Contract #: 400507

                                  SERVICE AGREEMENT
                               FOR RATE SCHEDULE FSS-1


               This agreement, made and entered into this 15th day of
          November, 1996, by and between TEXAS EASTERN TRANSMISSION
          CORPORATION, a Delaware Corporation (herein called "Pipeline")
          and CONNECTICUT NATURAL GAS CORPORATION (herein called
          "Customer," whether one or more),

                                 W I T N E S S E T H:

               WHEREAS,  Customer is a customer of Algonquin Gas
          Transmission Company ("Algonquin"); and

               WHEREAS,  Algonquin is a customer of Pipeline under certain
          of Pipeline's rate schedules and related service agreements; and

               WHEREAS,  pursuant to the Federal Energy Regulatory
          Commission's ("Commission") order issued on July 8, 1994,  in
          Docket Nos. RP93-14-000, et al.,  and 18 C.F.R. Section 284.242, 
          Algonquin is assigning on a permanent basis certain of its firm
          service entitlements on Pipeline to certain of Algonquin's direct
          customers; and

               WHEREAS,  Customer's capacity entilements on Pipeline
          pursuant to this Service Agreement are a result of Algonquin's
          permanent assignment to Customer as described above; and

               WHEREAS,  Customer and Pipeline desire to enter into this
          Service Agreement to reflect such permanent assignment from
          Algonquin to Customer;

               NOW, THEREFORE, in consideration of the premises and of the
          mutual covenants and agreements herein contained,  the parties do
          covenant and agree as follows:


                                      ARTICLE I

                                  SCOPE OF AGREEMENT

               Subject to the terms, conditions and limitations hereof and
          of Pipeline's Rate Schedule  FSS-1, Pipeline agrees to provide
          firm service for Customer under Rate Schedule  FSS-1 and to
          receive and store for Customer's account quantities of natural
          gas up to the following quantity:

                    Maximum Daily Injection Quantity (MDIQ) 262 dth
                    Maximum Storage Quantity (MSQ) 51,060 dth

               Pipeline agrees to withdraw from storage for Customer, at
          Customer's request, quantities of gas up to Customer's Maximum
          Daily Withdrawal Quantity (MDWQ) of 851 dekatherms, or such
          lesser quantity as determined  pursuant to Rate Schedule  FSS-1,
          from Customer's Storage Inventory, plus Applicable Shrinkage. 
          Pipeline's obligation to withdraw gas on any day is governed by
          the provisions of Rate Schedule  FSS-1,  including but not
          limited to Section 6.<PAGE>
                                  SERVICE AGREEMENT
                               FOR RATE SCHEDULE FSS-1
                                     (Continued)


                                     ARTICLE  II

                                  TERM OF AGREEMENT

               The term of this Service Agreement shall commence on
          September 1, 1994 and shall continue in force and effect until
          April 30, 2012 and year to year thereafter unless this Service
          Agreement is terminated as hereinafter provided.  This Service
          Agreement may be terminated by either Pipeline or Customer upon 
          five (5) years  prior written notice to the other specifying a
          termination date of any  year occurring on or after the
          expiration of the primary term.  Subject to Pipeline rights under
          Section 22 of Pipeline's General Terms and Conditions and without
          prejudice to such rights, this Service Agreement may be
          terminated at any time by Pipeline in the event Customer fails to
          pay part or all of the amount of any bill for service hereunder
          and such failure continues for thirty (30) days after payment is
          due; provided, Pipeline gives  thirty (30) days prior written
          notice to Customer of such termination and provided further such
          termination shall not be effective if, prior to the date of
          termination, Customer either pays such outstanding bill or
          furnishes a good and sufficient surety bond guaranteeing payment
          to Pipeline of such outstanding bill.  

               THE TERMINATION OF THIS SERVICE AGREEMENT WITH A FIXED
          CONTRACT TERM OR THE PROVISION OF A TERMINATION NOTICE BY
          CUSTOMER TRIGGERS PREGRANTED ABANDONMENT UNDER SECTION 7 OF THE
          NATURAL GAS ACT AS OF THE EFFECTIVE DATE OF THE TERMINATION. 
          PROVISION OF A TERMINATION NOTICE BY PIPELINE ALSO TRIGGERS
          CUSTOMER'S RIGHT OF FIRST REFUSAL UNDER SECTION 3.13 OF THE 
          GENERAL TERMS AND CONDITIONS ON THE EFFECTIVE DATE OF THE
          TERMINATION.

               In the event there is gas in storage for Customer's account
          on April 30 of the year of termination of this Service Agreement,
          this Service Agreement shall continue in force and effect for the
          sole purpose of withdrawal and delivery of said gas to Customer
          for an additional one-hundred and twenty (120) days. 

                                     ARTICLE  III

                                    RATE SCHEDULE

               This Service Agreement in all respects shall be and remain
          subject to the applicable provisions of Rate Schedule  FSS-1 and
          of the General Terms and Conditions of Pipeline's FERC Gas Tariff
          on file with the Federal Energy Regulatory Commission, all of
          which are by this reference made a part hereof.

               Customer shall pay Pipeline, for all services rendered
          hereunder and for the availability of such service in the period
          stated, the applicable prices established under Pipeline's Rate
          Schedule FSS-1 as filed with the Federal Energy Regulatory
          Commission and as the same may be hereafter revised or changed.


                                          2                            400507<PAGE>
                                  SERVICE AGREEMENT
                               FOR RATE SCHEDULE FSS-1
                                     (Continued)


               Customer agrees that Pipeline shall have the unilateral
          right to file with the appropriate regulatory authority and make
          changes effective in (a) the rates and charges applicable to
          service pursuant to Pipeline's Rate Schedule  FSS-1, (b)
          Pipeline's Rate Schedule FSS-1, pursuant to which service
          hereunder is rendered or (c) any provision of the General Terms
          and Conditions applicable to Rate Schedule  FSS-1. 
          Notwithstanding the foregoing, Customer does not agree that
          Pipeline shall have the unilateral right without the consent of
          Customer subsequent to the execution of this Service Agreement
          and Pipeline shall not have the right during the effectiveness of
          this Service Agreement to make any filings pursuant to Section 4
          of the Natural Gas Act to change the MDIQ, MSQ and MDWQ specified
          in Article I, to change the term of the service agreement as
          specified in Article  II, to change Point(s) of Receipt specified
          in Article  IV, to change the Point(s) of Delivery specified in
          Article  IV, or to change the firm character of the service
          hereunder.  Pipeline agrees that Customer may protest or contest
          the aforementioned filings, and Customer does not waive any
          rights it may have with respect to such filings.


                                     ARTICLE  IV

                     POINT(S) OF RECEIPT AND POINT(S) OF DELIVERY

               The natural gas received by Pipeline for Customer's account
          for storage injection pursuant to this Service Agreement shall be
          those quantities scheduled for delivery pursuant to Service
          Agreements between Pipeline and Customer under Rate Schedules
          CDS, FT-1, SCT, PTI or IT-1 which specify as a Point of Delivery
          the "FSS-1 Storage Point".  For purposes of billing of Usage
          Charges under Rate Schedules CDS, FT-1, SCT, PTI or IT-1,
          deliveries under Rate Schedules CDS, FT-1, SCT, PTI or IT-1 for
          injection into storage  scheduled directly to the "FSS-1 Storage 
          Point" shall be deemed to have been delivered 60% in Market Zone
          2 and 40% in Market Zone 3.  In addition, subject to Pipeline's
          prior written consent, any positive variance between scheduled
          deliveries and actual deliveries on any day (i.e. scheduled
          deliveries exceed actual deliveries) at Customer's Points of
          Delivery under Rate Schedules CDS, FT-1, SCT, or IT-1 shall be
          deemed for billing purposes delivered at the Point of Delivery
          and shall be injected into storage for Customer's account.  In
          addition to accepting gas for storage injection at the FSS-1
          Storage Point, Pipeline will accept gas tendered at points of
          interconnection between Pipeline and third party facilities at
          Oakford and Leidy Storage Fields provided that such receipt does
          not result in Customer tendering aggregate quantities for storage
          in excess of the Customer MDIQ.







                                          3                            400507<PAGE>
                                  SERVICE AGREEMENT
                               FOR RATE SCHEDULE FSS-1
                                     (Continued)


               The natural gas delivered by Pipeline for Customer's account
          as a result of storage withdrawal pursuant to this Service
          Agreement shall be those quantities scheduled for withdrawal
          hereunder and subsequent transportation pursuant to service
          agreements between Pipeline and Customer under Rate Schedule CDS,
          FT-1, SCT, or IT-1 which specify as a Point of Receipt the "FSS-1
          Storage Point".  For purpose of billing under Rate Schedules CDS,
          FT-1, SCT, or IT-1, withdrawals from storage for subsequent
          transportation under Rate Schedules CDS, FT-1, SCT, or IT-1 shall
          be deemed to have been received 60% in Market Zone 2 and 40% in
          Market Zone 3.  In addition to the withdrawal of gas from storage
          for delivery through a transportation service on Pipeline's
          system, gas may be withdrawn for delivery into the facilities of
          third parties at the points of interconnection between Pipeline
          and the facilities of such third parties at Oakford and Leidy
          Storage Fields provided that such withdrawals do not result in
          Customer withdrawing gas in excess of his MDWQ or MSQ.  A
          separate transportation charge will not be applicable to these
          deliveries.  


                                      ARTICLE  V

                                       QUALITY

               All natural gas tendered to Pipeline for Customer's account
          shall conform and be subject to the provisions of Section 5 of
          the General Terms and Conditions.  Customer agrees that in the
          event Customer tenders for service hereunder and Pipeline agrees
          to accept natural gas which does not comply with Pipeline's
          quality specifications, as expressly provided for in Section 5 of
          Pipeline's General Terms and Conditions, Customer shall pay all
          costs associated with processing of such gas as necessary to
          comply with such quality specifications.  






















                                          4                            400507<PAGE>
                                  SERVICE AGREEMENT
                               FOR RATE SCHEDULE FSS-1
                                     (Continued)


                                     ARTICLE  VI

                                      ADDRESSES

               Except as herein otherwise provided or as provided in the
          General Terms and Conditions of Pipeline's FERC Gas Tariff, any
          notice, request, demand, statement, bill or payment provided for
          in this Service Agreement, or any notice which any party may
          desire to give to the other, shall be in writing and shall be
          considered as duly delivered when mailed by registered, certi-
          fied, or regular mail to the post office address of the parties
          hereto, as the case may be, as follows:


               (a)  Pipeline: TEXAS EASTERN TRANSMISSION CORPORATION
                              5400 Westheimer Court
                              Houston, TX  77056-5310

               (b) Customer:  CONNECTICUT NATURAL GAS CORPORATION
                              P.O. Box 1500
                              100 Columbus Boulevard
                              Hartford, CT  06144

          or such other address as either party shall designate by formal
          written notice.


                                     ARTICLE  VII

                                     ASSIGNMENTS

               Any Company which shall succeed by purchase, merger, or
          consolidation to the properties, substantially as an entirety, of
          Customer, or of Pipeline, as the case may be, shall be entitled
          to the rights and shall be subject to the obligations of its
          predecessor in title under this Service Agreement; and either
          Customer or Pipeline may assign or pledge this Service Agreement
          under the provisions of any mortgage, deed of trust, indenture,
          bank credit agreement, assignment, receivable sale, or similar
          instrument which it has executed or may execute hereafter;
          otherwise, neither Customer nor Pipeline shall assign this
          Service Agreement or any of its rights hereunder unless it first
          shall have obtained the consent thereto in writing of the other;
          provided further, however, that neither Customer nor Pipeline
          shall be released from its obligations hereunder without the
          consent of the other.  In addition, Customer may assign its
          rights to capacity pursuant to Section 3.14 of the General Terms
          and Conditions.  To the extent Customer so desires, when it
          releases capacity pursuant to Section 3.14 of the General Terms
          and Conditions, Customer may require privity between Customer and
          the Replacement Customer, as further provided in the applicable
          Capacity Release Umbrella Agreement.




                                          5                            400507<PAGE>
                                  SERVICE AGREEMENT
                               FOR RATE SCHEDULE FSS-1
                                     (Continued)


                                    ARTICLE  VIII

                                    INTERPRETATION

               The interpretation and performance of this Service Agreement
          shall be in accordance with the laws of the State of Texas
          without recourse to the law governing conflict of laws.

               This Service Agreement and the obligations of the parties
          are subject to all present and future valid laws with respect to
          the subject matter, State and Federal, and to all valid present
          and future orders, rules, and regulations of duly constituted
          authorities having jurisdiction.  


                                     ARTICLE  IX

                          CANCELLATION OF PRIOR CONTRACT(S)

               This Service Agreement supersedes and cancels, as of the
          effective date of this Service Agreement, the contract(s) between
          the parties hereto as described below: 

                                         None
































                                          6                            400507<PAGE>
                                  SERVICE AGREEMENT
                               FOR RATE SCHEDULE FSS-1
                                     (Continued)


               IN WITNESS WHEREOF, the Parties hereto have caused this
          Service Agreement to be signed by their respective Presidents,
          Vice Presidents, or other duly authorized agents and their
          respective corporate seals to be hereto affixed and attested by
          their respective Secretaries or Assistant Secretaries, the day
          and year first above written.

                                   TEXAS EASTERN TRANSMISSION CORPORATION



                                   By Robert B. Evans
                                      ----------------------------------
                                             Vice President


          ATTEST:

          Robert W. Reed
          ------------------------
          Corporate Secretary



                                   CONNECTICUT NATURAL GAS CORPORATION



                                   By Edna M. Karanian
                                      ---------------------------------



          ATTEST:

          R. L. Babcock
          -------------------------
           


















                                          7                            400507<PAGE>