SECURITIES AND EXCHANGE COMMISSION
                                    Washington, DC 20549



                                       CURRENT REPORT



                               Pursuant to Section 13 or 15(d)
                           of the Securities Exchange Act of 1934




Date of Report:  March 23, 2005                       Commission File No. 0-8788




                        DELTA NATURAL GAS COMPANY, INC.
            (Exact name of registrant as specified in its charter)



          KENTUCKY                                     61-0458329
- ------------------------------              -----------------------------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)


        3617 Lexington Road
        Winchester, Kentucky                            40391
- --------------------------------------              ------------
(Address of principal executive offices              (Zip Code)



         Registrant's telephone number, including area code (859) 744-6171.








INFORMATION TO BE INCLUDED IN THE REPORT


ITEM 1.01.   ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.


     On March 10,  2005,  Delta  Natural Gas Company,  Inc.  and Nami  Resources
Company, L.L.C., an off-system transportation customer of Delta, entered into an
Agreement for up to fifteen  years  whereby  Delta would  transport a minimum of
3,000 Mcf of natural gas per day for Nami Resources.



                               SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, hereunto duly authorized.


                                            DELTA NATURAL GAS COMPANY, INC.
                                                     (Registrant)


                                            By /s/John F. Hall

                                             John F. Hall
                                             Vice President - Finance,
                                             Secretary & Treasurer
                                               (Signature)

Date:  March 23, 2005







                                  EXHIBIT INDEX


Exhibit No.        Document


10.a               Agreement between Delta Natural Gas Company, Inc. and Nami
                   Resources Company, L.L.C.







                                                                  EXHIBIT 10a


                                    AGREEMENT

     THIS  AGREEMENT  made and  entered  into this 10 day of March,  2005 by and
between NAMI RESOURCES COMPANY, L.L.C. ("NRC"), 104 Nami Plaza, Suite 1, London,
KY 40741, and DELTA NATURAL GAS COMPANY,  INC.  ("Delta"),  3617 Lexington Road,
Winchester, KY 40391.

     WHEREAS,  NRC  owns  and  is in  the  process  of  developing  natural  gas
production  properties in Bell County, Knox County and Harlan County,  Kentucky;
and

     WHEREAS,  NRC desires to deliver to and transport  its gas through  Delta's
pipeline for delivery to Columbia Gas  Transmission  Corporation,  Columbia Gulf
Transmission or other receiving pipelines as designated by NRC; and

     WHEREAS,  it is  necessary  that  a  connecting  transmission  pipeline  be
constructed  from the terminus of Delta's 8-inch pipeline on Moore Creek in Knox
County,  Kentucky to Delta's  existing  Stoney Fork  pipeline near Bailey Gap in
northeastern Bell County, Kentucky; and

     WHEREAS,  Delta  desires to receive and  transport  incremental  volumes of
natural gas on behalf of NRC, from NRC's SMEPA acreage,  its Addington  acreage,
its Stinking Creek acreage and from other area production  properties  under the
terms of an existing Off-System Transportation Agreement; and

     WHEREAS,  Delta is willing to install or  construct,  own and  operate  the
transmission pipeline and compression facilities described herein,

     NOW  THEREFORE,  NRC and  Delta  hereby  agree to the  following  terms and
conditions:

1)   Upon execution of this Agreement,  Delta shall proceed with the procurement
     of  rights-of-way  and with the design and  construction  of  approximately
     69,000 feet of 8 inch steel pipeline along a route between the  termination
     point of Delta's 8-inch pipeline on Moore Creek in Knox County, Kentucky to
     Delta's  existing  transmission  line  near  Bailey  Gap  in  Bell  County,
     Kentucky,  and shall  install a  compressor  near Highway 66 in Bell County
     with an approximate daily capacity of 5000 Dth of gas.

2)   Upon execution of this Agreement,  NRC shall promptly  proceed to construct
     and install an extension  of its gas  gathering  facilities  from its SMEPA
     leasehold  east to the  Addington  property at a point near Bill Branch off
     Ky.  Highway 2009 in Harlan  County,  Kentucky for the purpose of gathering
     natural  gas to be  delivered  to  Delta  for  transportation  through  the
     pipeline being  constructed  hereunder,  and Delta shall convey to Columbia
     Gulf NRC's desire for Delta to transport  and deliver up to 5000 Dth of gas
     daily at the  interconnection of Delta's TranEx pipeline with Columbia Gulf
     at the Speedwell  delivery point in Madison County,  Kentucky.  Delta shall
     use its best efforts to effect the  transportation of gas into the Columbia
     Gulf  pipeline.  NRC  expressly  recognizes  Columbia  Gulf's  gas  quality
     standards,  and NRC shall  endeavor  with Delta to deliver  gas to Columbia
     Gulf that complies with Columbia Gulf's standards.

3)   Delta shall own and operate the  transmission  pipeline and the  compressor
     facilities  to be  constructed  and  installed  under  the  terms  of  this
     Agreement.

4)   In  consideration  for Delta agreeing to construct and operate the pipeline
     described herein, NRC agrees,  commencing on the date of Delta's completion
     of  the   pipeline,   to  deliver  to  Delta   through  the   pipeline  for
     transportation a daily average volume of "incremental gas" of not less than
     3000  Dth of gas per day  during  each of the  consecutive  fifteen  annual
     periods  occurring  thereafter.  "Incremental gas" is defined as additional
     volumes of gas from the aforementioned production areas delivered by NRC in
     excess of the  daily  volumes  flowing  or  capable  of  flowing  (in those
     instances  where a station may not have been running on the specified date)
     to Delta from these production areas as of March 1, 2005. The first 750 Mcf
     of gas from the Lewis Heirs Lease plus any  additional  volumes  applied to
     NRC's minimum daily average  requirement  under the Agreement  dated August
     24,  2004  by and  between  NRC  and  Delta  are  expressly  excluded  from
     "incremental gas" volumes under this Agreement. In the event Delta does not
     receive from NRC a daily average of 3000 Dth of incremental  gas during any
     annual  period  hereunder,  at the end of each such annual period NRC shall
     pay Delta's applicable  Off-System  Transportation  Rate then in effect for
     the difference  between 1,095,000 Dth (3000 per day times 365 days) and the
     actual lesser volumes of incremental  gas received by Delta from NRC during
     such annual period for  transportation  through the  pipeline.  All volumes
     received  from NRC for  transportation  hereunder  and the volumes  used to
     calculate any annual minimum bills, if applicable, shall be cumulative, and
     NRC's  obligation to transport the annual minimum volume shall cease at the
     earlier of (i) a total cumulative,  transportation  volume on behalf of NRC
     of 16,425,000 Dth (3000 Dth per day x 365 days x 15 years) is attained,  or
     (ii) fifteen years lapses from and after the date of Delta's  completion of
     the pipeline.

5)   NRC agrees to  provide  to Delta  surety in the form of a letter of credit,
     bond or  other  acceptable  financial  instrument  payable  to Delta in the
     amount of Two Million ($2,000,000). Annually, NRC's surety obligation shall
     be reduced by the  proportion of the annual  transportation  volumes to the
     total   volume   commitment   (16,425,000   Dth)  in  (4)  above  from  the
     transportation of NRC's gas through the pipeline.

6)   In  consideration  for NRC  providing  surety to Delta for the pipeline and
     compression  facilities to be constructed and installed by Delta hereunder,
     Delta agrees that NRC shall have the right of first  refusal to utilize the
     capacity  of  the  compressor  to be  installed  hereunder  by  Delta.  The
     approximate  daily capacity shall be 5000 Dth,  subject to the  fluctuating
     operating conditions on Delta's pipeline systems. NRC shall notify Delta at
     the beginning of each month of the volumes, up to the compressor  capacity,
     NRC desires to flow through the  compressor  commencing on the first day of
     the next succeeding month.

7)   This Agreement  shall  terminate the earlier of (i) fifteen (15) years from
     the date gas first flows  through the pipeline  constructed  hereunder,  or
     (ii) the  cumulative  volumes for which Delta has been paid its  Off-System
     Transportation  Rate by NRC when the volumes  (physical volumes and minimum
     bill volumes) attain the level of 16,425,000 Dth. Delta shall release NRC's
     surety obligation simultaneously with the expiration or termination of this
     Agreement.

8)   The terms,  conditions and  obligations of this Agreement  shall be binding
     upon the heirs,  assigns, and successors of NRC and Delta. In the event NRC
     transfers  its  interests  in this  Agreement to another  party,  NRC shall
     nevertheless  retain the  obligation for any unpaid annual minimum bill due
     Delta hereunder.

9)   This  Agreement  cannot be amended  without  the written  agreement  of the
     parties hereto.

10)  This  Agreement  shall be subject  to all  applicable  and valid  statutes,
     rules,  orders and regulations of any federal,  state or local governmental
     authority or agency having jurisdiction over the parties, their facilities,
     this Agreement or any provision hereof.

     IN WITNESS WHEREOF, the parties have executed this Agreement this 10 day of
March, 2005.


NAMI RESOURCES COMPANY, L.L.C.      DELTA NATURAL GAS COMPANY, INC.
BY: Vicki K. Guess                  BY: Alan L. Heath

ITS: Exec V-P                       ITS: VP - Oper & Eng.




COMMONWEALTH OF KENTUCKY        )
                                )
COUNTY OF Laurel                )


     Subscribed,  sworn to and acknowledged before me this 10 day of March, 2005
by Vicki K. Guess,  Executive Vice President Nami Resources Company,  L.L.C. for
and on behalf of the Corporation.

     My Commission Expires: 8-9-08



                                       /s/ Irv W. Looney
                                       NOTARY PUBLIC


COMMONWEALTH OF KENTUCKY   )
                           )
COUNTY OF Clark            )


     Subscribed,  sworn to and  acknowledged  before  me this 14th day of March,
2005 by Alan L. Heath,  Vice  President of Operations  and  Engineering of Delta
Natural Gas Company, Inc., for and on behalf of the Corporation.

     My Commission Expires: October 16, 2005


                                       /s/ Mary Virginia Rupard
                                       NOTARY PUBLIC