Separation Agreement, Dated Nov. 10, 2000

EXHIBIT 10.1.z


SEPARATION AGREEMENT


This Separation Agreement is hereby made by and between MICHELE H. COLLINS (herein called "Employee") and AGL RESOURCES INC. (which, with its affiliates, is herein called "the Company").


This Separation Agreement has been offered to the Employee for a period of 21 days for her consideration. After consultation with family, legal and financial counselors, the Employee has determined to execute this Separation Agreement with the Company in exchange for certain benefits. In consideration of the mutual benefits to each party, the parties agree as follows:


1. DATE OF SEPARATION. The Employee will cease to be an employee of the Company effective as of Tuesday, October 31, 2000 (the "Separation Date").


2. SEVERANCE PAY. The Employee will be entitled to severance pay equal to 12 months of her current base salary. The severance pay shall be payable on a semi- monthly basis or every two weeks for 12 months following the Separation Date (the "Separation Period").


3. BONUS. The Company agrees to pay the Employee a lump sum amount of $122,000.


4. WELFARE AND OTHER BENEFITS. Unless otherwise specified below, upon the Separation Date, the Employee shall cease to participate in the Company's employee benefit plans, pursuant to the terms and conditions of the plan documents.


(a) Executive Allowance Fund. The Employee shall continue to participate
in the Executive Allowance Fund until October 31, 2001 on a prorated
basis (1) remainder in total for 2000 and (2) $12,500 for 2001. The
Employee shall reimburse the Company for any expenses incurred by the
Employee in excess of her Executive Allowance for the year (or portion
thereof), and if any amount remains unused at the end of the year (or
portion thereof), the Company shall pay the Employee a lump sum in the
amount of the remainder. On or prior to December 31, 2000, the
Employee shall transfer her leased automobile to the Company in good
condition (except for normal wear and tear), and after the date of the
transfer, the Company shall be responsible for all future costs of the
lease on such automobile.


(b) AGL Resources Inc. Retirement Saving Plus Plan and Nonqualified
Savings Plan. Upon the Separation Date, the Employee shall cease to
participate in the RSP and the NSP. As soon as practicable after the
Separation Date, the Employee's vested account balance in the RSP and
the NSP will become payable to her. In addition, to the extent any
portion of the Employee's matching contributions under the RSP and/or
the NSP is forfeited due to her separation, the Company shall pay her
an amount equal to the forfeited matching contributions. The Company
shall pay such amount in a lump sum from its general assets.


(c) Outplacement Services. The Employee shall be entitled to certain
career transition services, such as planning job search strategies,
evaluating personal strengths and weaknesses, resume preparation and
training in interview techniques, for a period of up to 12 months
through a provider selected by the Company. The Employee may enter the
program at any time during the 12-month period immediately following
the Separation Date.


(d) Stock Options. All 67,000 outstanding stock options held by the
Employee on the Separation Date shall immediately terminate pursuant
to the terms of the Company's long-term incentive plan under which
they were granted. The Company agrees to provide the Employee a lump
sum cash payment equal to $201,000 (which reflects $3.00 x 67,000)
plus stock appreciation rights for a period of two (2) years following
the Separation Date, based on the exercise prices of the Employee's
stock options, which stock appreciation rights would become
exercisable only upon a Change in Control of the Company (as that term
is defined in the Company's Long-Term Incentive Plan (1999)).


(e) Restricted Stock and Performance Units. Any unvested Restricted Stock,
Performance Unit or other equity-based right held by the Employee on
the Separation Date shall terminate and be forfeited as of the
Separation Date.


(f) Unused Earned Vacation. As soon as practicable following the
Separation Date, the Company shall pay the Employee, in a lump sum, an
amount equal to her accrued but unused 2000 vacation entitlement.


(g) Employee Assistance Plan. As a welfare benefit plan, the EAP is
subject to the Employee's continuation of her coverage under the EAP
for a period of eighteen months following the Separation Date. The
Company will pay all premiums on behalf of the Employee for the
continuation coverage period.


(h) Laptop Computer and Cell Phone Expenses. The Company agrees that the
Employee may retain the laptop computer currently assigned to her by
the Company following her separation; provided, that the Employee
agrees to return the computer to the Company within three (3) days
following the Separation Date so that the Company may remove any
software protected by limited use licenses as well as any confidential
Company information from the computer. In addition, the Company agrees
to pay the Employee's cellular telephone expenses (pursuant to the
Company's normal policies) through the Separation Date.


5. RESTRICTIVE COVENANTS. For and in consideration for the payment and benefits provided to the Employee under this Separation Agreement, the Employee agrees to the terms of the following:


(a) Covenant Not to Compete. The Employee covenants and agrees that,
during the period beginning on the Separation Date and ending one (1)
year thereafter, she will not directly or indirectly, on her own
behalf or on behalf of any person or entity, compete with the Company
by performing activities or duties substantially


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similar or related to the functions, activities or duties performed by
the Employee for the Company for any business entity engaged in direct
competition with the Company. A business entity shall be considered to
be "in direct competition" with the Company if it is engaged in
producing, manufacturing, distributing, marketing, selling, servicing
or repairing products similar to products produced, manufactured,
distributed, marketed, sold, serviced or repaired by the Company,
including (but not limited to) any type of production and distribution
of any energy source, whether by cultivation of natural resources or
by technology. This restriction shall apply only to a restricted
territory within a 100-mile radius of any locations, sites or
facilities in which the Company (including its affiliates) maintains
offices, operations or service contracts or has provided services
during the 12-m ...