FORM OF SERVICE AGREEMENT
                  (For Use Under Sellers Rate Schedule IS)
                                 (Continued)
   
           Exhibit A to the Service Agreement shall specify the Rates and
           charges and Additional charges which are applicable.  When the
           level of any Additional charges is changed pursuant to
           Commission authorization or direction, Seller may unilaterally
           effect an amendment to Exhibit A to reflect such change(s) by
           so specifying in a written communication to Customer.
   
      2.   It is further agreed that Seller may seek authorization from
           the Commission and/or other appropriate body for such changes
           to any rate(s) and terms and conditions set forth herein in
           Rate Schedule IS or in the General Terms and Conditions of
           Sellers Tariff, as may be found necessary to assure Seller
           just and reasonable rates.  Nothing herein contained shall be
           construed to deny Customer any rights it may have under the
           Natural Gas Act, as amended, including the right to participate
           fully in rate proceedings by intervention or otherwise to
           contest Sellers filing in whole or in part.
   
      3.    Further Agreement:
            (Write None or specify the agreement).
   
   
                                  ARTICLE V
                                   NOTICE
   
      1.    Except as may be otherwise provided, any notice, request,
            demand, statement or bill provided for in this Agreement or any
            notice which a party may desire to give the other shall be in
            writing and mailed by regular mail, effective as of the
            postmark date, to the post office address of the party intended
            to receive the same, as the case may be, as follows:
   
                  Seller:     Blue Lake Gas Storage Company
                              717 Texas Street
                              Houston, Texas  77002-2761
                              Attention:  Transportation Services
   
                  Customer:   _______________________________________
                              _______________________________________
                              _______________________________________
                              _______________________________________