<PAGE> 1
FORM 8-K
--------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
--------------
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event Reported) April 8, 1997
-------------------
THE COLUMBIA GAS SYSTEM, INC.
-----------------------------
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C> <C>
Delaware 1-1098 13--1594808
- - ---------------------------------- ----------------- -------------------
(State of other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
</TABLE>
12355 Sunrise Valley Drive, Suite 300, Reston, VA 20191-3420
------------------------------------------------------------
(Address of principal executive offices)
Registrant's telephone number, including area code (703) 295-0300
---------------
<PAGE> 2
Item 5. Other Events
Information contained in News Releases dated April 3, 1997,
and April 4, 1997, is incorporated herein by reference.
<PAGE> 3
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
The Columbia Gas System, Inc.
-----------------------------
(Registrant)
By /s/J. W. Grossman
------------------------------
Vice President &
Controller
Date: April 8, 1997
<PAGE> 4
CONTACTS:
John Jennrich, Columbia Gas: (703) 295-0423
Karl Brack, Columbia Transmission: (304) 357-2396
Patricia Bowles, Westcoast Energy: (604) 488-8093
Stewart Lawrence, MCN Energy: (313) 256-6289
Kelly Farr, CMS Energy: (313) 436-9253
For Release:
9:30 a.m., April 3, 1997
COLUMBIA ANNOUNCES MILLENNIUM PIPELINE TO NORTHEAST
WASHINGTON, D.C., April 3 - Oliver G. Richard III, chairman, CEO and
president of the Columbia Gas System Inc., today announced the launching of a
$600 million pipeline project to carry at least 650 million cubic feet a day of
natural gas to New York and other eastern markets by the start of the next
millennium.
"We believe we've discovered a new, more efficient Northeast Passage
for western Canadian and U.S. gas," Richard said in announcing the joint
initiative among Columbia Gas Transmission Corp, the Columbia subsidiary that
will operate the pipeline, and subsidiaries of CMS Energy Corp., of Dearborn,
Mich.; MCN Energy Group Inc., of Detroit, Mich.; and Westcoast Energy Inc., of
Vancouver, B.C.
The Millennium Pipeline would provide a new, 380-mile link to flow
western Canadian and U.S. gas to eastern markets. Plans call for the 36-inch
pipeline to begin deliveries in time for the 1999 winter heating season,
Richard said. An application seeking Federal Energy Regulatory Commission
approval of the project is expected to be filed this summer.
Catherine G. Abbott, CEO and president of Columbia Gas Transmission,
said that the Millennium Pipeline represents a significant milestone in the
reconfiguration of North America's natural gas pipeline grid. "The pipeline
would not only offer the lowest rates available, but it would provide a
simplified nomination process and access to a full range of flexible
transportation and storage services."
Through a connection with the Great Lakes and TransCanada pipeline
systems, Millennium Pipeline would offer the most cost-effective and direct
route available for moving western Canadian supply to the Northeast, Abbott
said. Millennium Pipeline also would provide a competitive outlet for gas in
the Chicago market to move east via the systems of CMS Energy Corp.,
Westcoast-owned Union Gas Ltd. and MCN Energy. The line also would provide
access to significant Michigan and southern Ontario storage.
The Millennium Pipeline, Abbott said, would provide Columbia and its
partners with a strategic advantage in the intense competition to capture and
maintain market share in the Northeast. "We see real advantages in a
simplified, more direct structure that puts the emphasis on ease-of-use for
customers," Abbott said. "In addition, because the pipeline will use almost
entirely existing utility rights-of-way, the project also offers strong
environmental benefits."
The pipeline would originate at a new TransCanada delivery point in
Lake Erie and primarily follow existing Columbia Gas Transmission pipeline
rights-of-way to a destination point in Westchester County, N.Y. In addition
to accessing U.S. and Canadian supply, Millennium's access to extensive
market-area storage would enable
<PAGE> 5
the pipeline to offer customers options tailored to meet the special needs of
electricity generators, industrial customers and local distribution companies,
Abbott said.
A 45-day open season is planned for the project beginning in late
April, during which requests for service on the pipeline will be accepted.
Columbia Gas Transmission operates a 19,000-mile network of interstate
natural gas pipelines, providing storage and transportation for customers in 10
states.
The Columbia Gas System, a Fortune 500 company, is one of the nation's
largest natural gas systems, with assets of about $6 billion. Its operating
companies are engaged in all phases of the gas business plus marketing, fuel
management services and electric power generation. Columbia companies,
directly or indirectly, serve more than 7 million natural gas customers -- 12
percent of the nation's total - in 15 states and the District of Columbia.
Information about the Columbia Gas System is available on the World Wide Web at
http://www.columbiaenergy.com. Columbia stock trades on the New York Stock
Exchange under the symbol CG.
Westcoast Energy is a major Canadian energy company with assets of
approximately $9 billion. The company's interests include an integrated
pipeline gathering system, processing and transmission facilities, storage,
distribution and power generation, as well as international and gas services
businesses. Information about Westcoast is available on the World Wide Web at
http://www.westcoast.com.
CMS Energy Corp. is an international energy company with $4.8 billion
in sales and assets of $8.6 billion. It operates throughout the United States
and in 15 foreign countries. Its businesses include: electric and natural gas
utilities; independent power production; natural gas pipelines and storage; oil
and gas exploration and production; and energy marketing and trading. CMS
Energy Corp.'s principal subsidiary is Consumers Energy, Michigan's largest
utility and America's fourth largest combination gas and electric utility.
Information about CMS Energy is available on the World Wide Web at
http://www.cmsenergy.com.
MCN Energy Group Inc., (NYSE:MCN) is a $3.6 billion (assets)
diversified energy holding company with natural gas markets and investments
throughout North America and internationally. The company operates through two
major business groups: The Diversified Energy group, operating through MCN
Investment Corporation, is involved in exploration and production gas
gathering, transmission and processing, gas marketing, gas storage, power
generation and other energy-related businesses; The Gas Distribution group
consists principally of Michigan Consolidated Gas Company, a natural gas
distribution and transmission company serving 1.2 million customers in more
than 500 communities throughout Michigan.
CONTACT FOR FINANCIAL COMMUNITY: Thomas Hughes, Vice President, Investor
Relations, Columbia Gas System, Reston, Va., at (703) 295-0429.
CONTACTS FOR MARKETING INFORMATION: Columbia Transmission's David Pentzien,
Manager of Market Development, at (304) 357-3233; or Brian Alexander, Manager
of Eastern Marketing, at (703) 295-0346.
<PAGE> 6
Contacts: Carl Ericson (703) 295-0424 Colleen Tatano
(412) 873-1300
For A.M. Release
Friday, April 4, 1997
COLUMBIA ENERGY SERVICES FORMS ALLIANCE
WITH KERR-MCGEE CORP. TO SELL NATURAL GAS
WASHINGTON, D.C., April 4 -- The Columbia Gas System announced today
that its energy marketing company has entered into an agreement with Kerr-McGee
Corp. to purchase and market Kerr-McGee's North American offshore natural gas
production of about 250 million cubic feet per day, or 90 billion cubic feet a
year.
Oliver G. Richard III, chairman, CEO and president of Columbia Gas,
said the agreement is an important step in establishing Columbia Energy
Services (CES) as a "major player in the natural gas marketing business. In
addition, Columbia welcomes the opportunity to work with Kerr-McGee, a proven
leader in the energy business."
Kerr-McGee, headquartered in Oklahoma City, is a major natural
resources company with business activities in natural gas and oil exploration
and production, chemicals and coal.
The marketing alliance will become effective May 1 and continue for
three years. J. Gil Walker, Kerr-McGee's general manager of oil and gas
trading, emphasized that "this long-term agreement will permit Kerr-McGee to
concentrate on its core business of exploring and producing natural gas and
oil."
Walker said Kerr-McGee chose CES "because of its excellent customer
service, long-term commitment to customers' energy requirements and focus on
customer choice."
Anthony Trubisz Jr., CES president, said, "Columbia Energy welcomes
the opportunity to purchase and market Kerr-McGee's natural gas production, and
we are looking forward to a long and mutually rewarding relationship."
CES will manage all of Kerr-McGee's U.S. natural gas marketing
activities including scheduling, nominating and balancing pipeline
transportation, as well as providing financial risk management services,
Trubisz said.
CES provides gas supply and fuel management services to a diverse
customer base, including cogenerators, local distribution companies, industrial
plants, commercial businesses, joint marketing partners and residential
customers. CES is the nonregulated natural gas marketing subsidiary of the
Columbia Gas System. CES is headquartered in Pittsburgh, Pa., with offices in
Reston, Va.; Houston, Texas; Charleston, W.Va.; York, Pa.; Lexington, Ky.; and
Columbus, Toledo, Canton and Cleveland, Ohio.
The Columbia Gas System, a Fortune 500 and S&P 500 company, is one of
the nation's largest natural gas systems, with assets of nearly $6 billion.
Its operating companies are engaged in all phases of the gas business,
including marketing, fuel management services and electric power generation.
Columbia companies, directly or indirectly, serve more than 7 million gas
customers - 12 percent of the nation's total - in 15 states and the District of
Columbia. Information about Columbia Gas System is available on the World Wide
Web at http:/www.columbiaenergy.com. Columbia stock trades on the New York
Stock Exchange under the symbol CG.
