So is this on or what?
That'd be an "or what".
A source close to Kelly tells us this romance rumor is "totally not true".
While she hasn't been dating Chace, we can confirm that Kel has been busy working and playing in NYC: she's been sitting front row at the shows and taping E!'s Fashion Police.
Catch Kelly, Giuliana and Joan Rivers on E! every Friday at 10:30/9:30 c.