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

                                  Subject Company:  Columbia Energy Group
                                        Registration Statement: 333-33896

        On October 30, 2000, NiSource Inc. issued a press release
   regarding the Exchange Ratio for Columbia Energy Group stock in
   connection with the acquisition of Columbia by NiSource.  The text of
   the press release is set forth below.

                            TEXT OF PRESS RELEASE
                              OCTOBER 30, 2000

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    NEWS                                        [NISOURCE LOGO]
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                                                801 E. 86th Avenue
                                                Merrillville, IN 46410

   FOR IMMEDIATE RELEASE

   FOR ADDITIONAL INFORMATION

   Media
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   NiSource-Sally Anderson (219) 647-6203

   Investor Relations
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   NiSource-Dennis Senchak (219) 647-6085
   NiSource-Rae Kozlowski (219) 647-6083


      NISOURCE ANNOUNCES EXCHANGE RATIO FOR COLUMBIA ENERGY GROUP STOCK

        MERRILLVILLE, Ind., (October 30, 2000) - NiSource Inc. today
   announced an exchange ratio of 3.04414 NiSource shares for each
   Columbia common share electing to receive stock, subject to proration
   and based on the previously announced November 1, 2000, effective date
   for the merger of the companies.  On this basis, the deadline for
   Columbia shareholders to elect to receive NiSource stock in exchange
   for Columbia common stock is 5 p.m. New York time today.

        Under terms of the merger, the exchange ratio was determined by
   dividing $74.00 by the average closing price of NiSource common stock
   during the 30 consecutive trading days immediately preceding the
   second trading day prior to completion of the merger, but not more
   than 4.4848 shares.  Based on the effective date of November 1, this
   period began September 18 and ended October 27.  The average for the
   period, computed pursuant to the merger agreement, was $24.3090.

        Columbia shareholders wishing to receive New NiSource stock in
   the merger must submit their completed election forms and stock





   certificates or notice of guaranteed delivery in time to be received
   by the exchange agent, ChaseMellon Shareholder Services, L.L.C., no
   later than 5 p.m. New York City time today.  Shareholders are asked to
   review the stock election materials for details, and to contact
   ChaseMellon Shareholder Services at 1-800-685-4258 with additional
   questions.

        The companies said they would announce any changes in the
   effective date in a press release, on the NiSource and Columbia web
   sites, www.nisource.com and www.columbiaenergygroup.com, respectively,
   and in a filing with the Securities and Exchange Commission.

        NiSource Inc. (NYSE: NI) is a holding company with headquarters
   in Merrillville, Ind., whose primary business is the distribution of
   natural gas, electricity 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 to
   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.  More information about Columbia is available on the
   Internet at www.columbiaenergygroup.com.

        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/prospectus for NiSource and
        Columbia Energy.  The final joint proxy statement/prospectus,
        dated April 24, 2000, is available and has been distributed to
        the companies' shareholders. Investors and security holders are
        urged to read the joint proxy statement/prospectus and any 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.

                                  * * * * *

        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.

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