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                                                                   EXHIBIT 10.21

                                                   SERVICE AGREEMENT NO. 40251
                                                   CONTROL NO. 1993-10-14 - 0050


                             SIT SERVICE AGREEMENT


THIS AGREEMENT, made and entered into this 13th day of December, 1993, by and
between:


       COLUMBIA GAS TRANSMISSION CORPORATION
       ("SELLER")
       AND
       MOUNTAINEER GAS CO
       ("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 the service in accordance with the provisions of the effective SIT Rate
Schedule and applicable General Terms and Conditions of Seller's FERC Gas
Tariff, Second Revised Volume No. I (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Regulatory Commission (Commission), as the same may be amended or superseded in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.  Seller shall
store quantities of gas for Buyer up to but not exceeding Buyer's Maximum
Balance Quantity as 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 December
14, 1993, and shall continue in full force and effect from month-to-month
thereafter unless terminated by either party upon thirty (30) days 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 Service 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 the charges and furnish the Retainage
percentage set forth in the above-referenced Rate Schedule and specified in
Seller's currently effective Tariff, 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:

       MOUNTAINEER GAS CO
       414 SUMMERS ST.
       CHARLESTON, WV 25301

       ATTN: PAM RUCKMAN;

until changed by either party by written notice.
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                                                  SERVICE AGREEMENT NO. 40251
                                                  CONTROL NO. 1993-10-14 - 0050


                             SIT SERVICE AGREEMENT


Section 5. Superseded Agreements.  This Service Agreement supersedes and
cancels, as of the effective date hereof, the following Service Agreements:
N/A.



MOUNTAINEER GAS CO


By:    /s/ Michael S. Fletcher             
   ----------------------------------

Title: Senior Vice President-CFO   
      -------------------------------

COLUMBIA GAS TRANSMISSION CORPORATION

By:    /s/ Robert D. Stuart        
   ----------------------------------
Title: Manager- T&E Implementation 
      -------------------------------





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                                                   Revision No.
                                                   Control No. 1993-10-14 - 0050


Appendix A to Service Agreement No. 40251
Under Rate Schedule SIT
Between (Seller) COLUMBIA GAS TRANSMISSION CORPORATION
and (Buyer) MOUNTAINEER GAS CO


              Maximum Balance Quantity     125,000 Dth


CANCELLATION OF PREVIOUS APPENDIX A

Service changes pursuant to this Appendix A shall become effective as of
NOVEMBER 0 1 , 1993.  This Appendix A shall cancel and supersede the previous
Appendix A effective      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.



MOUNTAINEER GAS CO


By     /s/ Michael S. Fletcher             
  ------------------------------------
                           
Its    Senior Vice President-CFO   
   -----------------------------------

Date   December 9, 1993            
    ----------------------------------


COLUMBIA GAS TRANSMISSION CORPORATION


By     /s/ Robert D. Stuart                            
  ------------------------------------
       Robert D. Stuart
Its    Manager - T&E Implementation        
   -----------------------------------

Date   December 13, 1993           
    ----------------------------------


COLUMBIA GAS TRANSMISSION CORPORATION
MOUNTAINEER GAS CO





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   4
Control No. 1993-10-14 - 0050

       Service Agreements Subject to SIT Balancing:




   Rate Schedule                Agreement No.          Shipper
                                                   
       FTS                         38113                 MGC
       FTS                         38137                 MGC
       ITS                         37507                 MGC






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