Filed by:  New NiSource Inc.
                    Pursuant to Rule 425 under the Securities Act of 1933

                                  Subject Company:  Columbia Energy Group
                                Registration Statement File No: 333-33896


        On September 7, 2000, NiSource posted the following Questions and
   Answers to an intranet site relating to Project Compass which is
   accessible to NiSource employees:

        QUESTIONS AND ANSWERS POSTED TO PROJECT COMPASS INTRANET SITE
                              SEPTEMBER 7, 2000


   The following questions and answers provide some preliminary
   information regarding the merger and its effect on the Columbia Energy
   Group Savings Plan.  As more detailed information becomes available,
   it will be provided to all participants.

   Q1.  What happens to the Columbia Energy Group shares attributable to
        the Columbia match once the merger closes?  Will they be con-
        verted to cash, NiSource shares, or a combination of both?  If
        the shares are converted to NiSource shares, will they be "locked
        in," or will participants be able to sell the shares and move the
        proceeds to other funds once the conversion occurs?

   A1.  Savings Plan participants will have the opportunity to instruct
        Fidelity regarding which consideration (cash and SAILS or
        NiSource shares) they wish to receive for the units credited to
        their account. However, it should be noted that FMTC (Fidelity),
        trustee of the Plan, is the shareholder of record and may be
        required by the Employee Retirement Income Security Act (ERISA)
        to override participants' instructions if one option does not
        constitute "adequate consideration" under ERISA.

        Participants who receive NiSource shares for Columbia shares
        attributable to the Company match will continue to be restricted
        from moving those shares to another fund under the Plan until age
        50. Any cash received as merger consideration, regardless of
        whether it was received for shares attributable to the Company
        match, will be invested in the Fidelity Retirement Money Market
        Portfolio and be available for movement into other funds at the
        participant's discretion.  It has not been determined how the
        SAILS will be handled.

   Q2.  Moving forward, how will the company match be treated?  Will it
        be in NiSource shares?

   A2.  After the closing, the Company match will be made in NiSource
        shares rather than Columbia shares.  Employees over age 50 have
        the opportunity to direct the Company match into any of the
        investment options available under the Plan.





   Q3.  What happens if I own Columbia shares outside of the Savings
        Plan?  Will I have to make two separate decisions?

   A3.  Yes.  You will receive two forms - an instruction form from
        Fidelity for the Columbia shares held in the Savings Plan and an
        election form from Chase Mellon Shareholder Services or your
        broker for the Columbia shares held outside of the Plan.  You may
        make different elections for each. You must complete both forms
        if you wish to elect stock for shares attributable to your
        account in the Plan and to elect stock for shares held outside
        the Plan.  Please note that Fidelity's ability to override your
        decision applies only to the shares held in the Savings Plan.

   Q4.  When will I make the election on my Columbia shares?

   A4.  In mid-September, all Plan participants who have an account
        balance in the Columbia Stock Fund will receive materials from
        Fidelity which will provide the deadline, and outline in detail
        the procedures for participants to follow to instruct Fidelity.
        Chase Mellon Shareholder Services will be providing election
        materials to those who hold shares outside the Plan.

   The following legend appears elsewhere on the Project Compass intranet
   site:

        These frequently asked questions contain 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 of information.  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

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        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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