Exhibit 10b

(LETTERHEAD OF TENNESSEE GAS PIPELINE/TENNECO ENERGY APPEARS HERE)


December 14, 1995


Chattanooga Gas Company
303 Peachtree Street
Atlanta, GA  30308-4239
Attn:  Debbie McNeely

Dear Debbie:

This letter sets forth our agreement with respect to the amendments of the
Firm Storage Agreements No. 2027 and 3999 between Tennessee Gas Pipeline
(TGP) and Chattanooga Gas Company (the "Parties").  Our agreement is as
follows:

1.  The Agreement No. 3999 is hereby amended to increase the Maximum Storage
    Quantity (MSQ) by 1,845,000 Dth effective January 1, 1996.

2.  The Agreement No. 3999 is hereby amended to increase the Maximum Daily
    Withdrawal (MDQ) on meter number 07-0020 (TGP-Portland Storage
    Withdrawal) by 12,300 Dth/d effective January 1, 1996.

3.  The Agreement No. 3999 is hereby amended to increase the Maximum Daily
    Injection (MDI) on meter number 06-0020 (TGP-Portland Storage Injection)
    by 12,300 Dth/d effective January 1, 1996.

4.  The Agreement No. 2027 is hereby terminated effective December 31, 1995.

Please acknowledge your acceptance of the amendments by signing below and
returning to my attention the duplicate originals of the letter.  Upon
execution by TGP, an original will be forwarded to your for your files.

Sincerely,

/s/ Craig S. Harris
Craig S. Harris
Sr. Customer Service Representative



TENNESSEE GAS PIPELINE

By:  /s/ L. G. Williams
     Director, Transportation Services
     Central Region


ATLANTA GAS LIGHT COMPANY

By:  /s/ Steven J. Gunther
Date:  December 19, 1995