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                                                                   EXHIBIT 10.7

                               FIRST AMENDMENT TO

                        INCENTIVE STOCK OPTION AGREEMENT

THIS FIRST AMENDMENT TO INCENTIVE STOCK OPTION AGREEMENT is made this 28th day
of August, 1995 between Energy Corporation of America, a West Virginia
corporation, (hereinafter called the "Company") and RICHARD E. HEFFELFINGER
(hereinafter called "HEFFELFINGER").

WHEREAS, the Company and HEFFELFINGER are parties to that certain Incentive
Stock Option Agreement dated December 19, 1994; ("Agreement"); and

WHEREAS, HEFFELFINGER exercised his option to purchase 1600 share(s) of common
stock of the Company represented by Certificate No. 40 and consistent with the
Agreement executed a Promissory Note dated December 31, 1994 in the amount of
$64,000 together with a Stock Pledge Agreement dated December 31, 1994 to
secure payment under the Promissory Note; and

WHEREAS, pursuant to a resolution passed at the August 1, 1995 Meeting of the
Board of Director's, the Board authorized and approved a bonus to be paid to
HEFFELFINGER in the form of the cancellation of the indebtedness evidenced by
the Promissory Note and the obligations under the Stock Pledge Agreement; and

WHEREAS, the parties are desirous of amending the Agreement as hereinafter set
forth:

1. The Promissory Note dated December 31, 1994, executed by HEFFELFINGER in
favor of the Company is hereby deemed cancelled and the original of such
Promissory Note shall be redelivered to HEFFELFINGER to evidence such
cancellation.
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       2.     The obligations under the Stock Pledge Agreement dated December
       31, 1994 are hereby released and discharged and the Company agrees to
       redeliver to Heffelfinger the common stock pledged to the Company under
       the Stock Pledge Agreement evidenced by Certificate No. 40.

       3.     Paragraph 4(a) of the Agreement, insofar as it relates to the
       common stock represented by Certificate No. 40, is deleted and Paragraph
       4(b) should be amended to read as follows insofar the common stock
       represented by Certificate No. 40 is concerned:

              4(b) If HEFFELFINGER'S employment with Eastern is terminated for
              any reason, HEFFELFINGER agrees to immediately resell to the
              Company all the shares of stock represented by Certificate No. 40
              at the value of such shares as determined in paragraph 5 below.

       4.     The words "from and after four years from the date of acquisition
       of the shares" in Paragraph 5 shall be deleted insofar as the common
       stock represented by Certificate No. 40 is concerned.

Except to the extent set forth herein, the terms and conditions of the
Agreement dated December 19, 1994 shall remain in full force and effect.
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 IN WITNESS WHEREOF, the parties have caused this First Amendment to be
executed as of the day and year first above written.


                                   ENERGY CORPORATION OF AMERICA





                                   BY:            /S/ JOHN MORK                 
                                      ------------------------------------------
                                      JOHN MORK
                                      PRESIDENT & CHIEF EXECUTIVE OFFICER





                                           /S/ RICHARD E. HEFFELFINGER          
                                      ------------------------------------------
                                      RICHARD E. HEFFELFINGER