SERVICE AGREEMENT
                                 (EFT Service)



     AGREEMENT made this 1st day of August,  1993, by and between  NATIONAL FUEL
GAS  SUPPLY  CORPORATION,   a  Pennsylvania   corporation,   hereinafter  called
"Transporter" and NATIONAL FUEL GAS DISTRIBUTION CORPORATION, hereinafter called
"Shipper."
   
     WHEREAS, Shipper has requested that Transporter transport natural gas; and

     WHEREAS,  Transporter has agreed to provide such transportation for Shipper
subject to the terms and conditions hereof.

     WITNESSETH:   That,  in   consideration  of  the  mutual  covenants  herein
contained, the parties hereto agree that Transporter will transport for Shipper,
on a firm  basis,  and  Shipper  will  furnish,  or  cause to be  furnished,  to
Transporter natural gas for such  transportation  during the term hereof, at the
prices and on the terms and conditions hereinafter provided.


                                   ARTICLE I

                                   Quantities

     Beginning on the date on which  deliveries of gas are  commenced  hereunder
and  thereafter  for the remaining  term of this  Agreement,  and subject to the
provisions of Transporter's EFT Rate Schedule,  Transporter  agrees to transport
for Shipper's account up to the following quantities of natural gas:

Contract Maximum Daily Transportation Quantity (MDTQ) of 1,148,648 Dekatherms
(Dth)


                                   ARTICLE II

                                      Rate

     Unless otherwise  mutually agreed in a written amendment to this Agreement,
for each  dekatherm of gas  transported  for Shipper by  Transporter  hereunder,
Shipper shall pay  Transporter the maximum rate provided under Rate Schedule EFT
set forth in  Transporter's  effective  FERC Gas  Tariff.  In the event that the
Transporter  places  on file  with  the  Federal  Energy  Regulatory  Commission
("Commission")  another rate schedule which may be applicable to  transportation
service rendered hereunder, then Transporter,  at its option, may from and after
the  effective  date of such  rate  schedule,  utilize  such  rate  schedule  in
performance of this  Agreement.  Such a rate  schedule(s)  or  superseding  rate
schedule(s) and any revisions  thereof which shall be filed and become effective
shall apply to and be a part of this Agreement. Transporter shall have the right
to propose,  file and make effective with the  Commission,  or other body having
jurisdiction,  changes and revisions of any effective  rate  schedule(s),  or to
propose, file, and make effective superseding rate schedules, for the purpose of
changing  the  rate,  charges,  and other  provisions  thereof  effective  as to
Shipper.

<PAGE 2>

     Shipper agrees to reimburse Transporter for the filing fees associated with
this service and paid to the Commission.


                                  ARTICLE III

                               Term of Agreement

     This  Agreement  shall be effective as of the effective  date of the tariff
sheets  implementing the  restructuring of Transporter's  services in Docket No.
RS92-21,  and shall  continue in effect until March 31, 2003, and shall continue
in effect from year to year  thereafter  until  terminated by either  Shipper or
Transporter upon twelve (12) months written notice to the other.


                                   ARTICLE IV

                         Points of Receipt and Delivery

     The  Point(s)  of Receipt for all gas that may be  received  for  Shipper's
account  for  transportation  by  Transporter,   and  the  receipt  entitlements
applicable to each point of receipt,  or combinations of receipt points, are set
forth in Appendix A.

     The Point(s) of Delivery for all gas to be  delivered  by  Transporter  for
Shipper's account are set forth in Appendix B.

                                   ARTICLE V

                Incorporation By Reference of Tariff Provisions

     To the  extent  not  inconsistent  with the  terms and  conditions  of this
agreement,  the  provisions of Rate  Schedule EFT, or any effective  superseding
rate schedule or otherwise applicable rate schedule, including any provisions of
the General Terms and Conditions incorporated therein, and any revisions thereof
that may be made  effective  hereafter are hereby made  applicable to and a part
hereof by reference.


                                   ARTICLE VI

                        Cancellation of Prior Contracts

     If this Agreement  becomes effective as an executed service  agreement,  it
shall supersede and cancel all prior firm sales agreements  between the parties,
including  but not  limited to the  Service  Agreement  dated  November  1, 1974
between  National Fuel Gas  Distribution  Corporation as Buyer and National Fuel
Gas Supply  Corporation  as Seller,  and the  agreement  dated  October 3, 1952,
between United Natural Gas Company and Mercer Gas Light and Fuel Company.

<PAGE 3>

                                  ARTICLE VII

                                 Miscellaneous

     1. No change,  modification  or  alteration of this  Agreement  shall be or
become effective until executed in writing by the parties hereto,  and no course
of dealing  between the parties  shall be construed  to alter the terms  hereof,
except as expressly stated herein.

     2. No waiver by any party of any one or more  defaults  by the other in the
performance of any provisions of this Agreement shall operate or be construed as
a waiver of any other  default or defaults,  whether of a like or of a different
character.

     3. Any company which shall succeed by purchase,  merger or consolidation of
the gas related properties,  substantially as an entirety,  of Transporter or of
Shipper,  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  Agreement.
Either  party  may,  without  relieving  itself of its  obligations  under  this
Agreement,  assign any of its  rights  hereunder  to a company  with which it is
affiliated,  but  otherwise,  no assignment  of this  Agreement or of any of the
rights or obligations hereunder shall be made unless there first shall have been
obtained the consent thereto in writing of the other party. Consent shall not be
unreasonably withheld.

     4.  Except as herein  otherwise  provided,  any  notice,  request,  demand,
statement  or bill  provided for in this  Agreement,  or any notice which either
party may desire to give the other,  shall be in writing and shall be considered
as duly delivered when mailed by registered or certified mail to the Post Office
address of the parties hereto, as the case may be, as follows:

             Transporter: National Fuel Gas Supply Corporation
                          Gas Supply - Transportation
                          Room 1200
                          10 Lafayette Square
                          Buffalo, New York  14203

             Shipper:     National Fuel Gas Distribution
                            Corporation
                          10 Lafayette Square
                          Buffalo, New York 14203

or at such other  address as either  party  shall  designate  by formal  written
notice.  Routine   communications,   including  monthly  statements,   shall  be
considered as duly delivered  when mailed by either  registered,  certified,  or
ordinary mail, electronic communication, or telecommunication.

     5.  Transporter and Shipper shall proceed with due diligence to obtain such
governmental  and other  regulatory  authorizations  as may be required  for the
rendition  of  the  services  contemplated  herein,  provided  that  Transporter
reserves the right to file and prosecute  applications for such  authorizations,
any supplements or amendments  thereto and, if necessary,  any court review,  in
such  manner  as it deems to be in its best  interest,  including  the  right to
withdraw the application or to file pleadings and motions (including motions for
dismissal).

<PAGE 4>
   
     6. This Agreement and the respective  obligations of the parties  hereunder
are subject to all present and future valid laws, orders,  rules and regulations
of constituted authorities having jurisdiction over the parties, their functions
or gas supply,  this Agreement or any provision  hereof.  Neither party shall be
held in  default  for  failure to perform  hereunder  if such  failure is due to
compliance with laws, orders,  rules or regulations of any such duly constituted
authorities.

     7. The subject  headings of the articles of this Agreement are inserted for
the purpose of  convenient  reference  and are not  intended to be a part of the
Agreement nor considered in any interpretation of the same.

     8. No presumption  shall operate in favor of or against either party hereto
as a result of any  responsibility  either party may have had for drafting  this
Agreement.

     9.  The  interpretation  and  performance  of this  Agreement  shall  be in
accordance with the laws of the State of  Pennsylvania,  without recourse to the
law regarding the conflict of laws.

     IN WITNESS  WHEREOF,  the parties  hereto have caused this  Agreement to be
signed by their duly  authorized  personnel  and  attested  by their  respective
Secretaries or Assistant Secretaries, the day any year first above written.


                                       NATIONAL FUEL GAS SUPPLY
                                         CORPORATION

                                             Transporter

Attest:


 /s/  R. M. DiValerio                  By /s/ Richard Hare
      Secretary                          President
  (Corporate Seal)


                                       NATIONAL FUEL GAS DISTRIBUTION
                                         CORPORATION

                                                  Shipper

Attest:


 /s/ David F. Smith                    By /s/ P.C. Ackerman
      Secretary                          President
  (Corporate Seal)

<PAGE 5>





                            Appendix A to

                        EFT Service Agreement

                                Between

                NATIONAL FUEL GAS SUPPLY CORPORATION
                                  AND
             NATIONAL FUEL GAS DISTRIBUTION CORPORATION


               RECEIPT POINTS AND RECEIPT ENTITLEMENTS

<PAGE 6>





                            Appendix B to
    
                        EFT Service Agreement

                               Between

                NATIONAL FUEL GAS SUPPLY CORPORATION
                                 AND
              NATIONAL FUEL GAS DISTRIBUTION CORPORATION


<PAGE 7>





Appendix A is a list of about 2,000 receipt points including some information on
each  receipt  point.  Appendix  B is a list  of  about  2,000  delivery  points
including some  information on each delivery point.  Both Appendices are omitted
from this filing but are available from the Company on request.