Filed by:  NiSource Inc.
                    Pursuant to Rule 425 under the Securities Act of 1933

                                  Subject Company:  Columbia Energy Group
                                           Commission File No:  001-01098


        On March 13, 2000, NiSource distributed the following news item
   to its employees.  The news item was posted on NiSource's intranet and
   included in NiSource's daily newsletter, "The FLASH."


                              TEXT OF NEWS ITEM
                               MARCH 13, 2000


   LEADERS NAMED TO MERGER TRANSITION TEAM....

   NiSource and Columbia have named two representatives from each company
   to lead a merger transition team, as called for in the definitive
   merger agreement the two companies announced Feb. 28.

   Steve Adik, senior executive vice president, chief financial officer
   and treasurer of NiSource, and Jim Abcouwer, senior vice president of
   NiSource and president and chief executive officer of EnergyUSA,
   NiSource's unregulated company, were appointed by NiSource Chairman,
   President and Chief Executive Officer Gary Neale.  Columbia's
   representatives, appointed by Columbia Energy Group Chairman Rick
   Richard, are Mike O'Donnell, chief financial officer, and Dennis
   McFarland, chief financial officer of Columbia's largest utility,
   Columbia Gas of Ohio.

   Neale and Richard pointed out that NiSource's Adik and Columbia's
   O'Donnell hold the same key finance positions and that Abcouwer and
   McFarland provide the transition team with insight into NiSource and
   Columbia operations.

   "Steve and Jim provide the team with key perspectives on implementing
   our plan to fuel the future," Neale said. "Rick Richard and I will be
   discussing the makeup of the rest of the transition team shortly.
   Working with the four team leaders, we'll be able to set the structure
   and get started."

   The merger, subject to the approval of shareholders and certain state
   and federal regulators, is expected to be complete by the end of 2000.


             This news item contains certain forward-looking statements
             within the meaning of the federal securities laws; these
             forward-looking statements are subject to various risks and
             uncertainties. The factors that could cause actual results
             to differ materially from the projections, forecasts,
             estimates and expectations discussed herein may include
             factors that are beyond the companies' ability to control or





             estimate precisely, such as estimates of future market
             conditions, the behavior of other market participants and
             the actions of the Federal and State regulators. Other
             factors include, but are not limited to, actions in the
             financial markets, weather conditions, economic conditions
             in the two companies' service territories, fluctuations in
             energy-related commodity prices, conversion activity, other
             marketing efforts and other uncertainties. Other risk
             factors are detailed from time to time in the two companies'
             SEC reports. Readers are cautioned not to place undue
             reliance on these forward-looking statements, which speak
             only as of the date of this news item. The companies do
             not undertake any obligation to publicly release any revisions
             to these forward-looking statements to reflect events or
             circumstances after the date of this news item.  Readers
             are cautioned not to place undue reliance on these forward-
             looking statements, which speak only as of the date of this
             news item.  The companies do not undertake any obligation to
             publicly release any revisions to these forward-looking
             statements to reflect events or circumstances after the date
             of this news item.

             NiSource and the new holding company will be filing a
             registration statement, which will contain a joint proxy
             statement/prospectus of NiSource and Columbia Energy, and
             other documents with the Securities and Exchange Commission.
             Investors and security holders are urged to read the joint
             proxy statement/prospectus and any other relevant documents
             filed with the SEC when they become available because they
             will contain important information. Investors and security
             holders will be able to receive the joint proxy
             statement/prospectus and other documents free of charge at
             the SEC's web site, www.sec.gov, from NiSource Investor
             Relations at 801 East 86th Avenue, Merrillville, Indiana
             46410 or from Columbia Investor Relations at 13880 Dulles
             Corner Lane, Herndon, Virginia 20171.