Contract #: 830035
                                                                          -----
   -

                                SERVICE AGREEMENT
                              FOR RATE SCHEDULE FT-1


     This Service 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 and Pipeline currently are parties to a service
   agreement under Pipeline's Rate Schedule FT-1 (Pipeline Contract No. 800341)
   which specifies an MDQ of 16,970 dth; and

     WHEREAS, Customer and Pipeline desire to enter into this service agreement
   to supersede Customer's existing Rate Schedule FT-1 service agreement
   (Pipeline Contract No. 800341);

     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 FT-1, and of the General Terms and Conditions, transportation
   service hereunder will be firm.  Subject to the terms, conditions and
   limitations hereof and of Pipeline's Rate Schedule FT-1, Pipeline agrees to
   deliver for Customer's account quantities of natural gas up to the following
   quantity:

                    Maximum Daily Quantity (MDQ)    16,970 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 4,073 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
            2,376 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<PAGE>



                              SERVICE AGREEMENT
                           FOR RATE SCHEDULE FT-1
                                 (Continued)


   

            to 2,376 Dth with such reduction becoming effective on
            November 1, 2001, or any November 1 thereafter but prior
            to and including November 1, 2004; (iv) Fourth Option--up
            to 2,376 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
            2,376 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 3,393 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. 

     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) for transportation hereunder daily
   quantities of gas up to Customer's MDQ, plus Applicable Shrinkage.  Pipeline
   shall transport and deliver 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 Delivery), such daily quantities tendered up to
   such Customer's MDQ. 

     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 applicable MDQ.


     In addition to the MDQ and subject to the terms, conditions and
   limitations hereof, Rate Schedule FT-1 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,


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                                                                   830035
   <PAGE>



                              SERVICE AGREEMENT
                           FOR RATE SCHEDULE FT-1
                                 (Continued)


   

   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 therafter.  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.












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                                                                   830035
   <PAGE>



                              SERVICE AGREEMENT
                           FOR RATE SCHEDULE FT-1
                                 (Continued)


   

                                   ARTICLE III

                                  RATE SCHEDULE

     This Service Agreement in all respects shall be and remain subject to the
   applicable provisions of Rate Schedule FT-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 FT-1 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
   FT-1, (b) Pipeline's Rate Schedule FT-1 pursuant to which service hereunder
   is rendered or (c) any provision of the General Terms and Conditions
   applicable to Rate Schedule FT-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 MDQ specified in Article I,  to change the term of
   theagreement 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
   herein at length.


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                                                                   830035
   <PAGE>



                              SERVICE AGREEMENT
                           FOR RATE SCHEDULE FT-1
                                 (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.




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                                                                   830035
   <PAGE>



                              SERVICE AGREEMENT
                           FOR RATE SCHEDULE FT-1
                                 (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.













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                                                                   830035
   <PAGE>



                              SERVICE AGREEMENT
                           FOR RATE SCHEDULE FT-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 Agreement dated November 17, 1993, between Pipeline and
                                              Customer under Pipeline's Rate
                                              Schedule FT-1         (Pipeline's
                                              Contract No. 800341).
    
    

































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                                                                   830035
   <PAGE>



                              SERVICE AGREEMENT
                           FOR RATE SCHEDULE FT-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
   --------------------



                          CONNECTICUT NATURAL GAS CORPORATION



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



   ATTEST:


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






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                                                                   830035
   <PAGE>