EXHIBIT 99.2 



   [ATMOS ENERGY CORPORATION LETTERHEAD AND LOGO APPEAR HERE]


                          NEWS RELEASE

DATE:  March 19, 1997                   ATMOS MEDIA CONTACT:
                                        Margaret Watson
                                        (972)855-4050

FOR RELEASE:  IMMEDIATELY               ANALYST/INVESTOR CONTACT:
                                        Jack Eversull
                                        (972)855-3729


     ATMOS ENERGY CORPORATION PLANS TO ENHANCE ITS CUSTOMER
                       SERVICE OPERATIONS

Dallas, Texas - Atmos Energy Corporation (NYSE:  ATO) announced
today plans to enhance its customer service operations by setting
up a network of payment centers throughout its service areas and
establishing a central customer support call center.  "These
changes are being made to enhance customer service and to ensure
that the company can continue to compete and perform well in the
future," said Charles Goodman, Atmos' executive vice president of
operations.

Goodman said, "The company's future competitiveness depends on
making these types of changes.  Many other utilities have already
started their own central customer support call centers and have
achieved the added efficiencies which are available through new
technologies.  This plan will provide opportunities to capitalize
on Atmos' strengths and position the company for future growth."

The payment centers are to be provided by a national vendor, and
located in local businesses such as convenience stores and
supermarkets, providing customers with longer hours and weekends
to pay their bills.  The payment centers should be in place by
early summer.  "We want to make it as convenient as possible for
our customers to do business with our company," said Goodman.

Atmos also plans to open a central customer support call center
by early 1998. The company expects to staff the customer support
call center with about 130 employees.  Goodman said there will be
a net reduction of approximately 240 positions by these business
process changes over the next 12 months as business office
operations are restructured, customer support call centers are
staffed and new operating practices are implemented.  The
company's 108 business offices will be closed for routine
business traffic; however, approximately 77 service centers will
remain in the communities.  Employees who are displaced by these
business changes will be eligible for a competitive package of
severance benefits. The company anticipates that severance
benefits and other expenses related to these customer service
enhancements will be recognized during this fiscal year. In 
fiscal year 1998 and in future years, the company expects to
realize significant cost savings as a result of these changes.

Atmos Energy Corporation provides natural gas service to more
than 680,000 customers in Texas, Colorado, Kansas, Missouri,
Louisiana and Kentucky through its operating companies - Energas
Company, Greeley Gas Company, Trans Louisiana Gas Company and
Western Kentucky Gas Company.

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