UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 4
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
( ) Check this box if no longer subject to Section 16.
Form 4 or Form 5 obligations may continue. See Instructions 1(b).
1. Name and Address of Reporting Person
   Ashland Inc. 
   
   1000 Ashland Drive
   Russell, KY  41169
2. Issuer Name and Ticker or Trading Symbol
   Arch Coal, Inc.
   ACI
3. IRS or Social Security Number of Reporting Person (Voluntary)
   61-0122250
4. Statement for Month/Year
   June 30, 1997
5. If Amendment, Date of Original (Month/Year)
   
6. Relationship of Reporting Person(s) to Issuer (Check all applicable)
   ( ) Director (X) 10% Owner ( ) Officer (give title below) ( ) Other
   (specify below)
   
7. Individual or Joint/Group Filing (Check Applicable Line)
   (X) Form filed by One Reporting Person
   ( ) Form filed by More than One Reporting Person


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 Table I -- Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned                                                 |
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1. Title of Security       |2.    |3.    |4.Securities Acquired (A)         |5.Amount of        |6.Dir |7.Nature of Indirect       |
                           | Transaction |  or Disposed of (D)              |  Securities       |ect   |  Beneficial Ownership     |
                           |      |      |                                  |  Beneficially     |(D)or |                           |
                           |      |    | |                  | A/|           |  Owned at         |Indir |                           |
                           | Date |Code|V|    Amount        | D |    Price  |  End of Month     |ect(I)|                           |
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Common Stock               |7-1-97|J (1| |20,734,080        |A  |           |20,734,080         |D     |                           |
                           |      |)   | |                  |   |           |                   |      |                           |
- -----------------------------------------------------------------------------------------------------------------------------------|
Common Stock               |7-1-97|J (2| |648,307           |A  |           |648,307            |D     |                           |
                           |      |)   | |                  |   |           |                   |      |                           |
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 Table II -- Derivative Securitites Acquired, Disposed of, or Beneficially Owned                                                   |
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1.Title of Derivative |2.Con-  |3.   |4.    |5.Number of De |6.Date Exer|7.Title and Amount  |8.Price|9.Number    |10.|11.Nature of|
  Security            |version |Transaction | rivative Secu |cisable and|  of Underlying     |of Deri|of Deriva   |Dir|Indirect    |
                      |or Exer |     |      | rities Acqui  |Expiration |  Securities        |vative |tive        |ect|Beneficial  |
                      |cise    |     |      | red(A) or Dis |Date(Month/|                    |Secu   |Securities  |(D)|Ownership   |
                      |Price of|     |      | posed of(D)   |Day/Year)  |                    |rity   |Benefi      |or |            |
                      |Deriva- |     |      |               |Date |Expir|                    |       |ficially    |Ind|            |
                      |tive    |     |      |           | A/|Exer-|ation|   Title and Number |       |Owned at    |ire|            |
                      |Secu-   |     |    | |           | D |cisa-|Date |   of Shares        |       |End of      |ct |            |
                      |rity    |Date |Code|V|  Amount   |   |ble  |     |                    |       |Month       |(I)|            |
___________________________________________________________________________________________________________________________________|
                                                                            
                      |        |     |    | |           |   |     |     |            |       |       |            |   |            |
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Explanation of Responses:
1. Shares of common stock  of Arch Coal, Inc. acquired pursuant to the merger 
of Ashland Coal, Inc. and a wholly-owned subsidiary of Arch Coal, Inc. ("the 
Merger").  Ashland converted 150 
shares of Class B preferred stock of Ashland Coal, Inc. to 3,075,000 shares of 
Arch Coal common stock and 6,923,000 shares of common stock of Ashland Coal, 
Inc. to 6,923,000 shares of Arch 
Coal common stock, having a value of $28.50 per share.  Ashland also owns 
10,736,080 shares of Arch Coal common stock resulting from the 338.0857-for-one 
split of the common stock of Arch 
Mineral Corporation effected on April 4, 1997.  
2. Shares of common stock of Arch Coal, Inc. acquired in an exchange for an 
equal number shares  of common stock of Ashland Coal, Inc., which were 
previously held in the Ashland Coal, Inc. 
Dividend Reinvestment Plan, pursuant to the merger, to be held in the Arch 
Coal, Inc. Dividend Reinvestment Plan. 
SIGNATURE OF REPORTING PERSON
Thomas L. Feazell, Senior VP, General Counsel and Secretary