Phone: (405) 522-2100, FAX: (405) 522-1623, www.occ.state.ok.us

The public utility staff of the Oklahoma Corporation Commission along with ONEOK, Incorporated and its subsidiaries of Oklahoma Natural Gas Company (ONG) and Kansas Gas Service Company (KGS), have reached a negotiated settlement of a number of interim issues on rates, unbundling of assets and competitive bidding for gas services.

The terms of the stipulated agreement must still be approved by the Commissioners en banc before they are implemented.

The agreement consolidates two ongoing rate cases and provides for an interim rate reduction for Oklahoma customers of ONG and KGS of $5 million on an annual basis to be effective with the first billing cycle in September, 1999. A final order establishing permanent rates is expected next spring.

In addition to the rate reduction for Oklahoma customers and a timetable for the unbundling process, ONEOK agrees to dismiss its Oklahoma Supreme Court appeal of the Commission’s unbundling orders and rules after orders in the consolidated rate case become final.

Settlement terms call for new effective dates for ONG’s competitive bidding for gas supplies and transmission service beginning November 1, 1999 and November 1, 2000 respectively.

Also contained in the agreement are procedures and timetables for setting permanent rates and the identification and designation of ONEOK assets for the transmission, distribution, gathering and storage of natural gas and the process as outlined under OCC rules for obtaining the deregulation of gathering and storage assets.

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