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):
                        October 15, 1998
                                
                                
                    WESTMORELAND COAL COMPANY
                    -------------------------
         (Debtor-in-Possession as of December 23, 1996)
         ----------------------------------------------
     (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 organization)      Number)        Identification 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

               The Company, which filed for protection under chapter 11
               of the US Bankruptcy Code in December, 1996, announced
               today that it has reached a settlement agreement with the
               1992 UMWA Benefit Plan, the UMWA Combined Fund and the
               UMWA 1974 Pension Trust, the United Mine Workers of
               America and the Official Committee of Equity Security
               Holders ("Equity Committee") for the resolution
               of its Chapter 11 case.  The agreement, which provides
               terms for a consensual dismissal, was announced during
               scheduled hearings on Westmoreland's Motion to Dismiss
               and the Equity Committee's Motion to Convert to chapter 7,
               and the hearings were subsequently recessed.

Item 7.        Financial Statements and Exhibits

               (c)

               No.      Description

               99.9     Press release dated October 15, 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: October 19, 1998        By: /s/ Robert J. Jaeger
                              --------------------------------------
                                      Robert J. Jaeger
                                      Senior Vice President-Finance
                                      and Treasurer



                 -------------------------------
                 Agreement Reached on Dismissal
                 -------------------------------

Colorado  Springs,  CO -- October 15, 1998 --  Westmoreland  Coal
Company (Debtor-in-Possession) (OTC Bulletin Board: WMCLQ), which
filed  for protection under Chapter 11 of the US Bankruptcy  Code
in December, 1996, announced today that the Company has reached a
settlement  agreement  with the 1992  UMWA  Benefit  Plan  ("1992
Plan"),  the  UMWA Combined Fund ("Combined Fund") and  the  UMWA
1974  Pension Trust (collectively the "Funds"), the  United  Mine
Workers of America ("UMWA") and the Official Committee of  Equity
Security Holders ("Equity Committee") for the resolution  of  its
chapter  11  case.   The agreement, which provides  terms  for  a
consensual dismissal, was announced during scheduled hearings  on
Westmoreland's  Motion  to  Dismiss and  the  Equity  Committee's
Motion   to   Convert  to  chapter  7,  and  the  hearings   were
subsequently recessed.

Key terms of the agreement provide that:

   - All  undisputed creditor claims will be paid in  full,  in
   cash, with interest, and the Company will continue to satisfy its
   other ongoing obligations.
 
   - All Coal Act arrearages will be paid in full, with interest.
 
   - The  Company  will reinstate its Individual Employer  Plan
   within 60 days of the effective date of a dismissal.
 
   - The  Company  will pay future 1992 Plan and Combined  Fund
   payments.
 
   - Obligations  to the 1974 Pension Trust will be  determined
   through arbitration as provided by law.

   - The Company will post security to the 1992 Plan as required
   under the Coal Act, and in addition, will provide a $12 million
   secured contingency note which will be payable only in the event
   the Company does not meet its Coal Act obligations, or fails to
   meet certain financial tests.
 
                                                                
                                                        Continued
 
   - The Company will hold a special meeting of shareholders no
   later  than  March 31, 1999.  Shareholders will be invited  to
   submit  nominees for the Board of Directors and proposals  for
   consideration at that meeting.  (The Company has  not  held  a
   meeting of shareholders while in bankruptcy).
 
   - Provided that the pending sale of a certain asset  occurs,
   Westmoreland will make a public tender for no less than 1 million
   shares of its outstanding preferred stock, at a price per share
   to  be  determined  by  the  Equity  Committee,  for  a  total
   consideration of $20 million.  The tender shall occur  in  the
   first quarter of 1999, or as soon thereafter as is practicable,
   following the date of the asset sale.

   The Company will not initiate litigation to challenge the Coal
Act, and in addition, will not voluntarily seek the protection of
the Bankruptcy Court for the period of 5 years.

The  Court  gave the parties to the agreement until  October  30,
1998  to  decide  whether to implement the  agreement  through  a
contractual arrangement to be executed upon dismissal or to  file
a  consensual  plan of reorganization.  If the parties  elect  to
file  a  plan of reorganization, it must be filed no  later  than
November 30, 1998.

The  Company  is  pleased that the parties  were  able  to  reach
agreement  in connection with Westmoreland's motion  to  dismiss.
The  Company has sought discharge from the bankruptcy due to  the
continuing  success  of  its business  restructuring  plan  which
commenced in 1992.
  

                                #
                                
   For further information contact Diane Jones (719) 448-5814.