<SEC-DOCUMENT>0001193125-13-448837.txt : 20140225
<SEC-HEADER>0001193125-13-448837.hdr.sgml : 20140225
<ACCEPTANCE-DATETIME>20131120203336
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-13-448837
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20131120

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ONE Gas, Inc.
		CENTRAL INDEX KEY:			0001587732
		STANDARD INDUSTRIAL CLASSIFICATION:	NATURAL GAS DISTRIBUTION [4924]
		IRS NUMBER:				463561936
		STATE OF INCORPORATION:			OK
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		100 WEST 5TH STREET
		CITY:			TULSA
		STATE:			OK
		ZIP:			74103
		BUSINESS PHONE:		918-588-7000

	MAIL ADDRESS:	
		STREET 1:		100 WEST 5TH STREET
		CITY:			TULSA
		STATE:			OK
		ZIP:			74103
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML><HEAD>
<TITLE>SEC Response Letter</TITLE>
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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><I>ONE Gas, Inc. </I></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">November&nbsp;20, 2013 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Mara L. Ransom </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Assistant Director </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Division of Corporation Finance </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">United States Securities and Exchange Commission </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">100 F. Street, NE </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Washington, DC 20549-0404
</FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Re:</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>ONE Gas, Inc. </B></FONT></TD></TR></TABLE>
<P STYLE="margin-top:0px;margin-bottom:0px; margin-left:13%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Registration Statement on Form 10-12B </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:13%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>Filed October 1, 2013 </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:13%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>File No. 001-36108 </B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Dear Ms.&nbsp;Ransom: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">This
letter is to respond to the Securities and Exchange Commission Staff&#146;s letter of comment dated October&nbsp;30, 2013, concerning the referenced filing of ONE Gas, Inc. (&#147;ONE Gas&#148;). </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>General </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>1.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Please provide all information required by Form 10, including filing the required exhibits, and complete all blanks in the information statement, subject to
applicable exemptions. Please confirm to us your understanding that we will require sufficient time to review such information before accelerating the effectiveness of the registration statement. </I></FONT></TD></TR></TABLE>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> We will include information currently omitted from the Form 10 in future amendments as we finalize decisions relating to the separation
and distribution. Please note that we have filed a number of exhibits with Amendment No.&nbsp;1 to the Form 10. We confirm our understanding that the Staff will require sufficient time to review the information before accelerating the effectiveness
of the Form 10. </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>2.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Please provide disclosure required by Item&nbsp;9 of Form 10 and Item&nbsp;201(a)(2) of Regulation S-K. </I></FONT></TD></TR></TABLE>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> The Information Statement has been revised on pages 45, 51 and 114 to disclose the information required by Item&nbsp;9 of Form 10 and
Item&nbsp;201(a)(2) fo Regulation S-K. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Exhibit 99.1 &#150; Preliminary Information Statement of ONE Gas, Inc., subject to completion, dated
October&nbsp;1, 2013 </U></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Summary, page 1 </U></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><U>Our Strategy, page 5 </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>3.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Please elaborate upon the strategies that you discuss under the header of &#147;Increase Our Achieved ROE&#148; to explain how these strategies will achieve your
stated business objective. </I></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> This section of the Information Statement has been revised on pages 5 and 81 to
explain how the strategies discussed under the header of &#147;Increase Our Achieved ROE&#148; will achieve our stated business objective. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>The Separation, page 7 </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>4.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Please expand the disclosure in your Information Statement to describe the material assets and liabilities that will be transferred to you by ONEOK.
</I></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> This section of the Information Statement has been revised on pages 7, 12, 58, F-2 and F-7 to describe the
material assets and liabilities that will be transferred to us by ONEOK.<B> </B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>5.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>As a related matter, please tell us how you arrived at the amount of the distribution to be paid to ONEOK. </I></FONT></TD></TR></TABLE>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response: </B>The amount of the cash distribution to be paid to ONEOK was determined after consideration of several factors, including the resulting
capital structures, anticipated credit ratings and existing levels of debt at both ONEOK and ONE Gas. ONE Gas&#146; capital structure was designed to obtain investment grade credit ratings higher than the current credit ratings of ONEOK and similar
to those of its natural gas utility peers and to provide ONE Gas with the financial flexibility to maintain its current level of operations and to continue to invest in its natural gas distribution system. The cash distribution to be paid to ONEOK
is expected to allow ONEOK to reduce its existing debt and obtain credit ratings similar to or higher than its general partner peers. The tax basis of the assets to be transferred to ONE Gas was also considered because any amount distributed to
ONEOK in excess of such tax basis would generally be subject to income tax unless more complex financing arrangements were entered into. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">This
section of the Information Statement has been revised on pages 7 and 46 to explain how we arrived at the amount of the distribution to be paid to ONEOK. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><U>What are the U.S. federal income tax consequences of the distribution?, page 13 </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>6.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Please disclose here, as you do elsewhere, that these conditions are waivable by ONEOK. </I></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>Response: </B>This section of the Information Statement has been revised on page 15 to disclose that the conditions to closing can be waived by ONEOK. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Terms of the Separation, page 17 </U></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><U>Conditions to the distribution, page 18 </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>7.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>We note your statement that the conditions listed are subject to the satisfaction or, if permissible under the Separation and Distribution Agreement, waiver by
ONEOK. We further note that the conditions that must be met or waived include that the SEC has declared effective your registration statement on Form 10 and that you have mailed the Information Statement to the holders of ONEOK&#146;s common stock.
Please confirm to us your understanding that such conditions must be satisfied for you and ONEOK to rely on our position set forth in Staff Legal Bulletin No.&nbsp;4. </I></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>Response: </B>We anticipate that the Form 10 will have been declared effective and the Information Statement will have been mailed to the holders of ONEOK&#146;s common stock prior to completion of the
distribution. We understand that these conditions must be satisfied in order for us and ONEOK to rely on Staff Legal Bulletin No.&nbsp;4. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>ONE Gas Debt, page 19 </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>8.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Where you discuss the amount of debt to be incurred in connection with the separation, please also disclose the amount of existing debt that will continue to be held
by you. Specifically, please disclose the amounts outstanding under the long-term line of credit and the short-term note due to ONEOK and the impact the separation will have on those amounts due. </I></FONT></TD></TR></TABLE>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response: </B>This section of the Information Statement has been revised on page 20 to disclose the amounts outstanding under the short-term note
payable to ONEOK and the long-term line of credit with ONEOK and the impact the separation will have on those amounts due. Existing debt that will continue to be owed by ONE Gas after the separation totaled $1.5 million at September&nbsp;30, 2013,
which we believe is not material for specific disclosure. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Risk Factors, page 24 </U></FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>9.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Please delete the second to last sentence of the first paragraph under this heading, which suggests that other unknown or immaterial risks may also adversely affect
your business. All material risks should be described in your disclosure. If risks are not deemed material, you should not reference them. </I></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> The Information Statement has been revised on page 26 to delete this sentence. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>The Separation, page 42 </U></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Incurrence
of Debt, page 44 </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>10.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>We note your disclosure regarding the indebtedness you expect to incur in connection with the separation and the subsequent debt exchange by ONEOK. Please revise
your disclosure to explain briefly how the financial terms of the separation were determined, including the financing arrangements. </I></FONT></TD></TR></TABLE>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response: </B>Please see response to comment number 5 above for the factors considered in determining the
amount of debt to be incurred by ONE Gas and the cash distribution to be paid to ONEOK. This section of the Information Statement has been revised on pages 7 and 46 to explain how the financial terms of the separation were determined, including the
financing arrangements. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Certain U.S. Federal Income Tax Consequences of the Distribution, page 44 </U></FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>11.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>We note that the condition of ONEOK&#146;s receipt of an IRS private letter ruling may be waived by ONEOK. If ONEOK waives such condition and the change in tax
consequences is material to ONEOK&#146;s shareholders, please tell us how ONEOK intends to communicate such change in tax consequences to its shareholders. </I></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>Response: </B>We anticipate that ONEOK will receive an IRS private letter ruling prior to the Form 10 becoming effective. In the event ONEOK does not receive a letter and waives this condition prior to
the Form 10 becoming effective, we will update the Form 10 with future amendments. In the event ONEOK waives this condition after the Form 10 becomes effective and this change is material to ONEOK&#146;s shareholders, we would communicate such
change in the tax consequences to ONEOK&#146;s shareholders by a means that we and ONEOK believe is reasonably designed to communicate such change to ONEOK&#146;s and our shareholders, such as by each of ONEOK and us filing a Form 8-K describing the
change, or if we and ONEOK deem necessary, by amending the Information Statement that forms a part of the Form 10 and providing such amended information to ONEOK&#146;s and our shareholders, as applicable. </FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>12.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>We note the statement at the bottom of page 41 that you undertake no obligation to publicly update or revise any forward-looking statements. We also note the
forward-looking statement that ONEOK expects to receive a tax opinion from its tax counsel. If ONEOK has not received the tax opinion on the date of the Information Statement, does not obtain the tax opinion prior to the distribution, and the change
in tax consequences is material to ONEOK&#146;s shareholders, then please tell us how ONEOK intends to communicate such change in tax consequences to its shareholders. </I></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>Response: </B>We anticipate receiving a tax opinion from our tax counsel prior to the closing of the spin-off transaction. In the event this changes prior to the Form 10 becoming effective, we will
notify ONEOK&#146;s shareholders through an amendment to the Form 10. In the event this changes after the Form 10 becomes effective and this change is material to ONEOK&#146;s shareholders, we would communicate such change in tax consequences to
ONEOK&#146;s shareholders by a means that we and ONEOK believe is reasonably designed to communicate such change to ONEOK&#146;s and our shareholders, such as by each of ONEOK and us filing a Form 8-K describing the change, or if we and ONEOK deem
necessary, by amending the Information Statement that forms a part of the Form 10 and providing such amended information to ONEOK&#146;s and our shareholders, as applicable. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><U>Conditions to the Distribution, page 48 </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>13.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Please disclose any material termination fees should ONEOK cancel the distribution. </I></FONT></TD></TR></TABLE>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response: </B>We do not anticipate there being any material termination fees should ONEOK cancel the
distribution. We also respectfully submit that, in any event, such termination fees would not be material to ONE Gas because the Information Statement is designed to disclose information about our company assuming the completion of the distribution
and its impact on future ONE Gas shareholders. However, we have been informed by ONEOK that, if ONEOK were to terminate its plans to complete the distribution, ONEOK would anticipate that it would timely disclose to its shareholders any information
regarding its decision that is material to its shareholders. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Dividend Policy, page 51 </U></FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>14.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Please update your disclosure to include any dividend restrictions pursuant to your new debt agreements, once known. </I></FONT></TD></TR></TABLE>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> We do not anticipate that our debt agreements will contain dividend restrictions beyond general compliance with law. We expect a
requirement to maintain certain debt to capital ratios. We have revised the disclosure on pages 54, 66 and 67 of the Information Statement to provide additional details of factors we anticipate the board of directors may consider when declaring
dividends in the future. We will update the disclosure in the event that our debt agreements contain dividend restrictions. </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>15.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Considering it would appear that ONEOK, Inc. has previously declared dividends, disclose this fact and explain how such amounts were determined with a view to
explaining whether any amounts you might pay would be based upon similar or different considerations. Clarify whether ONEOK has historically had sufficient earnings to pay dividends or whether they used borrowings. Discuss these assumptions and
considerations in your Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations as well, to the extent that they represent known material trends, demands, commitments, and uncertainties or are otherwise material to
an understanding of your business, results of operations and financial condition. </I></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response: </B>Following the
distribution, we anticipate that our board of directors will establish dividend practices that are independent of ONEOK&#146;s historic dividend practices. Accordingly, we respectfully submit that information regarding ONEOK&#146;s historic dividend
practices is not material to our shareholders. We anticipate that in determining our future dividend practices, our board will consider factors that they believe are appropriate for a natural gas distribution company and similar to our peer group.
The Information Statement has been revised on pages 54, 66 and 67 in response to the Staff&#146;s comment. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Selected Historical and Pro
Forma Financial Data, page 53 </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>16.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Please revise to disclose pro forma earnings per share. In doing so, please provide a footnote explaining why you do not present earnings per share for the
historical periods. </I></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response: </B>This section of the Information Statement has been revised on page 57 to disclose pro
forma earnings per share. The disclosure in Amendment No.&nbsp;1 is blank and will be updated upon determination of the distribution ratio. We have also added a footnote explaining why we do not present earnings per share for the historical periods.
</FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations, page 54
</U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>17.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Please include an introduction or overview providing a balanced, executive level discussion that identifies the most significant matters with which management is
concerned in evaluating your financial condition and results of operations. This discussion should: </I></FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="9%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>&#149;</I></FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Include economic or industry-wide factors relevant to your business, such as the price of natural gas; </I></FONT></P></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="9%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>&#149;</I></FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Serve to inform readers about how you earn revenues and income and generate cash; </I></FONT></P></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="9%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>&#149;</I></FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Provide insight into material opportunities, challenges and risks such as those presented by known material trends and uncertainties, like those
arising as a result of environmental legislation; and </I></FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="9%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>&#149;</I></FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Identify material demands, commitments, events or uncertainties that will have, or are reasonably likely to have, a material impact on your
financial condition, operating performance, revenues and/or income, or result in your liquidity decreasing or increasing in any material way and provide additional information about the quality and variability of your earnings and cash flows so that
investors can ascertain the likelihood of the extent past performance is indicative of future performance by discussing, as an example only, weather-related trends. </I></FONT></P></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>Response: </B>The Information Statement has been revised on page 59 in response to the Staff&#146;s comment. </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>18.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Please expand your discussion of capital expenditures to disclose how much you have spent and anticipate spending in 2013 and how you intend to finance such
expenditures following the spin-off. </I></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> This section of the Information Statement has been revised on pages
62 and 66 to disclose how much we anticipate spending in 2013 and how we intend to finance capital expenditures following the separation. Actual capital expenditures are included in the tables on pages 61 and 63. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Financial Results and Operating Information </U></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><U>Six Months Over Six Months Results of Operations, page 56 </U></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Year-Over-Year Results of
Operations, page 59 </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>19.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>You present amounts for fixed and variable margin within your schedule of Net Margin, Excluding Other Revenues on pages 57 and 59. Please tell us and disclose what
these amounts are comprised of, how they assist you in analyzing the results of operations, and what information you believe a reader should be aware of based on your analyses. </I></FONT></TD></TR></TABLE>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> Fixed margin reflects the portion of our net margin on natural gas sales attributable to the monthly fixed customer charge component of
our rates, which does not fluctuate with customer usage in each period. Variable margin reflects the portion of our net margin that fluctuates with the volumes delivered and billed, which includes volumetric delivery charges and charges for riders,
surcharges and other regulatory mechanisms associated with the services we provide. We believe that the combination of the significant residential component of our customer base, the fixed charge component of our sales margin and our regulatory rate
mechanisms in place result in a stable cash flow profile. This section of the Information Statement has been revised on pages 62 and 64 in response to the Staff&#146;s comment. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><U>Contractual Obligations, page 65 </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>20.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>You disclose within footnote (a)&nbsp;of your contractual obligations table that you have excluded fixed-price contracts for firm transportation and storage
capacity, as well as fixed- and variable-price natural gas purchase commitments as they are recoverable through rates. Item&nbsp;303(A)(5)(i) of Regulation S-K permits the disaggregation of the categories of contractual obligations, but the
presentation must include all obligations of a registrant that fall within the categories specified therein. If our understanding that the aforementioned contracts and commitments fall within the categories of Item&nbsp;303(A)(5) is correct, please
revise to include the related expected payments due for each period presented. If our understanding is incorrect, please advise. </I></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> We have revised the contractual obligations table in the Information Statement on page 70 to include disclosure of fixed-price contracts for firm transportation and storage capacity and
fixed- and variable-price natural gas purchase commitments. </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>21.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Based on the amounts seen in your financial statements, it appears your schedule of contractual obligations does not include interest on long-term obligations. To
the extent these are a material cash commitment, please revise to include them. Interest may be disclosed in a footnote to this table provided that you use the same periods seen in the table. </I></FONT></TD></TR></TABLE>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> We have revised the contractual obligations in the Information Statement on page 70 to include disclosure of interest on long-term
obligations. </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>22.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Please tell us how you considered expected contributions to fund benefit plan obligations for inclusion within your disclosure of contractual obligations. These
amounts may be included within the table or disclosed in a footnote to the table. </I></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> We have revised the
contractual obligations in the Information Statement on page 70 to discuss expected contributions to fund benefit plan obligations. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Competitive Benchmarking, page 94 </U></FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>23.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Please describe the &#147;Committee&#146;s established parameters&#148; referenced in the second to last and last paragraphs on page&nbsp;94.
</I></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> The Information Statement has been revised on page 101 in response to the Staff&#146;s comment.
</FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Determination of Compensation &#150; Historical, page 97 </U></FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>24.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>We note that ONEOK&#146;s Compensation Committee made a subjective determination of the achievement of the individual performance criteria described on page 95 and
internal equity considerations to award compensation to certain named executive officers in fiscal 2012. Please clarify what the Committee considered in making its determination, why they took into account those particular performance measures, and
whether you would expect ONE Gas&#146;s Compensation Committee to similarly take such measures into account. </I></FONT></TD></TR></TABLE>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> The Information Statement has been revised on pages 105 and 109 in response to the Staff&#146;s comment. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Certain Relationships and Related-Party Transactions, page 107 </U></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><U>Agreements with ONEOK, page 107 </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>25.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>We note your disclosure that the terms of the agreements that will be in effect following the distribution have not yet been finalized. Please tell us how ONEOK
intends to communicate any such material changes to its shareholders. </I></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> We anticipate filing substantially
complete versions of the agreements containing all material terms as exhibits to the Form 10 prior to the Form 10 becoming effective, and we have filed a number of these agreements as exhibits to Amendment No.&nbsp;1 to the Form 10. We will also
disclose any material changes to ONEOK&#146;s shareholders through an amendment to the Form 10. We further intend to file final versions of the agreements as exhibits to a Form 8-K. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><U>Description of ONE Gas Capital Stock, page 115 </U></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Other Rights, page 115 </U></FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>26.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>We note your statement that &#147;[u]pon completion of the distribution, all of the outstanding shares of common stock will be validly issued, fully paid and
non-assessable.&#148; It appears that this is a legal conclusion that should be attributed to counsel. Please attribute this statement to counsel, or remove this statement. </I></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> This statement has been removed from the Information Statement on page 123. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Where You Can Find More Information, page 123 </U></FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>27.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Here and elsewhere in your Information Statement, you state each such statement is qualified in all respects by reference to the applicable contract or document. As
you are responsible for the accuracy of the information in the filing, this type of qualification is inappropriate. Please revise accordingly. </I></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> These statements have been removed from pages 123 and 131 of the Information Statement. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><U>Unaudited Pro Forma Financial Statements </U></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Unaudited Pro Forma Balance Sheet, page F-5
</U></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>1. Basis of Presentation, page F-7 </U></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><U>2. Pro Forma Adjustments, page F-8 </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>28.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Please refer to pro forma adjustment (b). You disclose on pages F-7 and F-8 that you expect certain assets and liabilities related to employee benefit plans and
postretirement benefit plans to be transferred to you by ONEOK. Please tell us and disclose whether you will sponsor benefit plans that certain of your current or former employees will participate in subsequent to the separation or if they will
participate in plans sponsored by ONEOK. </I></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> The Information Statement has been revised on pages F-8 and F-9
in response to the Staff&#146;s comment. ONE Gas will sponsor defined benefit pension and postretirement welfare plans that certain current and former employees will participate in subsequent to the separation. We expect the provisions of those
plans to be generally consistent with the provisions of the ONEOK sponsored plans. </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>29.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Please revise or tell us and disclose how the pro forma adjustments pertaining to the expected transfer of certain assets and liabilities related to employee benefit
plans and postretirement benefit plans disclosed on pages F-7 and F-8 are factually supportable as required by Rule 11-02(b)(6) of Regulation S-X. In doing so, tell us whether these amounts are specified in an agreement with ONEOK or whether you
expect these amounts will be specified in such an agreement prior to your request for effectiveness. </I></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> The
pro forma adjustments pertaining to the expected transfer of certain assets and liabilities related to employee benefit plans and postretirement benefit plans are factually supportable based on preliminary employee and plan participant assignments
to ONE Gas. The Employee Matters Agreement with ONEOK will specify which liabilities and related assets pertaining to employee benefit plans and postretirement benefit plans are allocable to ONE Gas. We do not expect any material changes to the
allocation of assets and liabilities related to employee benefit plans and postretirement benefit plans from the form of the Employee Matters Agreement filed with Amendment No. 1 to the Form 10. In the event of any material changes to the allocation
prior to requesting effectiveness, we will file an amendment to the Form 10 with such changes. In the event the allocation changes after the Form 10 becomes effective and this change is material to ONEOK&#146;s shareholders, we would communicate
such change to ONEOK&#146;s shareholders by a means that we and ONEOK believe is reasonably designed to communicate such change to ONEOK&#146;s and our shareholders, such as by each of ONEOK and us filing a Form 8-K describing the change, or if we
and ONEOK deem necessary, by amending the Information Statement that forms a part of the Form 10 and providing such amended information to ONEOK&#146;s and our shareholders, as applicable. The Information Statement has been revised on pages F-8 and
F-9 in response to the Staff&#146;s comment. </FONT></P>

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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>30.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Please refer to pro forma adjustment (f). Please explain to us in detail the basis for using a weighted average interest rate of 4.6%. In this regard, we note your
statement that the actual interest rates upon issuance may be higher or lower. If this is not your current interest rate or the interest rate specified in a commitment for your $1.2 billion debt issuance, please disclose in better detail both within
this footnote and in the introduction on page F-2 your basis for using a rate of 4.6% and the anticipated effects of the current interest rate environment. </I></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> The weighted average interest rate of 4.6% was determined using the initial interest rates before debt issuance costs and fees for our estimated $1.2 billion issuance of fixed-rate notes.
The interest rates reflect estimates based on an assumed investment grade rating with an appropriate credit spread over the relevant benchmark rate. We have disclosed the impact of a 12.5 basis point increase on our pro forma interest expense on
page F-9, which we believe provides context in assessing the effects of potential changes in the interest rate environment. The Information Statement has been revised on page F-9 in response to the Staff&#146;s comment. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>ONE Gas, Inc. Audited Historical Balance Sheet, page F-10 General </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>

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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>31.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Please update the financial statements of the successor as necessary to comply with Rule 3-01 of Regulation S-X at the date of effectiveness.
</I></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> We will update the financial statements of the successor as necessary to comply with Rule 3-01 of
Regulation S-X at the date of effectiveness. </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>32.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Please refer to the Description of Business in Note 1. Please revise to state, if true, that you have incurred no income or expense, as we believe this clarifies for
your readers why you have not presented a statement of operations. </I></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> The Information Statement has been
revised on page F-13 to state that we have incurred no income or expense. </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>33.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Please tell us whether you will consummate the &#147;reorganization,&#148; as defined on page 7, prior to, at the time of, or after requesting effectiveness. Also,
tell us whether you intend to present separate financial statements for the predecessor and successor at the time of requesting effectiveness. </I></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> We anticipate that we will consummate the reorganization after requesting effectiveness. We intend to present separate financial statements for the predecessor and successor at the time
of requesting effectiveness.<B> </B></FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>ONE Gas Predecessor Annual Audited Financial Statements, page F-13 </U></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Notes to Financial Statements, page F-19 </U></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Note 1. Summary of Significant Accounting Policies, page F-19 </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>34.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>You disclose on page 13 that the declaration and payment of dividends by you in the future will depend on many factors, including capital requirements, debt
covenants, legal requirements and regulatory constraints. Please describe to us and disclose any restrictions limiting the payment of dividends as required by Rule 4-08(e) of Regulation S-X. </I></FONT></TD></TR></TABLE>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> We do not anticipate that our debt agreements will contain dividend restrictions beyond general compliance with law. We expect a
requirement to maintain certain debt to capital ratios. We will update the disclosure in the event that our debt agreements contain any dividend restrictions. </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>35.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>We note your disclosure on page F-19 regarding your organization, basis of presentation, and that your financial statements are comprised of the natural gas
distribution business of ONEOK, including Oklahoma Natural Gas, Kansas Gas Service and Texas Gas Service. Please tell us why you believe your financial statements should or should not be referred to as either consolidated or combined financial
statements, as well as what consideration you gave to disclosing your principles of consolidation or combination as required by Rule 4-08(a) of Regulation S-X. </I></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> Oklahoma Natural Gas, Kansas Gas Service and Texas Gas Service are divisions of ONEOK and are not separate legal entities in which ONEOK has a direct or indirect controlling financial
interest. As there is no ownership relationship between the divisions nor does ONE Gas predecessor reflect the combination of separate legal entities, we do not believe referring to the financial statements as consolidated or combined is
appropriate. Additionally, referring to the financial statements as consolidated or combined would not result in any adjustment to the financial statements. The Information Statement has been revised on page F-20 in response to the Staff&#146;s
comment to clarify the divisions are not separate legal entities. </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>36.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>You disclose on page F-24 that you are not able to estimate reasonably the fair value of the asset retirement obligations for portions of your assets because the
settlement dates are indeterminable. Please revise to disclose a general description of the asset retirement obligations and associated long-lived assets that you have identified as required by ASC 410-20-50-1(a). Furthermore, please also revise to
disclose the reasons you believe the settlement dates of the asset retirement obligations identified are indeterminable as required by ASC 410-20-50-2. </I></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> The Information Statement has been revised on page F-25 to provide a general description of our asset retirement obligations and the reason that our settlement dates are indeterminable.
</FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>37.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>We note your disclosure regarding the collection through rates of estimated removal costs and your related accounting on page F-24 and have the following comments:
</I></FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="9%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>&#149;</I></FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I></I><I>Please tell us whether the estimated removal costs you collect through rates are set by your tariff through approved composite depreciation
rates containing a removal and non-removal component of depreciation or if you estimate an amount, which is subject to consideration as part of future rate cases in a different manner as well, as how the amount is estimated.
</I></FONT></P></TD></TR></TABLE>

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<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>&#149;</I></FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Please explain or confirm that all non-legal removal costs collected in excess of related removal costs incurred are recorded as a regulatory
liability. </I></FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="9%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>&#149;</I></FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>As you have not recognized any asset retirement obligations due to uncertainty regarding settlement dates, please explain to us your accounting for
removal costs collected through rates related to legal obligations. Refer to ASC 980-410-25-2. </I></FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="9%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>&#149;</I></FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Please explain in greater detail your disclosure that your regulatory authorities have not required you to quantify removal costs collected in
excess of costs incurred, as well as your disclosure that these costs are addressed prospectively in depreciation rates set in each general rate order. </I></FONT></P></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="9%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>&#149;</I></FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Please explain in greater detail your statement that you have made an estimate of your regulatory liability using current rates. If this statement
is meant to convey that cost of removal rates are applied against depreciable utility plant using the most recently approved composite depreciation rates, please advise. </I></FONT></P></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="9%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>&#149;</I></FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Please explain in greater detail your statement that significant uncertainty exists regarding the ultimate determination of this liability including
the clarification of regulatory intent. A discussion of the uncertainties would assist our understanding. </I></FONT></P></TD></TR></TABLE>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> Our approved composite depreciation rates contain a removal and non-removal cost component. The depreciation expense allowance for
ratemaking purposes is derived from approved composite depreciation rates applied to our natural gas utility plant in service. Depreciation expense and all other elements of our allowed revenue requirements are recovered in revenue collected from
customers receiving utility service through approved tariffs. The removal cost component of our depreciation rates includes both legal and non-legal removal costs. We confirm and have disclosed on page F-25 that removal costs collected through rates
in excess of related removal costs incurred are recorded as a regulatory liability in accordance with ASC 980-410-25-2 for financial reporting purposes. We record removal costs collected through rates associated with legal removal obligations as an
addition to our regulatory liability. With the exception of the regulatory authority in Kansas, our regulatory authorities have not required us to quantify or disclose the portion of our accumulated depreciation associated with removal costs
collected in excess of costs incurred as a regulatory liability. Generally, in our rate proceedings, these costs collected in excess of costs incurred are treated as accumulated depreciation, which is a reduction of rate base. Any historical over or
under collection of these removal costs have resulted in an adjustment to our approved composite depreciation rates prospectively. Our statement that we estimate our regulatory liability using current rates means that cost of removal rates included
in our depreciation rates are applied against depreciable utility plant using the most recently approved composite depreciation rates. The statement that significant uncertainty exists regarding the ultimate determination of this liability refers to
the future disposition for </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">
ratemaking purposes of the regulatory liability disclosed for financial reporting purposes. None of the regulatory bodies having jurisdiction over our operations has ordered or suggested refunds
to customers of a liability described as a regulatory liability for financial reporting purposes. The unknown regulatory intent and treatment in future rate proceedings of such regulatory liability is the element of uncertainty discussed on page
F-25. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Note 4. Regulatory Assets and Liabilities, page F-27 </U></FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>38.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>You disclose on page F-28 that your base rates do not generally provide for a return on investment for amounts you have deferred as regulatory assets. Please revise
to disclose whether this statement is applicable to all regulatory assets, or clearly indicate which regulatory assets are or are not earning a return during the recovery period. Refer to ASC 980-340-50-1. </I></FONT></TD></TR></TABLE>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> The Information Statement has been revised on page F-29 to indicate which regulatory assets are and which regulatory assets are not
earning a return during the recovery period. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>ONE Gas Predecessor Unaudited Interim Financial Statements, page F-37 General </U></FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>39.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Please apply the comments we issued on your annual financial statements to your interim financial statements, where applicable. </I></FONT></TD></TR></TABLE>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> We have revised such disclosures as applicable. </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>40.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Please update the financial statements of the predecessor as necessary to comply with Rule 3-01 of Regulation S-X at the date of effectiveness.
</I></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Response:</B> We will update the financial statements of the predecessor as necessary to comply with Rule 3-01 of
Regulation S-X at the date of effectiveness. The Information Statement has been revised to include financial statements as of and for the period ended September&nbsp;30, 2013. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="2">***************************** </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">ONE Gas, Inc. hereby acknowledges that: </FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">we are responsible for the adequacy and accuracy of the disclosure in the filings; </FONT></P></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to the
filings; and </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">we may not assert staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the
United States. </FONT></P></TD></TR></TABLE>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Please contact me at (918)&nbsp;588-7910, if you need clarification or additional information. </FONT></P>
<P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Sincerely,</FONT></TD></TR>
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<TD HEIGHT="16"></TD></TR>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">/s/ Derek S. Reiners</FONT></TD></TR>
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<TD HEIGHT="16"></TD></TR>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Derek S. Reiners</FONT></TD></TR>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Senior Vice President, Chief Financial Officer and Treasurer</FONT></TD></TR>
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