<PAGE 1>
                                                       EXHIBIT 10.1


                                    Service Agreement No. 38107
                                    Control No. 930905-116

                        FTS SERVICE AGREEMENT


           THIS AGREEMENT, made and entered into this 1st day of 
November, 1993, by and between COLUMBIA GAS TRANSMISSION CORPORATION 
("Seller") and NATIONAL FUEL GAS DISTRIBUTION CORP. ("Buyer").

           WITNESSETH:  That in consideration of the mutual covenants 
herein contained, the parties hereto agree as follows:

           Section 1.  Service to be Rendered.  Seller shall perform 
and Buyer shall receive service in accordance with the provisions of 
the effective FTS Rate Schedule and applicable General Terms and 
Conditions of Seller's FERC Gas Tariff, Second Revised Volume No. 1 
(Tariff), on file with the Federal Energy Regulatory Commission 
(Commission), as the same may be amended or superseded in accordance 
with the rules and regulations of the Commission.  The maximum 
obligation of Seller to deliver gas hereunder to or for Buyer, the 
designation of the points of delivery at which Seller shall deliver or 
cause gas to be delivered to or for Buyer, and the points of receipt 
at which Buyer shall deliver or cause gas to be delivered, are 
specified in Appendix A, as the same may be amended from time to time 
by agreement between Buyer and Seller, or in accordance with the rules 
and regulations of the Commission.  Service hereunder shall be 
provided subject to the provisions of Part 284.223 of Subpart G of the 
Commission's regulations.  Buyer warrants that service hereunder is 
being provided on behalf of Buyer.

           Section 2.  Term.  Service under this Agreement shall 
commence as of November 1, 1993, and shall continue in full force and 
effect until October 31, 2004, and from year-to-year thereafter unless 
terminated by either party upon six (6) months' written notice to the 
other prior to the end of the initial term granted or any anniversary 
date thereafter.  Pre-granted abandonment shall apply upon termination 
of this Agreement, subject to any right of first refusal Buyer may 
have under the Commission's regulations and Seller's Tariff.

           Section 3.  Rates.  Buyer shall pay Seller the charges and 
furnish Retainage as described in the above-referenced Rate Schedule, 
unless otherwise agreed to by the parties in writing and specified as 
an amendment to this Service Agreement.

           Section 4.  Notices.  Notices to Seller under this 
Agreement shall be addressed to it at Post Office Box 1273, 
Charleston, West Virginia 25325-1273, Attention:  Director, 
Transportation and Exchange and notices to Buyer shall be addressed to 
it at 10 Lafayette Square, Buffalo, NY 14203, Attention:  Michael E. 
Novak, until changed by either party by written notice.

<PAGE 2>
                                    Service Agreement No. 38107
                                    Control No. 930905-116

                    FTS SERVICE AGREEMENT (Cont'd)


           Section 5.  Prior Service Agreements.  This Agreement is 
being entered into by the parties hereto pursuant to the Commission's 
Order No. 636 and its orders dated July 14, 1993 and September 29, 
1993, with respect to Seller's Order No. 636 compliance filing and 
relates to the following existing Service Agreements:

           FTS Service Agreement No. 34551 for National Fuel Gas 
           Supply Corp., predecessor in interest to National Fuel Gas 
           Distribution, effective November 1, 1989, as it may have 
           been amended, providing for transportation service under 
           the FTS Rate Schedule.

           CDS Service Agreement No. 36064 for National Fuel Gas 
           Supply Corp., predecessor in interest to National Fuel Gas 
           Distribution Corp., effective November 1, 1989, as it may 
           have been amended, providing for a bundled sales, 
           transportation and storage service under the CDS Rate 
           Schedule.

The terms of Service Agreement No. 38107 shall become effective as of 
the effective date hereof, however, the parties agree that neither the 
execution nor the performance of Service Agreement 38107 shall 
prejudice any recoupment or other rights that Buyer may have under or 
with respect to the above-referenced Service Agreements.

NATIONAL FUEL GAS DISTRIBUTION      COLUMBIA GAS TRANSMISSION 
    CORP.                               CORPORATION



By:  /s/P. C. Ackerman              By:  /s/George E. Shriner
Title: Executive Vice President     Title:  Dir T&E

<PAGE 3>
                                    Revision No.
                                    Control No. 1993-09-05-0116

              Appendix A to Service Agreement No. 38107
                       Under Rate Schedule FTS
        Between (Seller) COLUMBIA GAS TRANSMISSION CORPORATION
        and (Buyer) NATIONAL FUEL GAS DISTRIBUTION CORPORATION


               Transportation Demand      7,748 Dth/day


                        Primary Receipt Points


                                     F
                                     O
                                     O
                                     T
                                     N
                                     O
Scheduling  Scheduling   Measuring   T  Measuring   Maximum Daily
Point No.   Point Name   Point No.   E  Point Name  Quantity (Dth/day)


B15         UNIONVILLE     B15                               20
B17         HIGHLAND       B17                              958
C16         DELMONT        C16                              507
801         TCO-LEACH      801                            6,263

<PAGE 4>

                                    Revision No.
                                    Control No. 1993-09-05-0116

              Appendix A to Service Agreement No. 38107
                       Under Rate Schedule FTS
        Between (Seller) COLUMBIA GAS TRANSMISSION CORPORATION
        and (Buyer) NATIONAL FUEL GAS DISTRIBUTION CORPORATION


                        Primary Receipt Points


                                     F
                                     O
                                     O
                                     T
                                     N
                                     O
Scheduling  Scheduling   Measuring   T  Measuring   Maximum Daily
Point No.   Point Name   Point No.   E  Point Name  Quantity (Dth/day)


L1          ELLWOOD CITY   L1                             7,748
L5          SMETHPORT      L5                             1,625
L7          NFS-MAINLINE                                       
               TAPS        L7                                34


<PAGE 5>
                                    Revision No.
                                    Control No. 1993-09-05-0116

              Appendix A to Service Agreement No. 38107
                       Under Rate Schedule FTS
        Between (Seller) COLUMBIA GAS TRANSMISSION CORPORATION
        and (Buyer) NATIONAL FUEL GAS DISTRIBUTION CORPORATION



GFNT / THIS CONTRACT SUPERSEDES CONTRACT 34551 IN PART.

           ALL GAS SHALL BE DELIVERED AT EXISTING POINTS OF 
           INTERCONNECTION WITHIN THE MDDO'S IN SELLER'S CURRENTLY 
           EFFECTIVE SST SERVICE AGREEMENT WITH BUYER, WHICH FOR SUCH 
           POINTS SET FORTH ARE INCORPORATED HEREIN BY REFERENCE.

           THE MARKET AREA IN WHICH EACH STATION IS LOCATED IS POSTED 
           ON SELLER'S EBB ARE INCORPORATED HEREIN BY REFERENCE.

           DELIVERIES AT STATIONS IN MARKET AREA 36, OLEAN, ARE 
           CONTINGENT UPON BUYER OBTAINING GAS SUPPLIES AND ARRANGING 
           FOR DELIVERY OF SUCH GAS SUPPLIES TO THIS MARKET AREA.  
           SELLER'S OBLIGATION TO DELIVER GAS ON ANY DAY SHALL BE 
           LIMITED TO THE QUANTITIES ACTUALLY RECEIVED FOR BUYER'S 
           ACCOUNT TO THIS MARKET AREA.

<PAGE 6>
                                    Revision No.
                                    Control No. 1993-09-05-0116

              Appendix A to Service Agreement No. 38107
                       Under Rate Schedule FTS
        Between (Seller) COLUMBIA GAS TRANSMISSION CORPORATION
        and (Buyer) NATIONAL FUEL GAS DISTRIBUTION CORPORATION



The Master List of Interconnects (MLI) as defined in Section 1 of the 
General Terms and Conditions of Seller's Tariff is incorporated herein 
by reference for the purposes of listing valid secondary interruptible 
receipt points and delivery points.


Service changes pursuant to this Appendix A shall become effective as 
of November 1, 1993.  This Appendix A shall cancel and supersede the 
previous Appendix A effective as of N/A, to the Service Agreement 
referenced above.  With the exception of this Appendix A, all other 
terms and conditions of said Service Agreement shall remain in full 
force and effect.


NATIONAL FUEL GAS DISTRIBUTION CORP


By:  /s/P. C. Ackerman

Its Executive Vice President

Date 11-1-93


COLUMBIA GAS TRANSMISSION CORPORATION

By:  /s/George E. Shriner

Its Dir T&E

Date 2-13-94