March 19, 1999

MICHIGAN CITY, Ind. --- Northern Indiana Public Service Company (NIPSCO) announced today it will begin additional soil and groundwater studies of a former manufactured gas plant (MGP) site located near the intersection of Route 12 and Wabash Street in Michigan City.

Before natural gas was readily available, utilities in the late 1800s through the mid-1900s manufactured gas with coal, coke, oil and steam. One byproduct of the process, coal tar, contains some chemicals, which are potentially harmful to the environment and to humans if exposure occurs over long periods of time.

Beginning March 22, NIPSCO will conduct additional field activities, which will last approximately two weeks. During this phase, NIPSCO will collect groundwater samples from the parking lot adjacent to the former MGP site property and install three groundwater-monitoring wells.

"The investigation at the Michigan City site indicates people living or working near the site are not currently exposed to coal tars. The first phase of the study detected chemicals associated with coal tar and gas purifier material near the surface and in subsurface soils and groundwater at the site. As previous communications have indicated, people living or working near the site are not currently being exposed to coal tars," said Dan Sullivan, a NIPSCO environmental affairs analyst. "The purpose of the additional investigation will be to gather data to assess what clean-up activities, if any, would be appropriate."

Detailed information concerning previous site investigation activities is located in the reference section of the Michigan City Public Library at 4^th and Franklin Streets.

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NIPSCO TO CONDUCT ADDITIONAL STUDIES AT FORMER MGP SITE

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NIPSCO will actively work to preserve and restore the environment. NIPSCO’s aggressive well-managed environmental program is an integral part of the Company’s business plan and reinforces the Company’s commitment to the communities we serve.

Northern Indiana Public Service Company (NIPSCO), a subsidiary of NIPSCO Industries, Inc. (NI), is a regulated utility that provides natural gas to nearly 700,000 customers and electricity to 416,000 customers across the northern third of Indiana. NIPSCO is the largest natural gas distribution company, and the second largest electric distribution company, in the state of Indiana. Information about NIPSCO Industries, Inc. and its subsidiaries is available via the Internet at www.nipsco.com.

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