COLUMBIA ENERGY GROUP
SC 14D1/A, 1999-11-22
NATURAL GAS TRANSMISISON & DISTRIBUTION
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                     SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549

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

                              SCHEDULE 14D-1/A
                             (Amendment No. 33)

            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. 33 (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 an amended purchase price of $74 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"), as amended and supplemented by the
   Supplement thereto, dated October 18, 1999, 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), (a)(38) and
   (a)(39), respectively.



































                                      2





   Item 10.  Additional Information.

             On November 19, 1999, the Public Utilities Commission of
        Ohio issued an order pursuant to Section 4905.403 of the Ohio
        Revised Code setting a public hearing with respect to Parent's
        tender offer for the Company.  The full text of the order is set
        forth as Exhibit 11(a)(52) and is 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.*

        (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.*


                                      3





        (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.*

        (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.*



                                      4





        (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.*

        (a)(35)   Materials made available by Parent at a meeting among
                  officials of Parent, officials of the Kentucky Public
                  Service Commission and members of the public on October
                  5, 1999.*

        (a)(36)   Letter dated October 5, 1999, from Gary L. Neale,
                  Chairman, President and Chief Executive Officer of
                  Parent, to shareholders of the Company.*

        (a)(37)   Letter dated October 18, 1999, from Gary L. Neale,
                  Chairman, President and Chief Executive Officer of
                  Parent, to shareholders of the Company.*

        (a)(38)   Supplement to the Offer to Purchase, dated October 18,
                  1999.*

        (a)(39)   Letter of Transmittal.*

        (a)(40)   Letter dated October 18, 1999, to be sent by brokers,
                  dealers, commercial banks, trust companies and other
                  nominees to their clients.*

        (a)(42)   Notice of Guaranteed Delivery.*

        (a)(43)   Guidelines for Certification of Taxpayer Identification
                  Number on Substitute Form W-9.*

        (a)(44)   Press Release issued by Parent on October 17, 1999.*



                                      5





        (a)(45)   Letter dated October 18, 1999, from Credit Suisse First
                  Boston and Barclays Bank, PLC, to the directors of the
                  Company.*

        (a)(46)   Materials made available by Parent to analysts at a
                  meeting among officers and representatives of Parent
                  and analysts on October 18, 1999.*

        (a)(47)   Text of advertisement appearing in various newspapers
                  beginning on October 19, 1999, issued by Parent on
                  October 19, 1999.*

        (a)(48)   Press Release issued by Parent on October 19, 1999.*

        (a)(49)   Testimony of Parent before the Ohio House Public
                  Utilities Committee delivered on October 19, 1999.*

        (a)(50)   Letter dated October 19, 1999, from directors of Parent
                  to the directors of the Company.*

        (a)(51)   Press Release issued by Parent on November 11, 1999.*

        (a)(52)   Order dated November 19, 1999 of the Public Utilities
                  Commission of Ohio.

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

        (b)(2)    Amended and Restated Commitment Letter dated October
                  15, 1999 to Parent from Credit Suisse First Boston and
                  Barclays Bank PLC.*

        (c)(1)    Confidentiality Agreement dated November 19, 1999
                  between Parent and the Company.*

        (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.*

        (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.*

                                      6





        (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.*

   __________________

        *Previously Filed













































                                      7





                                  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: November 22, 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(a)(35)      Materials made available by Parent at a meeting
                       among officials of Parent, officials of the
                       Kentucky Public Service Commission and members of
                       the public on October 5, 1999.*

        11(a)(36)      Letter dated October 5, 1999, from Gary L. Neale,
                       Chairman, President and Chief Executive Officer of
                       Parent, to shareholders of the Company.*

        11(a)(37)      Letter dated October 18, 1999, from Gary L. Neale,
                       Chairman, President and Chief Executive Officer of
                       Parent, to shareholders of the Company.*

        11(a)(38)      Supplement to the Offer to Purchase, dated October
                       18, 1999.*

        11(a)(39)      Letter of Transmittal.*

        11(a)(40)      Letter dated October 18, 1999, to be sent by
                       brokers, dealers, commercial banks, trust
                       companies and other nominees to their clients.*

        11(a)(42)      Notice of Guaranteed Delivery.*

        11(a)(43)      Guidelines for Certification of Taxpayer
                       Identification Number on Substitute Form W-9.*

        11(a)(44)      Press Release issued by Parent on October 17,
                       1999.*





        11(a)(45)      Letter dated October 18, 1999, from Credit Suisse
                       First Boston and Barclays Bank, PLC, to the
                       directors of the Company.*

        11(a)(46)      Materials made available by Parent to analysts at
                       a meeting among officers and representatives of
                       Parent and analysts on October 18, 1999.*

        11(a)(47)      Text of advertisement appearing in various
                       newspapers beginning on October 19, 1999, issued
                       by Parent on October 19, 1999.*

        11(a)(48)      Press Release issued by Parent on October 19,
                       1999.*

        11(a)(49)      Testimony of Parent before the Ohio House Public
                       Utilities Committee delivered on October 19,
                       1999.*

        11(a)(50)      Letter dated October 19, 1999, from directors of
                       Parent to the directors of the Company.*

        11(a)(51)      Press Release issued by Parent on November 11,
                       1999.*

        11(a)(52)      Order dated November 19, 1999 of the Public
                       Utilities Commission of Ohio.

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

        11(b)(2)       Amended and Restated Commitment Letter dated
                       October 15, 1999 to Parent from Credit Suisse
                       First Boston and Barclays Bank PLC.*

        11(c)(1)       Confidentiality Agreement dated November 19, 1999
                       between Parent and the Company.*

        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.*

   __________________

        *Previously Filed


                                                        EXHIBIT 11(a)(52)


                                   BEFORE

                   THE PUBLIC UTILITIES COMMISSION OF OHIO

   In the Matter of the Notice of a Control Bid )
   for Columbia Energy Group by NiSource, Inc.  ) Case No. 99 1492-GA-MER
   and CEG Acquisition Corp.                    )

                                    ENTRY
                                    -----

        The attorney examiner finds:

        (1)  On November 11, 1999, Substitute House Bill 452 was signed
             by the Governor and went into immediate effect by means of
             an emergency measure.  This enactment of Section 4905.403,
             Revised Code, establishes a mechanism for Commission review
             of a control bid for a natural gas company that is a public
             utility under Section 4905.02, Revised Code, or a holding
             company controlling such a company.

        (2)  Section 4905.403(B), Revised Code, requires that an offeror,
             as defined in (A)(4), that makes a control bid for a natural
             gas company or a holding company controlling such a company,
             must file said control bid with the Commission.

        (3)  Section 4905.403(C), Revised Code, sets the filing date of
             the control bid with the Commission to be the time of the
             making of the control bid or, where the control bid was
             initiated prior to the effective date of this section, the
             filing should be made no later than five days after the
             effective date Sub. H.B. 452.

        (4)  On June 7, 1997, NiSource, Inc. and CEG Acquisition Corp.
             (Offerors) made a control bid for Columbia Energy Group, the
             holding company of Columbia Gas of Ohio, Inc. (Columbia).
             Columbia is a natural gas company and a public utility as
             defined by Section 4905.02, Revised Code.

        (5)  On November 16, 1999, Offerors filed notice of their control
             bid with the Commission.

        (6)  Section 4905.403(B), Revised Code, further requires that the
             Commission, within three days of the filing of the control
             bid, schedule a public hearing.  The exclusive purpose of
             the hearing is whether acceptance of the control bid will
             promote public convenience and ensure that adequate gas
             service is provided at reasonable rates.  This section
             further requires the Commission to issue a report of its
             findings no later than 20 days after the date of filing or a





             later date agreed to by the offeror and the natural gas
             company.

        (7)  By letters filed on November 17, 1999 by Columbia and on
             November 18, 1999 by the Offerors, the parties stated their
             agreement to extend the deadline for the report until
             January 5, 2000.

        (8)  Therefore, a public hearing on this matter should be held at
             10:00 a.m. on Tuesday, December 21, 1999 at the offices of
             the Commission, 180 East Broad Street, Columbus, Ohio.  The
             Offerors should prefile testimony by noon on December 15,
             1999, in regard to the issues of whether acceptance of the
             control bid will promote public convenience and result in
             the provision of adequate gas service at a reasonable rate.
             Any other party should prefile its testimony by noon on
             December 17, 1999.

        It is, therefore,

             ORDERED, That a hearing be conducted on this matter as set
   forth in Finding 9.  It is further,

             ORDERED, That a copy of this entry be served upon NiSource,
   Inc., CEG Acquisition Corp., Columbia Energy Group, Columbia Gas of
   Ohio, and all parties of record.

                                 THE PUBLIC UTILITIES COMMISSION OF OHIO


                                  /s/ Steven D. Lesser
                                 ----------------------------------------
                                 By:  Steven D. Lesser
                                      Attorney Examiner

   /vrh


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