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

                                  Subject Company:  Columbia Energy Group
                                           Commission File No:  333-33896

             On April 4, 2000, NiSource Inc. and Columbia Energy Group
   announced that they have filed a joint petition with the State
   Corporation Commission of the Commonwealth of Virginia requesting
   necessary approvals related to their planned merger.  In the joint
   petition, NiSource and Columbia are asking the Commission to approve
   the transfer of ownership of Columbia Gas of Virginia under the
   proposed NiSource/Columbia merger agreement.  The following is a
   transcript of the press release issued on April 4, 2000:


                                PRESS RELEASE
                                APRIL 4, 2000

   NEWS RELEASE
                            Contacts:
                            Media
                            -----
                            NiSource - Sally A. 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 ASK VIRGINIA TO APPROVE MERGER

        MERRILLVILLE, IND. AND HERNDON, VA. (APRIL 4, 2000) -- NiSource
   Inc. (NYSE: NI) and Columbia Energy Group (NYSE: CG) today announced
   they have filed a joint petition with the State Corporation Commission
   of the Commonwealth of Virginia requesting necessary approvals related
   to their planned merger.

        Columbia Gas of Virginia, Inc., a Columbia subsidiary based in
   Chesterfield County, provides retail natural gas service to more than
   182,000 customers in 52 counties. Areas served by the local distribution
   company include portions of northern Virginia, Fredericksburg, the
   Shenandoah Valley, the Lynchburg region, suburban Richmond, and parts
   of Hampton Roads, Southside Virginia and western Virginia.

        In the joint petition, the Commission is asked to approve the
   transfer of Columbia Gas of Virginia ownership under the proposed
   NiSource/Columbia merger agreement announced February 28. The
   transaction is expected to close by the end of the year. The combined
   company will become the largest natural gas distributor east of the
   Rocky Mountains, serving 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.






        "The purpose of the merger is to create an enterprise that will
   better serve our local customers than either company could alone,"
   said Gary L. Neale, NiSource chairman, president and chief executive
   officer. "It is driven by our shared vision of the future of the
   energy industry in which successful providers add value for their
   customers by offering the combined benefits of innovation and
   economies of scale.

        "The combination will establish a powerful platform for growth,
   with access to 30 percent of the country's population and 40 percent
   of the nation's energy consumption in growing markets," Neale
   explained. "Columbia Gas of Virginia will benefit by sharing the
   opportunities created by the merger, and will continue to be a
   regulated utility with a focus on serving customers in Virginia and
   developing the economy of Virginia."

                                   -more-

        NiSource/Columbia Seek Virginia Regulatory Approval--2

        Oliver G. Richard III, chairman, president and chief executive
   officer of Columbia Energy Group, said, "We are enthusiastic about the
   opportunities and value the merger will bring to our shareholders,
   customers and the communities we serve.  Columbia's historical
   leadership in opening markets to supplier choice under deregulation
   will be continued.   Columbia Gas customers will be able get the same
   friendly, reliable service they have known for years, plus new energy
   options such as distributed generation that are being pioneered by
   NiSource."

        The proposed merger will have no impact on Columbia Gas of
   Virginia's rates, terms and conditions now approved by the Commission,
   according to the filing.

        The filing also pointed out that following the NiSource/Columbia
   merger, Columbia Gas of Virginia will:

        *    Maintain its headquarters in Chesterfield.
        *    Retain key management personnel along with local decision-
             making authority.
        *    Retain local operations and the employee workforce in
             accordance with Columbia Gas of Virginia's plans before the
             merger announcement.
        *    Honor all collective bargaining agreements.
        *    Continue to support economic growth within its service
             territory and throughout the Commonwealth, working closely
             with state and local economic development agencies to
             attract or retain businesses and jobs.
        *    Continue its long history of community and civic
             involvement.

        The action follows a similar filing March 30 with the
   Pennsylvania Public Utility Commission.  NiSource and Columbia also





   will seek merger approval from state regulators in Kentucky and 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 release contains 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

                                  - more -

        NISOURCE/COLUMBIA SEEK VIRGINIA REGULATORY APPROVAL--3

        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 document.  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 the document.

        NiSource and the new holding company have filed a registration
        statement, which contains a joint proxy statement/prospectus of
        NiSource and Columbia, 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 because they contain
        important information.  Investors and security holders are able
        to receive the final joint proxy statement/prospectus and other
        documents free of charge at the SEC's web site, www.sec.gov, from
        NiSource at its web site, www.nisource.com, or from Columbia at
        its web site, www.columbiaenergygroup.com.  Information
        concerning the identity of the participants in the solicitation
        of proxies by the NiSource Inc. and Columbia Energy Group boards
        of directors and their direct or indirect interest, by security
        holdings or otherwise, may be obtained from the Secretary of
        NiSource Inc. or the Secretary of Columbia Energy Group at the
        respective addresses listed above.