Document:

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                                 EXHIBIT 10.18

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                                 LOAN AGREEMENT

       LOAN AGREEMENT, dated August 16, 2000 between Tengasco Pipeline
Corporation, a Tennessee corporation, ("Borrower"), and Charles F. Smithers, Jr.
("Lender").

                                   WITNESSETH:

       WHEREAS, the Borrower has requested that the Lender make the loan (as
 hereinafter defined) and the Lender has agreed to make the Loan on and subject
 to the terms and conditions hereof;

       NOW, THEREFORE, each of the parties hereto, for good and valuable
 consideration, the receipt and sufficiency of which is hereby acknowledged,
 hereby agree as follows:

                                   AGREEMENT:

1.     Subject to the terms and conditions hereof, the Lender hereby agrees to
       make a loan (the "Loan") to the Borrower in the amount of $100,000 to be
       made available as follows: $100,000 on August 16, 2000.

2.     The Borrower hereby unconditionally promises to pay to the Lender the
       full outstanding principal amount of the Loan, together with all unpaid
       interest thereon and all other outstanding unpaid amounts owing to the
       Lender under or in connection with the Loan Documents, on or before
       August 16, 2005. The Borrower hereby agrees to pay interest on the unpaid
       principal amount of the Loan at the rate of 10.75% payable monthly with
       the first payment due on March 16, 2001. The Loan shall be evidenced by a
       Note in the form attached hereto.

3.     As part consideration for making the Loan, Borrower will pay Lender a
       throughput fee in accordance with the form of Throughput Agreement
       attached hereto, while the Loan is outstanding.

4.     The principal of the Note may be prepaid, in whole or in part, at any
       time.

5.     If all or a portion of any interest payment shall not be paid when due,
       such overdue amount shall, to the fullest extent permitted by law, bear
       interest at a rate of 10.75% per annum.

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6.     All payments to be made by the Borrower to the Lender at the following
       address:

                         200 Park Avenue, 11th Floor
                         New York, NY 10166-0003

       or such other address as the Lender may from time to time designate.

7.     The Loan is secured by a first lien upon all the pipeline properties,
       rights of way, and facilities owned by Borrower and to be constructed
       with the proceeds of the Loan.

8.     In the event the Borrower fails to pay any principal of or interest on
       the Loan when due and payment, or application is made by the Borrower for
       the appointment of a receiver, trustee or custodian for any of the
       Borrower's assets; or a petition under any section or chapter of the
       federal Bankruptcy Code or any similar law shall be filed by the
       Borrower; or the Borrower makes an assignment for the benefit of its
       creditors or any case or proceeding is filed by the Borrower for its
       dissolution, liquidation or termination and the Borrower shall fail to
       sure such default within ten (10) days of the receipt of written notice
       from the Lender, the balance due under the Note may, at the option of the
       Lender be declared, and immediately shall become, due and payable.

9.     The Borrower agrees unconditionally upon demand to pay or reimburse the
       Lender for all reasonable out-of-pocket costs, expenses and
       disbursements, including but not limited to fees and expenses of counsel,
       incurred by Lender in connection with the enforcement of this Agreement.

10.    No course of dealing and no delay or failure of the Lender in exercising
       any right, power, remedy or privilege under this Agreement shall affect
       any other or future exercise thereof or operate as a waiver thereof.

11.    This Agreement and the other Loan Documents shall be binding upon and
       inure to the benefit of the successors and assigns of the Borrower and
       the Lender.

12.    Except as otherwise expressly provided for in this Agreement, the
       Borrower waives presentment, demand and protest and notice of
       presentment, protest, default, nonpayment, maturity, release, compromise,
       settlement, extension or renewal of any and all commercial paper,
       accounts, contract rights, documents, instruments, chattel paper and
       guarantees at any time held by the Lender on which the Borrower may in
       any way be liable and hereby ratifies and confirms whatever the Lender
       may do in this regard; and (ii) the benefit of all valuation,
       appraisement and exemption laws.

13.    Except as otherwise provided herein, any notice or other written
       communication required hereunder shall be in writing, and shall be deemed
       to have been validly served, given or delivered (i) upon deposit in the
       United States mail, with proper

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      postage prepaid, (ii) by hand delivery, (iii) by overnight express mail
      courier, or (iv) by telecopier, and addressed to the party to be notified
      at the address set forth below or to such other address as each party may
      designate for itself in writing by like notice.

             To the Lender:

                   200 Park Avenue, 11th Floor
                   New York, NY 10166-0003

      To the Borrower:

                   Tengasco Pipeline Corporation
                   603 Main Avenue, Suite 500
                   Knoxville, TN 37902
                   Facsimile: (865) 523-9894

14.    This Agreement represents the entire agreement between the parties and
       may not be amended, modified or changed, except by a writing executed by
       both parties.

15.    This Agreement may be executed in counterparts.

       IN WITNESS WHEREOF, and intending to be legally bound hereby, this
Agreement has been duly signed, sealed and delivered by the undersigned as of
the day and year specified at the beginning hereof.

ATTEST:                              BORROWER
                                     TENGASCO PIPELINE CORPORATION

/s/ Elizabeth A. Wendelken           By: /s/ Robert M. Carter
---------------------------------       --------------------------------------
Elizabeth A. Wendelken, Secretary          Robert M. Carter, President

                                     LENDER

                                       /s/ Charles F. Smithers, Jr.
                                     -----------------------------------------

                                       3<PAGE>

                                EXHIBIT 10.18(a)

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                                     NOTE

 $100,000.00                                               Knoxville, Tennessee
                                                           August 16, 2000

       FOR VALUE RECEIVED, Tengasco Pipeline Corporation, a Tennessee
corporation ("Borrower"), hereby promises to pay to the order of Charles F.
Smithers, Jr., with an address at 200 Park Avenue, 11th Floor, New York, NY
10166 (the "Lender"), the principal sum of $100,000 payable in accordance with
the provisions of that certain Loan Agreement dated August 16, 2000 between the
Borrower and the Lender and the other Lenders party thereto (as it may hereafter
be amended, restated, modified or supplemented from time to time, the "Loan
Agreement"). All capitalized terms used herein shall, unless otherwise defined
herein, have the same meanings given to such terms in the Loan Agreement.

       The Borrower shall pay interest on the unpaid principal balance hereof at
the rate of 10.75% per annum. Interest shall accrue on date of funding by Lender
as to each of the respective scheduled payments in the Loan Agreement. The
Maturity Date shall be August 15, 2005. All sums due hereunder shall be paid by
the Maturity Date. Borrower shall pay the indebtedness due hereunder in monthly
installments beginning March 15, 2001 and continuing monthly thereafter in 54
equal monthly installments of principal and interest. Borrower may prepay the
indebtedness due hereunder in whole or in part at any time.

       Upon the occurrence and during the continuation of an Event of Default,
Lender shall have the right to accelerate payment of the entire unpaid principal
and accrued interest due hereunder. Such interest rate will accrue before and
after any judgment has been entered. All payments of both principal and interest
shall be made without setoff, counterclaim or other deduction of any nature to
the Lender as provided in the Loan Agreement, in lawful money of the United
States of America in immediately available funds. Except as otherwise provided
in the Loan Agreement, the Borrower waives presentment, demand, notice, protest
and all other demands and notices in connection with the delivery, acceptance,
performance, default or enforcement of this Note and the Loan Agreement.

       The entire principal amount due hereunder shall be paid on the Maturity
Date or earlier acceleration or repayment hereof. If any payment or action to be
made or taken hereunder shall be stated to be or become due on a day which is
not a Business Day, such payment or action shall be made or taken on the next
following Business Day and such extension of time shall be included in computing
interest or fees, if any, in connection with such payment or action.

       This Note is a Note referred to in, and is entitled to the benefits of,
the Loan Agreement and other Loan documents, including the representations,
warranties,

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covenants, conditions, security interests or liens contained or granted therein.
The Loan Agreement, among other things, contains provisions for prepayment in
full or in part and for acceleration of the maturity hereof upon the happening
of certain stated events prior to maturity upon the terms and conditions therein
specified.

       This Note shall bind the Borrower and its successors and assigns, and the
benefits hereof shall inure to the benefit of the Lender and its successors and
assigns. All references herein to the "Borrowed" and the "Lender" shall be
deemed to apply to the Borrower and the Lender, respectively, and their
respective successors and assigns.

       This Note and any other documents delivered in connection herewith and
the rights and obligations of the parties hereto and thereto shall for all
purposes be governed by and construed and enforced in accordance with the
internal laws of the State of Tennessee without giving effect to its conflicts
of law principles.

       IN WITNESS WHEREOF, the undersigned, intending to be legally bound
hereby, has executed this Note as of the date first written above.

ATTEST:                                   TENGASCO PIPELINE CORPORATION

/s/ Elizabeth A. Wendelken            By: /s/ Robert M. Carter
---------------------------------         --------------------------------------
Elizabeth A. Wendelken, Secretary         Robert M. Carter, President

[Corporate Seal]

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