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SETTLEMENT AGREEMENT <br />STATEMENT OF INTENT FILED BY ATMOS ENERGY, CORP,, <br />MID-TEX DIVISION ON SEPTEMBER 20, 2007 <br />expenses directly incurred by Atmos in connection with the September 20, 2007 <br />Statement of Intent filed on behalf of its Mid-Tex Division through February 29, 2008, <br />shall be recoverable through a surcharge to customer rates within the ACSC Cities. With <br />respect to the rate case expenses direcdy incurred by Atmos, the amount to be recovered <br />through the surcharge to customers within the ACSC Cities shall be determined on a pro <br />rata basis, consistent with the ACSC Cities' percentage of total Mid-Tex residential load <br />(52%). The surcharge shall be recovered over a twelve month period beginning in April <br />of 2008. <br />18. Within 30 days of the date the last ACSC City ordinance approving this Settlement <br />Agreement is entered, Atmos and the ACSC Cities agree to file a Notice of Non-Suit or <br />Motion to Dismiss, whichever is applicable, in the following proceedings: <br />Cause No. D-1-GN-06-000337 (Consolidated), Atmos .Cities Steering Committee v. The <br />Railroad Commission of Texas, In the 345th District Court, Travis County, Texas. This <br />case includes the following cases: <br />a. Cause No. D-1-GN-06-000333; Atmos Cities Steering Committee v. The <br />Railroad Commission of Texas, In the 345th District Court, Travis County, Texas. <br />b. Cause No. D-1-GN-06-000334; Atmos Cities Steering Committee v. The <br />Railroad Commission of Texas, In the 345th District Court, Travis County, Texas. <br />c. Cause No. D-1-GN-06-000335; Atmos Cities Steering Committee v. The <br />Railroad Commission of Texas, In the 345th District Court, Travis County, Texas. <br />d. Cause No. D-1-GN-06-000336; Atmos Cities Steering Committee v. The <br />Railroad Commission of Texas, In the 345th District Court, Travis County, Texas. <br />e. Cause No. D-1-GN-06-000332; Atmos Cities Steering Committee v. The <br />Railroad Commission of Texas, In the 345th District Court, Travis County, Texas. <br />f. Cause No. D-1-GN-OS-002182; Atmos Cities Steering Committee v. The <br />Railroad Commission of Tezas, In the 345th District Court, Travis County, Texas. <br />g. Cause No. D-1-GN-06-004206; Atmos Cities Steering Committee v. The <br />Railroad Commission of Texas, In the 345th District Court, Travis County, Texas. <br />Cause No. D-1-GN-06-001612; Atmos Cities Steering Committee v. <br />The Railroad <br />Commission of Texas, In the 345th District Court, Travis County, Texas. <br />Cause No. D-1-GN-06-001852; Atmos Cities Steering Committee v. <br />The Railroad <br />Commission of Texas, In the 345th District Court, Travis County, Texas. <br />Cause No. D-1-GV-06-000603; Atmos Cities Steering Committee v. <br />The Railroad <br />Commission of Texas, In the 345th District Court, Travis County, Texas. <br />Cause No. D-1-GV-06-000605; Atmos Cities Steering Committee v. <br />The Railroad <br />Commission of Texas, In the 345th District Court, Travis County, Texas. <br />S <br />