standard

   The Financial Accounting Standards Board issued Statement  of
Accounting   Standards  No.  133,  "Accounting   for   Derivative
Instruments and Hedging Activities."  This standard, as  amended,
is  effective  for Texas Gas on January 1, 2001.   This  standard
requires  that  all  derivatives  be  recognized  as  assets   or
liabilities  on the balance sheet at fair value.  The  effect  of
this  standard on Texas Gas' results of operations and  financial
position is being evaluated.
<PAGE>

   The FASB issued Interpretation No. 44, "Accounting for Certain
Transactions  Involving Stock Compensation."  This interpretation
modifies  the  current practice of accounting for  certain  stock
award  agreements  and is generally effective beginning  July  1,
2000.   The  initial impact of this interpretation on Texas  Gas'
results  of  operations  and  financial  position  will  not   be
material.
<PAGE>
Item  2.   Management's  Narrative Analysis  of  the  Results  of
Operations
               (Filed Pursuant to General Instruction H)


                Financial Analysis of Operations
           Six Months Ended June 30, 2000 Compared to
                 Six Months Ended June 30, 1999

   Operating  income was $2.2 million lower for  the  six  months
ended June 30, 2000, than for the six months ended June 30, 1999.
The  decrease  in operating income was due primarily  to  a  1999
recognition of $3.0 million of deferred revenues associated  with
a  January 1999 GSR reconciliation filing with the FERC and  $2.0
million in 2000 operating expenses for the consolidation of Texas
Gas'  office  operations  with  Williams  Gas  Pipeline  Central.
Decreases  in operating income were partially offset  by  a  $1.8
million  reduction in the cost of gas transportation and  a  $2.0
million  increase  in other revenues.  Interest income  increased
due  primarily  to  higher  advances  to  affiliates  and  higher
interest rates.

   Operating   revenues   decreased   $3.3   million   primarily
attributable to the 1999 GSR adjustment discussed above and to  a
lesser  extent,  lower throughput.  Other revenues  increased  by
$2.0   million  primarily  due  to  higher  processing   revenues
resulting from higher energy prices.  Total deliveries were 377.6
Tbtu  and  401.2  Tbtu  for  the six months  of  2000  and  1999,
respectively.

   Operating costs and expenses decreased $1.2 million  primarily
attributable  to  a $1.8 million reduction in  the  cost  of  gas
transportation and lower administrative costs resulting from  the
synergies of combining Texas Gas' office operations with Williams
Gas  Pipeline Central.  Decreases in operating costs and expenses
were   partially  offset  by  $2.0  million  of  one-time  office
operation consolidation costs.


                Financial Condition and Liquidity

   Texas Gas is a participant with other Williams' subsidiaries in
a $1 billion credit agreement under which Texas Gas may borrow up
to  $200  million,  subject  to borrowings  by  other  affiliated
companies.   Interest rates vary with current market  conditions.
To  date,  Texas  Gas  has  no  amounts  outstanding  under  this
facility.  In July 2000, the total credit agreement was  replaced
by  a  $700  million agreement under which Texas  Gas  may  still
borrow  up  to  $200  million, subject  to  borrowings  by  other
affiliated companies.

   As  of  June  30,  2000, Texas Gas has $100 million  of  shelf
availability remaining under a Registration Statement filed  with
the Securities and Exchange Commission in 1997.

   Texas  Gas is a participant in WGP's cash management  program.
The  advances  due  Texas Gas by WGP are  represented  by  demand
notes.   The  interest rate on intercompany demand notes  is  the
London Interbank Offered Rate on the first day of the month  plus
an  applicable  margin based on the current Standard  and  Poor's
Rating of the WGP.
<PAGE>
   Texas Gas expects to access public and private capital markets,
as needed, to finance its own capital requirements.

   Texas  Gas' capital expenditures for the first six  months  of
2000 and 1999 were $21.4 million and $22.4 million, respectively.
Capital  expenditures for 2000 are expected to approximate  $89.0
million.

   Texas Gas' debt as a percentage of total capitalization at June
30, 2000 and December 31, 1999 was 27.7% and 27.5%, respectively.

   On April 28, 2000, Texas Gas filed a general rate case (Docket
No. RP00-260) which will be effective November 1, 2000 subject to
refund.   This new rate case reflects a requested annual  revenue
increase  of  approximately $81 million, based  on  filed  rates,
primarily  attributable to increases in the  utility  rate  base,
depreciation  expense,  rate of return  and  related  taxes,  and
revised system rate design quantities. Texas Gas also proposes in
this  new rate case to implement value-based, term-differentiated
seasonal  rates  for  short-term services effective  November  1,
2000,  as  permitted  by FERC Order 637. On  May  31,  2000,  the
Commission  issued  its  "Order Accepting and  Suspending  Tariff
Sheets  Subject  to  Refund, Rejecting Other Tariff  Sheets,  and
Establishing a Hearing and Settlement Procedures" which permitted
the  filing  to take effect November 1, 2000, subject to  refund,
and   established  administrative  procedures   for   the   case.
Although  the case was set for hearing, the hearing was  held  in
abeyance pending the filing of additional information related  to
the  value-based rate proposal for short-term firm transportation
service.   Texas Gas made that supplemental filing  on  June  30,
2000.   The  case is in the initial stages of discovery  under  a
procedural    schedule   designed   to   facilitate    settlement
negotiations.
<PAGE>


PART II - OTHER INFORMATION



Item 6. Exhibits and Reports on Form 8-K

        (a) Exhibits

            * 27.1 Financial Data Schedule for Texas Gas Transmission
                   Corporation for the six months ending June 30, 2000.


        (b) Reports on Form 8-K

            None
        _____________________________

        *  Filed herewith


<PAGE>









                        S I G N A T U R E


Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.

                          TEXAS GAS TRANSMISSION CORPORATION



DATE: August 9, 2000      BY:    /s/ S. W. Harris
                                    S. W. Harris
                             Controller and Chief Accounting Officer