<PAGE>
 
                                                                   EXHIBIT 10.36

                                                      Contract #:  400210
                                                                   ------

                               SERVICE AGREEMENT
                            FOR RATE SCHEDULE SS-1


     This agreement, made and entered into this 29 day of Nov., 1994, by and
between TEXAS EASTERN TRANSMISSION CORPORATION, a Delaware Corporation (herein
called "Pipeline") and BOSTON GAS COMPANY (herein called "Customer," whether
one or more),

                             W I T N E S S E T H:

     WHEREAS, there currently exists between Pipeline and Customer six service
agreements under Rate Schedule SS-1 (Pipeline's Contract Nos. 400139, 400140,
400141, 400217, 400218 and 412018) which specify an MDWQ of 12,232 dth and an
MSQ of 1,444,651 dth, an MDWQ of 9,338 dth and an MSQ of 653,660 dth, an MDWQ of
43,252 and an MSQ of 2,595,120 dth, an MDWQ of 9 dth and an MSQ of 630 dth, an
MDWQ of 51 dth and an MSQ of 3,570 dth, and an MDWQ of 712 and an MSQ of 49,840
respectively; and 

     WHEREAS, Pipeline and Customer desire to enter into one service agreement
under Rate Schedule SS-1 which shall supersede the six existing Rate Schedule 
SS-1 service agreements referenced above; and

     WHEREAS, withdrawal rights under the new Rate Schedule SS-1 service
agreement are consistent with the existing rights of the six existing Rate
Schedule SS-1 service agreements it supersedes;

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

          Maximum Daily Injection Quantity (MDIQ) 24,403 dth 
          Maximum Storage Quantity (MSQ) 4,747,471 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 65,594 dekatherms, or such lesser quantity as determined pursuant to
Rate Schedule SS-1, from Customer's Storage Inventory, plus Applicable 
Shrinkage, and to
<PAGE>
 
                               SERVICE AGREEMENT
                            FOR RATE SCHEDULE SS-1
                                  (Continued)


deliver for Customer's account such quantities. Pipeline's obligation to
withdraw gas on any day is governed by the provisions of Rate Schedule SS-1,
including but not limited to Section 6.


                                  ARTICLE II

                               TERM OF AGREEMENT

     The term of this Service Agreement shall commence on December 1, 1994 and
shall continue in force and effect until April 30, 2013 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
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.

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


                                  ARTICLE III

                                 RATE SCHEDULE

     This Service Agreement in all respects shall be and remain subject to the
applicable provisions of Rate Schedule SS-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 SS-1 as filed with the Federal Energy
Regulatory Commission and as the same may be hereafter revised or changed.

     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 SS-1, (b)
Pipeline's Rate Schedule SS-1, pursuant to which service hereunder is rendered
or (c) any provision of the General Terms and conditions applicable to Rate
Schedule SS-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.

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


                                  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 "SS-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 "SS-1
Storage Point" shall be deemed to have been delivered 60% in Market Zone 2 and
40% in Market Zone 3. In addition, at Customer's request any positive or
negative variance between scheduled deliveries and actual deliveries on any day
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 or withdrawn from storage for Customer's account. In
addition to accepting gas for storage injection at the SS-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.

     The Point(s) of Delivery at which Pipeline shall deliver gas shall be
specified in Exhibit A of the executed service agreement.

     Exhibit A and B are hereby incorporated as part of this Service Agreement
for all intents and purposes as if fully copied and set forth herein at length.


                                   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

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


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.



                                  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, certified, 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, Texas  77056-5310

     (b) Customer:  BOSTON GAS COMPANY 
                    ONE BEACON STREET 
                    BOSTON, MA 02108

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

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


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.

                                 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.

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


                                  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:


     Service Agreements dated December 30, 1993, November 1, 1994 and 11/7/94
between Pipeline and Customer under Pipeline's Rate Schedule SS-1
(Pipeline's Contract No. 400139, 400140, 400141, 400217, 400218 and 412018)

                                       7
<PAGE>
 
                               SERVICE AGREEMENT
                            FOR RATE SCHEDULE SS-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   /s/ Robert B. Evans
                                 -------------------------------------
                                    Vice President



ATTEST:


/s/ Robert W. Reed
-----------------------

  ROBERT W. REED
CORPORATED SECRETARY          BOSTON GAS COMPANY
 

                              By /s/  William R. Luthern 
                                --------------------------------------

ATTEST:
 


_______________________

                                       8
<PAGE>
 
                                                              CONTRACT #: 400210

               EXHIBIT A, POINT(S) OF DELIVERY, DATED 11-29-94,
               TO THE SERVICE AGREEMENT UNDER RATE SCHEDULE SS-1
       BETWEEN TEXAS EASTERN TRANSMISSION CORPORATION ("PIPELINE"), AND
                       BOSTON GAS COMPANY, ("Customer"),
                                DATED 11-29-94:

<TABLE> 
<CAPTION> 
                                                       Maximum                                                              
                                                       Daily                 Delivery       Measurement                      
          Point of                                     Delivery              Pressure       Responsi-                        
          Delivery       Description                   Obligation            Obligation      bilities      Owner     Operator
          --------     --------------                  ----------            ----------     -----------    -----     --------
                                                       (dth)                                                                 
<S>       <C>          <C>                             <C>                   <C>            <C>            <C>       <C>      
1.        70087        ALGONQUIN - LAMBERTVILLE,          30,798             AS REQUESTED   TX EAST        TX EAST   ALGONQUIN 
                       NJ  HUNTERDON CO., NJ                                 BY CUSTOMER,   TRAN           TRAN       
                                                                             NOT TO
                                                                             EXCEED 750 
                                                                             PSIG
                                                         
2.        71078        ALGONQUIN - HANOVER, NJ            47,028             AS REQUESTED   TX EAST        TX EAST   ALGONQUIN
                       MORRIS CO., NJ                                        BY CUSTOMER,   TRAN           TRAN              
                                                                             NOT TO
                                                                             EXCEED 750
                                                                             PSIG

3.        79818        AGT-BOSTON GAS - FOR                    0             N/A            N/A            N/A       N/A
                       NOMINATION PURPOSES
</TABLE>

provided, however, that until changed by a subsequent Agreement between Pipeline
and Customer, Pipeline's aggregate maximum daily delivery obligations at each of
the Points of Delivery described above, including Pipeline's maximum daily
delivery obligation under this and all other firm Service Agreements existing
between Pipeline and Customer, shall in no event exceed the following:

                                      A-1
<PAGE>
 
                                                              CONTRACT #: 400210

                  EXHIBIT A, POINT(S) OF DELIVERY (CONTINUED)
                              BOSTON GAS COMPANY

<TABLE> 
<CAPTION> 
                                              AGGREGATE MAXIMUM DAILY
          POINT OF DELIVERY                  DELIVERY OBLIGATION (DTH)
          -----------------                  -------------------------
          <S>                                <C> 
                NO. 1                                 199,485
                NO. 2                                  75,696
</TABLE> 

SIGNED FOR IDENTIFICATION

PIPELINE:  /s/ Robert B. Evans
          ---------------------------

CUSTOMER:  /s/ William R. Luthern
          ---------------------------

SUPERSEDES EXHIBIT A DATED __________

                                      A-2