[EXHIBIT 10v TO COLONIAL GAS COMPANY
                    FORM 10-K FOR YEAR ENDING 12/31/93]

                                             9B101

                        SERVICE AGREEMENT
               (APPLICABLE TO RATE SCHEDULE AFT-1)


     This  Agreement ("Agreement") is made and entered into  this
     1st  day  of  June,  1993,  by  and  between  Algonquin  Gas
     Transmission Company, a Delaware Corporation (herein  called
     "Algonquin"),  and  Colonial  Gas  Company  (herein   called
     "Customer" whether one or more persons).
     
     In consideration of the premises and of the mutual covenants
     herein contained, the parties do agree as follows:
     
     
                            ARTICLE I
                       SCOPE OF AGREEMENT
                                
     1.1  Subject to the terms, conditions and limitations hereof
          and  of  Algonquin's  Rate  Schedule  AFT-1,  Algonquin
          agrees  to receive from or for the account of  Customer
          for  transportation  on  a  firm  basis  quantities  of
          natural  gas  tendered by Customer on any  day  at  the
          Point(s) of Receipt; provided, however, Customer  shall
          not  tender without the prior consent of Algonquin,  at
          any  Point of Receipt on any day a quantity of  natural
          gas  in  excess of the applicable Maximum Daily Receipt
          Obligation   for  such  Point  of  Receipt   plus   the
          applicable  Fuel Reimbursement Quantity;  and  provided
          further  that Customer shall not tender at all Point(s)
          of  Receipt  on  any  day or in any year  a  cumulative
          quantity  of natural gas, without the prior consent  of
          Algonquin,  in  excess of the following  quantities  of
          natural  gas  plus  the applicable  Fuel  Reimbursement
          Quantities:
     
          Maximum Daily TransportationQuantity       3,000 MMBtu
          Maximum Annual Transportation Quantity   700,000 MMBtu



     1.2  Algonquin agrees to transport and deliver to or for the
          account  of  Customer at the Point(s) of  Delivery  and
          Customer  agrees  to  accept  or  cause  acceptance  of
          delivery of the quantity received by Algonquin  on  any
          day,  less the Fuel Reimbursement Quantities; provided,
          however, Algonquin shall not be obligated to deliver at
          any  Point of Delivery on any day a quantity of natural
          gas  in excess of the applicable Maximum Daily Delivery
          Obligation.
     
     
                           ARTICLE II
                        TERM OF AGREEMENT
                                
     2.1  This  Agreement shall become effective as of  the  date
          set  forth hereinabove and shall continue in effect for
          a  term  ending  on  and  including  October  31,  2012
          ("Primary Term") and shall remain in force from year to
          year  thereafter unless terminated by either  party  by
          written notice one year or more prior to the end of the
          Primary   Term  or  any  successive  term   thereafter.
          Algonquin's  right  to cancel this Agreement  upon  the
          expiration of the Primary Term hereof or any succeeding
          term shall be subject to Customer's rights pursuant  to
          Sections 8 and 9 of the General Terms and Conditions.
     
     2.2  This  Agreement  may  be  terminated  at  any  time  by
          Algonquin  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 days after payment is
          due;  provided  Algonquin gives ten 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
          Algonquin  of  such  outstanding  bill;  provided  that
          Algonquin  shall  not be entitled to terminate  service
          pending  the resolution of a disputed bill if  Customer
          complies  with the billing dispute procedure  currently
          on file in Algonquin's tariff.
     
     
                           ARTICLE III
                          RATE SCHEDULE
                                
     3.1  Customer  shall pay Algonquin for all services rendered
          hereunder  and  for the availability  of  such  service
          under Algonquin's Rate Schedule AFT-1 as filed with the
          Federal  Energy Regulatory Commission and as  the  same
          may  be hereafter revised or changed.  The rate  to  be
          charged Customer for transportation hereunder shall not
          be  more  than  the  maximum rate under  Rate  Schedule
          AFT-1,  nor  less  than  the minimum  rate  under  Rate
          Schedule AFT-1.
     
     3.2  This  Agreement and all terms and provisions  contained
          or incorporated herein are subject to the provisions of
          Algonquin's   applicable   rate   schedules   and    of
          Algonquin's General Terms and Conditions on  file  with
          the Federal Energy Regulatory Commission, or other duly
          constituted authorities having jurisdiction, and as the
          same  may be legally amended or superseded, which  rate
          schedules and General Terms and Conditions are by  this
          reference made a part hereof.

     3.3  Customer   agrees  that  Algonquin   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
          Algonquin's  Rate Schedule AFT-1, (b) Algonquin's  Rate
          Schedule AFT-1, pursuant to which service hereunder  is
          rendered or (c) any provision of the General Terms  and
          Conditions   applicable   to   Rate   Schedule   AFT-1.
          Algonquin  agrees that Customer may protest or  contest
          the  aforementioned filings, or may seek  authorization
          from  duly constituted regulatory authorities for  such
          adjustment of Algonquin's existing FERC Gas  Tariff  as
          may be found necessary to assure that the provisions in
          (a), (b), or (c) above are just and reasonable.
     
     
                           ARTICLE IV
                       POINT(S) OF RECEIPT
                                
     Natural  gas to be received by Algonquin for the account  of
     Customer hereunder shall be received at the outlet  side  of
     the measuring station(s) at or near the Primary Point(s)  of
     Receipt  set  forth  in Exhibit A of the service  agreement,
     with  the  Maximum Daily Receipt Obligation and the  receipt
     pressure obligation indicated for each such Primary Point of
     Receipt.   Natural gas to be received by Algonquin  for  the
     account  of Customer hereunder may also be received  at  the
     outlet  side of any other measuring station on the Algonquin
     system, subject to reduction pursuant to Section 6.2 of Rate
     Schedule AFT-1.
     
     
                            ARTICLE V
                      POINT(S) OF DELIVERY
                                
     Natural gas to be delivered by Algonquin for the account  of
     Customer hereunder shall be delivered on the outlet side  of
     the measuring station(s) at or near the Primary Point(s)  of
     Delivery  set  forth in Exhibit B of the service  agreement,
     with  the Maximum Daily Delivery Obligation and the delivery
     pressure obligation indicated for each such Primary Point of
     Delivery.  Natural gas to be delivered by Algonquin for  the
     account of Customer hereunder may also be delivered  at  the
     outlet  side of any other measuring station on the Algonquin
     system, subject to reduction pursuant to Section 6.4 of Rate
     Schedule AFT-1.
     
                           ARTICLE VI
                            ADDRESSES
                                
     Except  as herein otherwise provided or as provided  in  the
     General Terms and Conditions of Algonquin's FERC Gas Tariff,
     any  notice,  request, demand, statement,  bill  or  payment
     provided  for  in  this 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,  certified,  or first class  mail  to  the  post
     office address of the parties hereto, as the case may be, as
     follows:
     
     
          (a)  Algonquin:  Algonquin Gas Transmission Company
                           1284 Soldiers Field Road
                           Boston, MA  02135
                           Attn:  John J. Mullaney
                                  Vice President, Marketing



          (b)  Customer:  Colonial Gas Company
                          40 Market Street
                          P. O. Box 3064
                          Lowell, MA  0l853
                          Attn.:  John P. Harrington
                                  Vice President, Gas Supply


     or  such  other address as either party shall  designate  by
     formal written notice.
     

                           ARTICLE VII
                         INTERPRETATION
                                
     The interpretation and performance of the Agreement shall be
     in   accordance  with  the  laws  of  the  Commonwealth   of
     Massachusetts,  excluding conflicts of law  principles  that
     would  require  the application of the laws of  a  different
     jurisdiction.
     
     
                          ARTICLE VIII
                   AGREEMENTS BEING SUPERSEDED
                                
     When  this  Agreement becomes effective, it shall  supersede
     the  following agreements between the parties hereto, except
     that  in  the case of conversions from former Rate Schedules
     F-2  and F-3, the parties' obligations under Article  II  of
     the  service  agreements pertaining to such  rate  schedules
     shall continue in effect.
     
     
     Service  Agreement executed by Customer and Algonquin  under
     Rate  Schedule STB dated November 1, 1984, to the extent  it
     provides for 3,000 MMBtu of Storage Demand.
     
     
     IN  WITNESS  WHEREOF, the parties hereto  have  caused  this
     Agreement  to be signed by their respective agents thereunto
     duly authorized, the day and year first above written.
     
     
                         ALGONQUIN GAS TRANSMISSION COMPANY



                         By:     /s/ John J. Mullaney

                         Title:  Vice President, Marketing


                         COLONIAL GAS COMPANY



                         By:     /s/ John P. Harrington

                         Title:  Vice President, Gas Supply



                            Exhibit A
                       Point(s) of Receipt
                                
                       Dated: June 1, 1993
                                
     To the service agreement under Rate Schedule AFT-1 between
     Algonquin Gas Transmission Company (Algonquin) and Colonial
  Gas Company (Customer)                concerning Point(s) of Receipt
                                
                                

     Primary            Maximum Daily                Maximum
     Point of         Receipt Obligation       Receipt Pressure
     Receipt               (MMBtu)                  (Psig)

     Lambertville, NJ       3,016             At any pressure 
                                              requested by Algonquin
                                              not in excess
                                              of 750 Psig.




Signed for Identification

Algonquin:     /s/ John J. Mullaney

Customer:      /s/ John P. Harrington




                            Exhibit B
                      Point(s) of Delivery
                                
                         Dated: June 1, 1993

     To  the  service agreement under Rate Schedule AFT-1 between
     Algonquin Gas Transmission Company (Algonquin) and  Colonial
     Gas Company (Customer)
                 concerning Point(s) of Delivery
                                
     Primary                   Maximum Daily           Minimum
     Point of             Delivery Obligation       Delivery Pressure
     Delivery                    (MMBtu)                (Psig)

     On the outlet side
     of the meter station
     located at:

     Bourne, MA                  1,000                   200

     Sagamore, MA                2,000                   200



Signed for Identification

Algonquin:   /s/ John J. Mullaney

Customer:    /s/ John P. Harrington

        [END OF EXHIBIT 10v TO COLONIAL GAS COMPANY
           FORM 10-K FOR YEAR ENDING 12/31/93]