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COLUMBIA TRANSMISSION'S CREDITORS' COMMITTEE WILL PURSUE INTERCOMPANY CLAIMS; 'GOING CONCERN' AUDITORS' COMMENT EXPECTED

COLUMBIA TRANSMISSION'S CREDITORS' COMMITTEE WILL PURSUE INTERCOMPANY
 CLAIMS; 'GOING CONCERN' AUDITORS' COMMENT EXPECTED
 WILMINGTON, Del., Jan. 31 /PRNewswire/ -- The United States Bankruptcy Court for the District of Delaware, in charge of the Chapter 11 reorganization proceedings for The Columbia Gas System, Inc., (NYSE: CG) and its principal transmission subsidiary, Columbia Gas Transmission Corporation, has approved the position taken by the Columbia companies at the beginning of the proceedings that it would be inappropriate for Columbia Transmission to retain responsibility for intercompany creditors' rights issues.
 Under the arrangements approved by the Court, and as contemplated by the Bankruptcy Code, the Official Creditors' Committee of Columbia Transmission would assume this responsibility.
 The Committee has indicated that it presently intends to challenge the status of the approximately $1.7 billion of debt securities of Columbia Transmission held by the parent and the transfer by Columbia Transmission of natural resource properties representing approximately 450 billion cubic feet of gas reserves and one million barrels of oil reserves to another Columbia subsidiary in 1990 as well as other intercompany transactions. The parent company said it believes it has meritorious defenses to such challenges.
 Arthur Andersen & Co., independent public accountants for The Columbia Gas System, Inc., has advised that its report on Columbia's 1991 financial statements will include a comment that issues relating to intercompany claims create "substantial doubt" about the Corporation's ability to continue as a "going concern."
 Columbia said the auditors' comment has been expected, pointing out that it is rare for a company operating under Chapter 11 protection not to have its auditors' report include such a comment.
 /delval/
 -0- 1/31/92
 /CONTACT: H.W. Chaddock of Columbia Gas, 302-429-5261, or 302-429-5000/
 (CG) CO: The Columbia Gas System, Inc.; Columbia Gas Transmission
 Corporation ST: Delaware IN: OIL SU: BCY


JS -- PH017 -- 5654 01/31/92 13:20 EST
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Date:Jan 31, 1992
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