OIL AND GAS LEASE AND DEVELOPMENT AGREEMENT
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     THIS  AGREEMENT, made and entered into this 16th day of August 2000 between
Allegheny  Energy,  Inc.,  a Maryland Corporation, Monongahela Power Company, an
Ohio  corporation,  and  West  Virginia  Power  and Transmission Company, a West
Virginia  corporation  (hereinafter  collectively  called  "Lessor"), and Energy
Corporation  of  America,  a  West  Virginia  Corporation  (hereinafter  called
"Lessee"),


                              W I T N E S S E T H:
                              - - - - - - - - - -

                                       I.

     Lessor,  in  consideration  of  Ten  Dollars  ($l0.00)  and  other good and
valuable  considerations  in  hand  paid,  the  receipt  of  which  is  hereby
acknowledged,  of  the royalties herein provided and of the agreements of Lessee
herein  contained,  hereby  grants,  leases  and  lets  exclusively  unto Lessee
(subject  to  each  and  all  the  other provisions here-of), for the purpose of
investigating,  exploring,  prospect-ing, drilling and mining for and producing,
transporting  and  marketing  oil  and  gas,  and  for  the  purpose  of  laying
pipe-lines,  building  tanks,  power  stations,  telephone  lines  and all other
facilities  thereon necessary in conducting any of such operations on the leased
premises, those certain tracts of land situated in Tucker County, West Virginia,
more  particularly described in Exhibit A attached hereto and hereby made a part
hereof  for  all  purposes.

     This  lease does not cover water or minerals except water or minerals which
are produced in association with oil or gas, and there are excepted herefrom all
water (except that water injected into the leased premises by Lessee or produced
in  association with the recovery of oil or gas) coal, lignite, sulphur, uranium
ores and other radioactive ores, sand, gravel, stone, fuller's earth, commercial
clays  or  other  minerals, whether similar or dissimilar and whether or not now
known, unless produced in association with the recovery of oil or gas.  Further,
this  lease  is  subject  to  all  presently existing and enforceable easements,
rights-of--way,  leases  and other grants of rights and interests affect-ing the
leased  prem-ises,  either  of  record  in the Office of the Clerk of the County
Commission  of  Tucker County, West Virginia, or occupied on the ground, whether
or  not  identified  in this lease, and the rights arising under said easements,
rights-of-way,  leases  and  other  grants.

     For  the  purpose  of calculating the shut in gas well payments hereinafter
provided for, the leased premises is estimated to comprise 18,520 acres, whether
it  actually  comprises  more  or  less.


                                       1
<PAGE>

                                       II.

     Subject  to  the other provisions hereof, this lease shall be for a term of
ten (10) years from and after the date hereof (herein called "primary term") and
as  long  thereafter  as (a) oil or gas is produced from the leased premises, or
from  acreage  pooled therewith as hereinafter provided, in paying quantities or
(b) this lease is main-tained in force in any other manner hereinafter provided.

                                      III.

     The  royalties  to  be  paid  by  Lessee  to  Lessor  are:

     (a)     On  oil, nineteen percent (19%) of that produced and saved from the
leased  premises,  the  same  to  be  delivered free of cost at the wells to the
credit  of  Lessor into the pipeline or pipelines to which Lessee's wells may be
connected  or,  at  Lessor's  option,  into  storage  provided  by Lessor at its
expense;  provided  however  that  Lessee  may,  from time to time, purchase any
royalty  oil  in its possession paying the market value therefore prevailing for
the field where produced on the date of purchase and Lessee may sell any royalty
oil  in  its  possession paying the market value reserved by Lessee for such oil
computed  at  the  well.

     (b)     On  gas,  including  casinghead  gas  or  other gaseous substances,
produced  from  the  leased  premises  and  sold  or  used (other than for lease
operations hereunder), nineteen percent (19%) of the current price for which gas
is sold by a willing seller to a willing buyer in an arm's length transaction in
Tucker  County,  West  Virginia,  at  the  well at the time of delivery, free of
development  and  production  cost; provided if the gas produced from the leased
premises  is  sold  or  delivered  for processing in an absorption or extraction
plant,  or  other  type  plant or plants, whether similar or dissimilar, for the
recovery  of  the  liquid  and/or  liquefiable  hydrocarbons,  sulphur  or other
products  therefrom,  and if such gas is so pro-cessed, Lessor shall have and be
entitled  to  a royalty of nineteen percent (19%) of all plant products, and all
other  hydrocarbons,  sulphur and products so extracted, separated, produced and
saved  from such gas (but not products subsequently manufactured therefrom), the
same  to  be delivered either to the credit of Lessor into the pipeline or other
carrier  to  which  the  plant  or  plants  may  be connected or into which such
products  may  be  delivered or, at Lessor's option, at the plant or plants into
storage  provided  by  Lessor  at  its expense; and, in addition thereto, Lessor
shall have and be entitled, as royalty, to nineteen percent (19%) of the current
fair  market  value  of  all  residue  gas  sold  or  used (other than for lease
operations  here-under) at the time of delivery, which residue gas is understood
to  be the gas at the outlet side of the plant or plants after the same has been
processed for the extraction of liquid and/or liquefi-able hydrocarbons, sulphur
or  other  products  therefrom.


                                       2
<PAGE>

     (c)     Lessee  agrees  that  all  gas, including casing-head gas, produced
from  the  leased  premises  and  not  processed  in  a plant or plants as above
provided,  before the same is sold or used for any purpose, shall be run through
a  properly  operated  conventional  field type separator or separators or other
comparable  equip-ment  at  least  as  efficient for the purpose of separat-ing,
extracting  and  saving  at  or  near  the  well  the  liquid  and  liquefiable
hydrocarbons  recoverable  from  the  gas  by  such means, unless (l) the liquid
hydrocar-bon  content  of  such  gas is so small as to make the installation and
operation  of  a  separator  or  separators  or  other  comparable  equipment
unprofitable  to Lessee or (2) the pressure of such gas is such that running the
same  through  a  separator or separators or other compar-able equipment will so
reduce  the  pressure  that  Lessee  will  be  unable  to deliver the residue or
separated  gas  against the existing gathering system or pipeline pressures; and
on  all  such  liquid  and  liquefiable hydrocarbons so separated, extracted and
saved,  Lessor shall have and be entitled to a royalty of nineteen percent (19%)
of  that so produced and saved, the same to be delivered either to the credit of
Lessor  into the pipeline or pipelines to which the well may be connected or, at
Lessee's  option, at the well into tanks provided by Lessor at its expense; and,
in  addi-tion  thereto, Lessor shall be paid the royalties above provided on all
such  gas  sold  or  used  after  the same has been run through the separator or
separators  or  other  comparable  equipment.

     (d)     On any substance, including water or miner-als, which is marketable
or  of  commercial  value  and  which  is  produced  from the leased premises in
associa-tion with oil or gas, nineteen percent (19%), either in kind or value at
the  well,  at  Lessor's  election,  provided  that  Lessor shall give to Lessee
reasonable  notice  as  to  its  election.

     Lessee  shall  have  the free use of gas, including casinghead gas, residue
gas or gas of any other nature or description, produced from the leased premises
for all lease operations hereunder.  Lessee shall have the right to use, free of
cost,  water  found on the leased premises for Lessee's operations thereon.  All
taxes,  including  ad  valorem  taxes,  production, severance and similar taxes,
shall be borne and paid by Lessor and by Lessee on their respective interests in
the  leased  premises.

                                       IV.

     Subsequent to the primary term and while there is a gas well (classified as
such  by  any  lawful governmen-tal authority having jurisdiction) on the leased
premises,  or  on  acreage  pooled therewith as hereinafter provided, capable of
producing  gas in paying quantities, but gas therefrom is not being sold or used
because  of  lack of market or available pipeline connection therefor or because
of  force  majeure, subject to the provisions of Section VIII hereof, this lease
nevertheless  may  be maintained in force and effect as to the acreage allocable
to  each  such  well  as established by the rules of any governmental regulatory
body  having  jurisdiction  over  any  such  well,  by Lessee paying to Lessor a
shut-in  royalty  equal  to  five  dollars  ($5.00) per acre, for each acre then
covered  by  the  Lease allocable to each such well.  Such payment shall be made
annually  within  sixty  (60)  days  after  such  gas  well is shut in and shall
continue  annually  thereafter  until  such  well  commences  production.  If no
applicable  governmental  rule or order exists which spaces the leased premises,
payment  of  shut-in  royalties,  as  provided herein, shall be based upon a one
hundred  and  sixty (160) acre spacing, in the form of a square surrounding each
gas  well.

     If  such payments are made or tendered, this lease shall not terminate, and
it  shall  be  considered that gas is being produced in paying quantities during
such  periods.  Nothing  contained  in  this  paragraph shall operate to relieve
Lessee  of  its  obligations  diligently  to  seek  a market for gas or from its
obligations hereunder, with respect to reasonable development for oil and gas or
with  respect  to  protecting  the  leased  premises  from  drainage.


                                       3
<PAGE>

                                       V.

     Subject  to  the  provisions  of Sections VI and VIII hereof, Lessee at any
time  or  times may execute and deliver to Lessor in recordable form or place of
record  in  the  office  of the Clerk of the County Commission of Tucker County,
West  Virginia  (after  delivering  to Lessor a true copy thereof), a release or
releases  covering  any  portion  or portions of the leased premises and thereby
surrender  this  lease  as  to  such  portion or portions and be relieved of all
obligations  as to the acreage surrendered, and thereafter any shut in royalties
payable hereunder shall be payable only on the acreage covered hereby as reduced
by  said  release  or  releases.

                                       VI.

     If  at  the expiration of the primary term of this lease, oil or gas is not
being  produced  from  the leased premises and this lease is not otherwise being
maintained,  but  Lessee on or before that date commences the actual drilling or
reworking  of  a  well  in  search  of  such  oil  or  gas, then, subject to the
provisions  of Section VIII hereof, this lease shall continue in force as to the
leased  premises  so  long  as  such  drilling or reworking operations are being
diligently  prosecuted.  If,  as  a  result  of  any  such drilling or reworking
operations,  oil  or  gas  be  found  and produced in paying quantities from the
leased  premises  or  the  production  in  paying  quantities  of any of same be
restored,  this  lease  shall  continue  in  force  so long as either of them is
pro-duced  in  paying  quantities.  If  oil  or  gas is being produced in paying
quantities  from  the  leased  premises,  or  from  acreage  pooled therewith as
hereinafter  provided,  at  the  expiration  of  the  primary  term  or  if such
production  is  obtained  from  the  leased premises after the expiration of the
primary term hereof and such production shall for any reason cease or terminate,
Lessee  shall  have  the  right  at  any  time  within ninety (90) days from the
cessation of such production to resume actual drilling or reworking of a well in
an  effort  to  make  the  leased  premises  again  produce oil or gas in paying
quantities,  in  which  event, this lease shall remain in force as to the leased
premises  so  long as such drilling or reworking operations are being diligently
prosecuted, and if they result in production of oil or gas in paying quantities,
so  long  thereafter  as  either  oil  or  gas is produced in paying quantities.

                                      VII.

     Lessee,  at its option, is hereby granted the right and power, from time to
time,  subject  to  the  limitations  and upon the conditions prescribed in this
Section  VII to pool or unitize, to the extent, but only to the extent, provided
in  this  Section  VII, the prescribed portion of the leased premises as to gas,
but  not as to oil, with other land, and/or other lease or leases covering land,
adjoining or contiguous to the leased premises when it is necessary or advisable
to  do  so  in  order properly to explore, or to develop and operate, the leased
premises in compliance with the rules or regulations of any lawful gov-ernmental
author-ity,  federal  or  state,  having  jurisdiction,  or  when to do so would
promote  the  conservation  of gas in and under, and that may be pro-duced from,
the  leased  premises.  Anything  con-tained  herein  to  the  contrary
notwithstanding,  units created hereunder shall be limited to gas, shall include
the  leased  premises  as  no  less than 50% of the horizontal area of each unit
unless  all  of  the  leased  premises  not  then included in a unit or units is
included  in  the  unit,  and  shall  comply  with  the following conditions and
limitations:


                                       4
<PAGE>

     (a)     no  unit  of  more than three hundred (300) acres (plus 10% acreage
tolerance)  may  be  created  for  production from subsurface depth(s), zone(s),
formation(s)  or  horizon(s)  above  the  top  of  the  Onandoga;  and

     (b)     no  unit  of  more than six hundred and forty (640) acres (plus 10%
acreage  tolerance)  may  be  created  for  production from subsurface depth(s),
zone(s),  formation(s)  or  horizon(s)  below  the  top  of  the  Onandaga;

provided  further  that if any lawful governmental authority having jurisdiction
requires  the  creation  of  units  for  production  of  gas  larger  than those
prescribed in this Section VII as a condition to a maximum production allowable,
units  thereafter created for production of gas pursuant to this Section VII may
conform  in  size  to  those  so  required  by said governmental authority for a
maximum  production  allowable.  The units formed by pooling as to any depth(s),
zone(s),  formation(s)  or hori-zon(s) need not conform in size or area with the
unit  or  units  in  which  this  lease  is  pooled  or combined as to any other
depth(s),  zone(s),  formation(s)  or  horizon(s).  The  pooling  in one or more
instances  shall  not  exhaust the rights of Lessee hereunder to pool this lease
into  other  units  conforming  to the limitations and conditions pre-scribed in
this  Section  VII.  Lessee  shall file for record in the office of the Clerk of
the  County Commission of Tucker County, West Virginia, an instrument describing
and designating the pooled acreage as a pooled unit.  Any unit created hereunder
shall  become  effective  upon the date the instrument designating same is filed
for record in Tucker County, West Virginia.  Any unit created hereunder shall be
effective  as  to Lessor, its successors and assigns, irrespective of whether or
not  the unit is likewise effective as to all other owners of surface, min-eral,
royalty or other interests in the lands, minerals and formations subject to such
unit.  A pooled unit may include, but is not required to include, land or leases
upon  which a well capable of producing gas in paying quantities has theretofore
been  completed or upon which operations for the drilling of a well for gas have
theretofore  been  commenced.  Operations for drilling on any part of the pooled
unit which includes a portion of the leased premises, regardless of whether such
operations  for  drilling  were  commenced before or after the execution of this
instrument or the instrument designating the pooled unit, shall be considered as
opera-tions  for,  drilling  on  the  leased  premises,  and  the entire acreage
constituting  such unit or units, as to gas as herein provided, shall be treated
for  all purposes, except the payment of royalties on production from the pooled
unit,  as  if  the  same  were  included  in this lease within the definition of
"leased  prem-ises."  For the purpose of computing the royalties to which owners
of  royalties  and payments out of production and each of them shall be entitled
on  production  of  gas  from  any pooled unit created hereunder, there shall be
allocated  to  the  land  covered by this lease and included in said unit (or to
each separate tract within the unit, if this lease covers separate tracts within
the  unit)  a  pro  rata portion of the gas produced from the pooled unit.  Such
allocation  shall  be  on  an  acreage  basis  -  that is to say, there shall be
allo-cated  to the acreage covered by this lease and included in the pooled unit
(or  to each separate tract within the unit if this lease covers separate tracts
within  the unit) that pro rata portion of the gas produced from the pooled unit
which  the  number  of  surface acres covered by this lease (or by each separate
tract)  and  included  in  the  pooled  unit  bears to the total number of acres
included  in  the  pooled  unit.  As used in this paragraph, the words "separate
tract" mean any tract with royalty ownership differing, now or hereafter, either
as to parties or amounts, from that as to any other part of the leased premises.
Royalties  hereunder  shall be computed on the portion of such gas production so
allocated  to  the  land  covered by this lease and included in the unit just as
though such production was from such land.  Any pooled unit designated by Lessee
in  accordance  with  the  terms hereof may be dissolved by Lessee by instrument
filed  for record in the office of the Clerk of the Commission of Tucker County,
West Virginia, after the completion or a dry hole or the cessation of production
from  said  unit.


                                       5
<PAGE>

     If  any  portion  or portions of the leased premises are pooled or unitized
pursuant  to  this  Section  VII or pursuant to any valid and enforceable law or
regulation  of  any  governmental  body having jurisdic-tion, the portion of the
leased premises not so pooled or unitized shall for all purposes be treated as a
separate lease, and production from, or attributable to, the portion or portions
of the leased premises so pooled or unitized shall not perpetuate the portion of
the  leased  premises  not  so  pooled  or  unitized.  The portion of the leased
premises  not  so  pooled  or  unitized may be maintained in force and effect by
operations on payment of shut in gas well royalty with respect to, or production
of  oil  or  gas  from wells drilled on and com-pleted under, the portion of the
leased  premises  not so pooled or unitized, to the extent provided by the terms
hereof.

                                      VIII.

     If  at  the end of the primary term hereof, oil or gas in paying quantities
has  been  discovered  on the leased premises, or on acreage pooled therewith as
hereinabove  provided,  or  if oil or gas in paying quantities is discov-ered on
the  leased premises, or on acreage pooled therewith as hereinabove provided, so
as  to  continue  the  term  of the lease, after the end of the primary term, as
provided  in  Section  VI  hereof,  Lessee  thereafter  shall  conduct  diligent
operations  for  the  drilling of successive wells on the leased premises, or on
acreage  pooled  therewith  as  hereinabove  provided.

                                       IX.

     At  least ten (10) days prior to commencing opera-tions for the drilling of
each  and  every  well  on  the leased premises, Lessee agrees to furnish Lessor
written  notice  of its intent to commence such opera-tions, and within ten (10)
days  after:  (i)  the  commencement  of the actual drill-ing of any well on the
leased  premises;  or  (ii) the completion or abandonment of any well drilled on
the  leased  premises;  Lessee  agrees  to furnish Lessor written notice of such
event.  Lessee  further agrees: (i) to furnish Lessor copies of all applications
and  reports  filed  with  any  governmental  authority  having  jurisdiction of
operations  by Lessee on the leased premises and of all permits issued to Lessee
by  any  govern-mental  authority  with  respect  to  operations  on  the leased
premises, within ten (10) days after such application or report is filed or such
permit  is received by Lessee; and (ii) to furnish Lessor at least weekly a copy
of  the  drill-ing report for each well drilled on the leased prem-ises, showing
the  depth  to  which the well has been drilled and the activities taken through
the  date  thereof.  Lessor agrees to hold all information furnished to it under
this  section confidential for one (1) year beyond the termination of this lease
or  until  the  time  such  information  becomes  public knowledge, whichever is
earlier.


                                       6
<PAGE>

     At  its  sole risk, Lessor and its representatives shall have access to the
leased premises, well records and production information at all reasonable times
to  inspect  exploration, development and operations on the leased prem-ises, or
on  acreage  pooled  or  unitized  therewith  pursuant to law or regulation of a
governmental  body  having jurisdic-tion, including access to the derrick floor.
Samples  of  cores  and  cuttings  of  drilling wells shall be made available to
Lessor  and  its  representatives  at the wells.  Lessee agrees to keep accurate
logs  of  all wells drilled by it hereunder, and Lessor shall be furnished, free
of  cost  and within thirty (30) days after completion of each well, with copies
of  said  logs,  including logs of electrical surveys, if such surveys are made.

                                       X.

     Lessee  agrees  to  indemnify and hold Lessor harmless from and against all
claims, loss and liability to third parties (including governmental authorities)
arising  out  of  Lessee's  operations  hereunder.

                                       XI.

The  rights  of Lessor and of Lessee may be assigned in whole or in part and the
provisions  hereof  shall  extend  to  and be binding upon the respective heirs,
succes-sors,  assigns  and legal representatives of Lessor and Lessee; provided,
however,  an  assignment  by a party to an assignee which is not an affiliate of
the  assigning  party  shall not be made without the consent of the other party,
which  consent  shall  not be unreasonably withheld or delayed; provided however
that  Lessee may encumber, mortgage, pledge or assign its interest hereunder for
financing purposes without Lessor's consent.  No change or division in ownership
of  the  leased  premises  or  of  the  rentals or royalties payable here-under,
accomplished  after the date of this lease, however such change or divi-sion may
be accomplished, shall operate to enlarge the obligations or diminish the rights
of  Lessee, and no such change or division of such ownership shall be binding on
Lessee  until  thirty  (30)  days  after  Lessee  shall  have  been furnished by
registered or certified United States Mail at Lessee's address noted herein with
a  certified copy of the recorded instrument or instruments evidencing same.  No
change  in the ownership of the leasehold estate created hereby shall be binding
upon  Lessor  until  Lessor shall have been furnished by registered or certified
United States Mail at Lessor's address noted herein with a certified copy of the
recorded  instrument  or  instruments  evidencing  same, and Lessee shall remain
respon-sible for the undertakings and obligations of Lessee until said certified
copy  of  the  recorded  instrument  or  instru-ments  are  received  by Lessor.

                                      XII.

Lessor  hereby  warrants  that  it  owns 100% of the leased premises, Lessee may
purchase  or  lease  the rights of any party claiming any interest in the leased
premises  and  exercise  such rights as may be obtained thereby but Lessee shall
not  suffer  any forfeiture nor incur any liability to Lessor by reason thereof.
Lessee,  at  its  option  and  only after calling the matter to the attention of
Lessor,  in order that Lessor may pay same if it desires, may discharge in whole
or  in part any tax, mortgage or other lien upon the leased premises or any part
thereof,  or may redeem the same form any tax sale or adjudication, and shall be
subrogated  to such lien with the right to enforce same.  The royalties, shut in
gas  well  payments  and  rental  provided  for  herein  are  based

                                       7
<PAGE>

upon  the  ownership  by  Lessor  of  the  entire  mineral  estate in the leased
prem-ises,  and  if Lessor owns less than the entire mineral estate (even though
stated to be less) in all or any portion of the leased premises, such royalties,
shut  in  gas  well  payments and rentals attributable to any part of the leased
premises as to which this lease covers less than the entire mineral estate shall
be  paid  only  in  the  proportion that Lessor's interest in the entire mineral
estate  in  the  leased  premises  bears  to  the entire mineral estate therein.

                                      XIII.

     The  term  "force  majeure"  as  used  herein  shall  mean  and  include:
requisition,  order,  regulation  or  control  by  governmental  authority  or
commission;  exercise of rights of priority or control by governmental authority
for  national  defense  or  for  war purposes resulting in delay in obtaining or
inability  to  obtain  either  material,  equipment  or  means of transportation
normally  necessary  in prospecting or drilling for oil or gas, or in producing,
handling  or  trans-porting  same  from  the  leased  premises  or  necessary to
Les-see's  operations  thereon;  war; acts of God; insurrection; flood; strikes;
labor  disputes  or  other similar causes (excluding financial) which, including
those  specified  above,  are  beyond  the  control  of  Lessee.

     If  by reason of force majeure, as herein defined, Lessee is prevented from
or delayed in drilling, completing or producing any well or wells for oil or gas
on  the  leased premises, Lessee shall give written notice to Lessor, specifying
the  event of force majeure on which Lessee relies as preventing or delaying the
drilling,  completing  or  pro-ducing of such well or wells.  Following Lessor's
receipt  of  such written notice and thereafter while Lessee is so pre-vented or
during  the period of such delay, Lessee shall be relieved from all obligations,
whether  express  or  implied,  imposed  on  Lessee  under this lease, to drill,
complete  or produce such well or wells on the leased premises, and Lessee shall
not  be  liable  in damages, and this lease shall not terminate or be subject to
cancellation  for  failure  of Lessee to drill, complete or produce such well or
wells  dur-ing  the  time  Lessee  is  so  prevented or delayed from perform-ing
hereunder,  and  the  time  while Lessee is so prevented or delayed shall not be
counted  against  Lessee,  anything  con-tained  in  this  lease to the contrary
notwithstanding;  pro-vided, however, that Lessee shall use reasonable diligence
to  overcome,  or limit the period of, such event of force majeure, and under no
circumstances  shall Lessee be excused from paying or tendering any delay rental
or  rentals  or  any  other  payment or payments that otherwise would be payable
hereunder.

                                     XIV.

     The  primary  purpose  of this lease is the explora-tion and development of
the  leased  premises  for oil and gas and the production thereof for the mutual
benefit  and  profit  of  Lessee and Lessor; and subject to all of the terms and
provisions  hereof,  either  express  or  implied,  Lessee  shall  conduct  all
operations  required  or permitted hereunder in a good, workmanlike, prudent and
diligent  manner,  having in mind at all times, however, the interests of Lessor
in  the  leased  premises  as  well  as  the  interests  of  Lessee.

                                       8
<PAGE>

                                       XV.

     Should  the  right  to  receive  royalties,  shut  in gas well payments and
rentals,  or  any  of  them,  under  this  lease, be owned in part by a party or
parties  other  than  Lessor, such royalties and shut in gas well payments shall
be,  and  such  rentals  may be, paid or tendered, severally, to Lessor and such
other  parties  entitled thereto or to the credit, severally, of Lessor and such
other  parties  entitled  thereto,  all  as  otherwise  provided  herein.


                                      XVI.

     Lessor  will  share  equally  (50%) the cost of drilling the first four (4)
wells  (the "Initial Wells") on the leased premises.  Lessor and Lessee agree to
negotiate  in good faith, promptly following the execution of this agreement and
execute  an Operating Agreement substantially in the form of the 1989 Model Form
Operating  Agreement.  With  respect  to  the Initial Wells, Lessor shall hold a
fifty  percent  (50%)  working  interest  and  shall  receive  the  proceeds  of
production  attributable  thereto.  The  royalties  provided  for in Section III
shall  not  apply  to  production  from  the  Initial  Wells.

          If,  pursuant  to  Section  VII  hereof,  Lessee pools or unitizes the
leased  premises  with other land, and/or lease of leases covering land which is
adjoining or contiguous to the leased premises, Lessor shall share equally (50%)
in Lessee's proportionate share of the cost of drilling any well or wells on the
pooled or unitized acreage until such time as Lessor has participated in two (2)
net  wells.  Until  such time as Lessor has participated in two (2) net wells on
acreage pooled or unitized all such wells in which Lessor has a working interest
shall  be  deemed  to  be  Initial Wells and Lessor shall not be entitled to any
royalty  on  the  production  therefrom  but  shall  be  entitled to his working
interest.

                                      XVII.

     Any  notice,  request,  consent,  waiver or other communication required or
permitted  to be given hereunder shall be effective only if in writing and shall
be deemed sufficiently given only if delivered in person or sent by facsimile or
by  certified  or  registered  mail,  postage prepaid, return receipt requested,
addressed  as  follows:

If  to  Lessee:
--------------

     Energy  Corporation  of  America
     Attn:  John  Mork,  President  and  CEO
     4643  South  Ulster  Street
     Suite  1100
     Denver,  CO  80237

                                       9
<PAGE>

With  copies  to:
----------------

     Goodwin  &  Goodwin,  LLP
     Attn:  Thomas  R.  Goodwin
     1500  One  Valley  Square
     P.  O.  Box  2107
     Charleston,  WV  25328-2107

If  to  Lessor:
--------------

     Allegheny  Energy,  Inc.
     Attn:  Peter  Dailey,  Director
     800  Cabin  Hill  Drive
     Greensburg,  PA  15601-1689

With  copies  to:
----------------

     Allegheny  Power
     Attn:  Gary  A.  Jack,  Senior  Attorney
     1310  Fairmont  Avenue
     Fairmont,  WV  26554


                                     XVIII.

     This  Lease  shall be governed by and construed in accordance with the laws
of  the  State  of  West  Virginia.

                                      XIX.

          In  the  event  that  Lessor  considers  Lessee  to  have breached any
covenant express or implied in the Lease, Lessor shall notify Lessee in writing,
at Lessee's last known address, specifying in what respects Lessor claims Lessee
has  breached  the Lease.  Lessee shall have sixty (60) days from the receipt of
such  notice  in  which  to cure the alleged breach.  If Lessee cures the breach
within sixty (60) days of notice, it shall not be deemed in default.  The giving
of  such  notice  and the failure of Lessee to timely cure the breach shall be a
condition  precedent  to the filing of any legal action by Lessor.  No breach by
the Lessee shall forfeit or terminate this Lease, in whole or in part, except as
expressly  stated  herein  or  as  otherwise  expressly  provided  by  law.

                                       XX.

     This  lease  and  the  above-described  operating  agreement constitute the
entire  agreement with respect to the subject mater hereof and supercede any and
all  other  prior  understandings,  contracts,  agreements,  representations  or
warranties,  oral  or  written,  between  the parties hereto with respect to the
subject  matter  of  this  Agreement.


                                       10
<PAGE>

     Pronouns,  nouns  and  terms  as used in this instrument shall include the
masculine,  feminine,  neuter,  singular  and  plural  forms  thereof  wherever
appropriate  to  the  context.


IN WITNESS WHEREOF, this instrument is executed on the date first above written.


                                       ALLEGHENY  ENERGY,  INC.


                                       By     /S/  Jay S. Pifer
                                          --------------------------------------


                                       MON  POWER  COMPANY


                                       By     /S/  Jay S. Pifer
                                          --------------------------------------



                                       WEST  VIRGINIA  POWER  AND
                                       TRANSMISSION  COMPANY


                                       By     /S/  Jay S. Pifer
                                          ------------------------------------



                                                  LESSOR




                                       ENERGY  CORPORATION  OF  AMERICA


                                       By  /S/  Michael S. Fletcher
                                          -----------------------------------

                                                  LESSEE


                                       11
<PAGE>



THE  STATE  OF  West Virginia

COUNTY  OF Marion

     This  instrument  was  acknowledged  before  me  on August 16, 2000 by
Jay S. Pifer, Senior Vice President  of  Allegheny  Energy,  Inc.,  a
Maryland  Corporation.

     Notary  Public  in  and  for
     Marion  County,  West Virginia              /S/ Twila M. West
                                             ---------------------------------

My  commission  expires: June 9, 2008             (SEAL)



THE  STATE  OF  West Virginia

COUNTY  OF Marion

     This  instrument  was  acknowledged  before  me  on August 16, 2000 by
Jay S. Pifer, Senior Vice President  of  Monongahela Power Company,  an
Ohio  Corporation.

     Notary  Public  in  and  for
     Marion  County,  West Virginia              /S/ Twila M. West
                                             ---------------------------------

My  commission  expires: June 9, 2008             (SEAL)



THE  STATE  OF  West Virginia

COUNTY  OF Marion

     This  instrument  was  acknowledged  before  me  on August 16, 2000 by
Jay S. Pifer, Senior Vice President  of  West Virginia Power and Transmission
Company, a West Virginia  Corporation.

     Notary  Public  in  and  for
     Marion  County,  West Virginia              /S/ Twila M. West
                                             ---------------------------------

My  commission  expires: June 9, 2008             (SEAL)

                                       12
<PAGE>

THE  STATE  OF West Virginia

COUNTY  OF  Kanawha

     This  instrument  was  acknowledged  before  me  on August 16, 2000 by
Michael S. Fletcher, Chief Financial Officer, Treasurer of Energy Corporation
of America, a West  Virginia  Corporation.


     Notary  Public  in  and  for
     Kanawha  County,  West Virginia             /S/  Kathryn S. Keene
                                              ---------------------------------

My  commission  expires:  April 2, 2007          (SEAL)



Prepared by:
Tammy J. Owen
Goodwin & Goodwin LLP
P.O. Box 2107
Charleston, WV  25328-2107

                                       13
<PAGE>

Exhibit  A
Allegheny  Power  Canaan  Valley  Property

<TABLE>
<CAPTION>

<S>       <C>      <C>       <C>                     <C>                         <C>         <C>        <C>        <C>
LOCATION  TRACT    PROPERTY  PRESENT OWNER           FORMER OWNER                DBV PG      ACRES      DWG NO     AP DWG
          NUMBER   NUMBER

1*            613  D-43      WVA P&T                 W VA PGH RY CO                  43-359
1A            613            STATE OF W VA           W VA P&T
2             614            W POCAHONTAS PROP'S     W M RR                      46-367&156             BW-A-5138
3*            615  D-1       W VA P&T                BABCOCK LUMBER & BOOM CO        47-319             BW-A-5138
4*        616 1,2  D-8, 9    W VA P&T                A L HALMICK, ET AL              47-319
5*            617            W VA P&T (18 PARCELS)                                                      BW-A-5018
6*        618 1,2  D 12, 11  W VA P&T (3 PARCELS)    BRANSON HARPER                  46-335      39.14  BW-A-5148
7*          619-1  D-6       W VA P&T                BABCOCK LUMBER & BOOM CO        43-177   13197.26  BW-A-5109  C9250001
7A*         619-2  D-10      W VA P&T                RILEY HARPER                    47-333       2.71  BW-A-5148   509-690
8             620            W POCAHONTAS PROP'S     W M RR                                   4258.215  BW-A-5137   509-718
9             621            W POCAHONTAS PROP'S     W M RR                                  T2575.163  BW-A-5137   509-718
9A*           621  D-42      W VA P&T                DAVIS TRUST CO                  45-131    412.265  BW-A-5137   509-718
10            622            N/ VICTOR&DOC BONNER                                                       BW-A-5111   509-692
10A*          622  D-37      W VA P&T                V BONNER, ET UX                 45-104     71.846  BW-A-5111   509-692
10B           622            US FOREST SERVICE
11*           623  D-26      W VA P&T                A L FRANCIS, ET UX              43-358    317.645  BW-A-5110   509-691
12*           624  D-67      W VA P&T                E P WRIGHT, ET UX               66-499    165.789  BW-A-5126   509-707
13*           625  D-28      W VA P&T                F M BILLINGSLEA, ET UX           45-89    307.029  BW-A-5126   509-707
14*         626-1  D-33      W VA P&T                S M KAEMMERLING, ET VIR         47-395    478.366  BW-A-5127   509-708
15*         626-2  D-32      W VA P&T                S M KAEMMERLING, ET VIR         47-395    370.851  BW-A-5125   509-706
16*           627            MONONGAHELA PWR         M E HARMAN, ET VIR, ET AL       79-213    308.209  BW-A-5136   509-717
16A*          627  D-68      W VA P&T                TACY CARWELL                    70-465      3.987  BW-A-5136   509-717
17*           628            MONONGAHELA PWR         C S HARPER, ET AL               79-414
17A*          628  D-38      W VA P&T                W J TROUT                                          BW-A-5133   509-714
17B*          628  D-38      W VA P&T                W J TROUT                                          BW-A-5133   509-714
18*           629            MONONGAHELA PWR         R WILLIAMS, ET UX, ET AL        79-406                         409-476
18A*          629  D-39      W VA P&T                S E TURNER                       45-55             BW-A-5131   509-712
18B*          629  D-39      W VA P&T                S E TURNER                       45-55             BW-A-5132   509-713
19*           630  D-35      W VA P&T                G H JOHNSON, ET UX               45-93    231.152  BW-A-5112   509-639
20*           631  D-34      W VA P&T                CHAS E JOHNSON                   45-91
                             HANCEL MALLOW(SURF)     W VA P&T
21*           632            W VA P&T(OIL, GAS)      W O JOHNSON, ET UX, ET AL        47-44    ?44.084  BW-A-5113  TF551762
21A*          632  D-25      W VA P&T                W O JOHNSON, ET UX, ET AL        47-44   ?105.737  BW-A-5113   509-694
22            633            MERELIN LANHAM          STELLA HARMAN                               80.63  BW-A-5114   509-695
22A*          633            MONONGAHELA PWR         MERLIN LANHAM                   71-245      1.832  BW-A-5114   509-695
23            634            HANCEL MALLOW                                                      157.27
23A*          634  D-70      W VA P&T                HANCEL MALLOW                               2.221  BW-A-5114   509-695
23B8          634  D-70      W VA P&T                HANCEL MALLOW                               5.186  BW-A-5114   509-695
23C*          634            MONONGAHELA PWR         HELEN COOK                       79-27     57.457              404-893
24*           635  D-27      W VA P&T                A L FRANCIS, ET UX              43-358    118.871  BW-A-5117   509-698
25*           636  D-31      W VA P&T                W S COOPER, ET UX               45-102      137.5  BW-A-5118   509-699
26            637            M L COOPER              W FLANNIGAN                               103.142  BW-A-5119   509-700
26A*          637            MONONGAHELA PWR         M L COOPER                        72-1      15.95  BW-A-5119   509-700
27*           638  D-29      W VA P&T                C W & ARLETTE PROPST             45-67     77.664  BW-A-5116   509-697
28*           639  D-69      W VA P&T                C S TETER, ET UX                 71-17     86.767  BW-A-5116   509-697
29*           640  D-36      W VA P&T                BRANSON HARPER, ET UX            45-92    283.173  BW-A-5115   509-696
30*          640A            MONONGAHELA PWR         MARK K HEDRICK                  79-244     28.692  BW-A-5115   509-696
31            641            ROSCOE BEALL                                                               BW-A-5124   509-705
31A*          641  D-40      W VA P&T                G H KUYKENDALL,ET UX,ET AL       45-71             BW-A-5124   509-705
23            642            ALLEGHENY PROPS INC     JASON HARMON HEAIRS                                BW-A-5130   509-711
33            643            A R FORD                                                                   BW-A-5129   509-710
33A*          643  D-71      W VA P&T                J R HARPER, ET UX,ETAL          71-185       1.83  BW-A-5129   509-710
34            644            ROSCOE BEALL            A COFFMAN                                          BW-A-5123   509-704
35            645            CARRIE HARMAN           CHAS HARPER                                  221+  BW-A-5122   509-702
35A*          645            MONONGAHELA PWR         C M HARMAN,ETVIR,ET AL          73-195     15.385  BW-A-5122   509-702
35B*          645            MONONGAHELA PWR         C M HARMAN,ETVIR,ET AL          73-195      0.042  BW-A-5122   509-702
36            646            M L COOPER              W VA P&T                                           BW-A-5116   509-697
36A*          646  D-30      W VA P&T                W S COOPER, ET UX               45-102     64.795  BW-A-5116   509-697
37            647            M L COOPER              I C & C M BENNETT                         285.614  BW-A-5120   509-701
37A*          647            MONONGAHELA PWR         M L COOPER                        72-1      2.236  BW-A-5120   509-701
37B*          647            MONONGAHELA PWR         M L COOPER                        72-1      7.055  BW-A-5120   509-701
37C*          647            MONONGAHELA PWR         M L COOPER                        72-1      1.217  BW-A-5120   509-701
37D*          647            MONONGAHELA PWR         M L COOPER                        72-1      1.942  BW-A-5120   509-701
38            648            RUTH C ALLMAN           G F COOPER                                         BW-A-5121   509-702
38A          648B            MONONGAHELA PWR         R C ALLMAN                                         BW-A-5121   509-702
39            648            ELSIE L TETER, ET VIR   G F COOPER                                         BW-A-5121   509-702
39A          648A  D-72      W VA P&T                E L TETER,ET VIR                71-157     4.0196  BW-A-5121  GA17933B
40                           W POCAHONTAS PROP'S     W M RR
41                           VEPCO (HERR TRACT)
42                           W POCAHONTAS PROP'S     W M RR
43                           W POCAHONTAS PROP'S     BAIRD GATZMER
<FN>

CREATED  BY  WPM          *Monongahela  Power  and  West  Virginia  Power  &  Transmission  Company  lands.
8/3/00                     Non  asterisked  owners  are  not  a  part  of  this  lease.
</TABLE>

Exhibit  A
Map  of  Canaan  Valley

Topographical  map  of  Canaan  Valley  Property.  Per  legend  for  map,  the
highlighted areas of map include:  Total Oil and Gas Ownership; One-half Oil and
Gas  Ownership;  No Oil and Gas Ownership; Total Oil and Gas Ownership (94 acres
leased  to  C  and  A  Gas  Company).  Parts  of  West  Virginia  State Park and
Monongahela  National  Forest  are  also  shown  on  map.