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                               SERVICE AGREEMENT
                (Storage Gas Service under Rate Schedule SGS-1)



THIS AGREEMENT, made and entered into this 12th day of January, 1994, by and
between NORTHWEST PIPELINE CORPORATION, a Delaware corporation, hereinafter
called "Transporter", and CASCADE NATURAL GAS CORPORATION, hereinafter called
"Shipper".

In consideration of the mutual covenants and agreements as herein set forth, the
parties hereto agree as follows:


                  ARTICLE I - GAS TO BE STORED AND DELIVERED

Subject to the terms, conditions, and limitations hereof and of the applicable
Rate Schedule SGS-1, Transporter agrees to inject, store, and withdraw for
Shipper, and Shipper agrees to receive for Transportation from Transporter, up
to the following quantities of natural gas:

         Up to a Storage Demand Volume of 16,595 MMBtus,
         Up to a Storage Capacity of 597,378 MMBtus,
         Up to a Best Efforts Volume of 3,969 MMBtus.


                         ARTICLE II - DELIVERY OF GAS

Delivery of natural gas by Transporter to Shipper shall be at or near the points
where gas is withdrawn from the Jackson Prairie storage facility.  Shipper
shall arrange for redelivery transportation to mainline delivery points under
Transporter's transportation rate schedules.


                    ARTICLE III - APPLICABLE RATE SCHEDULE

Shipper agrees to pay Transporter for all natural gas service rendered under the
terms of this Agreement in accordance with Transporter's Rate Schedule SGS-1 as
filed with the Federal Energy Regulatory Commission ("FERC"), and as such rate
schedule may be amended or superseded from time to time.  This Agreement shall
be subject to the provisions of such rate schedule and the General Terms and
Conditions applicable thereto on file with the FERC and effective from time to
time, which by this reference is incorporated herein and made a part hereof.















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                        ARTICLE IV - TERM OF AGREEMENT

This Agreement shall become effective on the date so designated by the FERC and
shall continue in effect for a period continuing through October 31, 2014 and
year to year thereafter at Shipper's sole option.  Shipper may terminate all or
any portion of service under this Agreement either at the expiration of the
primary term, or upon any anniversary thereafter by giving written notice to
Transporter so stating at least twelve (12) months in advance.  Shipper also
shall have the sole option to enter into a new Agreement for all or any portion
of the service under this Agreement.  It is Transporter's and Shipper's intent
that this term provision provide Shipper with a "contratual right to continue
such service" and to provide Transporter with concurrent pregranted abandonment
of any volume that Shipper terminates within the meaning of 18 CFR section
284.221(d)(2)(i) as promulgated by Order 636 on May 8, 1992.


                 ARTICLE V - CANCELLATION OF PRIOR AGREEMENTS

When this Agreement takes effect, it supersedes, cancels and terminates the
following agreements:

  Service Agreement (Storage Gas Service) dated April 8, 1993, between
  NORTHWEST PIPELINE CORPORATION, "Transporter", and CASCADE NATURAL GAS
  CORPORATION, "Shipper".


                      ARTICLE VI - SUCCESSORS AND ASSIGNS

This Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of 
the day and year first above set forth.



                              "TRANSPORTER"
                              NORTHWEST PIPELINE CORPORATION


                              By: /s/   Joe H. Fields            
                                        Joe H. Fields
                                        Attorney-In-Fact


ATTEST:                       "SHIPPER"
                              CASCADE NATURAL GAS CORPORATION

By:                           By: /s/   King Oberg               
                                        King Oberg
                              Title: Vice President, Gas Supply  







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