Document:

<PAGE>
                                                                   EXHIBIT 10.17

                        TRANSPORTATION SERVICE AGREEMENT
                         UNDER RATE SCHEDULE FTS OR ITS

         THIS AGREEMENT ("Agreement"), entered into on May 20, 1992, is between
Arkansas Western Pipeline Company ("Transporter"), an Arkansas corporation, and
Associated Natural Gas Company, a division of Arkansas Western Gas Company,
("Shipper");

                                  WITNESSETH:

         WHEREAS, Shipper has requested natural gas for that Transporter
transport Shipper; and

         WHEREAS, Transporter has agreed to provide such transportation for
Shipper subject to the terms and conditions set forth in this Agreement.

         NOW, THEREFORE, in consideration of the promises and the mutual
covenants herein contained, the parties agree as follows:

                                   ARTICLE I

                                  DEFINITIONS

         1.1      "Maximum Daily Delivery Obligation (MDDO)" means the maximum
                  daily quantity of natural gas, expressed in Dekatherms (Dth),
                  that Transporter is obligated to deliver from time to time at
                  the Point(s) of Delivery specified in Exhibit B to the
                  executed Agreement.

         1.2      "Maximum Daily Quantity (MDQ) " means the maximum daily
                  quantity of natural gas, expressed* in Dth's, that Transporter
                  is obligated under the executed Agreement to transport on
                  behalf of' Shipper, which shall be 23,000 Dth.

         1.3      "Equivalent Quantity" means the quantity, expressed in Dth's,
                  delivered to Shipper by Transporter at the Point(s) of
                  Delivery. Such quantity is equal to the quantity of gas
                  received from Shipper at the Point(s) of Receipt less Fuel
                  Usage and Applicable Shrinkage.

         1.4      "Fuel Usage and Applicable Shrinkage" means the quantity of
                  natural gas retained by Transporter for fuel usage, leakage,
                  blow-down, minor line pack fluctuations, and lost and
                  unaccounted for natural gas.

<PAGE>
                                   ARTICLE II

                       NATURAL GAS TRANSPORTATION SERVICE

         2.1      Beginning on the date on which deliveries of natural gas are
                  commenced hereunder, and thereafter for the remaining term of
                  this Agreement, Shipper agrees to tender gas to Transporter at
                  the Point(s) of Receipt, and Transporter agrees to transport
                  and redeliver and Shipper agrees to accept delivery of the
                  Equivalent Quantities of gas at the Point(s) of Delivery, all
                  in accordance with the terms of this Agreement.

         2.2      Transportation service rendered hereunder shall be
                  firm/interruptible service as described in Section 2 of
                  Transporter's X Rate Schedule FTS _____ Rate Schedule ITS.

                                  ARTICLE III

                              POINT(S) OF RECEIPT

         The Point(s) of Receipt at which Transporter shall receive gas for
         transportation under this Agreement shall be specified in Exhibit A to
         this Agreement.

                                   ARTICLE IV

                              POINT(S) OF DELIVERY

         The Point(s) of Delivery at which Transporter shall redeliver to
         Shipper or for the account of Shipper an Equivalent Quantity of gas for
         transportation under this Agreement shall be specified in Exhibit B to
         this Agreement. Notwithstanding the MDDO at each Point of Delivery,
         Shipper shall not nominate a total quantity of natural gas at all
         Points of Delivery that exceeds the MDQ set forth in this Agreement.

                                   ARTICLE V

                               TERM OF AGREEMENT

         5.1      Subject to the General Terms and Conditions of Transporter's
                  FERC Gas Tariff and Rate Schedule FTS/ITS, this Agreement
                  shall be effective as of the date of physical completion of
                  and initial deliveries on Transporter's pipeline and shall
                  continue for a primary term of ten years. Thereafter, this
                  Agreement shall be effective month to month, until terminated
                  by Transporter or Shipper upon the following written notice to
                  the other specifying a termination date: sixty (60) days for

<PAGE>
                  interruptible transportation under Rate Schedule ITS and 180
                  days for firm transportation under Rate Schedule FTS.

         5.2      Any portions of this Agreement necessary to balance receipts
                  and deliveries under this Agreement as required by the FTS/ITS
                  Rate Schedule, shall survive the other parts of this Agreement
                  until such time as such balancing has been accomplished.

                                   ARTICLE VI

                           RATE SCHEDULE AND CHARGES

         6.1      Shipper shall pay Transporter for the service hereunder an
                  amount determined in accordance with Transporter's FTS/ITS
                  Rate Schedule, and the General Terms and Conditions of
                  Transporter's FERC Gas Tariff, all as may be revised from time
                  to time. Such FTS/ITS Rate Schedule and General Terms and
                  Conditions are incorporated by reference and made a part
                  hereof.

         6.2      Transporter may seek authorization from the FERC and/or other
                  appropriate body to change any rate(s) and/or term(s) set
                  forth herein or in the FTS or ITS Rate Schedule. Nothing
                  herein shall be construed to deny Shipper any rights it may
                  have under the Natural Gas Act or the Natural Gas Policy Act
                  including the right to participate fully in rate proceedings
                  by intervention or otherwise to contest increased rates in
                  whole or in part.

                                  ARTICLE VII

                             REDUCTION IN CAPACITY

         For firm transportation only, if Transporter's capacity is reduced for
         any reason and a reduction of the quantity of gas being transported
         hereunder is required, Shipper's MDQ shall be reduced pro rata with the
         MDQ's of the other firm Shippers during the period of such capacity
         reduction.

                                  ARTICLE VIII

                                  MISCELLANEOUS

         8.1      Amendment. This Agreement shall only be amended, varied or
                  modified by an instrument in writing executed by Transporter
                  and Shipper. Such amendment will be effective upon compliance
                  with Article VIII herein.

<PAGE>

         8.2      Applicable Law. This Agreement and the rights and duties of
                  Transporter and Shipper hereunder shall be governed by and
                  interpreted in accordance with the laws of the State of
                  Arkansas, without recourse to the law governing conflict of
                  laws.

         8.3      Waiver. No waiver by either Transporter or Shipper of any
                  default by the other in the performance of any provision,
                  condition or requirement herein shall be deemed a waiver of,
                  or in any manner a release from, performance of any other
                  provision, condition or requirement herein, nor deemed to be a
                  waiver of, or in any manner a release from, future performance
                  of the same provision, condition or requirement; nor shall any
                  delay or omission by Transporter or Shipper to exercise any
                  right hereunder impair the exercise of any such right or any
                  like right accruing to it thereafter.

         8.4      Headings. The headings of each of the various sections in this
                  Agreement are included for convenience of reference only and
                  shall have no effect on, nor be deemed part of the text of,
                  this Agreement.

         8.5      Further Assurances. Transporter and Shipper shall execute and
                  deliver all instruments and documents and shall do all acts
                  necessary to effectuate this Agreement.

         8.6      Entire Agreement. This Agreement constitutes the entire
                  agreement between Transporter and Shipper concerning the
                  subject matter hereof and supersedes all prior understandings
                  and written and oral agreements relative to said matter.

         8.7      Cancellation of Prior Agreement(s). This Agreement, upon its
                  effective date, supersedes and cancels any and all other
                  agreements between Transporter and Shipper relating to the
                  transportation of gas by Transporter for Shipper.

                                   ARTICLE IX

                                    NOTICES

         All notices, requests, statements or other communications provided for
         under this Agreement shall be in writing and shall be given by personal
         delivery or by United States mail, postage prepaid, and addressed as
         follows:

         If to Shipper:

         Arkansas Western Gas Company
         1001 Sain Street
         P. 0. Box 1288
         Fayetteville, AR 72702-1288

<PAGE>
         If to Transporter:

         Arkansas Western Pipeline Company
         1083 Sain Street
         P. O. Box 1408
         Fayetteville, AR 72702-1408
         Attn: Manager of Transportation Services

         All written notices, requests, statements or other communications shall
         be sufficiently given if mailed postage prepaid by registered,
         certified, or regular mail and shall be deemed to have been duly
         delivered on the third business day following the date on which same
         was deposited in the United States mail, addressed in accordance with
         this Article VIII. Either Shipper or Transporter may designate a
         different address to which notices, requests, statements, payments or
         other communications shall be sent upon proper notice as set forth in
         this Article VIII.

              IN WITNESS WHEREOF, Transporter and Shipper have caused this
Agreement to be duly executed by their duly authorized officers in two (2)
original counterparts as of May 20, 1992.

                                      "TRANSPORTER"

                                      ARKANSAS WESTERN PIPELINE COMPANY
                                      an Arkansas Corporation

                                      By /s/ [ILLEGIBLE]
                                         ---------------------------------------
                                         President

WITNESS: /s/ [ILLEGIBLE]
         ------------------------

                                      "SHIPPER"

                                      ASSOCIATED NATURAL GAS COMPANY,
                                      a division of Arkansas Western Company Gas
                                      Company

                                      By /s/ [ILLEGIBLE]
                                         ---------------------------------------

WITNESS:
         ------------------------

<PAGE>
                                    EXHIBIT A
                                       TO
                        TRANSPORTATION SERVICE AGREEMENT
                               DATED MAY 20, 1992
                     BETWEEN ASSOCIATED NATURAL GAS COMPANY
                      AND ARKANSAS WESTERN PIPELINE COMPANY

<Table>
<Caption>
                                                                              Pressure Psig
                               Meter                                   MDQ    -------------
     Receipt Point             Number     SEC-TWN-RNG   County   ST   Dth/d    Max     Min
     -------------             -------    -----------   ------   --   ------  -----   -----
<S>  <C>                       <C>        <C>           <C>      <C>  <C>     <C>     <C>
1.   NOARK Pipeline System     Pending     31-19N-9E     Clay    AR   23,000   685     550
</Table>

SHIPPER:                                TRANSPORTER:
ASSOCIATED NATURAL GAS COMPANY          ARKANSAS WESTERN PIPELINE COMPANY

By: /s/ [ILLEGIBLE]                     By: /s/ [ILLEGIBLE]
    --------------------------              -----------------------------

<PAGE>
                                    EXHIBIT B
                                       TO
                        TRANSPORTATION SERVICE AGREEMENT
                               DATED MAY 20, 1992
                     BETWEEN ASSOCIATED NATURAL GAS COMPANY
                      AND ARKANSAS WESTERN PIPELINE COMPANY

<Table>
<Caption>
                                                                               Pressure Psig
                               Meter                                   MDDO    -------------
     Delivery Point            Number     SEC-TWN-RNG   County    ST   Dth/d    Max     Min
     --------------            -------    -----------   -------   --   ------  -----   -----
<S>  <C>                       <C>        <C>           <C>       <C>  <C>     <C>     <C>
1.   Associated Natural Gas    Pending    28-19N-10E    Dunklin   mo   23,000   500     400
</Table>

SHIPPER:                                TRANSPORTER:
ASSOCIATED NATURAL GAS COMPANY          ARKANSAS WESTERN PIPELINE COMPANY

By: /s/ [ILLEGIBLE]                     By: /s/ [ILLEGIBLE]
    --------------------------              -----------------------------
    President
<PAGE>

                                   SCHEDULE 2

              CONTRACTS BIFURCATED OR PARTIALLY ASSIGNED TO ATMOS

<Table>
<Caption>
Contract                               Quantity Assigned        Expiration
--------                               -----------------        ----------
Transportation & Storage:
<S>                                    <C>                      <C>
AWP FT dated 5/20/92                    13,370 MMBtu/d          07/31/2003
Ozark FT #Z2001 @ AWP                   13,370 MMBtu/d          10/31/2002
Ozark FT #Z2001 @ NGPL                   .2000 MMBtu/d          10/31/2002
TETCO CDS (FT) #800204                   9,826 MMBtu/d          10/31/2012
TETCO SSI #400184                       11,303 DTH/d W/D        04/30/2012
                                        .3,876 DTH/d Inj.       04/30/2012
Supply:
SEECO Finn Sales dated 10/1/90          15,370 MMBtu/d          09/30/2000
</Table>

<PAGE>
              FORM OF NOTICE OF PERMANENT RELEASE OF FIRM CAPACITY
                        AND CONSENT TO PARTIAL ASSIGNMENT

A.       Associated Natural Gas Company, a division of Arkansas Western Gas
         Company ("Releasing Shipper") is a firm Shipper that is party to an
         executed and valid Service Agreement with Arkansas Western Pipeline
         Company under Rate Schedule FTS ("Transporter"). Releasing Shipper
         proposes to release capacity as set forth below, and in accordance with
         the applicable provisions of Transporter's FERC Gas Tariff. Upon the
         satisfaction of all conditions applicable to the proposed release
         transaction, including all applicable provisions of Section 14 of the
         General Terms and Conditions of Transporter's FERC Gas Tariff,
         Releasing Shipper will consent to a partial and permanent assignment of
         capacity on Transporter's system. Subject to the satisfaction of such
         conditions by the Releasing Shipper and the Replacement Shipper,
         Transporter will consent to this partial and permanent assignment of
         capacity on its system, and will waive the requirement under Section
         14.7 of the General Terms and Conditions of Transporter's FERC Gas
         Tariff, providing that Releasing Shipper shall remain the guarantor of
         payment to Transporter of all demand charges arising under its Service
         Agreement with Transporter for such assigned capacity.

B.       Rate Schedule and contract number pursuant to which capacity is
         released, Contract Number: FTS - 0 1

C.       Quantity of capacity to be released: Max 13,370 Dfli/Day,
                               Min 13,370 DthDay.

D.       (i) Minimum transportation rate acceptable to Releasing Shipper (if
         none, write "none"; includes commodity component):

         Tariff Rate

         (ii) Bid Requirements:

              (a) _X_ Reservation, __Volumetric

                  or ___ Volumetric with ___ volume commitment

              (b) __ Dollar/Cents or __ Percentage

E.       Receipt Points and Delivery Points (designate primary and/or
         secondary):

         Receipt Point: "Ozark/AWP Interconnect" Meter 00010

         Delivery Point: "AWP/ANG Interconnect" Meter 00020 MDQ @ 13,370
         MMBtu/d.

<PAGE>
F.       Bid Evaluation Methodology: i) highest rate, net revenue or present
         value

         ii).     If Releasing Shipper chooses to provide weighting factors in
                  accordance with Section 14.9 of the General Terms and
                  Conditions of Transporter's FERC Gas Tariff, weighting factors
                  are as follows: Please provide a range for each factor between
                  0 - 1,000. The numbers need not add up to 1,000.

                  _________________ Volume (0 - 1,000)

                  Max Rate ___________________ -1 Rate (0 - 1,000)

G.       i).      Designated Replacement Shipper (if none, write "none"):

                  United Cities Gas Company a, division of Atmos Energy
                  Corporation.

         ii).     Terms and conditions agreed to between Releasing Shipper and
                  Designated Replacement Shipper:

                               _________ Demand Rate (MMBtu)

                               13,370 Volume MMBtu/Day

         iii)     Releasing Shipper and Designated Replacement Shipper
                  understand Designated Replacement Shipper may not receive the
                  released capacity if it fails to match any best bid submitted
                  by another potential Shipper as provided in Transporter's FERC
                  Gas Tariff.

H.       Other terms and conditions (if none, write "none"): _________________

This is a maximum tariff rate, permanent assignment of capacity, not subject to
bid.

     "Date                         Releasing Shipper: Associated Natural Gas Co.
                                   Charles V. Stevens, Sr. Vice President

                                     ANY, a division of Atmos Energy Corporation

                                   UNITED CITIES GAS

                                   BY: /s/ [ILLEGIBLE]
                                       -----------------------------------------
                                       Replacement Shipper*

 -May 24, 2000

     Date

     Date                                         Transporter:

                       ARKANSAS WESTERN PIPELINE COMPANY

To be executed, prior to posting by Transporter, by Replacement Shipper only if
Replacement Shipper has been designated by Releasing Shipper in G(i) above.

<PAGE>
                      BID ON PERMANENTLY RELEASED CAPACITY
                      ON ARKANSAS WESTERN PIPELINE COMPANY

A.       United Cities Gas Company a, division of Atmos Energy Corporation
         ("Bidder") hereby bids on released capacity ("Capacity") on the system
         of Arkansas Western Pipeline Company ("Transporter"). This bid will
         remain open until Transporter selects a winning bidder, or notice of
         withdrawal is received by Transporter.

B.       The Capacity was released by Associated Natural Gas Company, a division
         of Arkansas Western Gas Company.

         (FTS - 01) under Transporter's Rate Schedule FTS,

C.       The transportation rate bid is Maximum Tariff Rate per Dth, not
         including commodity charge, fuel, or other applicable fees.

D.       The quantity of Capacity bid for is 13,370 Dth/Day

E.       The term of the Capacity bid for is (Permanent Assignment through
         original contract term) Months/Years, beginning June 1, 2000 and ending
         at the expiration date of contract FTS - 01.

F.       Receipt and Delivery points (designate primary and/or secondary)

         Receipt Point: "Ozark/AWP Interconnect" Meter 000 10

         Delivery Point: "AWP/ANG Interconnect" Meter 00020 MDQ @ 13,370
         MMBtu/d.

G.       Other information requested by the Releasing Shipper

         This is a maximum tariff rate, permanent assignment of capacity, not
         subject to bid.

H.       Bidder agrees to comply with all terms and conditions of Transporter's
         FERC Gas Tariff.

I.       If selected by Transporter as the winning bidder, Bidder will
         immediately execute the partial assignment form set forth below.

i        Bidder acknowledges that it has the full authority to make this bid and
         bind itself and its agents and/or principals to this bid.

                           UNITED CITIES GAS COMPANY, a division of May 24, 2000

Atmos Energy Corporation
------------------------   -----------------------------------------------------

Date                                             BIDDER

                           By: /s/ GORDON J. ROY

                               Gordon J. Roy
                               Vice President

<PAGE>
                         PARTIAL ASSIGNMENT OF CAPACITY
                      ON ARKANSAS WESTERN PIPELINE COMPANY

A.       United Cities Gas Company a, division of Atmos Energy Corporation
         ("Replacement Shipper") has submitted the winning bid for firm capacity
         on the system of Arkansas Western Pipeline Company ("Transporter") for
         capacity released by Associated Natural Gas Company, a division of
         Arkansas Western Gas Company ("Releasing Shipper"), and understands
         that its bid of (date) June 1, 2000 has been accepted by Transporter.

B.       Replacement Shipper has read and understands the terms and conditions
         under which the Releasing Shipper has permanently released such
         capacity on Transporter and hereby contracts for such capacity, in
         accordance with its bid, subject to terms and conditions set forth on
         Transporter's FERC Gas Tariff and the Service Agreement between the
         Releasing Shipper and Transporter (copy of bid and release notice
         attached). Replacement Shipper adopts such Service Agreement for the
         assigned capacity, and from and after the effective date of the
         referenced release shall be fully liable to Transporter for all demand
         charges, volumetric charges, surcharges, and other charges arising
         under the terms of the Service Agreement with Transporter for such
         assigned capacity from and after that effective date.

C.       Releasing Shipper hereby makes a partial assignment of its rights and
         obligations under contract number FTS - 01 in accordance with the
         attached bid and release notice. This assignment is made in accordance
         with Transporter's FERC Gas Tariff.

                               Releasing Shipper: Associated Natural Gas Co.
                             Charles V. Stevens, Sr. Vice President
                             UNITED GAS a division of Atmos Energy Corporation

                             BY:
                                        CITIES COMPANY

                               /s/ GORDON J. ROY
                               -------------------------------------------------
                               Replacement Shipper Gordon J. Roy, Vice President

                             Transporter:

                             Arkansas Western Pipeline Company<PAGE>
                                                                   EXHIBIT 10.18

                                                Contract #: 400227
                                                            ------

                                SERVICE AGREEMENT
                             FOR RATE SCHEDULE SS-1

         This Service Agreement, made and entered into this 31st day of May,
2000, by and between TEXAS EASTERN TRANSMISSION CORPORATION, a Delaware
Corporation (herein called "Pipeline") and UNITED CITIES GAS COMPANY, a division
of Atmos Energy (herein called "Customer," whether one or more),

                                  WITNESSETH:

         WHEREAS, Pipeline and Associated Natural Gas Company ("Associated") are
parties to an existing service agreement dated April 11, 1994, under Pipeline's
Rate Schedule SS-1 (Pipeline's Contract No. 400184); and

         WHEREAS, Customer entered into a permanent capacity release transaction
on May 26, 2000, as reflected on the Addendum ("Addendum") to Customer's
Capacity Release Umbrella Agreement (Pipeline's Contract No. 900483, Capacity
Release Deal No. 016807), pursuant to which Associated permanently assigned
certain of its capacity rights under Pipeline's Contract No. 400184 to Customer;
and

         WHEREAS, Pipeline and Customer desire to enter into this Service
Agreement which supersedes the Addendum and reflects that Customer has taken
permanent assignment of the capacity specified in the Addendum;

         NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements herein contained, the parties do covenant and agree as
follows:

                                   ARTICLE I

                               SCOPE OF AGREEMENT

         Subject to the terms, conditions and limitations hereof and of
Pipeline's Rate Schedule SS-1, Pipeline agrees to provide firm service for
Customer under Rate Schedule SS-1 and to receive and store for Customer's
account quantities of natural gas up to the following quantity:

<Table>
<S>                                                      <C>
            Maximum Daily Injection Quantity (MDIQ)        3,876 dth
            Maximum Storage Quantity (MSQ)               753,969 dth
</Table>

<PAGE>

                                SERVICE AGREEMENT
                             FOR RATE SCHEDULE SS-1
                                   (CONTINUED)

         Pipeline agrees to withdraw from storage for Customer, at Customer's
request, quantities of gas up to Customer's Maximum Daily Withdrawal Quantity
(MDWQ) of 11,303 dekatherms, or such lesser quantity as determined pursuant to
Rate Schedule SS-1, from Customer's Storage Inventory, plus Applicable
Shrinkage, and to deliver for Customer's account such quantities. Pipeline's
obligation to withdraw gas on any day is governed by the provisions of Rate
Schedule SS-1, including but not limited to Section 6.

                                   ARTICLE II

                               TERM OF AGREEMENT

         The term of this Service Agreement shall commence on June 1, 2000 and
shall continue in force and effect until April 30, 2012 and year to year
thereafter unless this Service Agreement is terminated as hereinafter provided.
This Service Agreement may be terminated by either Pipeline or Customer upon
five (5) years prior written notice to the other specifying a termination date
of April 30, 2012 or any April 30 thereafter. Subject to Section 22 of
Pipeline's General Terms and Conditions and without prejudice to such rights,
this Service Agreement may be terminated at any time by Pipeline in the event
Customer fails to pay part or all of the amount of any bill for service
hereunder and such failure continues for thirty (30) days after payment is due;
provided, Pipeline gives thirty (30) days prior written notice to Customer of
such termination and provided further such termination shall not be effective
if, prior to the date of termination, Customer either pays such outstanding bill
or furnishes a good and sufficient surety bond guaranteeing payment to Pipeline
of such outstanding bill.

         THE TERMINATION OF THIS SERVICE AGREEMENT WITH A FIXED CONTRACT TERM OR
THE PROVISION OF A TERMINATION NOTICE BY CUSTOMER TRIGGERS PREGRANTED
ABANDONMENT UNDER SECTION 7 OF THE NATURAL GAS ACT AS OF THE EFFECTIVE DATE OF
THE TERMINATION. PROVISION OF A TERMINATION NOTICE BY PIPELINE ALSO TRIGGERS
CUSTOMER'S RIGHT OF FIRST REFUSAL UNDER SECTION 3.13 OF THE GENERAL TERMS AND
CONDITIONS ON THE EFFECTIVE DATE OF THE TERMINATION.

         In the event there is gas in storage for Customer's account on April 30
of the year of termination of this Service Agreement, this Service Agreement
shall continue in force and effect for the sole purpose of withdrawal and
delivery of said gas to Customer for an additional one-hundred and twenty (120)
days.

                                       2                                  400227
<PAGE>
                                SERVICE AGREEMENT
                             FOR RATE SCHEDULE SS-1
                                   (CONTINUED)

                                  ARTICLE III

                                 RATE SCHEDULE

         This Service Agreement in all respects shall be and remain subject to
the applicable provisions of Rate Schedule SS-1 and of the General Terms and
Conditions of Pipeline's FERC Gas Tariff on file with the Federal Energy
Regulatory Commission, all of which are by this reference made a part hereof.

         Customer shall pay Pipeline, for all services rendered hereunder and
for the availability of such service in the period stated, the applicable prices
established under Pipeline's Rate Schedule SS-1 as filed with the Federal Energy
Regulatory Commission and as the same may be hereafter revised or changed.

         Customer agrees that Pipeline shall have the unilateral right to file
with the appropriate regulatory authority and make changes effective in (a) the
rates and charges applicable to service pursuant to Pipeline's Rate Schedule
SS-1, (b) Pipeline's Rate Schedule SS-1, pursuant to which service hereunder is
rendered or (c) any provision of the General Terms and Conditions applicable to
Rate Schedule SS-1. Notwithstanding the foregoing, Customer does not agree that
Pipeline shall have the unilateral right without the consent of Customer
subsequent to the execution of this Service Agreement and Pipeline shall not
have the right during the effectiveness of this Service Agreement to make any
filings pursuant to Section 4 of the Natural Gas Act to change the MDIQ, MSQ and
MDWQ specified in Article I, to change the term of the service agreement as
specified in Article II, to change Point(s) of Receipt specified in Article IV,
to change the Point(s) of Delivery specified in Article IV, or to change the
firm character of the service hereunder. Pipeline agrees that Customer may
protest or contest the aforementioned filings, and Customer does not waive any
rights it may have with respect to such filings.

                                   ARTICLE IV

                  POINT(S) OF RECEIPT AND POINT(S) OF DELIVERY

         The natural gas received by Pipeline for Customer's account for storage
injection pursuant to this Service Agreement shall be those quantities scheduled
for delivery pursuant to Service Agreements between Pipeline and Customer under
Rate Schedules CDS, FT-1, SCT, PTI or IT-1 which specify as a Point of Delivery
the IISS-1 Storage Point". For purposes of billing of Usage Charges under Rate
Schedules CDS, FT-1, SCT, PTI or IT-1,

                                       3                                  400227
<PAGE>

                                SERVICE AGREEMENT
                             FOR RATE SCHEDULE SS-1
                                   (CONTINUED)

deliveries under Rate Schedules CDS, FT-1, SCT, PTI or IT-1 for injection into
storage scheduled directly to the SS-1 Storage Point" shall be deemed to have
been delivered 60% in Market Zone 2 and 40% in Market Zone 3. In addition, at
Customer's request any positive or negative variance between scheduled
deliveries and actual deliveries on any day at Customer's Points of Delivery
under Rate Schedules CDS, FT-1, SCT, or IT-1 shall be deemed for billing
purposes delivered at the Point of Delivery and shall be injected into or
withdrawn from storage for Customer's account. In addition to accepting gas for
storage injection at the SS-1 Storage Point, Pipeline will accept gas tendered
at points of interconnection between Pipeline and third party facilities at
Oakford and Leidy Storage Fields provided that such receipt does not result in
Customer tendering aggregate quantities for storage in excess of the Customer
MDIQ.

         The Point(s) of Delivery at which Pipeline shall deliver gas shall be
specified in Exhibit A of the executed service agreement.

         Exhibit A and B are hereby incorporated as part of this Service
Agreement for all intents and purposes as if fully copied and set forth herein
at length.

                                    ARTICLE V

                                    QUALITY

         All natural gas tendered to Pipeline for Customer's account shall
conform and be subject to the provisions of Section 5 of the General Terms and
Conditions. Customer agrees that in the event Customer tenders for service
hereunder and Pipeline agrees to accept natural gas which does not comply with
Pipeline's quality specifications, as expressly provided for in Section 5 of
Pipeline's General Terms and Conditions, Customer shall pay all costs associated
with processing of such gas as necessary to comply with such quality
specifications.

                                   ARTICLE VI

                                   ADDRESSES

         Except as herein otherwise provided or as provided in the General Terms
and Conditions of Pipeline's FERC Gas Tariff, any notice, request, demand,
statement, bill or payment provided for in this Service Agreement, or any notice
which any party may desire to give to the other, shall be in writing and shall
be considered as duly delivered when mailed by registered,

                                       4                                  400227
<PAGE>

                               * SERVICE AGREEMENT
                             FOR RATE SCHEDULE SS-1
                                   (CONTINUED)

certified, or regular mail to the post office address of the parties hereto, as
the case may be, as follows:

                  Pipeline:     Texas Eastern Transmission Corporation
                                5400 Westheimer Court
                                Houston, Texas 77056-5310

                  Customer:     United Cities Gas Company,
                                A Division of Atmos Energy
                                5430 LBJ Freeway
                                Suite 160
                                Dallas, TX 75:240

or such other address as either party shall designate by formal written notice.

                                  ARTICLE VII

                                  ASSIGNMENTS

         Any Company which shall succeed by purchase, merger, or consolidation
to the properties, substantially as an entirety, of Customer, or of Pipeline, as
the case may be, shall be entitled to the rights and shall be subject to the
obligations of its predecessor in title under this Service Agreement; and either
Customer or Pipeline may assign or pledge this Service Agreement under the
provisions of any mortgage, deed of trust, indenture, bank credit agreement,
assignment, receivable sale, or similar instrument which it has executed or may
execute hereafter; otherwise, neither Customer nor Pipeline shall assign this
Service Agreement or any of its rights hereunder unless it first shall have
obtained the consent thereto in writing of the other; provided further, however,
that neither Customer nor Pipeline shall be released from its obligations
hereunder without the consent of the other. In addition, Customer may assign its
rights to capacity pursuant to Section 3.14 of the General Terms and Conditions.
To the extent Customer so desires, when it releases capacity pursuant to Section
3.14 of the General Terms and Conditions, Customer may require privity between
Customer and the Replacement Customer, as further provided in the applicable
Capacity Release Umbrella Agreement.

                                       5                                  400227
<PAGE>

                                SERVICE AGREEMENT
                             FOR RATE SCHEDULE SS-1
                                   (CONTINUED)

                                   ARTICLE IX

                       CANCELLATION OF PRIOR CONTRACT(S)

         This Service Agreement supersedes and cancels, as of the effective date
of this Service Agreement, the contract(s) between the parties hereto as
described below:

         The Addendum to Customer's Capacity Release Umbrella Agreement
         (Pipeline's Contract No. 900483, Pipeline's Capacity Release Deal No.
         016807) which reflects the permanent assignment from Associated to
         Customer of certain of the capacity rights specified in Pipeline's
         Contract No. 400184 dated April 11, 1994.

                                       6                                  400227
<PAGE>

         IN WITNESS WHEREOF, the Parties hereto have caused this Service
Agreement to be signed by their respective Presidents, Vice Presidents, or other
duly authorized agents and their respective corporate seals to be hereto affixed
and attested by their respective Secretaries or Assistant Secretaries, the day
and year first above written.

                                        TEXAS EASTERN TRANSMISSION CORPORATION

                                        By: /s/ GREGORY J. RIZZO
                                            ---------------------------------
                                             Vice President, Marketing      pmr

ATTEST:

/s/ [ILLEGIBLE]
---------------------------------
Assistant Secretary

                                        UNITED CITIES GAS COMPANY,
                                        A DIVISION OF ATMOS ENERGY

                                        By:  /s/ Gordon J. Roy

ATTEST:

<PAGE>

                                                              Contract #: 40022.
                                                                          ------

                    EXHIBIT A, POINT(S) OF DELIVERY, (con't.)
              UNITED CITIES GAS COMPANY, A DIVISION OF ATMOS ENERGY

provided, however, that until changed by a subsequent Agreement between Pipeline
and Customer, Pipeline's aggregate maximum daily delivery obligations at each of
the points of delivery described above, including Pipeline's maximum daily
delivery obligations under this and all other Service Agreements existing
between Pipeline and Customer, shall in no event exceed the following:

<Table>
<Caption>
                                    Aggregate Maximum
Point of Delivery               Daily Delivery Obligation
-----------------               -------------------------
<S>                             <C>
     No. 1                              19,260 dth

     No. 2                               2,595 dth

     No. 3                              18,826 dth for no more than 20 days
                                during the period of November 16
                                through April 15 of each year-otherwise,
                                11,346 dth

     No. 4                                 519 dth
</Table>

SIGNED FOR IDENTIFICATION

PIPELINE:   /s/ GREGORY J. RIZZO        CBA
          -----------------------------

CUSTOMER:   /s/ GORDON J. ROY
          -----------------------------
                                        PJD
          -----------------------------
SUPERSEDES EXHIBIT A DATED:                [ILLEGIBLE]
                            -----------------------------

                                      A-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}]]