Sec Form 4 Filing - HOBBS WILLIAM E @ WILLIAMS COMPANIES INC - 2007-10-09

FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person HOBBS WILLIAM E 2. Issuer Name and Ticker or Trading Symbol WILLIAMS COMPANIES INC [ WMB] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner X __ Officer (give title below) _____ Other (specify below) Subsidiary Sr. Vice President (Last) (First) (Middle) ONE WILLIAMS CENTER 3. Date of Earliest Transaction (MM/DD/YY) 10/09/2007 (Street) TULSA, OK74172 4. If Amendment, Date Original Filed (MM/DD/YY) 6. Individual or Joint/Group Filing (Check Applicable Line) __ X __ Form filed by One Reporting Person _____ Form filed by More than One Reporting Person (City) (State) (Zip)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned 1.Title of Security (Instr. 3) 2. Transaction Date (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 10/09/2007 M 30,000 A $ 15.86 30,000 D Common Stock 10/09/2007 M( 1 ) 1,906 A $ 28.976 31,906 D Common Stock 10/09/2007 S 31,906 D $ 35 0 I By company plan Common Stock 4,949 I By company plan ( 2 )

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities) 1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5) 6. Date Exercisable and Expiration Date (MM/DD/YY) 7. Title and Amount of Underlying Securities (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4) Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares Employee Options (Right to Buy) $ 15.86 10/09/2007 M 30,000 02/11/2003 02/11/2012 Common Stock 30,000 $ 15.86 204,981 D Employee Options (Right to Buy) $ 28.976 10/09/2007 M 1,906 03/30/1999 03/30/2008 Common Stock 1,906 $ 28.976 203,075 D

Reporting Owners Reporting Owner Name / Address Relationships Director 10% Owner Officer Other HOBBS WILLIAM E ONE WILLIAMS CENTER TULSA, OK74172 Subsidiary Sr. Vice President Signatures Cher S. Lawrence, Attorney-in-Fact for William E. Hobbs 10/11/2007 Signature of Reporting Person Date

Explanation of Responses:

( 1 )Represents shares sold pursuant to a 10b5-1 plan entered into by Reporting Person and Broker on August 29, 2007. ( 2 )Represents total shares of the Company's common stock held in The Investment Plus Plan.

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).

** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).

Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
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