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 July 6, 2000, NiSource and Columbia announced that regulatory
   agencies in Kentucky, Maine and Indiana have completed the needed
   actions on the planned merger of the companies.  The actions bring the
   total to seven of nine states that have completed necessary actions on
   the merger.  The text of the joint press release follows:

                             JOINT PRESS RELEASE
                                JULY 6, 2000


   NEWS RELEASE
                            CONTACTS:
                            Media
                            -----
                            NiSource- Maria P. Hibbs (219) 647-6201
                            Columbia- R.A. Rankin, Jr.  (703) 561-6044

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


    KENTUCKY, MAINE AND INDIANA COMMISSIONS OKAY NISOURCE/COLUMBIA MERGER
                Seven of Nine States Complete Deliberations;
                         Settlements Reached in Two

        MERRILLVILLE, Ind., and HERNDON, Va. (July 6, 2000) - NiSource
   Inc. and Columbia Energy Group today said regulatory agencies in
   Kentucky, Maine and Indiana have completed the needed actions on the
   planned merger of the companies.  Their actions bring the total to
   seven of nine states that have completed necessary actions on the
   merger.

        The Kentucky Public Service Commission (KPSC) issued a merger
   approval on June 30, subject to the consent of the merging companies
   and Columbia Gas of Kentucky (CKY) to certain commitments.  Those
   consents are being submitted to the KPSC July 6.  KPSC stated that as
   approved the merger will have no impact on the base rates for CKY
   customers, nor will it create additional costs to them.  Terms of the
   approval include: maintaining the headquarters of CKY in Lexington,
   continuing economic development efforts and community contributions at
   their present levels, and tracking merger savings for consideration in
   CKY's next rate case, which is to be filed within 18 months of the
   completion of the merger. A subsidiary of Columbia Energy Group, CKY
   serves 141,000 natural gas customers, primarily in central Kentucky.

        The Maine Public Utilities Commission (MPUC) issued its merger





   approval on June 30, subject to certain financial and operating
   conditions, regarding Northern Utilities, Inc., a natural gas
   distribution unit of NiSource subsidiary Bay State Gas Company.
   Northern Utilities serves 24,000 customers in southern Maine
   communities.

        The Indiana Utility Regulatory Commission (IURC) on June 23
   stated in a letter to the U.S. Securities and Exchange Commission
   (SEC) that the companies' proposed merger will not alter the IURC's
   jurisdiction to monitor the activities of Northern Indiana Public
   Service Company (NIPSCO).  The IURC said its opinion is based on the
   understanding that NiSource will operate NIPSCO and Columbia as
   separate subsidiaries. A combination electric and natural gas
   distribution subsidiary of NiSource, NIPSCO serves more than one
   million energy customers in the northern third of Indiana.

        "We are very pleased with the Kentucky and the Maine Commissions'
   approvals and the Indiana Commission's timely letter," said Gary L.
   Neale, NiSource chairman, president and chief executive officer.
   "Their actions mark important steps toward reaching completion of our
   merger this year. We remain dedicated to bringing excellent energy
   services to Columbia customers in Kentucky, to Northern Utilities
   customers in Maine and to NIPSCO customers in Indiana, as well as to
   continue to support customer choice programs in both electricity and
   natural gas."

        Oliver G. Richard III, Columbia Energy Group chairman, president
   and chief executive officer, said, "We are working closely with
   NiSource to achieve a smooth transition.  The progress on the
   regulatory approval front is just one element of the broad cooperation
   between the two companies, as we move ahead to the merger's expected
   completion, and to bring its benefits to customers."

        The Kentucky, Maine and Indiana actions follow merger-related
   actions by the Public Utilities Commission of Ohio on May 2 regarding
   Columbia Gas of Ohio, by the Commonwealth of Massachusetts' Department
   of Telecommunications & Energy on May 12 regarding NiSource subsidiary
   Bay State Gas Company, by the Maryland Public Service Commission on
   May 25 regarding Columbia Gas of Maryland, and by the New Hampshire
   Public Utilities Commission on June 6 regarding NiSource subsidiary
   Northern Utilities, Inc.

        Settlements have been reached in the two remaining states,
   Pennsylvania and Virginia, with all parties to the proceedings in
   those states.  Final regulatory actions are expected soon.

        Completion of the merger also is subject to approvals by certain
   federal regulatory agencies, including the Federal Energy Regulatory
   Commission and the Securities and Exchange Commission.  The $6 billion
   transaction was announced Feb. 28 and approved by shareholders of both
   companies at meetings on June 1 and 2.  The transaction is expected to
   be completed 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.

             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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