<PAGE>


(letterhead of Sonat Services Inc. appears here)



December 22, 1994

Ms. Eileen Stanek
Atlanta Gas Light Company
303 Peachtree Center, N.E.
Atlanta, GA 30302

Dear Eileen:

Enclosed  please  find three  copies of the  three-party  agreement  between ANR
Storage Company (ANR),  Atlanta Gas Light Company (Atlanta) and Southern Natural
Gas Company  (Southern)  associated  with the  transfer  of storage  volumes and
service from Southern to Atlanta.  Please execute the enclosed  copies,  forward
one  fully  executed  copy to Jim  Lane at ANR,  and  return  one copy to me for
Southern's files.

I am sorry that I was unable to get these to you  before  the  holidays.  I hope
your holiday was happy.

Very truly yours,

/s/ Patty
Patricia S. Francis
Senior Attorney

PSF:tmb

Enclosure










<PAGE>



(letterhead of Coastal appears here)




November 28, 1994


Southern Natural Gas Company
P.O. Box 2563
Birmingham, Alabama 35202-2563

Atlanta Gas Light Company
P.O. Box 4569
atlanta, Georgia 30302

Re:      Gas Storage Agreement, dated January 31, 1979 ("50-day
          Agreement"), and Gas Storage Agreement, dated February 1,
         1979 ("100-day Agreement"), between ANR Storage Company
          ("ANR") and Southern Natural Gas Company ("Southern")

Dear Sirs:

Pursuant  to the  order  issued  by the  Federal  Energy  Regulatory  Commission
("FERC") in Docket  Nos.  RP94-  183-001,  et al.,  dated  September  23,  1994,
Southern has requested that ANR consent to the transfer,  effective  November 1,
1994, to Atlanta Gas Light Company  ("Atlanta") by Southern of a storage account
volume of 5,650,000  Mcf of gas (measured on a saturated  basis) which  Southern
has  previously  delivered to ANR for storage  under the 50-day  Agreement and a
storage  account volume of 5,550,000 Mcf of gas (measured on a saturated  basis)
which  Southern has  previously  delivered to ANR for storage  under the 100-day
Agreement.  Said  storage  account  volumes  of 5, 650,  000 Mcf for the  50-day
Agreement and 5, 550, 000 Mcf for the 100- day Agreement  shall  hereinafter  be
referred to collectively as the "Storage Account  Volumes." The 50-day Agreement
and the  100-day  Agreement  are  hereinafter  referred to  collectively  as the
"Agreements".  The gas is to be transferred as is and where is in place at ANR's
Kalkaska County,  Michigan,  storage fields to Atlanta for storage service under
FS Service Agreements between ANR and Atlanta, dated as of November 1, 1994 ("FS
Service  Agreements").  ANR is willing to  consent to this  transfer  of storage
volumes under these circumstances.

In consideration of the mutual covenants  contained herein,  and for the reasons
recited above, Atlanta, ANR and Southern agree as follows:

         1.   ANR and Southern agree as follows:









<PAGE>


Southern Natural Gas Company
Atlanta Gas Light Company
November 28, 1994
Page 2

A. The 50-day  Agreement  is hereby  amended,  effective  November  1, 1994,  as
follows:

(i)   Southern's Maximum Daily Withdrawal Quantity shall be reduced from 117,638
      Mcf to 4,638 Mcf under  Section  1. 1 (f) (1) , from  82,347 Mcf to 3, 247
      Mcf  under  Section  1. 1 (f) (2) and from  47,055  Mcf to 1,855 Mcf under
      Section 1.1(f)(3).

(ii)  Section 1. 1 (k) shall be amended to reduce Southern's Winter Contract 
      Quantity from 5,881,900 Mcf to 231,900 Mcf.

(iii) Section 1. 1 (d) shall be amended to reduce  Southern's  Daily  Injection
      Rate from 29,410 Mcf to 1,160 Mcf.

(iv)  Section 8.1 of the Agreements shall be amended to reduce the monthly 
      demand charge from $426,375 to $16,810.

B. All other  terms and  conditions  of the 50-day  Agreement,  including  ANR's
obligation to redeliver to Southern its remaining  storage account volume,  less
the storage  account volume  transferred  hereunder,  for Southern's  customers,
other than Atlanta, shall remain in full force and effect.

2.    ANR and Southern further agree as follows:

A. The 100-day  Agreement  is hereby  amended,  effective  November 1, 1994,  as
follows:

(i) Southern's  Maximum Daily  Withdrawal  Quantity shall be reduced from 56,208
Mcf to 708 Mcf  under  Section  1.1(f)(1)  , from  39,346  Mcf to 496 Mcf  under
Section 1.1(f)(2) and from 22,483 Mcf to 283 Mcf under Section 1.1(f)(3) .

(ii)  Section  1. 1 (k) shall be amended to reduce  Southern's  Winter  Contract
Quantity from 5,620,800 Mcf to 70,800 Mcf.

(iii)  Section 1. 1 (d) shall be amended to reduce  Southern's  Daily  Injection
Rate from 28,104 Mcf to 354 Mcf.

(iv)  Section 8. 1 of the Agreements shall be amended




















<PAGE>



Southern Natural Gas Company
Atlanta Gas Light Company
November 28, 1994
Page 3

to reduce the monthly demand charge from $272,551 to $3,433.

B.   All other terms and conditions of the 100-day  Agreement,  including  ANR's
     obligation to redeliver to Southern its remaining  storage  account volume,
     less the storage  account  volume  transferred  hereunder,  for  Southern's
     customers, other than Atlanta, shall remain in full force and effect.

3.  Effective  November  1,  1994,  Atlanta  and  Southern  agree that the CSS-1
Agreement,  dated June 1, 1979 and CSS-2  Agreement,  dated June 1, 1979 between
Southern  and  Atlanta  (collectively  the "CSS  Agreements")  shall be and they
hereby are terminated.  Atlanta shall remain responsible for any amounts accrued
and owing under the CSS Agreements for storage  services up to November 1, 1994.
In addition,  Atlanta and Southern  agree herein to the amendment of the Storage
Transportation  Agreement,  dated June 1, 1979 ("STS Agreement") between Atlanta
and  Southern to reflect the changes  made by Southern to the STS  Agreement  in
Volume 2A of  Southern's  FERC Gas Tariff which were accepted by the FERC in the
September 23 Order.

4. ANR releases and  discharges  Southern  from all claims for any  liability or
debt that may arise with  respect to the  Storage  Account  Volumes  assigned to
Atlanta,  except for any amounts  accrued and owing  under the  Agreements  with
respect to such Storage Account Volumes up to November 1, 1994.  Atlanta accepts
such  assignment of the Storage  Account  Volumes from  Southern.  Further,  ANR
agrees that  Southern  shall have no  contractual  obligation to pay ANR for any
services  rendered by ANR after  November 1, 1994 with respect to the storage of
the Storage  Account  Volumes  transferred  to Atlanta or the withdrawal of such
Storage Account Volumes from storage.

5.  Southern  agrees that,  as a result of the  transfer of the Storage  Account
Volumes by Southern to Atlanta,  ANR has fulfilled its  obligations  to Southern
under the Agreements  with respect to such Storage  Account Volumes and that ANR
shall have no contractual  obligations from and after November 1, 1994, to store
or redeliver such Storage Account Volumes to or for the account of Southern.

6. The conversion factor used and to be used to convert the Mcf"s of the Storage
Account  Volumes from gas measured on a saturated basis to gas measured on a dry
basis is 1.017708.






















                                       -3-


<PAGE>




Southern Natural Gas Company
Atlanta Gas Light Company
November 28, 1994
Page 4



Please  confirm  our  agreement,  by  signing  in the place  provided  below and
returning to the undersigned the enclosed copies of this letter.

Very truly yours,

ANR STORAGE COMPANY


BY:   /S/ Richard A. Lietz

Its:  Executive Vice President


Accepted and agreed to this
14th day of December,   1994

SOUTHERN NATURAL GAS COMPANY


By:   /S/ Greg P. Meyers

Its:  Vice President


Accepted and agreed to this
5th day of  January,  1995

ATLANTA GAS LIGHT COMPANY
By:   /S/ Stephen J. Gunther
Its:  Vice President




                                       -4-



<PAGE>



(letterhead of Tennessee Gas Pipeline appears here)



December 13, 1995


Atlanta Gas Light Company
303 Peachtree Street
Atlanta, GA 30308-4239
Attn: Debbie McNeely

Dear Debbie:

This letter sets forth our agreement  with respect to the amendments of the Firm
Storage  Agreements  No. 2031 and 3998 between  Tennessee Gas Pipeline (TGP) and
Atlanta Gas Light Company (the "Parties"). Our agreement is as follows:

1. The  Agreement  No. 3998 is hereby  amended to increase  the Maximum  Storage
Quantity (MSQ) by 3,000,000 Dth effective January 1, 1996.

2. The  Agreement  No.  3998 is hereby  amended to increase  the  Maximum  Daily
Withdrawal (MDQ) on meter number 07-0020  (TGP-Portland  Storage  Withdrawal) by
20,000 Dth/d effective January 1, 1996.

3. The  Agreement  No.  3998 is hereby  amended to increase  the  Maximum  Daily
Injection  (MDI) on meter number  06-0020  (TGP-Portland  Storage  Injection) by
20,000 Dth/d effective January 1, 1996.

4.   The Agreement No. 2031 is hereby terminated effective December 31, 1995.

Please  acknowledge  your  acceptance  of the  amendments  by signing  below and
returning to my attention the duplicate  originals of the letter. Upon execution
by TGP, an original will be forwarded to your for your files.

Sincerely,



/S/ Craig S. Harris
Sr. Customer Service Representative

TENNESSEE GAS PIPELINE

By: L. G. Williams
Director, Transportation Services
Central Region

ATLANTA GAS LIGHT COMPANY

By:     /S/  Stephen J. Gunther

Date:   December 19, 1993



<PAGE>


(letterhead of Tennessee Gas Pipeline appears here)


December 14, 1995

Chattanooga Gas Company
303 Peachtree Street
Atlanta, GA 30308-4239
Attn: Debbie McNeely

Dear Debbie:

This letter sets forth our agreement  with respect to the amendments of the Firm
Storage  Agreements  No. 2027 and 3999 between  Tennessee Gas Pipeline (TGP) and
Chattanooga Gas Company (the "Parties"). Our agreement is as follows:

1. The  Agreement  No. 3999 is hereby  amended to increase  the Maximum  Storage
Quantity (MSQ) by 1,845,000 Dth effective January 1, 1996.

2. The  Agreement  No.  3999 is hereby  amended to increase  the  Maximum  Daily
Withdrawal (MDQ) on meter number 07-0020  (TGP-Portland  Storage  Withdrawal) by
12,300 Dth/d effective January 1, 1996.

3. The  Agreement  No.  3999 is hereby  amended to increase  the  Maximum  Daily
Injection  (MDI) on meter number  06-0020  (TGP-Portland  Storage  Injection) by
12,300 Dth/d effective January 1, 1996.

4. The Agreement No. 2027 is hereby terminated effective December 31, 1995.

Please  acknowledge  your  acceptance  of the  amendments  by signing  below and
returning to my attention the duplicate  originals of the letter. Upon execution
by TGP, an original will be forwarded to your for your files.

Sincerely,



/S/ Craig S. Harris
Sr. Customer Service Representative

TENNESSEE GAS PIPELINE

By:   /S/ L. G. Williams
Director, Transportation Services
Central Region

ATLANTA GAS LIGHT COMPANY


By:/S/  Stephen J. Gunther

Date:  December 19, 1995