You have an interesting pipe there.
I believe it is a "Pipe of the Year" pipe. Peterson generally did not call the smooth pipes "Pipe of the Year", rather they issued what they called "Limited Edition" pipes. The sandblast versions (when they did them) were called "Pipe of the Year".
These early Limited Edition pipes were not marked as such, but rather simply said ####/1000 noting a limited run of 1000.
In fact, I believe what you have here is the FIRST of the limited line issued in 1997 - a very special pipe indeed! It should have a 1997 hallmark if I am correct (the third small hallmark should be an "M").
From memory, I believe these were quite pricy back in the day >$400 for a smooth, as I believe they may have been silver collars plated with gold.