November 1, 1995



Chemical Bank
270 Park Avenue
New York, New York  10017
Attention:  Mr. Robert Gillham

The Boatmen's National Bank of St. Louis
One Boatmen's Plaza
800 Market Street
St. Louis, Missouri  63166-0236
Attention:  Mr. Thomas Guyton

Mercantile Bank of St. Louis National Association
Eighth & Locust, 12th Floor
P.O. Box 524
St. Louis, Missouri  63101
Attention:  Mr. John A. Holland

Ladies and Gentlemen:

       Re:   Further Extension of line of credit agreement dated
             October 18, 1993, as amended and extended by letters
             dated April 18, 1994, August 18, 1994, October 18, 1994, 
             March 1, 1995, May 23, 1995 and September 1, 1995 among
             Laclede Gas Company ("Laclede"), Chemical Bank                  
             ("Chemical"), The Boatmen's National Bank of St. Louis          
             ("Boatmen's") and Mercantile Bank of St. Louis National         
             Association ("Mercantile") (said banks being hereinafter        
             collectively called the "Banks" and said line of credit         
             agreement, as thus amended and extended, being  
             hereinafter called the "Line of Credit Agreement").

      This amendatory agreement will confirm our agreement to 
further extend the above-referenced Line of Credit Agreement from 
November 1, 1995 to March 1, 1996 on the same terms and conditions
set forth in the above-referenced Line of Credit Agreement; subject
only to the terms and modifications expressly set forth in numbered
Paragraphs 1 through 5 below, each of which Paragraphs shall be 
effective on November 1, 1995.  
      
        









                                 Page 14 <PAGE>
<PAGE>

Chemical Bank
The Boatmen's National Bank of St. Louis
Mercantile Bank of St. Louis National Association
November 1, 1995
2

           1.  Maximum Amounts of Advances.  The combined aggregate          
      principal amount of Advances at any time outstanding from any 
      Bank under the Line of Credit Agreement shall not, on or after         
      November 1, 1995, exceed the amount set forth opposite the 
      name of such Bank below (such Bank's "Maximum Amount"), and            
      shall be in a combined aggregate principal amount at any time          
      outstanding which shall not exceed $50 million:

      Name of Bank                   Maximum Amount

      Chemical                        $25,000,000
      Boatmen's                       $12,500,000
      Mercantile                      $12,500,000

           2.  New Termination Date.  The phrase "Termination Date" 
      as defined in the Line of Credit Agreement is hereby amended           
      from November 1, 1995 to March 1, 1996.  Accordingly, all              
      references in the Line of Credit Agreement to the Termination          
      Date shall hereafter refer to March 1, 1996.

           3.  New Form of Note.  Each executed Note in the form of          
      Exhibit A to the Line of Credit Agreement, as previously               
      amended, as to which no sums are then due and payable 
      thereunder shall be returned to Laclede immediately for                
      cancellation, upon the holder Bank's receipt of an executed
      Note to that Bank in the form attached as Exhibit A to this            
      amendatory agreement.

           4.  Absence of Material Adverse Change.  The making of            
      Advances under the Line of Credit Agreement as amended by this         
      letter agreement is also subject to the absence of any 
      material adverse change since September 30, 1995, in the               
      financial condition of Laclede.

           5.  Interest Rate on LIBO Rate Advances; Facility Fee 
      Rate.  The interest rate on LIBO Rate Advances and the   
      Facility Fee shall remain as specified respectively in                 
      Paragraphs 3 and 4 of the letter of Amendment and Extension            
      dated August 18, 1994.

           6.  Ratification of Remainder of Line of Credit 
      Agreement.  Subject only to the amendments expressly set forth         
      in numbered Paragraphs 1 through 5 above, the Line of Credit           
      Agreement is hereby ratified, confirmed and approved in all            
      respects.

      



                                 Page 15 <PAGE>
<PAGE>
Chemical Bank
The Boatmen's National Bank of St. Louis
Mercantile Bank of St. Louis National Association
November 1, 1995
3

      Please indicate your acceptance of this amendment and extension
by signing in the appropriate space below and returning to Laclede 
Gas Company the enclosed duplicate of the original of this letter.
This letter may be executed in counterparts, each of which shall be
an original, and all of which when taken together, shall constitute
one agreement which shall amend and extend the Line of Credit
Agreement as hereinbefore provided.


                                Very truly yours,

                                LACLEDE GAS COMPANY

                                By:  /s/Vernon O. Steinberg 
                                Name:  Vernon O. Steinberg       
                                Title: V.P.-Treas. & Asst. Secy. 

Accepted and Agreed to as of
the date first written above.

CHEMICAL BANK


By:    /s/John F. Gehebe
Name:     John F. Gehebe
Title:    Assistant Vice President


THE BOATMEN'S NATIONAL BANK OF ST. LOUIS


By:    /s/Thomas C. Guyton
Name:     Thomas C. Guyton
Title:    Vice President


MERCANTILE BANK OF ST. LOUIS NATIONAL ASSOCIATION


By:    /s/John Holland
Name:     John Holland
Title:  Vice President






                                 Page 16