Contract #:  820009
                                                                         ------
                                SERVICE AGREEMENT
                              FOR RATE SCHEDULE CDS

        This Service Agreement, made and entered into this       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 and Pipeline currently are parties to two  service
   agreements under Pipeline's Rate Schedule CDS (Pipeline Contract Nos. 800380
   and 800423) which specify an MDQ of 30,000 dth and 644 dth, respectively;
   and

        WHEREAS, Customer and Pipeline desire to enter into this service
   agreement to supersede and combine Customer's existing Rate Schedule CDS
   service agreements (Pipeline Contract Nos. 800380 and 800423);

        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, of Pipeline's
   Rate Schedule CDS, and of the General Terms and Conditions, transportation
   service hereunder will be firm.  Subject to the terms, conditions and
   limitations hereof and of Sections 2.3 and 2.4 of Pipeline's Rate Schedule
   CDS, Pipeline shall deliver to those points on Pipeline's system as
   specified in Article IV herein or available to Customer pursuant to Section
   14 of the General Terms and Conditions (hereinafter referred to as Point(s)
   of Delivery), for Customer's account, as requested for any day, natural gas
   quantities up to Customer's MDQ.  Customer's MDQ is as follows:

                    Maximum Daily Quantity (MDQ)    30,644 dth

             provided, however, that Customer and Pipeline shall have
             six (6) options to reduce the MDQ under this Service
             Agreement as set forth below.  Such options to reduce
             the MDQ under this Service Agreement require two (2)
             years prior written notice.  Such options to reduce the
             MDQ under this Service Agreement: (1) shall not be
             cumulative; (2) must be exercised sequentially; and (3)
             are available to reduce the MDQ by any amount not in
             excess of the following quantities: (i) First Option--up
             to 7,355 Dth with such reduction becoming effective on
             November 1, 1999, or any November 1 thereafter but prior
             to and including November 1, 2004; (ii) Second Option--
             up to 4,290 Dth with such reduction becoming effective
             on November 1, 2000, or any November 1 thereafter but
             prior to and including November 1, 2004; (iii) Third
             Option--up to 4,290 Dth with such reduction becoming
             effective on November 1, 2001, or any November 1
             thereafter but prior to and including November 1, 2004;<PAGE>


                              SERVICE AGREEMENT
                            FOR RATE SCHEDULE CDS
                                 (Continued)


   

             (iv) Fourth Option--up to 4,290 Dth with such reduction
             becoming effective on November 1, 2002, or any November
             1 thereafter but prior to and including November 1,
             2004; (v) Fifth Option--up to 4,290 Dth with such
             reduction becoming effective on November 1, 2003, or any
             November 1 thereafter but prior to and including
             November 1, 2004; and (vi) Sixth Option--up to 6,129 Dth
             with such reduction becoming effective on November 1,
             2004. In the event either Customer or Pipeline exercises
             its right to reduce the MDQ of this Service Agreement as
             set forth in this ARTICLE I, any such reduction(s) will
             be subject to Pipeline's right of pregranted abandonment
             or Customer's right of first refusal, as applicable, as
             set forth in ARTICLE II of this Service Agreement. 

        Subject to variances as may be permitted by Sections 2.4 of Rate
   Schedule CDS or the General Terms and Conditions, Customer shall deliver to
   Pipeline and Pipeline shall receive, for Customer's account, at those points
   on Pipeline's system as specified in Article IV herein or available to
   Customer pursuant to Section 14 of the General Terms and Conditions
   (hereinafter referred to as Point(s) of Receipt) daily quantities of gas
   equal to the daily quantities delivered to Customer pursuant to this Service
   Agreement up to Customer's MDQ, plus Applicable Shrinkage as specified in
   the General Terms and Conditions.  

        Pipeline shall not be obligated to, but may at its discretion, receive
   at any Point of Receipt on any day a quantity of gas in excess of the
   applicable Maximum Daily Receipt Obligation (MDRO), plus Applicable
   Shrinkage, but shall not receive in the aggregate at all Points of Receipt
   on any day a quantity of gas in excess of the applicable MDQ, plus
   Applicable Shrinkage.  Pipeline shall not be obligated to, but may at its
   discretion, deliver at any Point of Delivery on any day a quantity of gas in
   excess of the applicable Maximum Daily Delivery Obligation (MDDO), but shall
   not deliver in the aggregate at all Points of Delivery on any day a quantity
   of gas in excess of the MDQ.















                                  2
                                                               820009
    <PAGE>


                              SERVICE AGREEMENT
                            FOR RATE SCHEDULE CDS
                                 (Continued)


   


        In addition to the MDQ and subject to the terms, conditions and
   limitations hereof, Rate Schedule CDS and the General Terms and Conditions,
   Pipeline shall deliver within the Access Area under this and all other
   service agreements under Rate Schedules CDS, FT-1, and/or SCT, quantities up
   to Customer's Operational Segment Capacity Entitlements, excluding those
   Operational Segment Capacity Entitlements scheduled to meet Customer's MDQ,
   for Customer's account, as requested on any day.


                                    ARTICLE II

                                TERM OF AGREEMENT 

        The  term  of  this  Service Agreement shall commence on November 1,
   1996 and, subject to the provisions of ARTICLE I of this Service Agreement, 
   shall continue in force and effect  until October 31, 2004 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 two (2) years prior written notice to the other specifying a
   termination date of October 31, 2004, or any October 31 thereafter.  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.

        Any portions of this Service Agreement necessary to correct or cash-out
   imbalances under this Service Agreement as required by the General Terms and
   Conditions of Pipeline's FERC Gas Tariff, Volume No. 1, shall survive the
   other parts of this Service Agreement until such time as such balancing has
   been accomplished.






                                     3
                                                                  820009
    <PAGE>


                              SERVICE AGREEMENT
                            FOR RATE SCHEDULE CDS
                                 (Continued)


   

                                   ARTICLE III

                                  RATE SCHEDULE

        This Service Agreement in all respects shall be and remain subject to
   the applicable provisions of Rate Schedule CDS 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 CDS as filed with the
   Federal Energy Regulatory Commission, and as same may hereafter be legally
   amended or superseded.

        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 CDS, (b) Pipeline's Rate Schedule CDS pursuant to which service
   hereunder is rendered or (c) any provision of the General Terms and
   Conditions applicable to Rate Schedule CDS.  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 MDQ specified in Article I, to change the term
   of the 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 Point(s) of Receipt and Point(s) of Delivery at which Pipeline
   shall receive and deliver gas, respectively, shall be specified in
   Exhibit(s) A and B of the executed service agreement.  Customer's Zone
   Boundary Entry Quantity and Zone Boundary Exit Quantity for each of
   Pipeline's  zones shall be specified in Exhibit C of the executed service
   agreement.

        Exhibit(s) A, B and C are hereby incorporated as part of this Service
   Agreement for all intents and purposes as if fully copied and set forth


                                                                 4
                                                               820009
    <PAGE>


                              SERVICE AGREEMENT
                            FOR RATE SCHEDULE CDS
                                 (Continued)


   

   herein at length.

















































                                                               5
                                                                  820009
    <PAGE>


                              SERVICE AGREEMENT
                            FOR RATE SCHEDULE CDS
                                 (Continued)


   

                                    ARTICLE V

                                     QUALITY 

        All natural gas tendered to Pipeline for Customer's account shall
   conform to the quality specifications set forth in Section 5 of Pipeline's
   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.  Customer shall
   execute or cause its supplier to execute, if such supplier has retained
   processing rights to the gas delivered to Customer, the appropriate
   agreements prior to the commencement of service for the transportation and
   processing of any liquefiable hydrocarbons and any PVR quantities associated
   with the processing of gas received by Pipeline at the Point(s) of Receipt
   under such Customer's service agreement.  In addition, subject to the
   execution of appropriate agreements, Pipeline is willing to transport
   liquids associated with the gas produced and tendered for transportation
   hereunder.


                                    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.




                                                                    6
                                                                 820009
    <PAGE>


                              SERVICE AGREEMENT
                            FOR RATE SCHEDULE CDS
                                 (Continued)


   


                                   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.


                                   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.













                                                                   7
                                                                   820009
    <PAGE>


                              SERVICE AGREEMENT
                            FOR RATE SCHEDULE CDS
                                 (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, November 17, 1993 and 11/15/96 between
   Pipeline and Customer under Pipeline's     Rate Schedule CDS (Pipeline's
   Contract Nos. 800380 and   800423. 
    





































                                                                  8
                                                              820009
    <PAGE>


                              SERVICE AGREEMENT
                            FOR RATE SCHEDULE CDS
                                 (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
   ------------------
   Robert W. Reed
   Corporate Secretary



                              CONNECTICUT NATURAL GAS CORPORATION


                              By Edna M. Karanian
                                 ---------------------------------
                                 Vice Pres.


   ATTEST:


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







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                                                                820009
    <PAGE>