05-C1 ATMOS Cities Settlement Agreement

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SETTLEMENT AGREEMENT STATEMENT OF INTENT FILED BY ATMOS ENERGY, CORP., MID-TEX DIVISION ON SEPTEMBER 20, 2007 Cause No. D-1-GN-06-004518; Atmos Cities Steering Committee v. The Railroad Commission of Texas, In the 345th District Court, Travis County, Texas. Cause Number: 03-06-00580-CV; Atmos Energy Corporation, as successor by merger to TXU Gas Company, Allied Coalition of Cities, and Ciry of Dallas v. Railroad Commission of Texas; In the Third District Court of Appeals at Austin, Texas. Cause No. D-1-GN-07-002871, Atmos Cities Steering Committee v. Railroad Commission of Texas, In the 53rd District Court, Travis County, Texas. Cause No. D-1-GN-07-002796, Atmos Energy Corporation v. Railroad Commission of Texas, In the 250th District Court, Travis County, Texas. Cause No. GV5-00875; Allied Coalition of Cities v. The Railroad Commission of Tezas, In the 345th District Court, Travis County, Texas. 19. Atmos and the ACSC Cities agree that Atmos may make all future filings, including, but not limited to, the annual RRM adjustment and any Statement of Intent filing with the ACSC Cities on an electronic basis, rather than by paper copy. Electronic Filings shall fulfill the requirements of TEx. UTIL. CODE § 104.103. The appropriate ACSC Cities representative sha11 provide a list of the ACSC Cities to Atmos by March 1, 2008, and agrees to notify Atmos of any change in the ACSC Cities Coalition within 30 days of the effective date of any such change in order for Atmos to maintain adequate service records. Atmos further agrees to make paper copies of filings available to any ACSC City that requests a copy. 20. Atmos and the ACSC Cities agree that the ACSC Cities should pass ordinances approving the Settlement Agreement and establish rates and services for the ACSC Cities consistent with those set forth in Exhibit A to this Settlement Agreement. 21. The Signatories agree that the terms of the Settlement Agreement aze interdependent and indivisible, and that if any ACSC City enters an order that is inconsistent with this Settlement Agreement, then any Signatory may withdraw without being deemed to have waived any procedural right or to have taken any substantive position on any fact or issue by viriue of that Signatory's entry into the Settlement Agreement or its subsequent withdrawal. 22. The Signatories agree that all negotiations, discussions and conferences related to the Settlement Agreement are privileged, inadmissible, and not relevant to prove any issues associated with the September 20, 2007 Statement of Intent filed by Atrnos on behalf of its Mid-Tex Division pursuant to Texas law. 23. The Signatories agree that neither this Settlement Agreement nor any oral or written statements made during the course of settlement negotiations may be used for any purpose other than as necessary to support the entry by the ACSC Cities of an order implementing this Settlement Agreement. 6