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 22, 2000, NiSource announced the appointment of
   additional key leadership for the operation of its energy
   distribution, natural gas pipeline, energy production and wholesale
   trading businesses upon completion of its merger with Columbia Energy
   Group.  The text of the press release is set forth below.

                            TEXT OF PRESS RELEASE
                               AUGUST 22, 2000


   FOR IMMEDIATE RELEASE

   FOR ADDITIONAL INFORMATION

   Media:    Maria Hibbs              Investors:     Dennis Senchak
             219-647-6201                            219-647-6085
             Sally Anderson                          Rae Kozlowski
             219-647-6203                            219-647-6083


            NISOURCE ANNOUNCES KEY BUSINESS-UNIT LEADERSHIP TEAM
       TO FOCUS ON GROWTH FOLLOWING MERGER WITH COLUMBIA ENERGY GROUP

        MERRILLVILLE, Ind. (August 22, 2000) - NiSource Inc. today
   announced the appointment of additional key leadership for the
   operation of its energy distribution, natural gas pipeline, energy
   production and wholesale trading businesses upon completion of its
   merger with Columbia Energy Group. The company began naming its top
   leadership team on Aug. 1, headed by Gary L. Neale, NiSource chairman,
   president and chief executive officer.

        The $6 billion NiSource/Columbia merger agreement announced Feb.
   28 will create a super-regional energy powerhouse with assets of $13
   billion.  Assuming federal regulatory approval, it is expected to
   close by year-end.

        The company also announced more corporate-level executives in
   addition to business unit executives named on Aug. 1.  ARTHUR E.
   SMITH, JR., NiSource environmental officer and counsel, is named vice
   president and environmental counsel.  MARIA P. HIBBS, NiSource
   director of Corporate Communications, will become vice president,
   Corporate Communications.  PETER FAZIO will remain General Counsel.
   RAMON ARREDONDO, NiSource director of Legislative Affairs, will become
   assistant to the Chairman. A Human Resources officer will be named
   later. All will report directly to Neale.

        "We have a great depth of talent in place between NiSource and
   Columbia, and we are assembling a leadership team focused on





   delivering exceptional value to our customers by creating the premier
   competitor in an evolving energy marketplace," said Neale.

        The following business unit appointments, effective upon
   completion of the merger were made today:

   ENERGY DISTRIBUTION

   Jeffrey W. Yundt, who will be president of Energy Distribution,
   overseeing all gas and electric distribution systems of the combined
   company, has announced the following senior staff:

        --ROBERT SKAGGS will continue as president and chief executive
   officer of Columbia Gas of Ohio and Columbia Gas of Kentucky, and will
   assume an expanded role as president and CEO of NiSource's Bay State
   Gas Company subsidiary.  JOSEPH KELLY has been named executive vice
   president and chief operating officer (COO) for CKY.  KENNETH MARGOSSIAN,
   senior vice president of Operations for Bay State Gas Company, has been
   named Bay State's executive vice president and COO.  Kelly and Margossian
   will report to Skaggs.

        --ANTHONY TRUBISZ, president and CEO of Columbia Gas of
   Pennsylvania, Maryland and Virginia.  The position of executive vice
   president and chief operating officer of Columbia of Virginia will be
   filled at a later date.

        --A president and CEO for NiSource's Indiana distribution
   companies -Northern Indiana Public Service Company (NIPSCO), Kokomo
   Gas and Fuel Company and Northern Indiana Fuel and Light Company
   (NIFL)--also will be named later.

        --MARK T. MAASSEL, vice president, Regulatory and Governmental
          Affairs.
        --DOROTHY M. HAWKINS, vice president, Information Technology.
        --PEGGY LANDINI, vice president, Customer Service/Marketing.
        --BARBARA MCKAY, vice president, Communications.
        --SCOTT MACDONALD, vice president, Finance and Strategy.

   PIPELINE OPERATIONS

   Catherine G. Abbott, who will become president of Pipeline Operations,
   including Columbia Gas Transmission Company and Columbia Gulf
   Transmission Company, NiSource's Crossroads Pipeline Company and its
   investment in Portland Natural Gas Transmission System, as well as
   Columbia's fiber optic telecommunications network, has announced the
   following senior staff:

        --TERRANCE L. MCGILL, president, Columbia Gulf (Gulf).
        --GLEN L. KETTERING, president, Columbia Gas Transmission (TCO).
        --W. HARRIS MARPLE, senior vice president, Operations, TCO and
          Gulf.
        --STEVE WARNICK, senior vice president, Finance and Information
          Services, TCO and Gulf.
        --KATHLEEN O'LEARY, senior vice president, Human Resources and





          Public Affairs, TCO and Gulf.

   MERCHANT COMPANY

   Patrick J. Mulchay, who will be president of Merchant Company--which
   will include the combined company's electric generation and
   transmission, wholesale natural gas and electric trading, gas supply
   and storage, and gas exploration and production--has named the
   following senior staff:

        --JAMES K. ABCOUWER, senior vice president, Merchant Energy
          Services, and president, TPC Corporation.
        --THOMAS J. ARUFFO, vice president, Energy Supply Services.
        --DAVID J. VAJDA, vice president, Finance and Administration.
        --JERRY L. GODWIN, vice president, Electric Power Supply.
        --W. HENRY HARMON, president, Columbia Natural Resources.
          Harmon will report to Abcouwer.

   PRIMARY ENERGY

   Joseph L. Turner, who will remain president of Primary Energy, Inc.--
   the nation's leading developer of on-site industrial power generation
   -- has announced the following senior staff:

        --DEAN H. HALL, vice president, Development.
        --KENNETH FOLEY, vice president, Production and Maintenance.
        --V. MICHAEL ALVERSON, vice president.
        --A vice president of Marketing and Sales will be announced at
          a later date.

   NEW ENERGY COMPANY

   Mark D. Wyckoff, who will be president of New Energy Company, the
   combined company's distributed generation and electronic commerce
   initiatives, has announced the following senior staff:

        --ROBERT A. KRAMER, vice president and chief scientist.
        --PETER DISSER, vice president.
        --MICHAEL L. ZDYB, vice president.
        --A vice president of Finance and Administration and an
          additional vice president and director will be named later.

   BUSINESS SERVICES

   Stephen P. Smith, who will become president of Business Services,
   consisting of the combined company's administrative and shared
   services functions, has announced the following senior staff:

        --JOHN O'BRIEN, vice president, Tax Services.
        --MARY BLOOM, vice president, Supply Chain Services.
        --ROBERT STUART, Chief Information Officer.
        --GAIL HOROWSKI, vice president, Employee and Administration
          Services.
        --WILL CASTLE, director, Commercial Support Services.
        --GARY BARNARD, chief accounting officer.


   CORPORATE FINANCE

   Michael W. O'Donnell, who will become executive vice president and
   chief financial officer of the new NiSource, has announced the
   following senior staff:

        --JEFFREY W. GROSSMAN, vice president and Controller.
        --DENNIS MCFARLAND, vice president, Finance and Planning.
        --FRANCIS P. GIROT, JR., treasurer.
        --DENNIS E. SENCHAK, vice president, Investor and Shareholder
          Relations.
        --ARTHUR PAQUIN, vice president, Audit.
        --A Corporate Tax officer will be named later.

        The new NiSource will serve more than 3.6 million gas and
   electric customers primarily located in nine states.  Its operations
   will span the high-growth energy corridor extending from the Gulf of
   Mexico through 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 Regulatory
   Commission in July, following necessary 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.

   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
   through Chicago 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 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 biographies referred to in the above press release are as follows:

   ARTHUR E. SMITH, JR., VICE PRESIDENT & ENVIRONMENTAL COUNSEL NISOURCE

   Art Smith leads NiSource's comprehensive environmental excellence
   program, which has gained the company national recognition for its
   environmental programs.  Smith joined NiSource in 1991 and was elected
   environmental officer and counsel in 1998.

   Smith serves on the boards of directors of the Nature Conservancy,
   Indiana Chapter, the Indiana Environmental Institute and the Indiana
   Dunes Environmental Learning Center.  He was appointed by the governor





   of Indiana to the Environmental Quality Service Council and serves on
   the advisory committees to the Great Lakes Radio Consortium and to
   Illinois/Indiana Sea Grant.

   Prior to joining NiSource, Smith was the chief civil litigation
   specialist with the U.S. Environmental Protection Agency in Chicago
   and assistant U.S. attorney for the Northern District of Illinois.

   Smith earned a bachelor s degree in biology from Columbia College, New
   York; two master s degrees in environmental sciences from Columbia
   University, New York; and a juris doctorate from the Seattle
   University School of Law, Washington.


   MARIA P. HIBBS, VICE PRESIDENT, CORPORATE COMMUNICATIONS
   NiSource

   Maria Hibbs has more than 20 years of experience in multiple facets of
   internal and external business communications. She has led NiSource's
   Corporate Communications department whose primary responsibilities
   include corporate branding and reputation management, media relations,
   employee communications, advertising, graphic design, Web site
   development, multimedia services and event planning.

   Hibbs, former director of public affairs at Chicago-based Inland Steel
   Industries, joined NiSource in 1998.  Her career, including 13 years
   with Inland, incorporates many elements of the communications
   industry: newspaper reporting, government affairs, community
   relations, audio-visual and video program development, publications,
   media relations and event planning.  She has also served as an adjunct
   professor at Northwestern University s Medill School of Journalism and
   has taught journalism at Valparaiso University.

   Hibbs is involved in a wide range of local and national community and
   business activities, including the public relations committee of the
   American Gas Association and the board of trustees of the Indiana
   Symphony Orchestra. She also serves on the Board of Governors for the
   Metropolitan Planning Council (Chicago).

   Hibbs has a doctorate degree in public policy analysis from the
   University of Illinois at Chicago, as well as a master s degree in
   journalism from Ball State University and a bachelor s degree in
   journalism and English from Valparaiso University.

   Dennis E. Senchak, Vice President Investor & Shareholder Relations
   NiSource

   Dennis Senchak has an extensive background in all facets of corporate
   and utility industry management and serves as financial spokesperson
   for NiSource Inc. He has served as assistant treasure for NiSource
   since 1994.

   Senchak began his career at Northern Indiana Public Service Company, a
   subsidiary of NiSource, in 1968 as an Electric Field Engineer and





   served in various positions of increasing responsibility within its
   Engineering, Operations, Marketing and Sales areas. He became director
   of Investor Relations for NiSource in 1990.

   He is active in various industry organizations including the American
   Gas Association, Association of Iron and Steel Engineers, American
   Society of Metals, Edison Electric Institute and the Institute of
   Electrical and Electronic Engineers. He has also served on the board
   of directors of Metro Metals Corporation.

   Senchak earned a bachelor of science degree in Electrical Engineering
   from Purdue University.



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