AGREEMENT APPLICABLE TO THE STORAGE

                              OF NATURAL GAS

                         UNDER RATE SCHEDULE GSS



         AGREEMENT made and entered into as of this first day of April,
   1997, by and between CNG TRANSMISSION CORPORATION, a Delaware
   corporation, hereinafter referred to as "Pipeline," and
   CONNECTICUT NATURAL GAS CORPORATION, a Connecticut corporation,
   hereinafter  referred to as "Customer."



         WHEREAS, Pipeline and Customer desire to enter into a service
   agreement to provide for Pipeline to render to Customer natural
   gas storage service as contemplated in the Precedent Agreement
   between Pipeline and Customer dated April 10, 1996; and



         WHEREAS, as contemplated by said Precedent Agreement, such
   services are to be implemented in two phases, the first
   commencing in 1997, and the second in 1999; and



         WHEREAS, Pipeline desires to sell such a storage service to
   Customer pursuant to the terms and conditions of Pipeline's Rate
   Schedule GSS; and



         WHEREAS, Pipeline and Customer have agreed that the costs
   associated with the development of the proposed storage service
   should be reflected in rates under Rate Schedule GSS on a
   rolled-in basis; and



         WHEREAS, in order to effect the eventual delivery of natural
   gas to Customer, Customer will arrange for the firm
   transportation of the natural gas to be injected and withdrawn
   from storage pursuant to this Agreement.



         NOW, THEREFORE, WITNESSETH: That in consideration of the
   mutual covenants herein contained, the parties hereto agree that
   Pipeline will store natural gas for Customer during the term, at
   the rates and on the terms and conditions hereinafter provided:

    

                            ARTICLE I<PAGE>



                           Quantities
                           ----------

               Beginning as of April 1, 1997, and thereafter for the
   remaining term of this agreement, Customer agrees to deliver to
   Pipeline and Pipeline agrees to receive for storage in
   Pipeline's underground storage properties, and Pipeline agrees
   to inject or cause to be injected into storage for Customer's
   account, store, withdraw from storage, and deliver to Customer
   and Customer agrees to receive, quantities of natural gas as set
   forth on Exhibit A, attached hereto.





                            ARTICLE II

                              Rate
                              ----


         A.    For storage service rendered by Pipeline to Customer
   hereunder, Customer shall pay Pipeline the maximum rates and
   charges provided under Rate Schedule GSS contained in Pipeline's
   effective FERC Gas Tariff or any effective superseding rate
   schedule.



         B.    Pipeline shall have the right to propose, file and make
   effective with the FERC or any other body having jurisdiction,
   revisions to any applicable rate schedule, or to propose, file,
   and make effective superseding rate schedules for the purpose of
   changing the rate, charges, and other provisions thereof
   effective as to Customer; provided, however, that (i) Section 2
   of Rate Schedule GSS "Applicability and Character of Service,"
   (ii) term, (iii) quantities, and (iv) points of receipt and
   points of delivery shall not be subject to unilateral change
   under this Article.  Said rate schedule or superseding rate
   schedule and any revisions thereof which shall be filed and made
   effective shall apply to and become a part of this Service
   Agreement.  The filing of such changes and revisions to any
   applicable rate schedule shall be without prejudice to the right
   of Customer to contest or oppose such filing and its
   effectiveness.



         C.    The Storage Demand Charge and the Storage Capacity Charge
   provided in the aforesaid rate schedule shall commence on April
   1, 1997.



                           ARTICLE III

                        Term of Agreement<PAGE>



                        -----------------


         Subject to all the terms and conditions herein, this Agreement
   shall be effective as of April 1, 1997, and shall continue for a
   primary term as follows:



         A.    Phase 1 Services.  Commencing April 1, 1997, and continuing
   in effect for a primary term through and including March 31,
   2007, and from year to year thereafter, until either party
   terminates this Agreement by giving written notice to the other
   at least twenty-four months prior to the start of the next
   contract year.


         B.    Phase 2 Services.  Commencing April 1, 1999, and continuing
   in effect for a primary term through and including March 31,
   2009, and from year to year thereafter, until either party
   terminates this Agreement by giving written notice to the other
   at least twenty-four months prior to the start of the next
   contract year.



                           ARTICLE IV

                  Points of Receipt and Delivery
                  ------------------------------


         The Points of Receipt for Customer's tender of storage
   injection quantities, and the Point(s) of Delivery for
   withdrawals from storage shall be specified on Exhibit A,
   attached hereto.



                           ARTICLE V

         Incorporation By Reference of Tariff Provisions
         -----------------------------------------------


         To the extent not inconsistent with the terms and conditions of
   this Agreement, the following provisions of Seller's effective
   FERC Gas Tariff, and any revisions thereof that may be made
   effective hereafter are hereby made applicable to and a part
   hereof by reference:



               1.    All of the provisions of Rate Schedule GSS, or any
   effective superseding rate schedule or otherwise applicable rate
   schedule; and<PAGE>



               2.    All of the provisions of the General Terms and Conditions,
   as they may be revised or superseded from time to time.





                           ARTICLE VI

                          Miscellaneous
                          -------------


         A.    No change, modification or alteration of this Agreement
   shall be or become effective until executed in writing by the
   parties hereto; provided, however, that the parties do not
   intend that this Article VI.A. requires a further written
   agreement either prior to the making of any request or filing
   permitted under Article II hereof or prior to the effectiveness
   of such request or filing after Commission approval, provided
   further, however, that nothing in this Agreement shall be deemed
   to prejudice any position the parties may take as to whether the
   request, filing or revision permitted under Article II must be
   made under Section 7 or Section 4 of the Natural Gas Act.



         B.    Any notice, request or demand provided for in this
   Agreement, or any notice which either party may desire to give
   the other, shall be in writing and sent to the following
   addresses:



         Pipeline:   CNG Transmission Corporation
                     445 West Main Street
                     Clarksburg, West Virginia  26301
                     Attention:  Vice President, Marketing and Customer Services



         Customer:   Connecticut Natural Gas Corporation
                     100 Columbus Boulevard, P.O. Box 1500
                     Hartford, Connecticut   06144-1500
                     Attention:  Director of Energy Procurement



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



         C.    No presumption shall operate in favor of or against either
   party hereto as a result of any responsibility either party may
   have had for drafting this Agreement.<PAGE>



         D.    The subject headings of the provisions of this Agreement are
   inserted for the purpose of convenient reference and are not
   intended to become a part of or to be considered in any
   interpretation of such provisions.





                           ARTICLE VII

                          Prior Contract
                          --------------


         Upon its execution by Pipeline and by Customer, this Service
   Agreement shall supersede and cancel, as of its effective date,
   the "Precedent Agreement For Firm CNG Storage Service Under Rate
   Schedule GSS" between Customer and Pipeline dated April 10,
   1996; and that certain "Letter Agreement Related to Seasonal
   Service Expansion Project Precedent Agreements" between Pipeline
   and Customer dated April 9, 1996.<PAGE>




               IN WITNESS WHEREOF, the parties hereto have caused this
   Agreement to be signed by their duly authorized officials as of
   the day and year first above written.





   CNG TRANSMISSION CORPORATION

                           (Pipeline)





   By:__________________________



   Its:  Vice President





   CONNECTICUT NATURAL GAS

         CORPORATION (Customer)





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



   Its:  V.P.
       -------------------------
                     (Title)<PAGE>



                                 EXHIBIT A
                     To The Storage Service Agreement
                           Dated April 1, 1997
                 Between CNG Transmission Corporation and
                    Connecticut Natural Gas Corporation





   A.    Quantities



         The quantities of natural gas storage service which Customer
   may utilize under this Service Agreement, as well as Customer's
   applicable Billing Determinants, are as follows:



         1.    Phase 1.  For the period commencing April 1, 1997, and
   continuing in effect for a primary term through and including
   March 31, 2007, and from year to year thereafter until either
   party gives written notice in accordance with Article III of the
   Storage Service Agreement:



               a.    A Storage Capacity of 1,305,000 Dekatherms ("Dt"); and



               b.    A Storage Demand of 14,658 Dt per Day.



         2.    Phase 2.  For the period commencing April 1, 1999, and
   continuing in effect for a primary term through and including
   March 31, 2009, and from year to year thereafter until either
   party gives written notice in accordance with Article III of the
   Storage Service Agreement:


               a.    An additional Storage Capacity of 495,000 Dt (resulting in
   a total MATQ of 1,800,000 Dt commencing as of April 1, 1999; and


               b.    An additional Storage Demand of 5,000 Dt per Day (resulting
   in a total Storage Demand of 19,658 Dt per Day commencing as of
   April 1, 1999).



   B.    Points of Receipt


         The primary Points of Receipt for Customer's tender of storage
   injection quantities, and the maximum quantities and character<PAGE>



   of service for each point shall be as set forth below.  Pipeline
   will use due care and diligence to assure, and Customer will use
   due care and diligence to cause its transporter to assure, that
   uniform pressures will be maintained at the Receipt Points as
   reasonably may be required to render service hereunder, but
   Pipeline will not be required to accept gas at less than the
   minimum pressures specified herein.<PAGE>




                                                   EXHIBIT A
                              To The Storage Service Agreement
                                           Dated April 1, 1997
                      Between CNG Transmission Corporation and
                           Connecticut Natural Gas Corporation
                                                    Page 2 of 3
    
   1.    At the interconnection of facilities of Transcontinental Gas
   Pipe Line Corporation or Texas Eastern Transmission Corporation
   and Pipeline in Clinton County, Pennsylvania, known as the Leidy
   Interconnection, at a pressure of not less than one thousand 
   (1,000) pounds per square inch gauge ("psig"); or


   2.    At the interconnection of facilities of Texas Eastern
   Transmission Corporation and Pipeline in Westmoreland County,
   Pennsylvania, known as the Oakford interconnection, at a
   pressure of not less than five hundred seventy-five (575) psig;
   or


   3.    At the following points of interconnection between the
   facilities of Pipeline and Tennessee Gas Pipeline Company:


               a.    the Gilmore interconnection, located in Tuscarawas County,
   Ohio;

               b.    the Augusta interconnection, located in Carroll County,
   Ohio;

               c.    the Petersburg interconnection, located in Mahoning County,
   Ohio;

               d.    the Cochranton interconnection, located in Crawford County,
   Pennsylvania; and

               e.    the Ellisburg interconnection, located in Potter County,
   Pennsylvania;


               with the specific allocation of quantities among these points
   to be determined by mutual agreement between Pipeline and
   Customer.

    
   4.    In the event that Customer does not utilize the Primary
   Receipt Points listed in paragraphs B.1, B.2, or B.3, above,
   then the Point of Receipt under this GSS Agreement for firm
   storage injection quantities shall be the points of injection
   into Pipeline's storage pool(s).  Customer shall either utilize
   the receipt point rights under its Service Agreement with
   Pipeline under Rate Schedule FT-GSS, or shall utilize some other
   transportation service agreement with appropriate receipt point
   entitlements, to nominate gas for subsequent injection into
   storage under this GSS Agreement.<PAGE>
<PAGE>




                                                   EXHIBIT A
                              To The Storage Service Agreement
                                           Dated April 1, 1997
                      Between CNG Transmission Corporation and
                           Connecticut Natural Gas Corporation
                                                    Page 3 of 3


   C.    Point of Delivery



         1.    The Point of Delivery for subsequent transportation to
   Customer of all firm storage withdrawal quantities shall be the
   point(s) of withdrawal from Pipeline's storage pool(s).



         2.    This Point of Delivery shall only be Primary, as defined in
   Pipeline's FERC Gas Tariff, to the extent that corresponding
   transportation from the points of withdrawal from Pipeline's
   storage pool(s) is provided under the "Service Agreement
   Applicable to Transportation Of Natural Gas Under Section 9 of
   Rate Schedule FT (FT-GSS Service)" between Pipeline and
   Connecticut Natural Gas Corporation, dated April 1, 1997.<PAGE>