Form 8-K

                          UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION

                    Washington, D. C.  20549

                 PURSUANT TO SECTION 13 OR 15(d) OF
               THE SECURITIES EXCHANGE ACT OF 1934

        Date of Report(Date of earliest event reported):
                        July 28, 1998


                    WESTMORELAND COAL COMPANY
                    -------------------------
     (Exact name of registrant as specified in its charter)


          DELAWARE                0-752             23-1128670
          --------                -----             ----------
(State or other jurisdiction  (Commission File  (I.R.S. Employer
of incorporation or            Number            Identification
organization)                                    No.)


2 North Cascade Avenue, 14th Floor, Colorado Springs, Colorado
- --------------------------------------------------------------
80903
- -----
(Address of principal executive offices)
(Zip Code)

Registrant's telephone number,
   including area code:                            719-442-2600
                                                   ------------

Item 5.     Other Events

     On July 28, 1998, the Company and four subsidiaries
announced that they have filed a motion with the US Bankruptcy
Court to dismiss their chapter 11 cases based on substantial
changes in law that have resulted from recent court decisions
in other cases and the significant improvement in Westmoreland's
financial condition.

Item 7.     Financial Statements and Exhibits

         (c)

         No.         Description

         99.4        Press release dated July 28, 1998


                            SIGNATURE


Pursuant to the requirements 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.


                              WESTMORELAND COAL COMPANY



Date: July 29, 1998                 /s/ Robert J. Jaeger
                                    --------------------------
                                    By: Robert J. Jaeger
                                    Senior Vice President-Finance
                                    and Treasurer


EXHIBIT 99.4

                 -------------------------------
                    Westmoreland Files Motion
                   to Dismiss Bankruptcy Cases
                 -------------------------------


Colorado  Springs,  CO  --  July 28, 1998  --  Westmoreland  Coal
Company  (Debtor-in-Possession) (OTC Bulletin Board:  WMCLQ)  and
four  subsidiaries announced today that they have filed a  motion
with  the  US Bankruptcy Court to dismiss their chapter 11  cases
based  on  substantial  changes in law that  have  resulted  from
recent  court  decisions  in  other  cases  and  the  significant
improvement  in Westmoreland's financial condition.  The  Company
believes that dismissal of the chapter 11 cases will benefit  all
creditors   and   the   shareholders.    Westmoreland   and   the
subsidiaries  filed for protection under chapter  11  of  the  US
Bankruptcy Code on December 23, 1996.

As  a  result of its continued turnaround efforts, the  automatic
stay  under chapter 11 of the UMWA Combined Benefit Fund and  the
UMWA  1992  Benefit Plan assessments and certain highly favorable
events,   the   Company's   financial  condition   has   improved
significantly since the petition date.  The Company is  now  able
to  (1)  immediately pay in full all undisputed claims, in  cash,
with  interest;  (2)  provide such security  as  is  required  by
section  9712(d)(1)(C)  of  the  Coal  Act  (approximately  $20.8
million)  by  the dismissal date; (3) meet all of  its  presently
foreseeable  obligations,  including future  premiums  ordinarily
assessed  by  the UMWA Combined Benefit Fund and  the  UMWA  1992
Benefit  Plan;  and  (4)  reinvest a  significant  residual  cash
balance  in  new  opportunities in  an  effort  to  increase  the
Company's value through the use of its $224 million net operating
loss carryforward ("NOL").  In order to protect the interests  of
the  Companies' numerous retirees and their dependents, who  rely
on  the  Company  and the Funds for their medical  benefits,  the
proposed terms of dismissal include a provision that the  Company
will not pay dividends out of existing surplus or cash in hand at
the  time  of the dismissal.  Under the proposed conditions,  the
Company  would  have  the right to pay dividends  out  of  future
earnings to the extent permitted by Delaware law.

Westmoreland  believes that the UMWA Health  and  Benefit  Funds'
("Funds")  plan  of reorganization currently pending  before  the
Bankruptcy Court is not confirmable.  This contention is based in
part  on the recent Tenth Circuit Court of Appeals ruling in  the
Sunnyside   case   which  holds  that  the  Funds'   claims   are
administrative priority taxes, and therefore cannot  include  the
present  value of future, post-bankruptcy assessments.  As  such,
the Funds' plan of reorganization violates the Bankruptcy Code by
paying  the  Funds  far in excess of their allowable  claims  and
depriving  shareholders of their ownership interests.  Also,  the
recent US Supreme Court ruling in the Eastern case undermines the
viability of the Coal Act by abrogating a fundamental part of its
funding scheme which may lead to the overall invalidation of  the
Act or new legislation.


Westmoreland  has also received notice that the  recently  formed
Official Committee of Equity Security Holders intends to  file  a
motion  today  based  on  the  Sunnyside  ruling  as  well.   The
Committee  argues that upon liquidation in chapter 7, the  Funds'
claims would be limited to only those amounts incurred during the
bankruptcy,  which would leave a residual value for  distribution
to  shareholders.  It is Westmoreland's position that  dismissal,
rather than conversion of the chapter 11 cases, is preferable and
should  be  granted by the Court for the benefit of the creditors
and  to  allow  for the preservation and creation of  substantial
value for shareholders.

Westmoreland Coal Company, headquartered in Colorado Springs,  CO
is  engaged in Powder River Basin coal mining, independent  power
and coal shipping and terminal facility operations.


     The  foregoing  information  contains  "forward-looking
     statements" within the meaning of Section  27A  of  the
     Securities  Act  of  1933  and  Section  21E   of   the
     Securities Exchange Act of 1934.  These statements  are
     qualified by important factors that could cause  actual
     results to differ materially from those in the forward-
     looking  statements including without  limitation:  the
     decisions of the Bankruptcy Court, general economic and
     competitive conditions, the completion of the sale of a
     significant  asset and the ability to  reinvest  excess
     cash  at  an  acceptable rate of return.  Factors  that
     could  cause  actual results to differ materially  from
     those  in  the  forward-looking  statements,  or   that
     contribute to such a difference, are identified in  the
     Motion to Dismiss.


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   For further information contact Diane Jones (719) 442-2600.