Document:

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                                EXHIBIT 10.16(b)

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                              THROUGHPUT AGREEMENT

       This Throughput Agreement is being executed and entered into by Tengasco
Pipeline Corporation ("TPC"), and Edward W. T. Gray, III ("Gray") this 16 day of
August, 2000.

       Pursuant to that certain Loan Agreement between TPC and Edward W. T.
Gray, III dated as of August 16, 2000, and related documents as the same may be
amended from time to time ("Loan Agreement"), Gray and other similarly situated
persons are making available to TPC, a wholly owned subsidiary of Tengasco,
Inc., a loan in the aggregate principal amount of 5.6 million dollars, a portion
of which is being loaned by Gray and that portion being referred to herein as
the "Loan," to provide financing for the construction of TPC's Swan
Creek-Kingsport natural gas pipeline ("Pipeline"). As an additional
consideration for Gray's agreement to make the Loan to TPC, TPC has agreed that
Gray shall be entitled to participate in the revenue associated with the
operation of the Pipeline to the extent described in this Agreement.

       NOW, THEREFORE, in consideration of the premises, and for other good and
valuable consideration, the receipt and sufficiency of which are acknowledged
hereby, TPC agrees as follows:

       Throughput Revenue Participation. Effective as of the commencement of
operations by the Pipeline, and each month thereafter until the Loan is paid in
full, TPC shall be liable for the payment to Gray of Gray's Proportional Part of
a total Throughput Fee of ten cents ($0.10) per MMBtu of natural gas delivered
through the Pipeline. The Proportional Part of the total ten-cent Throughput Fee
that Gray entitled to receive under this Agreement is that portion of the
ten-cent fee equal to the ratio of the Loan being made by Gray to the total of
all amounts loaned to TPC for this pipeline financing, currently $5.6.million.
The volumes delivered through the Pipeline shall be determined on a monthly
basis and shall equal the sum of all volumes delivered at delivery points on the
pipeline, net of line losses and fuel.

       Default. In the event of any failure by TPC to perform, or cause the
performance of, any of its obligations under this Agreement, in addition to any
and all other remedies available to Gray under this Agreement, the failure will
constitute an Event of Default under the Loan Agreement.

       Enforcement Action. In the event Gray is required to take legal action
against TPC to enforce their right to any payments due under this Agreement or
to enforce the performance by TPC of any other obligations under this Agreement,
Gray shall be entitled to recover from TPC all of the costs and expenses of such
legal action including without limitation attorneys fees and court costs.

       Term. Unless earlier terminated by Gray in its sole discretion, this
Agreement shall continue in full force and effect for so long as the Loan
remains unpaid. When at any time the Loan is paid, this Agreement shall
terminate without any further action by TPC or by Gray and Gray shall release
all liens upon the Pipeline in accordance with the Loan Agreement.

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       Notices and Payments. Unless changed by written notice, all payments,
volume information, notices or other communications to Gray shall be sent to the
following address:

             3 New Street
             Remsenburg, NY 11960

       Miscellaneous.

       (a) Successors. The provisions of this Agreement shall be binding upon
       and shall inure to the benefit of the parties hereto and their respective
       legal representatives, successors, and assigns. Gray may not assign this
       Agreement without written consent of TPC, which consent may not be
       unreasonably withheld.

       (b) Rights Cumulative; No Waiver. The rights granted Gray under this
       Agreement or the Loan Agreement or allowed by law or equity shall be
       cumulative and may be exercised at any time and from time to time. No
       failure on the part of Gray to exercise, and no delay in exercising, any
       right shall be construed or deemed to be a waiver thereof, nor shall any
       single or partial exercise by Gray of any right preclude any other future
       exercise thereof or the exercise of any other right.

       (c) Severance. If any provision of this Agreement or any application of
       any provision shall have been declared invalid, illegal or unenforceable
       by any court or agency of competent jurisdiction, such declaration shall
       not affect or impair the validity, legality and enforceability of any
       other provisions of this Agreement or of the Loan Agreement or any other
       application of such provisions.

       (d) Amendment. This Agreement may not be amended, modified or changed,
       nor shall any waiver of any provision hereof be effective, except by an
       instrument in writing signed by the party against whom enforcement of the
       amendment, modification, change, or waiver is sought.

       (e) Choice of Law. This Agreement shall be governed by and construed in
       accordance with the laws of the State of Tennessee.

       (f) Interpretation. All terms not otherwise defined in this Agreement
       shall have the meanings ascribed to them in the Loan Agreement.

       (g) Counterparts. This document may be executed in counterparts, all of
       which executed counterparts shall together constitute a single document.
       Signature and acknowledgment pages may be detached from the counterparts
       and attached to a single copy of this document to physically form one
       document.

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       IN WITNESS WHERE0F, Gray and TPC have executed this Agreement as of the
       day and year first above written.

                                         TENGASCO PIPELINE CORPORATION

                                         BY: /s/ Robert M. Carter
                                            ------------------------------------
                                               Robert M. Carter, President

                                        /s/ Edward W. P. Gray
                                        ----------------------------------------
                                        Edward W. P. Gray

                                       3<PAGE>

                                 EXHIBIT 10.17

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                                 LOAN AGREEMENT

       LOAN AGREEMENT, dated August 16, 2000 between Tengasco Pipeline
Corporation, a Tennessee corporation, ("Borrower"), and M. E. Ratliff
("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 $2,000,000 to
       be made available as follows: $250,000 on August 16, 2000 and the
       remainder to be made available as follows: $250,000 on August 31, 2000
       and $1.5 million on November 15, 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:

                          603 Main Avenue, Suite 500
                          Knoxville, TN 37902

       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:

                   603 Main Avenue, Suite 500
                   Knoxville, TN 37902

       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/ M. E. Ratliff
                                     -----------------------------------------
                                           M. E. Ratliff

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