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                                                                   EXHIBIT 10.17

                              [TENNECO LETTERHEAD]


March 11, 1997



PERSONAL AND CONFIDENTIAL

Mr. Richard L. Wambold
533 Pine Lane
Lake Forest, IL 60045

Dear Richard:


         On behalf of Tenneco Inc. (the "Company" or "Tenneco"), I am pleased to
set forth the terms and conditions of your employment:

1.  You are employed as Executive Vice President, Specialty and Consumer
    Products, Tenneco Packaging and shall in the future hold such positions as
    the Company may determine from time to time. While employed, you will abide
    by all policies of the Company.

2.  You will be paid a base salary of $330,100 a year, which shall be subject to
    such adjustments as may from time to time be approved by the Compensation
    and Benefits Committee of the Board of Directors of Tenneco, payable
    according to the regular pay schedule for salaried employees.

3.  You will be a participant in the Tenneco Executive Incentive Compensation
    Plan ("EICP"), and you will be eligible for EICP distributions based on your
    performance at the discretion of the Compensation and Benefits Committee of
    the Board of Directors.

4.  You will receive a one-time grant of 10,000 shares of restricted stock,
    which will vest only upon normal retirement, or other mutually satisfactory
    separation from service which would include a noncompete provision. In the
    future you will be eligible to receive annual stock option and performance
    share awards under the Tenneco Stock Ownership Plan at the discretion of the
    Compensation and Benefits Committee of the Board of Directors.

5.  You will receive annual perquisite compensation of $30,000.












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Mr. Richard L. Wambold
March 11, 1997
Page 2

6.  You will receive non-cash compensation and personal benefits comparable to
    those currently provided to Tenneco executives under Tenneco's policy in
    effect at the time hereof, including Health Care, Thrift Plan, Long-Term
    Disability, and Life Insurance (the plan provides for coverage for one and
    one-half times your salary paid for by the Company, with the option to
    purchase at your expense up to five times your salary.)

7.  Subject to the provisions of this Section 7, your annual pension benefits
    from all defined benefit pension plans (qualified and non-qualified)
    commencing at age 55 or your separation from service if later, will, at a
    minimum, be equal to the product of (x) and (y), where (x) is the average of
    your total base compensation plus bonus for the three calendar years
    immediately preceding your separation from service and (y) is the total of
    25% plus 2.5% for each full year of service with Tenneco earned in the
    period commencing January 1, 1997, for a maximum total of 50%. This minimum
    pension benefit will be more fully described in the Tenneco Supplemental
    Executive Retirement Plan, and the terms of that plan shall control. You
    will qualify for the additional benefits provided under this Section only if
    you render five years of service with the Company in the period commencing
    January 1, 1997.

Sincerely,
/s/ P.T. Stecko
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ACKNOWLEDGED AND ACCEPTED:





/s/ Richard L. Wambold
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On this 15th day of April, 1997.