<PAGE> 1
July 24, 1996
Securities and Exchange Commission
Judiciary Plaza
450 5th Street, N.W.
Washington, D.C. 20549
Dear Sirs:
Interim Report Under Rule 24 of the
Public Utility Holding Company Act of 1935
The Columbia Gas System, Inc
File No. 70-8791
In compliance with the terms and conditions of Rule 24 of the Public
Utility Holding Company Act of 1935 and the Order of the Commission dated May
8, 1996, the declarant, The Columbia Gas System, Inc. ("Columbia"), hereby
certifies that from April 1, 1996 through the last day of the quarter ended
June 30, 1996, Columbia made the following issuance of authorized common stock
($10 par value) to participants of its Long-Term Incentive Plan.
<TABLE>
<CAPTION>
Number of Shares Issued Price of Shares Issued or
Date of Issuance or Options Awarded Option Exercise Price Type of award
- ---------------- ------------------ --------------------- -------------
<S> <C> <C> <C>
May 17, 1996 1,500 $48.8125 * Contingent
May 20, 1996 100,000 $48.6875 ** Nonqualified
Options
May 20, 1996 29,785 *** Restricted
</TABLE>
The undersigned further certifies that the above mentioned transaction
has been carried out in accordance with the terms and conditions, and for the
purposes represented by, the Declaration filed by Columbia with the Commission
and the Order of the Commission with respect thereto.
Very truly yours,
THE COLUMBIA GAS SYSTEM, INC.
By: /s/ L. J. Bainter
-----------------------------
L. J. Bainter, Treasurer
<PAGE> 2
* Based on average of high and low price of Columbia common stock at the
close of business on May 17, 1996.
** Option exercise price based on the average of high and low price of
Columbia common stock at the close of business on May 20, 1996 less
any dividends paid as long as the option is outstanding, but in no
event less than the par value of such stock. 50,000 options become
exercisable on November 28, 1996 and thereafter. 50,000 options become
exercisable on November 28, 1997 and thereafter.
*** Shares issued in participant's name but held by the Corporation until
restrictions lapse. When vesting dates are reached and the participant
has met the restrictions outlined in the agreement, shares will be
distributed to the participant and will be valued at fair market value
on those dates. The vesting dates and number of shares to be issued
are as follows:
January 2, 1997 - 5,957
January 2, 1998 - 5,957
January 4, 1999 - 5,957
January 3, 2000 - 5,957
January 2, 2001 - 5,957
