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ATTACHMENT A
<br />STATEMENT OF INTENT FILED BY ATMOS ENERGY, CORP., MID-TEX DIVISION
<br />ON SEPTEMBER 20, 2007
<br />SETTLEMENT AGREEMENT
<br />This Settlement Agreement is entered into by and between Atmos Energy Corp.("Atmos"
<br />or "the Company") and the Atmos Cities Steering Committee ("ACSC"), whose members
<br />include the Cities of Abilene, Addison, Allen, Alvarado, Angus, Anna, Argyle, Arlington,
<br />Bedford, Bellmead, Benbrook, Beverly Hills, Blue Ridge, Bowie, Boyd, Bridgeport,
<br />Brownwood, Buffalo, Burkburnett, Burleson, Caddo Mills, Carrollton, Cedar Hill, Celeste,
<br />Celina, Cisco, Cleburne, Clyde, College Station, Colleyville, Colorado City, Comanche,
<br />Coolidge, Coppell, Corinth, Corral City, Crandall, Crowley, Dalworthington Gardens, Denison,
<br />DeSoto, Duncanville, Eastland, Edgecliff Village, Emory, Ennis, Euless, Everman, Fairview,
<br />Farmers Branch, Farmersville, Fate, Flower Mound, Forest Hill, Fort Worth, Frisco, Frost,
<br />Gainesville, Gazland, Garrett, Crrand Prairie, Grapevine, Haltom City, Harker Heights, Haskell,
<br />Haslet, Heath, Hewitt, Highland Park, Highland Village, Honey Grove, Hurst, Iowa Park, Irving,
<br />Justin, Kaufman, Keene, Keller, Kemp, Kennedale, Kerrville, Killeen, Krum, Lakeside, Lake
<br />Worth, Lancaster, Lewisville, Lincoln Park, Little Elm, Malakoff, Mansfield, McKinney,
<br />Melissa, Mesquite, Midlothian, Murphy, Newark, Nocona, North Richland Hills, Northlake, Oa1c
<br />Leaf, Ovilla, Palestine, Pantego, Paris, Parker, Pecan Hill, Plano, Ponder, Pottsboro, Prosper,
<br />Putnam, Quitman, Red Oak, Reno (Parker County), Richardson, Richland Hills, Roanoke,
<br />Robinson, Rockwall, Roscoe, Rowlett, Sachse, Saginaw, Seagoville, Sherman, Snyder,
<br />Southlake, Springtown, Stamford, Stephenville, Sulphur Springs, Sweetwater, Temple, Terrell,
<br />The Colony, Throckmorton, Tyler, University Park, Venus, Vernon, Waco, Watauga,
<br />Waxahachie, Westlake, Westworth Village, Whitesboro, White Settlement, Wichita Falls,
<br />Woodway, and Wylie (collectively "ACSC Cities").
<br />WHEREAS, the Settlement Agreement resolves all issues relating to the Atmos Energy
<br />Corp., Mid-Tex Division Statement of Intent filed with the ACSC Cities on September 20, 2007,
<br />in a manner that Atmos and ACSC ("the Signatories") believe is consistent with the public
<br />interest, and the Signatories represent diverse interests;
<br />WHEREAS, the Signatories believe that a fully contested hearing in the case would be
<br />time-consuming and entail substantial additional expense for all parties and that the public
<br />interest will be served by adoption of an ordinance consistent with the Settlement Agreement;
<br />NOW, THEREFORE, in consideration of the mutual agreements and covenants
<br />established herein, the Signatories, through their undersigned representatives, agree to and
<br />recommend for approval by the ACSC Cities the following Settlement Terms as a means of fully
<br />resolving all issues raised in the September 20, 2007 Statement of Intent filed by Atmos on
<br />behalf of its Mid-Tex division:
<br />Settlement Terms
<br />1. Atmos and the ACSC Cities agree to the rates, terms and conditions reflected in the
<br />tariffs attached to this Settlement Agreement as Exhibit A. Said tariffs should allow
<br />Atmos an additional $10 million in annual revenue by implementation of rates shown in
<br />. . _ . . . . _ , . . . . . . . . . . . . _...T_ . . , . . . .
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