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BANKRUPTCY COURT APPROVES PROCEDURES, NAMES MEDIATOR TO EXPEDITE DETERMINATION OF PRODUCER CLAIMS FILED AGAINST COLUMBIA TRANSMISSION

 BANKRUPTCY COURT APPROVES PROCEDURES, NAMES MEDIATOR TO EXPEDITE


DETERMINATION OF PRODUCER CLAIMS FILED AGAINST COLUMBIA TRANSMISSION
 WILMINGTON, Del., Aug. 26 /PRNewswire/ -- U.S. Bankruptcy Court Judge Helen Balick announced today that she will sign an order approving innovative procedures designed to quantify, expeditiously and fairly, claims filed against Columbia Gas Transmission Corp. by natural gas producers in the company's Chapter 11 bankruptcy proceedings.
 Columbia Gas Transmission said producer claims subject to the procedures aggregate over $13 billion while its estimate of these claims is less than $1 billion.
 Columbia Gas Transmission Chairman and CEO James P. Holland said his company is pleased with the court's action. "Although considerable work lies ahead, this is a major, positive step toward achieving a plan of reorganization. Columbia Transmission will cooperate in every way possible to expedite the process," he said.
 A claims mediator, Charles P. Normandin, a member of the Boston, Mass., law firm of Ropes & Gray and a prominent bankruptcy lawyer, was approved by the court to implement the procedures. Both the mediator and the procedures are subject to final confirmation next month.
 Normandin was mutually-agreed upon by Columbia Transmission and its Official Committee of Unsecured Creditors and other producer representatives from a list of nominations.
 The claims mediator will be guided by scheduling objectives and procedures agreed upon by Columbia Transmission, its Creditors' Committee, and the other producer representatives and approved by the bankruptcy court. He will be responsible for the implementation of procedures for the quantification of the claims submitted by producers so that the claims can be allowed on a uniform and fair basis and so that this objective can be achieved as expeditiously as possible. Final rulings on these subjects will be made by the Bankruptcy Court.
 The bulk of the producers' claims arise from Columbia Transmission's rejection of more than 4,500 non-competitive gas purchase contracts which were the root cause of the financial difficulties that forced Columbia Gas Transmission and its parent company, The Columbia Gas System, Inc. (NYSE:CG), to file for protection under Chapter 11 of the Bankruptcy Code on July 31, 1991.
 Normandin will begin the claims estimation process immediately to achieve, as stated in the order issued by the court, "a speedy but fair determination of the affected claims" filed in the bankruptcy proceedings.
 /delval/
 -0- 8/26/92
 /CONTACT: H.W. Chaddock (media), 302-429-5261; W.R. McLaughlin (media), 302-429-5443, or 302-429-5000; or Thomas L. Hughes (analysts) 302-429-5471, or 302-429-5000, all of Columbia Gas/
 (CG) CO: Columbia Gas Transmission Corp.; U.S. Bankruptcy Court ST: Delaware IN: OIL SU:


CC -- PH036 -- 3596 08/26/92 16:01 EDT
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Date:Aug 26, 1992
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