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 that it has appointed the
   key leadership to be in place in Ohio, Kentucky, Massachusetts, New
   Hampshire and Maine upon completion of its $6 billion merger with
   Columbia Energy Group.  Robert Skaggs has been named President and CEO
   of Columbia Gas of Ohio, Columbia Gas of Kentucky and Bay State Gas
   Company.  The text of the press release is set forth below.


                            TEXT OF PRESS RELEASE
                               AUGUST 22, 2000


   FOR IMMEDIATE RELEASE

   FOR ADDITIONAL INFORMATION
   Maria Hibbs         Steve Jablonski
   NiSource Inc.       Columbia Gas of Ohio
   219-647-6201        614-460-4605


                  NISOURCE ANNOUNCES POST-MERGER LEADERSHIP
       SKAGGS NAMED PRESIDENT AND CEO FOR OHIO, KENTUCKY AND BAY STATE

        MERRILLVILLE, Ind. (Aug. 22, 2000) - NiSource Inc. has appointed
   the key leadership to be in place in Ohio, Kentucky, Massachusetts,
   New Hampshire and Maine upon completion of its $6 billion merger with
   Columbia Energy Group, which was announced Feb. 28 and is expected to
   close by year-end.

        Robert Skaggs has been named President and CEO of Columbia Gas of
   Ohio, Columbia Gas of Kentucky and Bay State Gas Company. Skaggs adds
   responsibility for Bay State to his duties as President and CEO of
   Columbia Gas of Ohio and Kentucky.

   "The distribution companies are the platform for our growth strategy
   and Ohio, Kentucky, Massachusetts, New Hampshire and Maine will play
   an integral role," Gary L. Neale, NiSource chairman, president and
   chief executive officer said. "We have a great depth of talent in
   place between NiSource and Columbia Energy Group, and we are putting
   together a leadership team that can deliver."

   Skaggs will report to Jeffrey Yundt, president of energy distribution,
   and will be headquartered in Columbus, Ohio. Columbia Gas of Kentucky
   will maintain its headquarters in Lexington, Ky., and will continue to
   be led by Joseph Kelly, executive vice president and chief operating
   officer. Kenneth Margossian will become executive vice president and
   chief operating officer for Bay State which will continue to be
   headquartered in Westborough, Mass.




   "Bob Skaggs is a proven leader," Yundt said. "His talents will prove
   invaluable during this time of change in the industry and our company.
   Bob is a great fit for this role."

   The three companies serve nearly 1.8 million customers, with Columbia
   Gas of Ohio's more than 1.3 million customers in 63 counties, Columbia
   Gas of Kentucky's nearly 142,000 customers in 31 counties, and Bay
   State's more than 300,000 customers in Massachusetts, New Hampshire
   and Maine.

   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 that extends 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.

                                    # # #