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 30, 2000, NiSource Inc. and Columbia Energy Group
   announced the filing of an application with the Pennsylvania Public
   Utility Commission seeking necessary approvals of their planned
   merger.  The following is a transcript of the joint press release
   issued on March 30, 2000:


                                PRESS RELEASE
                               MARCH 30, 2000
   [NISOURCE LOGO]                           [COLUMBIA ENERGY GROUP LOGO]

   NEWS RELEASE             CONTACTS:
                            MEDIA
                            NiSource - Sally Anderson (219) 647-6203
                            Columbia - R.A. Rankin, Jr. (703) 561-6044

                            INVESTOR RELATIONS
                            NiSource - Dennis Senchak (219) 647-6085
                            Columbia - Thomas L. Hughes (703) 561-6001


           NISOURCE, COLUMBIA ENERGY GROUP LAUNCH APPROVAL PROCESS
             COMPANIES SEEK REGULATORY APPROVAL IN PENNSYLVANIA

   MERRILLVILLE, IND. AND HERNDON, VA. (MARCH 30, 2000) - NiSource Inc.
   (NYSE: NI) and Columbia Energy Group (NYSE: CG) today announced the
   filing of an application with the Pennsylvania Public Utility
   Commission seeking necessary approvals of their planned merger.
   Pittsburgh-based Columbia Gas of Pennsylvania, Inc., a Columbia
   subsidiary, provides retail natural gas service to approximately
   389,000 customers in 27 counties.

   Pennsylvania is the first state to be asked to approve the merger,
   which was announced February 28 and is expected to close by the end of
   2000.  The combined company will serve more than 4.1 million customers
   primarily located in nine states.  Its operations will span the high-
   growth energy corridor stretching from the Gulf of Mexico to New
   England, creating the largest natural gas distributor east of the
   Rocky Mountains.

   "Today's filing is an important first step in bringing together the
   strengths of both companies to provide Pennsylvania consumers the full
   benefits of energy choice," said NiSource Chairman, President and
   Chief Executive Officer Gary L. Neale. "Already a recognized leader in
   opening its markets to supplier choice under deregulation, Columbia
   Gas will be able to offer its customers the same friendly, reliable





   service plus new energy options being pioneered by NiSource, such as
   distributed generation.

   "Distributed generation is an alternative means of obtaining electric
   power on site using clean-burning, gas-fired generating facilities
   ranging from large cogeneration systems for industrial users, to
   microturbines for smaller businesses, to compact fuel cells for
   homes," Neale explained. "These options add an important local
   dimension to the term 'energy independence' for consumers.  It's just
   one of many ways we're adding value for customers served by our
   distribution systems."

   Oliver G. Richard III, chairman, president and chief executive officer
   of Columbia Energy Group, added, "We believe the merger between
   NiSource and Columbia will bring value to our shareholders, customers
   and the communities we serve.  By virtue of the new company's size,
   diversity of products and services, expertise and geographic scope, it
   will have the resources and critical mass necessary to compete more
   effectively in the rapidly changing energy industry-and to bring value
   from that competition to the customers in Pennsylvania."

                                  - more -

   NISOURCE/COLUMBIA SEEK PENNSYLVANIA PUC APPROVAL-2

   The proposed merger will have no impact on Columbia Gas of
   Pennsylvania's rates, terms and conditions now approved by the
   Commission, according to the filing. However, customers are expected
   to benefit from the increased electric competition from natural-gas-
   fueled distributed generation, as well as potential natural gas cost
   savings gained through the efficient use of the combined upstream
   pipeline and storage assets of the new company.

   The filing pointed out that after the merger Columbia Gas of
   Pennsylvania will:

   *    Continue its longstanding civic involvement in the communities it
        serves by assuring ongoing charitable donations and civic
        involvement consistent with past practices.

   *    Continue its leading role in promoting competition and customer
        choice in rapidly deregulating markets.

   *    Honor all collective bargaining agreements and provide employees
        with the better of Columbia or NiSource aggregate benefits for
        three years following the closing.  Since NiSource and Columbia
        have no overlapping service areas, no significant staff
        reductions are expected to take place at the local distribution
        company.

   *    Maintain Columbia Gas of Pennsylvania headquarters in Pittsburgh.


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   The daily operational impact of the merger will be transparent to
   Columbia Gas customers because the change in corporate ownership "will
   not change the manner in which Columbia provides gas sales and
   distribution service within the Commonwealth," the filing concluded.

   NiSource and Columbia also will seek merger approval from state
   regulators in Virginia and Kentucky.  Approvals will be sought from
   various federal agencies.

   NiSource Inc. is a holding company with headquarters in Merrillville,
   Ind., whose primary business is the distribution of electricity,
   natural gas and water in the Midwest and Northeastern United States.
   The company also markets utility services and customer-focused
   resource solutions along a corridor from Texas to Maine.  More
   information about the company is available on the Internet at
   www.nisource.com.

   Columbia Energy Group, based in Herndon, Va., is one of the nation's
   leading energy services companies, with assets of approximately $7
   billion.  Its operating companies engage in virtually all phases of
   the natural gas business, including exploration and production,
   transmission, storage and distribution, as well as retail energy
   marketing, propane and petroleum product sales, and electric power
   generation. More information about Columbia is available on the
   Internet at www.columbiaenergygroup.com.

                                     ###

        This press release 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 press release. 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 press release.  Readers are cautioned not to place
        undue reliance on these forward-looking statements, which speak
        only as of the date of this press release.  The companies do not
        undertake any obligation to publicly release any revisions to

                                     -3-





        these forward-looking statements to reflect events or
        circumstances after the date of this press release.

        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.





































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