COLUMBIA ENERGY GROUP
SC 14D1/A, 1999-10-01
NATURAL GAS TRANSMISISON & DISTRIBUTION
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          ========================================================
                     SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549

                          -------------------------

                              SCHEDULE 14D-1/A
                             (Amendment No. 22)

            TENDER OFFER STATEMENT PURSUANT TO SECTION 14(d)(1)
                   OF THE SECURITIES EXCHANGE ACT OF 1934

                          ------------------------

                            COLUMBIA ENERGY GROUP
                          (Name of Subject Company)

                            CEG ACQUISITION CORP.
                                NISOURCE INC.
                                  (Bidders)

                        COMMON STOCK, $.01 PER SHARE
                       (Title of Class of Securities)

                                  197648108
                    (CUSIP Number of Class of Securities)

                               Stephen P. Adik
                      Senior Executive Vice President,
                    Chief Financial Officer And Treasurer
                                NiSource Inc.
                            801 East 86th Avenue
                      Merrillville, Indiana  46410-6272
                               (219) 853-5200
     (Name, Address and Telephone Number of Person Authorized to Receive
              Notices and Communications on Behalf of Bidder)

                      --------------------------------

                                 COPIES TO:

             Peter V. Fazio, Jr., Esq.           Alan G. Schwartz, Esq.
               Schiff Hardin & Waite           Simpson Thacher & Bartlett
                 6600 Sears Tower                 425 Lexington Avenue
             Chicago, Illinois  60606           New York, New York  10017
            Telephone:  (312) 258-5500         Telephone:  (212) 455-2000


             ===================================================








        This Amendment No. 22 (this "Amendment") amends and supplements
   the Tender Offer Statement on Schedule 14D-1, as amended, originally
   filed with the Securities and Exchange Commission on June 25, 1999
   (the "Schedule 14D-1") by CEG Acquisition Corp., a Delaware
   corporation (the "Offeror") and a wholly owned subsidiary of NiSource
   Inc., an Indiana corporation ("Parent"). The Schedule 14D-1 and this
   Amendment relate to a tender offer by the Offeror to purchase all of
   the outstanding shares of common stock, par value $.01 per share (the
   "Shares"), of Columbia Energy Group, a Delaware corporation (the
   "Company"), at a purchase price of $68 per Share, net to the seller in
   cash, without interest thereon, upon the terms and subject to the
   conditions set forth in the Offer to Purchase, dated June 25, 1999
   (the "Offer to Purchase"), and in the related Letter of Transmittal
   (which, as either may be amended or supplemented from time to time,
   collectively constitute the "Offer"), copies of which are filed with
   the Schedule 14D-1 as Exhibits (a)(1) and (a)(2), respectively.


































                                      2








   Item 10.       Additional Information.

        On October 1, 1999, Parent first issued the "Energy News - Oct. 1999"
   communications to customers of Northern Indiana Public Service
   Company, which are included herein as Exhibit (a)(34) and incorporated
   herein by reference.

   Item 11.  Material to be Filed as Exhibits.

        (a)(1)         Offer to Purchase, dated June 25, 1999.

        (a)(2)         Letter of Transmittal.

        (a)(3)         Letter dated June 25, 1999, from Dealer Manager to
                       brokers, dealers, commercial banks, trust
                       companies and other nominees.

        (a)(4)         Letter dated June 25, 1999, to be sent by brokers,
                       dealers, commercial banks, trust companies and
                       other nominees to their clients.

        (a)(5)         Notice of Guaranteed Delivery.

        (a)(6)         Guidelines for Certification of Taxpayer
                       Identification Number on Substitute Form W-9.

        (a)(7)         Form of Summary Advertisement, dated June 25,
                       1999.

        (a)(8)         Press Release issued by Parent on June 24, 1999.

        (a)(9)         Form of letter dated June 28, 1999 from Gary L.
                       Neale, Chairman, President and Chief Executive
                       Officer of Parent, to investors of the Company.

        (a)(10)        Press Release issued by Parent on June 28, 1999.

        (a)(11)        "NiSource/Columbia StraightTalk" communication to
                       stockholders of the Company issued by Parent on
                       July 2, 1999.

        (a)(12)        Form of letter dated July 2, 1999, from Gary L.
                       Neale, Chairman, President and Chief Executive
                       Officer of Parent, to directors of the Company.

        (a)(13)        Press Release issued by Parent on July 6, 1999.




                                      3








        (a)(14)        Form of letter dated July 12, 1999, from Gary L.
                       Neale, Chairman, President and Chief Executive
                       Officer of Parent, to shareholders of Parent.

        (a)(15)        "NiSource/Columbia StraightTalk" communication to
                       stockholders of the Company issued by Parent on
                       July 14, 1999.

        (a)(16)        Press Release issued by Parent on July 14, 1999.

        (a)(17)        Press Release issued by Parent on July 19, 1999.

        (a)(18)        Press Release issued by Parent on July 20, 1999.

        (a)(19)        Form of letter dated July 21, 1999, from Gary L.
                       Neale, Chairman, President and Chief Executive
                       Officer of Parent, to directors of the Company.

        (a)(20)        Form of letter dated July 26, 1999, from Gary L.
                       Neale, Chairman, President and Chief Executive
                       Officer of Parent, to stockholders of the Company.

        (a)(21)        "NiSource/Columbia StraightTalk" communication to
                       stockholders of the Company issued by Parent on
                       July 26, 1999.

        (a)(22)        Information published by Parent on July 30, 1999,
                       available via the Internet at
                       http://www.yes2nisource.com.

        (a)(23)        Press Release issued by Parent on July 30, 1999.

        (a)(24)        Press Release issued by Parent on August 9, 1999.

        (a)(25)        "NiSource/Columbia StraightTalk" communication to
                       stockholders of the Company issued by Parent on
                       August 13, 1999.

        (a)(26)        Form of letter dated August 13, 1999, from Gary L.
                       Neale, Chairman, President and Chief Executive
                       Officer of Parent, to directors of the Company.

        (a)(27)        Form of letter dated August 13, 1999, from Gary L.
                       Neale, Chairman, President and Chief Executive
                       Officer of Parent, to Oliver G. Richard III,
                       Chairman, President and Chief Executive Officer of
                       the Company.



                                      4








        (a)(28)        Form of letter dated August 26, 1999, from Gary L.
                       Neale, Chairman, President and Chief Executive
                       Officer of Parent, to stockholders of the Company.

        (a)(29)        Opinion/editorial articles by Gary L. Neale,
                       Chairman, President and Chief Executive Officer of
                       Parent, submitted to various newspapers on
                       September 9, 1999.

        (a)(30)        Opinion/editorial articles by Gary L. Neale,
                       Chairman, President and Chief Executive Officer of
                       Parent, submitted to various newspapers on
                       September 10, 1999.

        (a)(31)        Opinion/editorial article by Gary L. Neale,
                       Chairman, President and Chief Executive Officer of
                       Parent, submitted to The Appalachian News-Express
                       on September 13, 1999.

        (a)(32)        Opinion/editorial article by Gary L. Neale,
                       Chairman, President and Chief Executive Officer of
                       Parent, submitted to The Winchester Sun  on
                       September 14, 1999.

        (a)(33)        Form of Letter dated September 23, 1999, from Gary
                       L. Neale, Chairman, President and Chief Executive
                       Officer of Parent, to officers, directors and
                       managers of Parent.

        (a)(34)        "Energy News - Oct. 1999" communication to
                       customers of Northern Indiana Public Service
                       Company first issued by Parent on October 1,
                       1999.*

        (b)(1)         Commitment Letter dated June 23, 1999 to Parent
                       from Credit Suisse First  Boston and Barclays Bank
                       PLC.

        (c)            Not Applicable.

        (d)            Not Applicable.

        (e)            Not Applicable.

        (f)            Not Applicable.

        (g)(1)         Complaint in NiSource Inc. and CEG Acquisition
                       Corp. vs. Columbia Energy Group et al., Delaware
                       Chancery Court, New Castle County.

                                      5








        (g)(2)         Complaint in NiSource Inc. and CEG Acquisition
                       Corp. vs. Columbia Energy Group et al., United
                       States District Court, District of Delaware.

        (g)(3)         First Amended Complaint in NiSource Inc. and CEG
                       Acquisition Corp. vs. Columbia Energy Group et
                       al., United States District Court, District of
                       Delaware.

        (g)(4)         Complaint in NiSource Inc., NiSource Capital
                       Markets Inc. and CEG Acquisition Corp. vs.
                       Columbia Energy Group et al., Delaware Chancery
                       Court, New Castle County.
   _______________

        *Filed herewith.


































                                      6








                                  SIGNATURE

        After due inquiry and to the best of its knowledge and belief,
   each of the undersigned certifies that the information set forth in
   this statement is true, complete and correct.

                                      CEG ACQUISITION CORP.


                                      By:  /s/ Gary L. Neale
                                           -----------------------------
                                           Name: Gary L. Neale
                                           Title: President

                                      NISOURCE INC.


                                      By:  /s/ Gary L. Neale
                                           -----------------------------
                                           Name: Gary L. Neale
                                           Title: Chief Executive Officer

   Date: October 1, 1999








                                EXHIBIT INDEX

        Exhibit
        Number    Description
        ------    -----------

        11(a)(1)  Offer to Purchase, dated June 25, 1999.

        11(a)(2)  Letter of Transmittal.

        11(a)(3)  Letter dated June 25, 1999, from Credit Suisse First
                  Boston Corporation to brokers, dealers, commercial
                  banks, trust companies and other nominees.

        11(a)(4)  Letter dated June 25, 1999, to be sent by brokers,
                  dealers, commercial banks, trust companies and other
                  nominees to their clients.

        11(a)(5)  Notice of Guaranteed Delivery.

        11(a)(6)  Guidelines for Certification of Taxpayer Identification
                  Number on Substitute Form W-9.

        11(a)(7)  Form of Summary Advertisement, dated June 25, 1999.

        11(a)(8)  Press Release issued by Parent on June 24, 1999.

        11(a)(9)  Form of letter dated June 28, 1999 from Gary L. Neale,
                  Chairman, President and Chief Executive Officer of
                  Parent, to investors of the Company.

        11(a)(10) Press Release issued by Parent on June 28, 1999.

        11(a)(11) "NiSource/Columbia StraightTalk" communication to
                  stockholders of the Company issued by Parent on July 2,
                  1999.

        11(a)(12) Form of letter dated July 2, 1999, from Gary L. Neale,
                  Chairman, President and Chief Executive Officer of
                  Parent, to directors of the Company.

        11(a)(13) Press Release issued by Parent on July 6, 1999.

        11(a)(14) Form of letter dated July 12, 1999, from Gary L. Neale,
                  Chairman, President and Chief Executive Officer of
                  Parent, to shareholders of Parent.

        11(a)(15) "NiSource/Columbia StraightTalk" communication to
                  stockholders of the Company issued by Parent on
                  July 14, 1999.








        11(a)(16) Press Release issued by Parent on July 14, 1999.

        11(a)(17) Press Release issued by Parent on July 19, 1999.

        11(a)(18) Press Release issued by Parent on July 20, 1999.

        11(a)(19) Form of letter dated July 21, 1999, from Gary L. Neale,
                  Chairman, President and Chief Executive Officer of
                  Parent, to directors of the Company.

        11(a)(20) Form of letter dated July 26, 1999, from Gary L. Neale,
                  Chairman, President and Chief Executive Officer of
                  Parent, to stockholders of the Company.

        11(a)(21) "NiSource/Columbia StraightTalk" communication to
                  stockholders of the Company issued by Parent on July
                  26, 1999.

        11(a)(22) Information published by Parent on July 30, 1999,
                  available via the Internet at
                  http://www.yes2nisource.com.

        11(a)(23) Press Release issued by Parent on July 30, 1999.

        11(a)(24) Press Release issued by Parent on August 9, 1999.

        11(a)(25) "NiSource/Columbia StraightTalk" communication to
                  stockholders of the Company issued by Parent on August
                  13, 1999.

        11(a)(26) Form of letter dated August 13, 1999, from Gary L.
                  Neale, Chairman, President and Chief Executive Officer
                  of Parent, to directors of the Company.

        11(a)(27) Form of letter dated August 13, 1999, from Gary L.
                  Neale, Chairman, President and Chief Executive Officer
                  of Parent, to Oliver G. Richard III,  Chairman,
                  President and Chief Executive Officer of the Company.

        11(a)(28) Form of letter dated August 26, 1999, from Gary L.
                  Neale, Chairman, President and Chief Executive Officer
                  of Parent, to stockholders of the Company.

        11(a)(29) Opinion/editorial articles by Gary L. Neale, Chairman,
                  President and Chief Executive Officer of Parent,
                  submitted to various newspapers on September 9, 1999.

        11(a)(30) Opinion/editorial articles by Gary L. Neale, Chairman,
                  President and Chief Executive Officer of Parent,
                  submitted to various newspapers on September 10, 1999.








        11(a)(31) Opinion/editorial article by Gary L. Neale, Chairman,
                  President and Chief Executive Officer of Parent,
                  submitted to The Appalachian News-Express on September
                  13, 1999.

        11(a)(32) Opinion/editorial article by Gary L. Neale, Chairman,
                  President and Chief Executive Officer of Parent,
                  submitted to The Winchester Sun on September 14, 1999.

        11(a)(33) Form of Letter dated September 23, 1999, from Gary L.
                  Neale, Chairman, President and Chief Executive Officer
                  of Parent, to officers, directors and managers of
                  Parent.

        11(a)(34) "Energy News - Oct. 1999" communication to customers of
                  Northern Indiana Public Service Company first issued by
                  Parent on October 1, 1999.*

        11(b)(1)  Commitment Letter dated June 23, 1999 to Parent from
                  Credit Suisse First Boston and Barclays Bank PLC.

        11(g)(1)  Complaint in NiSource Inc. and CEG Acquisition Corp.
                  vs. Columbia Energy Group et al., Delaware Chancery
                  Court, New Castle County.

        11(g)(2)  Complaint in NiSource Inc. and CEG Acquisition Corp.
                  vs. Columbia Energy Group et al., United States
                  District Court, District of Delaware.

        11(g)(3)  First Amended Complaint in NiSource Inc. and CEG
                  Acquisition Corp. vs. Columbia Energy Group et al.,
                  United States District Court, District of Delaware.

        11(g)(4)  Complaint in NiSource Inc., NiSource Capital Markets
                  Inc. and CEG  Acquisition Corp. vs. Columbia Energy
                  Group et al., Delaware Chancery Court, New Castle
                  County.

   _________________

        *Filed herewith.



                                                        EXHIBIT 11(a)(34)

                [For distribution to residential customers]

   ENERGY NEWS    OCT. 1999      [Graphic - NIPSCO Logo]



               [Graphic - Photos of Consumers making choices]

   YOU THINK LONG AND HARD ABOUT MANY CHOICES . . .

               [Graphic - Photos of Consumers making choices]

                                           What kind of car will you buy,
                                           which stock investments are
                                           right for your needs, which
                                           fabrics and paints will be
                                           best for your decorating needs
                                           . . . this list goes on and
                                           on.


   THE QUESTION IS, ARE YOU SPENDING ENOUGH TIME THINKING ABOUT YOUR
   NATURAL GAS SUPPLIER?

               [Graphic - Photos of Consumers making choices]

             NIPSCO is offering you the opportunity to choose
             who supplies your natural gas through a program
             called NIPSCO Choice.  NIPSCO Choice makes it
             possible for you to compare prices, billing
             options and additional services to determine which
             natural gas supplier is right for you.

             With cooler weather quickly approaching your usage
             of natural gas will most likely increase.  This is
             the perfect time to compare your options to ensure
             you are making the most of the opportunity NIPSCO
             Choice provides.  You think long and hard about
             which computer and appliances you will buy.  Now
             you can give the same consideration to the choices
             available for natural gas supply, while taking
             comfort in knowing that NIPSCO will continue to
             deliver the natural gas to your home, provide 24-
             hour customer service and quick response to all
             gas emergencies.  The benefit of choice with the
             dependable service you've come to know and trust .
             . . that's opportunity.

                            [NIPSCO Choice Logo]

             Participating in NIPSCO Choice is easy.  Simply
             contact the qualified suppliers to receive
             information about services and pricing options.
             If you would like to compare what you currently
             pay NIPSCO to what a supplier will charge, refer





             to your new NIPSCO bill for gas supply charge
             information.

              [Graphic - Photos of Consumers making choices]


             SPECIAL NOTE: BEGINNING IN OCTOBER, NIPSCO
             CUSTOMERS WILL BE RECEIVING AN UPDATED MONTHLY
             STATEMENT.  SEE THE ENCLOSED INSERT FOR MORE
             INFORMATION.

   ADDITIONAL INFORMATION

                        [Graphic of NIPSCO Web Site]

             Please visit our Web site at www.nipsco.com.  Here
             you will find links to all the qualified suppliers
             as well as the most updated information on this
             exciting opportunity.  To learn more about
             NiSource's offer to acquire Columbia Energy Group
             visit our special Web site at
             www.yes2nisource.com.

             Call us at 1-800-1-NIPSCO to speak with a NIPSCO
             customer service representative or contact the
             Indiana Office of Utility Consumer Counselor
             (OUCC) at 1-888-441-2495 with questions.  The OUCC
             represents the interests of Indiana consumers in
             matters related to utility services.

             TAKE TIME TO CONSIDER ALL OF YOUR NATURAL GAS
             OPTIONS... CONSIDER NIPSCO CHOICE TODAY!

                             ___________________

                                 YOU'VE GOT
                                 OUR NUMBER

                          24-hour customer service
                               1-800-4-NIPSCO
                              (1-800-454-7726)

                            Gas leak emergencies
                               1-800-634-3524

                         TTY/TDD (hearing impaired)
                               1-800-635-0952

                                Energy theft
                               1-800-548-3401
                         All calls are confidential

                             Call before you dig
                               1-800-382-8544





                             Our Mailing Address
                                   NIPSCO
                             801 E. 86TH AVENUE
                           MERRILLVILLE, IN 46410

                            http://www.nipsco.com


             REMEMBER  . .  .  STAYING WITH  NIPSCO IS ALSO A
             CHOICE.   IF YOU DECIDE  NOT TO SWITCH, YOU DON'T
             NEED TO DO ANYTHING.



                [For distribution to small business customers]


   ENERGY NEWS    OCT. 1999 [Graphic - NIPSCO Logo]


                 [Graphic - Photos of Small Business Owners]

   YOU THINK LONG AND HARD ABOUT MANY CHOICES YOU MAKE FOR YOUR BUSINESS...

                [Graphic  - Photos of Small Business Owners]

                                           What suppliers will you use,
                                           how many new supplies should
                                           you order, what can you do to
                                           improve your bottom line . . .

                 [Graphic - Photos of Small Business Owners]

   THE QUESTION IS, ARE YOU SPENDING ENOUGH TIME THINKING ABOUT YOUR
   NATURAL GAS SUPPLIER?

             NIPSCO is offering you the opportunity to choose
             who supplies the natural gas to your business
             through a program called NIPSCO Choice.  NIPSCO
             Choice makes it possible for you to compare
             prices, billing options and additional services to
             determine which natural gas supplier is right for
             you.

             What better time than now to compare and perhaps
             save on the expenses of your business?  This is
             the perfect time to compare your options to ensure
             you are making the most of the opportunity NIPSCO
             Choice provides.  You think long and hard about
             who will supply many of other needs of your
             business.  Now you can give the same consideration
             to the choices available for natural gas supply,
             while taking comfort in knowing that NIPSCO will
             continue to deliver the natural gas to your
             business, provide 24-hour customer service and
             quick response to all gas emergencies.    The
             benefit of choice with the dependable service
             you've come to know and trust . . . that's
             opportunity.

                            [NIPSCO Choice Logo]

             Participating in NIPSCO Choice is easy.  Simply
             contact the qualified suppliers to receive
             information about the services and pricing
             options.   If you would like to compare what you
             currently pay NIPSCO to what a supplier will





             charge, refer to  your new NIPSCO bill for gas
             supply charge information.

                 [Graphic - Photos of Small Business Owners]

             SPECIAL  NOTE:  BEGINNING IN OCTOBER, NIPSCO
             CUSTOMERS WILL BE RECEIVING AN UPDATED MONTHLY
             STATEMENT. SEE THE ENCLOSED INSERT FOR MORE
             INFORMATION.

                           ADDITIONAL INFORMATION

                        [Graphic of NIPSCO web site]

             Please visit our Web site at www.nipsco.com.  Here
             you will find links to all the qualified suppliers
             as well as the most updated information on this
             exciting opportunity.  To learn more about
             NiSource's offer to acquire Columbia Energy Group
             visit our special Web site at www.yes2nisource.com.

             Call us at 1-800-1-NIPSCO to speak with a NIPSCO
             customer service representative or contact the
             Indiana Office of Utility Consumer Counselor
             (OUCC) at 1-888-441-2495 with questions.  The OUCC
             represents the interests of Indiana consumers in
             matters related to utility services.

             TAKE TIME TO CONSIDER ALL OF YOUR NATURAL GAS
             OPTIONS... CONSIDER NIPSCO CHOICE TODAY!

                             ___________________

                                 YOU'VE GOT
                                 OUR NUMBER

                          24-hour customer service
                               1-800-4-NIPSCO
                              (1-800-454-7726)

                            Gas leak emergencies
                               1-800-634-3524

                         TTY/TDD (hearing impaired)
                               1-800-635-0952

                                Energy theft
                               1-800-548-3401
                         All calls are confidential





                             Call before you dig
                               1-800-382-8544

                             Our Mailing Address
                                   NIPSCO
                             801 E. 86TH AVENUE
                           MERRILLVILLE, IN 46410

                            http://www.nipsco.com


             REMEMBER  . .  .  STAYING WITH NIPSCO IS ALSO A
             CHOICE.   IF YOU DECIDE NOT TO SWITCH, YOU DON'T
             NEED TO DO ANYTHING.



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