Contract #:  830047
                                                              ------

                                SERVICE AGREEMENT
                              FOR RATE SCHEDULE FT-1

        This Service Agreement, made and entered into this 20th day of May,
   1998, 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 are parties to an executed service
   agreement under Pipeline's Rate Schedule CDS (Pipeline Contract No. 820009
   ("Contract No. 820009")); and

        WHEREAS, Customer and Pipeline desire to enter into this Service
   Agreement to supersede Contract No. 820009 and convert Customer's existing
   capacity entitlements under Contract No. 820009 into this Service Agreement;

        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 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)    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 











                                                                       830047
                                          1
                                                                               <PAGE>


                                  SERVICE AGREEMENT
                                FOR RATE SCHEDULE FT-1
                                     (Continued)



        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; (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. 

        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 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,

                                                                       830047
                                          2
                                                                               <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 June 1, 1998
   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.


                              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.



                                                                       830047
                                          3
                                                                               <PAGE>


                                  SERVICE AGREEMENT
                                FOR RATE SCHEDULE FT-1
                                     (Continued)



        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 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
   herein at length.


                               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

                                                                       830047
                                          4
                                                                               <PAGE>


                                  SERVICE AGREEMENT
                                FOR RATE SCHEDULE FT-1
                                     (Continued)



   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.












                                                                       830047
                                          5
                                                                               <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.
















                                                                       830047
                                          6
                                                                               <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 15, 1996 between Pipeline and Customer
        under Pipeline's      Rate  Schedule  CDS   (Pipeline's  Contract  Nos.
        820009). 








































                                                                       830047
                                          7
                                                                               <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 S/ Tom O'Connor
                              --------------------------------------




   ATTEST:



   S/ Randall Coleman
   -------------------



                              CONNECTICUT NATURAL GAS CORPORATION



                              By S/ Edna M. Karanian
                              -----------------------------------


   ATTEST:



   S/ Jay Fletcher
   ------------------------











                                                                       830047
                                          8
                                                                              
 <PAGE>
<TABLE>
<CAPTION>
                                                                                          Contract #  830047
                                                                                                      ------
                 EXHIBIT A, TRANSPORATION PATH FOR BILLING PURPOSES DATED                    ,
                           TO THE SERVICE AGREEMENT UNDER RATE SCHEDULE FT-1 BETWEEN
                           TEXAS EASTERN TRANSMISSION CORPORATION ("Pipeline"), AND 
                 CONNECTICUT NATURAL GAS CORPORATION ("Customer"), DATED                     :

   (1)   Customer's firm Point(s) of Receipt:
   <S>       <C>                       <C>                     <C>                <C>        <C>
                                       Maximum Daily Receipt
                                          Obligation (plus
    Point of                           Applicable Shrinkage)      Measurement
    Receipt        Description                 (dth)           Responsibilities     Owner    Operator
    -------   ----------------------   ---------------------   ----------------     -----    --------
   75043     ANR - ST. LANDRY PARISH                 4,376       MI WI GAS PL     MI WI GAS  ANR P/L
             ST. LANDRY PARISH, LA                                                    PL
   72601     SEAGULL SHORELINE SYSTEM                4,974          SEAGULL        SEAGULL   SEAGULL
             MATAGORDA CO., TX                                     SHORELINE      SHORELINE  SHORELINE
</TABLE>
    (2)   Customer shall have Pipeline's Master Receipt Point List ("MRPL"). 
          Customer hereby agrees that Pipeline's MRPL as revised and published
          by Pipeline from time to time is incorporated herein by reference.

   Customer hereby agrees to comply with the Receipt Pressure obligation as set
   forth in Section 6 of Pipeline's General Terms and Conditions at such
   Point(s) of Receipt.
                                                        Transportation
                       Transportation Path           Path Quantity (Dth/D)
                       -------------------           ---------------------
                       M1 to M3                         30,644

   SIGNED FOR IDENTIFICATION

   PIPELINE: S/ Tom O'Connor
             ------------------------
   CUSTOMER: S/ EMK
             ------------------------
   SUPERSEDES EXHIBIT A DATED:  ______________________

                                                      A-1<PAGE>
<TABLE>
<CAPTION>
                                                                                           Contract #:830047
                                                                                                      ------
                        EXHIBIT B, POINT(S) OF DELIVERY, DATED                        ,
                           TO THE SERVICE AGREEMENT UNDER RATE SCHEDULE FT-1 BETWEEN
                           TEXAS EASTERN TRANSMISSION CORPORATION ("Pipeline"), AND
                  CONNECTICUT NATURAL GAS CORPORATION ("Customer"), DATED                  :
   <C>          <S>                     <C>         <C>                     <C>           <C>     <C>
                                           Maximum
                                            Daily                             Measurement
      Point of                            Delivery      Delivery Pressure      Responsi-
      Delivery        Description        Obligation        Obligation          bilities    Owner  Operator 
      --------  -------------------------   (dth)   ------------------------- ----------- -----------------
                                         -----------
   1. 70087     ALGONQUIN - LAMBERTVILLE,  30,644   AS REQUESTED BY CUSTOMER,TX EAST TRAN TX EAST ALGONQUIN
                NJ HUNTERDON CO., NJ                NOT TO EXCEED 750 PSIG                TRAN
   2. 71078     ALGONQUIN - HANOVER, NJ    30,644   AS REQUESTED BY CUSTOMER,TX EAST TRAN TX EAST ALGONQUIN
                MORRIS CO., NJ                      NOT TO EXCEED 750 PSIG                TRAN
   3. 79513     SS-1 AND FSS-1 STORAGE      9,506   N/A                      N/A          N/A     N/A
                POINT                    04/01-10/31
                                            9,506
                                         11/01-03/31
    4.79823     AGT - CONNECTICUT NATRL- 0          N/A                      N/A          N/A     N/A
                FOR NOMINATION PURPOSES 
</TABLE>
   provided, however that until changed by a subsequent Agreement between
   Pipeline and Customer, Pipeline's aggregate maximum daily delivery
   obligations at each of the points of delivery described above, including
   Pipeline's maximum daily delivery obligations under this and all other
   Service Agreements existing between Pipeline and Customer, shall in no event
   exceed the following:
                                  AGGREGATE MAXIMUM DAILY
       POINT OF DELIVERY         DELIVERY OBLIGATION (DTH)
       -----------------         -------------------------
             No. 1                        54,617
             No. 2                        31,626
             No. 3                         9,506
   SIGNED FOR IDENTIFICATION
   PIPELINE: S/ Tom O'Connor
   CUSTOMER: S/ EMK
   SUPERSEDES EXHIBIT B DATED: ______________________
                                                      B-1<PAGE>
<TABLE>
<CAPTION>
                                                                                           Contract #:830047
                                                                                                      ------
                   EXHIBIT C, ZONE BOUNDARY ENTRY QUANTITY AND ZONE BOUNDARY EXIT QUANTITY,
                    DATED _____________, TO THE SERVICE AGREEMENT UNDER RATE SCHEDULE FT-1
                        BETWEEN TEXAS EASTERN TRANSMISSION CORPORATION ("PIPELINE") AND
                   CONNECTICUT NATURAL GAS CORPORATION ("CUSTOMER"), DATED________________:

                                         ZONE BOUNDARY ENTRY QUANTITY
                                                     Dth/D

                                                      TO

   <S>      <C>  <C>  <C>  <C>  <C>     <C>   <C>     <C>     <C>     <C>   <C>     <C>        <C>    <C>
   FROM     STX  ETX  WLA  ELA  M1-24   M1-30 M1-TXG  M1-TGC  M2-24   M2-30 M2-TGX  M2-TGC     M2     M3

   STX                                                   963

   ETX                          2,610          1,457

   WLA                                           443     963
   ELA                                 24,554
   M1-24                                                      2,610

   M1-30                                                             24,554
   M1-TXG                                                                    1,900

   M1-TGC                                                                            1,926
   M2-24

   M2-30
   M2-TXG

   M2-TGC
   M2                                                                                            30,644 

   M3
</TABLE>


                                                      C-1<PAGE>
<TABLE>
<CAPTION>
                                                                                           Contract #:830047
                                                                                                      ------
                                             EXHIBIT C (Continued)
                                      CONNECTICUT NATURAL GAS CORPORATION
                                          ZONE BOUNDARY EXIT QUANTITY
                                                     Dth/D

                                                      TO


   <S>    <C>  <C>  <C>  <C>  <C>   <C>   <C>    <C>    <C>     <C>    <C>     <C>    <C>   <C>
   FROM   STX  ETX  WLA  ELA  M1-24 M1-30 M1-TXG M1-TGC M2-24   M2-30  M2-TXG  M2-TGC M2    M3

   STX
   ETX
   WLA
   ELA
   M1-24                                                   2,610
   M1-30                                                         24,554
   M1-TXG                                                                 1,900
   M1-TGC                                                                        1,926
   M2-24
   M2-30
   M2-TXG
   M2-TGC
   M2                                                                                       30,644
   M3
</TABLE>
          SIGNED FOR IDENTIFICATION:

          PIPELINE: S/ Tom O'Connor
                   ------------------------------------------
          CUSTOMER:  S/ EMK
          ---------------------------------------------------
          SUPERSEDES EXHIBIT C DATED:                        
                                                      C-2<PAGE>