FORM OF STOCK OPTION AWARD AGREEMENT NEW JERSEY RESOURCES CORPORATION

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                                                                    EXHIBIT 10.3

                      FORM OF STOCK OPTION AWARD AGREEMENT

                        NEW JERSEY RESOURCES CORPORATION

            THIS STOCK OPTION AWARD AGREEMENT (the "Agreement") is made as
of______________, between NEW JERSEY RESOURCES CORPORATION, a New Jersey
corporation (the "Company") and _______________(the "Employee") pursuant to the
terms and conditions of the New Jersey Resources Corporation Employee and
Outside Director Long-Term Incentive Compensation Plan as amended (the "Plan").
Capitalized terms not defined in this Agreement shall have the meanings set
forth in the Plan.

            THE PARTIES AGREE AS FOLLOWS:

            1. Award of Options. Pursuant to the Plan, the Company hereby awards
to Employee options (the "Options") to acquire _____ shares of Company common
stock (the "Stock") at the exercise price of $_______ per share (the "Exercise
Price"), subject to the terms and conditions set forth in this Agreement and the
Plan. A copy of the Plan has been delivered to the Employee. By signing below,
the Employee agrees to be bound by all the provisions of the Plan. The Options
granted hereunder are nonqualified stock options.

            2. Vesting Schedule. Subject to Sections 6 and 7 hereof, including
the authority of the Committee in its discretion to provide for accelerated
vesting, the Options shall vest and become exercisable in four equal
installments on each of the first, second, third and fourth anniversaries of
_____________.

            3. Expiration Date. The Options subject to this Agreement shall
expire on_______________. (the Expiration Date).

            4. Payment of Exercise Price. The Exercise Price must be paid to the
Company at the time of exercise in cash, stock or other consideration as
permitted by the Committee at the time of exercise. All transactions are
governed by the rules and procedures established by the Committee and to the
extent stock or other consideration is used to satisfy the Exercise Price, such
stock or other consideration will be valued at Fair Market Value. Fair Market
Value will be determined on the date of exercise and must equal the Exercise
Price.

            5. Non-transferability. Except to the extent otherwise determined by
the Committee, the Options granted hereunder shall not be assignable or
otherwise transferable other than by will or the laws of descent and
distribution. Unless otherwise provided by the Committee, d