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ONEOK: AGREEMENT REACHED ON TAKE-OR-PAY SETTLEMENT RECOVERY

 TULSA, Okla., Oct. 21 /PRNewswire/ -- ONEOK Inc. (NYSE: OKE) said today that its utility division, Oklahoma Natural Gas Company, has reached a negotiated agreement that defines how Oklahoma Natural can recover the remaining costs of settling past take-or-pay disputes. The agreement requires approval by the Oklahoma Corporation Commission in a hearing to be scheduled in the latter part of November.
 Details are in a stipulation and settlement agreement filed with the Commission by Oklahoma Natural, the corporation commission staff and the state Attorney General's office. The agreement carries their joint recommendation that the regulatory body accept it because "this stipulation represents a reasonable settlement of the issues and thereby serves the public interest."
 Filing of the proposal effectively removes the take-or-pay settlement issue from the Oklahoma Natural rate increase request on which the commission will commence public hearings Monday (October 25). ONG, which filed the original application nearly two years ago, now will seek about $50 million in increased rates. The commission granted the company an interim rate increase of $18.2 million, in March 1992, subject to possible refund.
 The take-or-pay stipulation and settlement agreement defines the basic amortization rate as $6.7 million per year, and anticipates recovery over a period of approximately 20 years.
 The agreement establishes a surcharge on customers' bills that will vary according to how much revenue Oklahoma Natural receives from gas it transports for others. Based on current levels of transportation revenue, the initial charge will be 1.7 cents per thousand cubic feet (Mcf) of gas on all Mcf sold by the company, or roughly $1.50 per year for the typical residential customer using about 90 Mcf in a year with a normally cold winter.
 -0- 10/21/93
 /CONTACT: Walt Radmilovich, Weldon Watson, or Jerry Neal of ONEOK Inc. 918-588-7000/
 (OKE)


CO: ONEOK, Inc. ST: Oklahoma IN: OIL SU:

TM -- NY127 -- 2157 10/21/93 17:58 EDT
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Publication:PR Newswire
Date:Oct 21, 1993
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