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 August 1, 2000, NiSource announced the key leadership and new
   organizational structure to be in place upon completion of its merger
   with Columbia Energy Group.  The text of the press release follows:

                                Press Release
                               August 1, 2000

            NiSource Announces Post-Merger Leadership Structure;
          Management Team to Focus on Delivering Growth, Innovation

   MERRILLVILLE, Ind., Aug. 1 -- NiSource Inc. (NYSE NI news) has
   announced the key leadership and new organizational structure to be
   in place upon completion of its $6 billion merger with Columbia
   Energy Group (NYSE: CG - news), which was announced Feb. 28 and is
   expected to close by year-end.

   Gary L. Neale, NiSource chairman, president and chief executive
   officer, has been elected by NiSource's Board of Directors to head the
   new company and will retain the same title.

   "The evolving energy marketplace offers unparalleled opportunity for
   growth and innovation. This new management structure will support the
   company's growth strategy in energy supply and distribution as well as
   the development of new energy choices through emergent technologies,"
   Neale said.  "Our Board has put a strong management team in place to
   lead the new company."

   Stephen P. Adik, NiSource senior executive vice president, chief
   financial officer and treasurer, will become vice chairman of the new
   NiSource.

   Catherine G. Abbott, chief executive officer of Columbia Gas
   Transmission Company and Columbia Gulf Transmission Company, is named
   president, Pipeline Operations, including both Columbia natural gas
   transmission systems and fiber optic telecommunications network
   operations, as well as NiSource's Crossroads Pipeline Company and
   NiSource's investment in Portland Natural Gas Transmission System.

   Patrick J. Mulchay, president of NiSource's Northern Indiana Public
   Service Company (NIPSCO), will become president, Merchant Company,
   including electric generating operations, wholesale gas and electric
   trading, gas supply and storage, and gas exploration and production of
   the combined company.

   Jeffrey W. Yundt, president of NiSource's Bay State Gas Company
   subsidiary, is named president, Energy Distribution, overseeing all
   gas and electric distribution systems of the combined company.





   Mark D. Wyckoff, formerly NiSource vice president of Human Resources
   and currently the executive leading Project Compass, the
   NiSource/Columbia integration process, will head the combined
   company's distributed generation and electronic commerce initiatives
   as president, New Energy Company.

   Joseph L. Turner will remain in his position of president of Primary
   Energy, Inc., the nation's leading developer of on-site industrial
   power generation.

   All of the above executives will report directly to Neale.

   Michael W. O'Donnell, senior vice president and chief financial
   officer of Columbia Energy Group, will become executive vice president
   and chief financial officer of the new NiSource.

   Stephen P. Smith, senior vice president and deputy chief financial
   officer of Columbia Energy Group, who along with Wyckoff is leading
   Project Compass, will become president, Business Services, consisting
   of the combined company's administrative and shared services
   functions.

   James M. Clarke, NiSource vice president of Risk Management and
   Capital Allocation, will continue in that role following the merger.

   O'Donnell, Smith and Clarke will report to Adik.

   "This management team's extraordinary experience, talent and energy
   will enable us to hit the ground running once the merger is completed,
   to deliver to our customers and shareholders the value from this
   strategic combination of brands and other assets," Neale said.  "In
   the coming weeks the leadership team will be working closely with
   Project Compass, our integration planning process, to build a strong
   organization positioned to capitalize on the tremendous opportunities
   in the marketplace."

   The combined company will serve more than 4 million customers
   primarily located in nine states.  Its operations will span the high-
   growth energy corridor extending from the Gulf of Mexico to Chicago to
   New England, creating the largest natural gas distributor east of the
   Rockies, with wholesale and retail electric operations.

   The NiSource/Columbia merger is on target to close by the end of 2000,
   pending approval by the U.S. Securities and Exchange Commission.  The
   combination was approved by the Federal Energy and Regulatory
   Commission last week, following similar state actions regarding the
   companies' distribution companies in Virginia, Pennsylvania, Maryland,
   Indiana, Kentucky, Massachusetts, Ohio, Maine and New Hampshire.  The
   transaction also recently cleared the waiting period under the Hart-
   Scott-Rodino Antitrust Improvements Act at the U.S. Department of
   Justice and the Federal Trade Commission.  Shareholders of both
   companies approved the merger in June.





   NOTE: Biographies and portraits of the management team are available
   at www.nisource.com.

   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 through Chicago 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.  Its operating companies engage in
   nearly all phases of the natural gas business, including exploration
   and production, transmission, storage and distribution, as well as
   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 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 territory, 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 for NiSource and Columbia
        Energy Group.  The final joint proxy statement/prospectus,
        dated April 24, 2000, is available and has been distributed to
        the companies' shareholders.  Investment and security holders
        are urged to read the joint proxy statement/prospectus and 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.





   The following are the biographies of the management team referred
   to in the press release above which are posted on NiSource's
   website at www.nisource.com:

   GARY L. NEALE
   Chairman, President and
   Chief Executive Officer

   Gary Neale has been a leader in the energy industry for nearly 30
   years.  He joined NiSource Inc. in August 1989 as president and chief
   operating officer and was promoted to chairman, president and chief
   executive officer in March 1993.

   Neale also serves as chairman of the American Gas Association, a trade
   group representing companies involved in the nation's natural gas
   industry.  In addition, Neale is chairman of the North American
   Electric Reliability Council.  He serves on the boards of the Edison
   Electric Institute and the Association of Edison Illuminating
   Companies.

   Before joining NiSource, Neale was chairman, president and chief
   executive officer of Planmetrics, Inc., an energy consulting firm, for
   17 years.  He previously held management positions at Wells Fargo Bank
   and Kaiser Industries.

   Neale earned his bachelor's degree and a master's degree in business
   administration from the University of Washington.

   Neale is an active participant in the economic development, cultural
   and environmental efforts of northwest Indiana.  He has been appointed
   by the governor of Indiana to the Economic Development Council, the
   Energy Policy Forum and the Clean Air Advisory Committee.

   CATHERINE G. ABBOTT

   Cathy Abbott brings more than 20 years of experience in the energy
   industry to the NiSource leadership team.  She joined Columbia Energy
   Group in 1996 as chief executive officer of Columbia Gas Transmission
   Corporation and Columbia Gulf Transmission Company, interstate
   pipeline subsidiaries.

   Prior to joining Columbia, Abbott was a principal with Gem Energy
   Consulting, Inc., which provided consulting services to natural gas,
   electric and other energy firms.  She previously served as a vice
   president in various business units within Enron Corporation.  More
   than half of her 10-year career at Enron was devoted to developing
   Enron's unregulated gas marketing and derivative product trading
   capabilities.

   Abbott also served as vice president, policy analysis at the
   Interstate Natural Gas Association of America.  She directed a number






   of analytic offices in the U.S. Department of Energy, making policy
   recommendations on deregulation of natural gas and electricity.  She
   also served at the White House Office of Energy Policy and Planning
   and the Environmental Protection Agency.

   Abbott earned her bachelor's degree from Swarthmore College in
   Swarthmore, Pa. and a masters degree in public policy from the John F.
   Kennedy School of Government at Harvard University.

   STEPHEN P. ADIK

   Steve Adik has made significant contributions to strengthening
   NiSource and to achieving continued growth and profitability.  He
   joined NiSource in March 1987 as vice president and general manager,
   Corporate Support Group, and was promoted to executive vice president,
   chief financial officer and treasurer in 1994.  In February 1999 the
   Board of Directors of NiSource elected him senior executive vice
   president, chief financial officer and treasurer.

   Adik's industry affiliations include the American Gas Association,
   Edison Electric Institute and Midwest Gas Association.

   Prior to joining NiSource, Adik was an officer of American Natural
   Resources Company in Detroit.  He began his career with The Chessie
   System and served in various management positions with a division of
   Northwest Industries and with the Penn Central Corporation.

   Adik is an engineering graduate of the Stevens Institute of Technology
   in New Jersey, and earned a master's of business administration degree
   in finance from Northwestern University.

   JAMES M. CLARKE

   Jim Clarke has extensive knowledge of markets, trading, derivatives
   and risk management.  He is vice president of Risk Management and
   Capital Allocation at NiSource.  In that role, he is responsible for
   market, credit and operational risk as well as capital allocation as
   NiSource and Columbia Energy Group continue to integrate resources
   across the enterprise under the $6 billion merger expected to be
   complete by the end of the year.

   Before he joined NiSource in 1998, Clarke was a principal at several
   Chicago financial entities, such as DRW Investments, Caxton Corporation
   and Antler Partners, where his responsibilities included risk
   management and strategy development.  Clarke began his career at
   A.G. Becker/Paribas in New York.

   Clarke has a bachelors degree in business administration and finance
   from the State University of New York at Oswego.






   PATRICK J. MULCHAY

   Pat Mulchay brings nearly 40 years of utility experience to his
   leadership role at NiSource.  Most recently he served as president and
   chief operating officer of Northern Indiana Public Service Company
   (NIPSCO) as well as executive vice president of NiSource.  Mulchay
   began his utility career at NIPSCO in 1962.

   Mulchay is immediate past chairman of the Indiana Electric
   Association.  His industry affiliations also include the Edison
   Electric Institute, Electric Power Research Institute, North American
   Electric Reliability Council and East Central Area Reliability
   Council.

   During his career with NiSource, Mulchay has held various positions in
   management, operations, training, energy distribution and
   construction.  He served as vice president and general manager, gas
   operations for NIPSCO; executive vice president and chief operating
   officer, electric for NiSource; and executive vice president and chief
   operating officer for NIPSCO before being elected president and chief
   operating officer in 1999.

   Mulchay earned his associate's degree in electrical engineering, a
   bachelors degree in management from Purdue University and a master's
   degree in business administration from the University of Notre Dame.

   MICHAEL W. O'DONNELL

   Mike O'Donnell brings to the NiSource management team three decades of
   financial experience with various Columbia companies.  He previously
   served as senior vice president and chief financial officer of
   Columbia Energy Group.

   O'Donnell joined Columbia in 1971 and worked on various corporate
   finance matters before being promoted to vice president of finance in
   1983.  From 1986 to 1989 he served as senior vice president and chief
   financial officer for Columbia's local gas distribution companies,
   with responsibility for finance, accounting and information systems.

   He served as Columbia Energy Group's assistant chief financial officer
   from 1989 until his election as chief financial officer in October
   1993.  His responsibilities included finance, tax, accounting,
   compliance, treasury, enterprise risk management, internal auditing
   and mergers and acquisitions.

   He is a graduate of Temple University with a bachelor's degree in
   economics.

   STEPHEN P. SMITH

   Steve Smith brings extensive experience in finance to the NiSource
   leadership team.  Most recently he served as senior vice president and
   deputy chief financial officer of Columbia Energy Group.






   Smith joined Columbia in June 1996 as vice president of business
   development for Columbia Gas Transmission Corporation and became
   president of Columbia Network Services Corporation in September 1996.
   In February 1997, Smith was named senior vice president and chief
   financial officer of Columbia Gas Transmission Corporation and
   Columbia Gulf Transmission Company.

   Prior to joining Columbia, Smith worked for Enron Corporation in a
   number of capacities, including director of business development for
   western Europe and manager of the finance group.  He previously worked
   as an associate for First Reserve Corporation, an energy investment
   management firm, and as a financial analyst for Shearson Lehman Hutton
   and Alexander & Alexander Consulting Services.

   Smith received a master's of business administration in Finance and
   Accounting from the University of Chicago Graduate School of Business
   and a bachelor's degree in Petroleum Engineering from the Colorado
   School of Mines.

   JOSEPH L. TURNER, JR.

   Joe Turner has an extensive background in marketing and management in
   the metals, construction and energy industries.  He joined NiSource in
   1986 and has been senior vice president of NiSource and president of
   Primary Energy, Inc., a subsidiary of NiSource, since 1996.

   Turner is active in various industry and civic organizations and
   currently serves as chairman of the Committee of Associate Members for
   the American Iron and Steel Institute, director of The Steel Alliance,
   and as director of the American Iron and Steel Institute.

   Turner began his career at Northern Indiana Public Service Company
   (NIPSCO), a subsidiary of NiSource, in 1986 as vice president and
   general manager of corporate marketing.  He also has served NiSource
   as vice president and general manager, special markets; group vice
   president, industrial marketing and economic development; and group
   vice president, major accounts.

   Prior to joining NiSource, Turner held various senior management
   positions with Fluor Corporation, The Marmon Group and U.S. Steel.  He
   holds a bachelor's degree from Williams College.

   MARK D. WYCKOFF

   Mark Wyckoff has an extensive background in finance, management and
   mergers and acquisitions.  He joined NiSource in 1991 and most
   recently led Project Compass, the process to integrate NiSource and
   Columbia Energy Group.

   Wyckoff was elected assistant secretary of NiSource in 1998.  He
   served as vice president of Human Resources from June 1998 to June
   2000.  Previously, as assistant treasurer he was responsible for





   evaluating and implementing NiSource's merger and acquisition
   strategies.  Wyckoff was managing director of Elm Energy & Recycling
   (UK) Limited, a state-of-the-art waste-to-energy facility located in
   Wolverhampton, England, from January 1995 until the plant was sold in
   December 1998.

   During his early career with NiSource, Wyckoff managed a portfolio of
   investments in non-regulated energy and environmentally-related
   projects and companies.  He also has worked on financing of several
   large NiSource projects.  Prior to joining NiSource, Wyckoff spent
   more than five years as an investment banker with Citigroup,
   specializing in mergers and acquisitions.

   Wyckoff serves on the Board of SunPower Corporation.

   Wyckoff earned his bachelor's degree in business administration from
   the University of Michigan and his master's degree from the Harvard
   University Business School.

   JEFFREY W. YUNDT

   Jeff Yundt has guided the growth and development of regulated and
   nonregulated energy businesses throughout his 20-year career with
   NiSource.  Most recently he served as president and chief executive
   officer of Bay State Gas Company, and executive vice president of
   NiSource.

   Yundt is chairman of the Natural Gas Vehicle Coalition and 1st vice
   chairman of The New England Gas Association.

   Yundt joined NiSource in 1979 and held various senior management
   positions within the regulatory, gas operations and energy
   distribution areas of Northern Indiana Public Service Company
   (NIPSCO).  He previously served as vice president, gas operations for
   NIPSCO; vice president and general manager, energy distribution, for
   NIPSCO; executive vice president and chief operating officer, gas, for
   NiSource; and executive vice president and chief operating officer,
   energy services, for NiSource.

   He became president of Bay State Gas in September 1998 and was elected
   president and chief executive officer in February 1999.  He also
   continued to serve as executive vice president of NiSource,
   responsible for corporate gas supply and regulated energy assets.

   Yundt earned a bachelor's degree in industrial management from Purdue
   University.