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

                                  Subject Company:  Columbia Energy Group
                                Registration Statement File No: 333-33896


        On June 8, 2000, NiSource and Columbia Energy Group issued a
   press release announcing that the Maryland Public Service Commission
   has certified that the companies' proposed merger will not impair the
   state's ability to regulate Columbia Gas of Maryland, Inc., a natural
   gas distribution subsidiary of Columbia Energy Group that serves
   nearly 32,000 customers in three of Maryland's 24 counties.  The text
   of the press release is set forth below.


                                PRESS RELEASE
                                June 8, 2000

   [NiSource Logo]                                        [Columbia logo]


                            Contacts:

                            Media
                            -----
                            NiSource - Sally A. Anderson (219) 647-6203
                            Columbia - Michael J. McGarry  (703) 561-6063

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


      Maryland PSC Certifies Its Authority Following NiSource/Columbia
    Merger Letter to SEC Cites Continued Protection of Columbia Customers

        MERRILLVILLE, Ind., and HERNDON, Va. (June 8, 2000) - NiSource
   Inc. and Columbia Energy Group today said the Maryland Public Service
   Commission (PSC) has certified that the companies' proposed merger
   will not impair the state's ability to regulate Columbia Gas of
   Maryland, Inc.(CMD). A natural gas distribution subsidiary of Columbia
   Energy Group, CMD serves nearly 32,000 customers in three of
   Maryland's 24 counties.

        In a letter to the U.S. Securities and Exchange Commission (SEC),
   the Maryland PSC said that following the merger it will continue to
   have the statutory authority and resources to protect CMD customers
   subject to its jurisdiction.  Furthermore, it "intends to exercise
   that authority to the fullest extent possible under the law."


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      Maryland PSC Certifies Authority After NiSource/Columbia Merger - 2


        "The Maryland commission's prompt certification that our proposed
   merger will have no impact on their regulatory authority is greatly
   appreciated," said Gary L. Neale, NiSource chairman, president and
   chief executive officer. "Their timeliness helps us maintain our
   momentum in reaching merger completion before year-end."

        "Our commitment to serving Columbia's customers in Maryland will
   remain as strong as ever, and we will continue to build our customer
   choice porgram," said Oliver G. Richard III, Columbia Energy Group
   chairman, president and chief executive officer.

         The Maryland PSC letter to the SEC, dated May 25, follows
   similar actions by the Public Utilities Commission of Ohio on May 2
   regarding Columbia Gas of Ohio and by the Commonwealth of
   Massachusetts' Department of Telecommunications & Energy on May 12
   regarding NiSource subsidiary Bay State Gas Company. Completion of the
   NiSource/Columbia Energy Group merger is pending approvals by several
   other state public utility commissions and certain federal regulatory
   agencies.  The $6 billion transaction, announced Feb. 28 and approved
   by shareholders of both companies at meetings on June 1 and June 2, is
   expected to close by the end of 2000.

        NiSource Inc. (NYSE: NI) 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 (NYSE: CG), based in Herndon, Va., is one
   of the nation's leading energy services companies.  Its operating
   companies engage in nearly 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 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.

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      Maryland PSC Certifies Authority After NiSource/Columbia Merger - 3


             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.
             These and 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 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 the
             document.

             In addition to other documents filed with the Securities and
             Exchange Commission by the two companies, NiSource and the
             new holding company have filed a registration statement,
             which contains a joint proxy statement/prospectus for
             NiSource and Columbia Energy.  The final joint proxy
             statement/prospectus, dated April 24, 2000, is available and
             has been distributed to the companies' shareholders.
             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 may 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 at its Web site, www.nisource.com, or from
             Columbia Investor Relations at 13880 Dulles Corner Lane,
             Herndon, Virginia 20171 or at its Web site,
             www.columbiaenergygroup.com.




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