8-K

                     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



              Date of Report (Date of earliest event reported)

                               March 23, 1998


                              ARCH COAL, INC.
           (Exact name or registrant as specified in its charter)



           Delaware                      1-13105               43-0921172
(State or other jurisdiction of  (Commission file number)    (I.R.S. Employer
incorporation or organization)                              Identification No.)



            CityPlace One, Suite 300, St. Louis, Missouri 63141
            (Address of principal executive offices) (Zip Code)


            CityPlace One, Suite 300, St. Louis, Missouri 63141
                        (Mailing Address) (Zip Code)


     Registrant's telephone number, including area code: (314) 994-2700

Item 5.  Other Events.

                  On March 23, 1998,  Arch Coal, Inc. (Arch Coal) announced
that it had executed definitive  agreements whereby Arch Coal would acquire
Atlantic  Richfield  Company's (ARCO) Colorado and Utah coal operations and
simultaneously  combine the  acquired  operations  and Arch Coal's  Wyoming
operations  with ARCO's  Wyoming  operations in a new joint venture  called
Arch Western  Resources LLC (Arch  Resources).  Arch  Resources will be 99%
owned by Arch Coal and 1% owned by ARCO,  and will be managed by Arch Coal.
The transaction is valued at approximately $1.14 billion.

                  The  transaction  is  expected  to close  sometime in the
second quarter of 1998. Consummation of the transaction is conditioned upon
obtaining  all necessary  governmental  and  regulatory  consents and other
customary  conditions.  The boards of  directors of Arch Coal and ARCO have
approved the  transaction.  A copy of the March 23, 1998,  press release is
included herewith as an exhibit.

Item 7.  Financial Statements and Exhibits.

99.1              Press Release.







                                 SIGNATURES

         Pursuant  to  the  requirements  of  Section  13 or  15(d)  of the
Securities Exchange Act of 1934, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.


                                          ARCH COAL, INC.
                                          (Registrant)

                                          By:  /s/  Henry Besten, Jr.
                                             -----------------------------
                                            Vice President-Strategic Marketing


                                          Date:  March 23, 1998

EX-99

News from
Arch Coal, Inc.
- ------------------------------------------------------------------------------
                                                      FOR FURTHER INFORMATION:

- ------------------------------------------------------------------------------
                                    David G. Todd                Deck S. Slone
                                   Vice President                      Manager
                                 External Affairs           Communications and
                                   (304) 526-3755               Public Affairs
                                                                (314) 994-2717

                                                         FOR IMMEDIATE RELEASE
                                                                March 23, 1998


ARCH COAL TO ACQUIRE
ATLANTIC RICHFIELD'S DOMESTIC COAL OPERATIONS

         St. Louis, MO-- Arch Coal, Inc. (NYSE:ACI) announced today that it
has signed an agreement to acquire Atlantic  Richfield's  Colorado and Utah
coal operations and to simultaneously  combine the acquired  operations and
its  Wyoming  operations  with  ARCO's  Wyoming  operations  in a new joint
venture to be known as Arch Western  Resources LLC, which will be 99% owned
by Arch Coal and 1% owned by Atlantic Richfield.  The transaction is valued
at approximately $1.14 billion. Arch Coal will manage the joint venture.
         Through its  ownership of Arch Western  Resources,  Arch Coal will
add a powerful presence in western U.S.  low-sulfur  compliance coal to its
leading  low-sulfur coal production  position in the eastern United States.
Overall,  Arch Coal will become the second  largest U.S. coal producer with
annual  coal sales of close to 110  million  tons,  or  roughly  10% of the
nation's coal supply, and annual revenues of nearly $2 billion.
         "With the  completion of this  transaction,  Arch Coal will become
the nation's premier  producer of low-cost,  low-sulfur coal - one that can
and will compete  aggressively  in virtually every major U.S. coal market,"
said Steven F. Leer,  Arch Coal's  president and chief  executive  officer.
"ARCO operates some of the largest and most productive mines in the western
United States.  Arch Coal is the leading producer of low-sulfur coal in the
eastern United States. In combining these operations, we will be creating a
national  coal  company  that is  strategically  positioned  to supply  the
changing  needs of  electric  utilities  as they seek to meet the  nation's
growing  demand  for  electricity;  prepare  to  compete  in a  deregulated
marketplace;  and comply with the  implementation  of Phase II of the Clean
Air Act in the year 2000."


         All of ARCO's domestic coal production is compliance  coal,  which
means that it meets the sulfur dioxide  emissions  requirements of Phase II
of the Clean Air Act.  Atlantic  Richfield's  U.S. coal operations  include
Thunder Basin Coal Company,  LLC; Mountain Coal Company; and a 65% interest
in Canyon Fuel Company LLC.

        -     Thunder  Basin  operates  the Black  Thunder  and Coal Creek
              mines in the Powder River Basin of Wyoming.  Black Thunder is
              the nation's  largest coal mine with 1997  production of 37.7
              million  tons  of  low-sulfur  compliance  coal.  Coal  Creek
              produced 2.9 million tons of coal in 1997.

        -     Mountain  Coal  Company   operates  the  West  Elk  Mine  in
              Colorado.  With  1997  production  of  5.6  million  tons  of
              low-sulfur  compliance coal, West Elk is a highly  productive
              longwall mine in the Mountain Bituminous Region.

        -     Canyon  Fuel  Company  LLC  produced  10.6  million  tons of
              low-sulfur coal from three mines in Utah during 1997.

         In 1997,  ARCO's U.S. coal operations,  including its 65% interest
in  Canyon  Fuel  Company  LLC,  generated  revenues  of $537  million  and
after-tax  operating income of $51 million on the sale of 53.2 million tons
of  low-sulfur  coal.  ARCO's  domestic  coal reserves are estimated at 1.3
billion tons.
         In 1997, on a pro forma  combined  basis with Ashland  Coal,  Arch
Coal generated revenues of $1.4 billion on the sale of 52.9 million tons of
coal.  Arch Coal and  Ashland  Coal  merged on July 1,  1997.  Excluding  a
one-time merger-related charge, Arch Coal had pro forma operating income of
$111.0 million and net income of $75.5 million.  Arch Coal's  domestic coal
reserves are estimated at 2.1 billion tons.
         "We believe this  acquisition  will create  substantial  long-term
value for the  shareholders of Arch Coal," Leer said. "With the addition of
ARCO's U.S. coal  operations,  Arch Coal will become a leading  producer of
low-sulfur coal in each of the nation's three growing coal-producing basins
- - Central  Appalachia,  the Powder River Basin and the Mountain  Bituminous
Region.  Together  Arch Coal and the joint  venture will be able to provide
the nation's  electric  utilities  with a full range of U.S.  coal products
from a  geographically  diverse  network  of mines  served  by every  major
transportation system for U.S. coal."


         The  remaining  interest in Canyon Fuel Company is owned by ITOCHU
Coal International,  Inc., an affiliate of ITOCHU Corporation of Japan. "We
are  looking  forward  to  building a strong  relationship  with our future
partner in Canyon Fuel  Company and working with them to maximize the value
of this asset," Leer said.  "I will be visiting with ITOCHU in the next few
weeks to personally express this desire."
         The  transaction  will be accounted for as a purchase by Arch Coal
and the joint  venture's  results will be  consolidated  with those of Arch
Coal. The transaction  should be accretive to cash flow immediately.  It is
expected to be accretive to earnings on a per share basis within 18 months.
         "A key financial  benefit of this acquisition is its impact on our
cash flow," Leer said.  "Arch Coal already  generates strong levels of cash
flow, with earnings before interest,  taxes,  depreciation and depletion of
nearly $300 million in 1997.  The addition of ARCO's U.S.  operations  will
further enhance our ability to generate cash,  enabling us to pay down debt
quickly  and  provide  funds  for  continued  growth  in an  industry  that
continues to consolidate rapidly."
         "This acquisition represents a very strong fit between the premier
low-sulfur  coal  producer  in the  eastern  United  States  and a  premier
low-sulfur  coal producer in the western  United  States," Leer said.  "The
ARCO  properties  match  well with Arch  Coal's  expertise  in  large-scale
surface mining and longwall operations.  In addition, the opportunities for
cost savings and synergies are great."
         "Another  valuable  asset we are  gaining are the men and women of
ARCO  Coal.  The  two  companies  share  many  similarities  in  management
structure and style.  I believe the ARCO Coal  personnel  share our passion
for safe, low-cost operations;  environmental stewardship; and the creation
of shareholder value."
         The  transaction  is  expected  to close  sometime  in the  second
quarter  of 1998.  Consummation  of the  transaction  is  conditioned  upon
obtaining  all necessary  governmental  and  regulatory  consents and other
customary  conditions.  The boards of Arch Coal and ARCO have  approved the
transaction.
         "The  consummation of this transaction will mark the end of a very
exciting  nine-month  period for Arch  Coal,"  Leer  observed.  "In July we
concluded our merger with Ashland Coal. The  integration of that merger has
been smooth and  efficient.  We have succeeded in bringing over $20 million
in annual  pre-tax  synergies  to the bottom  line.  When this  transaction
closes,  we will have effectively  quadrupled the company's coal production
and nearly tripled its revenues in less than one year. Our management  team
and  employees  are  excited and look  forward to quickly  and  effectively
integrating the ARCO operations into Arch Coal."
         Certain   matters   discussed   within  this  press   release  are
forward-looking  statements  within the meaning of the  Private  Securities
Litigation  Reform Act of 1995.  Although  Arch  Coal,  Inc.  believes  the
expectations  reflected  in such  forward-looking  statements  are based on
reasonable assumptions, it can give no assurance that its expectations will
be attained.  Factors that could cause actual results to differ  materially
from  expectations  include  financial  performance,  changes  in  local or
national economic conditions, and other risks detailed from time to time in
the Company's SEC reports filed with the SEC,  including  quarterly reports
on Form 10-Q, reports of Form 8-K, and annual reports on Form 10-K.
         Arch Coal and its independent  operating  subsidiaries are engaged
in the mining,  processing, and sale of coal, which they market to electric
utilities in the eastern and midwestern United States and abroad.