Employment Letter Agreement between Utility Services, Inc. and John G. Harp (President and CEO)

Initial Base Salary: $250,000 annualized, paid bi-weekly.

Executive Incentive: Participation in the USI Executive Incentive Plan (EICP) with an annual incentive target of 50 percent of base salary and a long-term incentive target of 75 percent of base salary; eligibility is effective with your start date and prorated for 2004.

Extra Incentive: If during your employment USI achieves a net annual income of $12.5 million in 2007 or sooner, you will be eligible for an extra one-time cash bonus of $250,000. If during your employment USI achieves a net annual income of $18.6 million in 2008 or sooner, you will be eligible for an extra one-time cash bonus of $500,000. This latter one-time bonus will be in addition to the $250,000 extra one-time bonus that may be earned in 2007 or sooner.

Vacation: Four weeks each calendar year.

Benefits: Eligible to participate in USI benefit plans, including pension, 401(k), medical, dental, life insurance, sick leave, long-term disability and flexible spending accounts. You will also be eligible for inclusion in the Company’s Supplemental Income Security Plan (SISP) at Level 62.

Change of Control: You will be provided a Change of Control Employment Agreement in a form currently available to other key officers of MDU Resources Group, Inc. and its business units. This Agreement provides a three-year employment agreement in the event of a change of control of MDU Resources during which employment term you would receive a base salary not less than your highest salary within the last 12 months and a bonus not less than the highest bonus received during the last three years.  You would also receive a comparable termination package in the event your employment is terminated during that term.  See page 24 of the 2005 Proxy Statement for a more detailed description of the Agreement.