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 Pennsylvania, Maryland and Virginia
   upon completion of its $6 billion merger with Columbia Energy Group.
   Anthony Trubisz has been named President and CEO of Columbia Gas of
   Pennsylvania, Columbia Gas of Maryland and Columbia Gas of Virginia.
   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    Rob Boulware
   NiSource Inc.  Columbia Gas of Pennsylvania/Maryland
   219-647-6201   412-572-7136


                  NiSource Announces Post-Merger Leadership
              Trubisz named President and CEO for Pennsylvania,
                            Maryland and Virginia

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

        Anthony Trubisz has been named President and CEO of Columbia Gas
   of Pennsylvania, Columbia Gas of Maryland and Columbia Gas of
   Virginia. Trubisz currently serves as President and CEO of Columbia
   Gas of Virginia. His new role incorporates the duties of Gary
   Robinson, president and CEO of Columbia Gas of Pennsylvania and
   Maryland, who is retiring after more than 36 years with Columbia
   Energy Group.

        "The distribution companies are the platform for our growth
   strategy and Pennsylvania, Maryland and Virginia 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."

        Trubisz will report to Jeffrey Yundt, president of energy
   distribution, and will be headquartered in Pittsburgh, Pa. Columbia
   Gas of Virginia will maintain its headquarters in Richmond, Va., and
   will be led by a chief operating officer who will be named in the
   future.





        "Tony is a great fit for this role," Yundt said. "His
   entrepreneurial talent combined with his strong focus on the customer
   and 30-plus years of experience in the changing industry position him
   to take on this expanded leadership role."

        The three companies serve more than 607,000 customers, with
   Columbia Gas of Pennsylvania's more than 389,000 customers in 27
   counties, Columbia Gas of Maryland's nearly 32,000 customers in three
   counties, and Columbia Gas of Virginia's nearly 186,000 customers in
   40 counties.

        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.

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