UNITED
      STATES


SECURITIES
      AND EXCHANGE COMMISSION


Washington,
      D.C. 20549





**FORM
      8-K**





**CURRENT
      REPORT**





Pursuant
      to Section 13 or 15(d) of the


Securities
      Exchange Act of 1934








**October
      26, 2006**


Date
      of
      Report (Date of earliest event reported)








**NORTHERN
      ILLINOIS GAS COMPANY**


**(Doing
      Business as NICOR GAS COMPANY)**


(Exact
      name of registrant as specified in its charter)








**Illinois**
            **1-7296**
            **36-2863847**(State
                or other jurisdiction
            (Commission
            (I.R.S.
                Employerof
                incorporation)
            File
                Number)
            Identification
                Number)





**1844
      Ferry Road**


**Naperville,
      Illinois 60563-9600**


(Address
      of principal executive offices) (Zip Code)





**(630)
      983-8888**


(Registrant’s
      telephone number, including area code)





Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below):




[
      ]  Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)




[
      ]  Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)




[
      ]  Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act


(17
      CFR
      240.14d-2(b))




[
      ]  Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act


(17
      CFR
      240.13e-4(c))












**Page
      1**








**Item
                2.03**
            **Creation
                of a Direct Financial Obligation or an Obligation under an Off-Balance
                Sheet Arrangement of a Registrant****.**





On
      October 26, 2006, Nicor Inc. issued a press release announcing the establishment
      of a syndicated revolving credit facility. The new facility is a $400 million,
      210-day seasonal revolver expiring in May 2007, available to Northern Illinois
      Gas Company, the gas distribution subsidiary of Nicor Inc. The new facility
      replaces a similar revolver that expired in April 2006.





The
      new
      facility included a total of 13 lenders and was arranged by J.P. Morgan
      Securities Inc. and ABN AMRO Incorporated.





A
      copy of
      the press release is filed as Exhibit 99.1 to this Current Report on Form 8-K
      and is incorporated herein by reference.





**Item
                  9.01**
              **Financial
                  Statements and
                  Exhibits.**




(c)
      Exhibits





The
      following is filed as an exhibit to this report:





99.1
      Press release of Nicor Inc. issued October 26, 2006














**Page
      2**





**Signature**





Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.














Northern
      Illinois Gas Company








Date  October
      26, 2006     /s/
      PAUL C. GRACEY, JR


Paul
      C.
      Gracey, Jr.


Senior
      Vice President, General Counsel and


Secretary










**Page
      3**





**Exhibit
      Index**




Exhibit


Number   Description
      of Document





99.1
            Press release of Nicor Inc. issued October 26,
                2006.