Document:

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                                                                    Exhibit 4.46

         FIRST SUPPLEMENTAL INDENTURE (the "Supplemental Indenture"), dated as
of November 1, 2000, among NISOURCE CAPITAL MARKETS, INC., an Indiana
corporation formerly named NIPSCO Capital Markets, Inc. (the "Company"),
NISOURCE INC., an Indiana corporation formerly named NIPSCO Industries, Inc.
("NiSource"), NEW NISOURCE INC., a Delaware corporation ("New NiSource"), and
THE CHASE MANHATTAN BANK, a New York corporation, formerly known as Chemical
Bank, as trustee under the Indenture referred to below (the "Trustee").

                              W I T N E S S E T H:

         WHEREAS, the Company, NiSource and the Trustee have heretofore executed
an Indenture dated as of February 1, 1996 (the "Indenture"), to provide for the
issuance from time to time of the Company's unsecured subordinated debentures,
notes or other evidences of indebtedness (hereinafter collectively called the
"Securities"), the form and terms of which are to be established as set forth in
the Indenture; and

         WHEREAS, NiSource has heretofore executed a Support Agreement, dated
April 4, 1989, as amended as of May 15, 1989, December 10, 1990 and February 14,
1991 (the "Support Agreement"), with the Company, pursuant to which NiSource has
agreed to ensure the timely payment of principal of and premium, if any, and
interest on Debt (as defined in the Support Agreement), subject to certain
limitations; and

         WHEREAS, Section 801of the Indenture provides that NiSource shall not
merge into any other Corporation unless the Corporation into which it is merged
shall be a Corporation organized and existing under the laws of the United
States of America, any State thereof or the District of Columbia and shall
expressly assume the performance of every covenant of the Indenture on the part
of NiSource and all of the obligations under the Support Agreement to be
performed or observed; and

         WHEREAS, the Trustee agrees that in accordance with Section 802 of the
Indenture, upon compliance with the conditions precedent in Section 801 of the
Indenture, New NiSource shall succeed to and be substituted for, and may
exercise every right and power of, NiSource under the Indenture with the same
effect as if New NiSource had been named as "Industries" in the Indenture; and

         WHEREAS, Section 901 of the Indenture provides that the Company and
NiSource, when authorized by Board Resolutions, and the Trustee, at any time and
from time to time, may enter into indentures supplemental to the Indenture
without the consent of the Holders for, among other things, the purpose of
evidencing the succession of another Corporation to the Company or NiSource and
the assumption by such successor Corporation of all of the covenants of the
Company or NiSource, as the case may be, in the Indenture and the Securities;
and

         WHEREAS, the execution and delivery of this Supplemental Indenture has
been duly
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authorized by the Board of Directors of the Company and the Board of Directors
of NiSource, and all things necessary to make this Supplemental Indenture a
valid, binding and legal instrument according to its terms have been done; and

         WHEREAS, New NiSource, NiSource, Columbia Energy Group, a Delaware
corporation ("Columbia"), Parent Acquisition Corp., an Indiana corporation,
Company Acquisition Corp., a Delaware corporation, and NiSource Finance Corp.,
an Indiana corporation, have entered into the Agreement and Plan of Merger dated
as of February 27, 2000, as amended and restated as of March 31, 2000 (the
"Merger Agreement"), pursuant to which, among other things, NiSource and
Columbia will become wholly owned subsidiaries of New NiSource and the former
stockholders of NiSource and certain of the stockholders of Columbia will become
stockholders of New NiSource (the "Acquisition Merger"); and

         WHEREAS, immediately following the Acquisition Merger, NiSource will
merge with and into New NiSource, with New NiSource being the surviving
corporation (the "Subsequent Merger"); and

         WHEREAS, in connection with the Acquisition Merger and the Subsequent
Merger, New NiSource will change its name to "NiSource Inc." and will assume all
of the obligations and liabilities of NiSource, including all obligations of
NiSource under the Indenture and the Support Agreement;

         NOW, THEREFORE, for and in consideration of the premises, it is
mutually covenanted and agreed, as follows:

         SECTION 1. Pursuant to Section 801 of the Indenture, New NiSource
hereby expressly assumes, as fully and effectually as if it had been an original
party to the Indenture, the performance of every covenant of the Indenture on
the part of NiSource and all the obligations under the Support Agreement to be
performed or observed.

         SECTION 2. Pursuant to Section 802 of the Indenture, New NiSource
hereby succeeds to and is substituted for, and may exercise every right and
power of, NiSource under the Indenture with the same effect as if New NiSource
had been named as "Industries" in the Indenture.

         SECTION 3. After the execution and delivery of this Supplemental
Indenture, any act or proceeding required by the Indenture to be done or
performed by any board or officer of NiSource may be done or performed with like
force and effect by the comparable board or officer of New NiSource.

         SECTION 4. The Trustee shall not be responsible in any manner
whatsoever for or with respect to any of the recitals or statements contained
herein, all of which recitals or statements are made solely by NiSource and by
New NiSource, or for or with respect to the validity or sufficiency of this
Supplemental Indenture or any of the terms or provisions hereof.
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         SECTION 5. The Indenture, supplemented as hereinabove set forth, is in
all respects ratified and confirmed, and the terms and conditions thereof,
supplemented as hereinabove set forth, shall be and remain in full force and
effect.

         SECTION 6. This Supplemental Indenture shall become effective as of the
date first above written upon the execution and delivery hereof by each of the
parties hereto.

         SECTION 7. THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY THE AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAWS.

         SECTION 8. This Supplemental Indenture may be executed in any number of
counterparts, and on separate counterparts, each of which shall be an original;
but such counterparts shall together constitute but one and the same instrument.

         SECTION 9. All capitalized terms used in this Supplemental Indenture
which are defined in the Indenture shall have the meanings assigned to them
therein, except to the extent that such terms are defined herein or the context
otherwise requires.
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         IN WITNESS WHEREOF, the parties hereto have caused this Supplemental
Indenture to be duly executed as of the date first above written.

                                   NISOURCE CAPITAL MARKETS, INC.

[Seal]
                                   By:       /s/  Stephen P. Adik
                                            ---------------------
                                            Name:    Stephen P. Adik
                                            Title:   President
Attest:

By:      /s/ Nina M. Rausch
         ------------------
         Name:    Nina M. Rausch
         Title:   Secretary

                                   NISOURCE INC.

[Seal]
                                   By:       /s/  Stephen P. Adik
                                            ---------------------
                                            Name:    Stephen P. Adik
                                            Title:   Senior Executive Vice
                                                     President and
                                                     Chief Financial Officer
Attest:

By:      /s/ Nina M. Rausch
         ------------------
         Name:    Nina M. Rausch
         Title:   Secretary

                                   NEW NISOURCE INC.

[Seal]
                                   By:       /s/  Stephen P. Adik
                                            ---------------------
                                            Name:    Stephen P. Adik
                                            Title:   Vice President
Attest:

By:      /s/ Nina M. Rausch
         ------------------
         Name:    Nina M. Rausch
         Title:   Secretary

                                   THE CHASE MANHATTAN BANK, as Trustee
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[Seal]
                                   By:       /s/ Richard Lorenzen
                                            ---------------------
                                            Name:  R. Lorenzen
                                            Title: Assistant Vice President
Attest:

By:      /s/ Diane Darconte
         ------------------
         Name:    Diane Darconte
         Title:   Trust Officer<PAGE>   1
                                                                    Exhibit 4.47

                             SUPPLEMENTAL AGREEMENT

         SUPPLEMENTAL AGREEMENT (this "Supplemental Agreement"), dated as of
November 1, 2000, among New NiSource Inc., a Delaware corporation ("New
NiSource"), NiSource Inc., an Indiana corporation formerly named NIPSCO
Industries, Inc. ("NiSource"), The Chase Manhattan Bank, a New York corporation,
as purchase contract agent ("Agent") under the Purchase Contract Agreement (as
defined below), and Bank One Trust Company, National Association (successor in
interest to The First National Bank of Chicago), as collateral agent
("Collateral Agent") and as securities intermediary ("Securities Intermediary")
under the Pledge Agreement (as defined below). All capitalized terms used herein
which are defined in the Purchase Contract Agreement shall have the meanings
given therein.

                                   WITNESSETH:

         WHEREAS, NiSource and the Agent have heretofore executed the Purchase
Contract Agreement, dated as of February 16, 1999 (the "Purchase Contract
Agreement"), to provide for the issuance of Securities; and

         WHEREAS, under the Purchase Contract included in each Security, the
Holder is obligated to purchase from NiSource, for an amount equal to $50, a
number of shares of Common Stock equal to the Settlement Rate; and

         WHEREAS, NiSource, the Collateral Agent, the Securities Intermediary
and the Agent have heretofore executed the Pledge Agreement, dated as of
February 16, 1999 (the "Pledge Agreement"), to secure the Holders' obligations
to purchase such shares of NiSource Common Stock under the Purchase Contracts;
and

         WHEREAS, New NiSource, NiSource, Columbia Energy Group, a Delaware
corporation ("Columbia"), Parent Acquisition Corp., an Indiana corporation,
Company Acquisition Corp., a Delaware corporation, and NiSource Finance Corp.,
an Indiana corporation, have entered into the Agreement and Plan of Merger,
dated as of February 27, 2000, as amended and restated as of March 31, 2000 (the
"Merger Agreement"), pursuant to which, among other things, NiSource and
Columbia will become wholly owned subsidiaries of New NiSource, and the former
stockholders of NiSource and certain of the former stockholders of Columbia will
become stockholders of New NiSource (the "Acquisition Merger"); and

         WHEREAS, immediately following the Acquisition Merger, NiSource will
merge with and into New NiSource, with New NiSource being the surviving
corporation (the "Subsequent Merger"); and

         WHEREAS, in connection with the Acquisition Merger and the Subsequent
Merger, New NiSource will change its name to "NiSource Inc." and will assume all
of the obligations and liabilities of NiSource, including all obligations and
liabilities of NiSource under the Purchase
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Contract Agreement, the Purchase Contracts and the Pledge Agreement; and

         WHEREAS, pursuant to Section 9.1 of the Purchase Contract Agreement,
NiSource desires that New NiSource assume, and NewNiSource desires to assume,
all of NiSource's covenants, obligations and liabilities under the Purchase
Contract Agreement, the Purchase Contracts and the Pledge Agreement; and

         WHEREAS, pursuant to Section 8.1(1) of the Purchase Contract Agreement,
NiSource desires that this Supplemental Agreement evidence the succession of New
NiSource to NiSource, and the assumption by New NiSource of the covenants,
obligations and liabilities of NiSource, under the Purchase Contract Agreement
and the Certificates; and

         WHEREAS, pursuant to Section 10.1(1) of the Pledge Agreement, NiSource
desires that this Supplemental Agreement evidence the succession of New NiSource
to NiSource, and the assumption by New NiSource of the covenants, obligations
and liabilities of NiSource, under the Pledge Agreement; and

         WHEREAS, pursuant to Section 5.6(b) of the Purchase Contract Agreement,
in the event of a merger of NiSource into another Person, the Settlement Rate
will be adjusted to provide that each Holder of Securities will receive on the
Purchase Contract Settlement Date the kind and amount of securities receivable
in such merger by holders of the common stock of NiSource; and

         WHEREAS, all things necessary to make this Supplemental Agreement a
valid, binding and legal instrument according to its terms have been done.

         NOW, THEREFORE, for and in consideration of the premises, it is
mutually covenanted and agreed as follows:

         1. Assumption of Covenants, Obligations and Liabilities. New NiSource
hereby expressly assumes all of the covenants, obligations and liabilities of
NiSource under the Purchase Contract Agreement, the Purchase Contracts, the
Certificates and the Pledge Agreement. Pursuant to Section 9.2 of the Purchase
Contract Agreement, New NiSource shall succeed to and be substituted for
NiSource with the same effect as if New NiSource had been originally named as
the "Company" in the Purchase Contract Agreement, the Purchase Contracts, the
Certificates and the Pledge Agreement.

         2. Substitution of Common Stock. References in the Purchase Contract
Agreement, the Pledge Agreement, the Purchase Contracts and the Certificates to
"Common Stock" shall mean shares of the common stock, par value $.01 per share,
of New NiSource.

         3. Adjustment of the Settlement Rate. New NiSource hereby agrees that
the Holders of each Outstanding Security shall have the rights provided in
Section 5.6(b) of the Purchase Contract Agreement. Pursuant to Section 5.6(b) of
the Purchase Contract Agreement, the Settlement Rate will be adjusted to provide
that each Holder of Securities shall receive on the Purchase Contract Settlement
Date with respect to each Purchase Contract held by such Holder
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shares of common stock of New NiSource on a one-for-one basis for the shares of
NiSource such Holder would have received had the Acquisition Merger and
Subsequent Merger not taken place. Except for this one- for-one substitution of
the common stock of New NiSource for the common shares of NiSource, there shall
be no other adjustment to the Settlement Rate. The Settlement Rate shall
continue to be calculated in accordance with Section 5.1 of the Purchase
Contract Agreement.

         4. Notice. New NiSource hereby agrees to provide to the Holders of the
Securities pursuant to Section 5.7(a)(ii) of the Purchase Contract Agreement
within ten Business Days after consummation of the Acquisition Merger written
notice of the Acquisition Merger and a statement setting forth any adjustments
to the Settlement Rate.

         5. Rights as Successor. After the execution and delivery of this
Supplemental Agreement, any act or proceeding required by the Purchase Contract
Agreement, the Purchase Contracts, the Certificates or the Pledge Agreement to
be done or performed by any board or officer of NiSource may be done or
performed with like force and effect by the comparable board or officer of New
NiSource.

         6. Agreements Ratified. The Purchase Contract Agreement, the Purchase
Contracts, the Certificates and the Pledge Agreement, each supplemented as
hereinabove set forth, are in all respects ratified and confirmed, and the terms
and conditions thereof, supplemented as hereinabove set forth, shall be and
remain in full force and effect.

         7. Effectiveness. This Supplemental Agreement shall become effective as
of the date first above written upon the execution and delivery hereof by each
of the parties hereto.

         8. Choice of Law. This Supplemental Agreement shall be governed by and
construed in accordance with the laws of the State of New York without regard to
principles of conflicts of laws.

         9. Counterparts. This Supplemental Agreement may be executed in one or
more counterparts, each of which shall constitute an original but all of which,
when taken together, shall constitute only one legal instrument.

         10. Agent. The Agent shall not be responsible in any manner whatsoever
for or with respect to any of the recitals or statements contained herein, all
of which recitals or statements are made solely by NiSource and by New NiSource,
or for or with respect to the validity or sufficiency of this Supplemental
Agreement or any of the terms or provisions hereof.
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         IN WITNESS WHEREOF, the parties hereto have caused this Supplemental
Agreement to be executed by their respective representatives thereunto duly
authorized.

                                   NISOURCE INC.

                                   By   /s/ Gary L. Neale
                                   Its   Chief Executive Officer

                                   NEW NISOURCE INC.

                                   By   /s/ Gary L. Neale
                                   Its   Chief Executive Officer

                                   THE CHASE MANHATTAN BANK, as Purchase
                                   Contract Agent

                                   By   /s/ Richard Lorenzen
                                   Its   Assistant Vice President

                                   BANK ONE TRUST COMPANY, NATIONAL
                                   ASSOCIATION, as Collateral Agent

                                   By   /s/ Larry Kusch
                                   Its   Authorized Officer

                                   BANK ONE TRUST COMPANY, NATIONAL
                                   ASSOCIATION, as Securities Intermediary

                                   By   /s/ Larry Kusch
                                   Its   Authorized Officer

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