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):
                               September 15, 2000


                            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 No.)
       organization)


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  announced  today that it has agreed to acquire  Montana  Power
Company's coal business unit for $138 million in cash.  The operations  produced
approximately  20 million tons of coal in 1999.  Closing is expected to occur by
year-end  and  is  subject  to  various   contingencies,   including  regulatory
approvals.

Item 7. Financial Statements and Exhibits

            (c) Exhibits

            Exhibit 99.4 -- Press release dated September 15, 2000.


                                 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: September 15, 2000            /s/ Robert J. Jaeger
                                    --------------------------
                                    By: Robert J. Jaeger
                                    Senior Vice President-Finance
                                    and Treasurer


                           ---------------------------
                             Westmoreland To Acquire
                           Montana Power Coal Business
                           ---------------------------

Colorado  Springs,  CO - September 15, 2000 -- Westmoreland  Coal Company (AMEX:
WLB) and The Montana Power Company (NYSE: MTP) announced today that Westmoreland
has  agreed to acquire  Montana  Power  Company's  coal  business  unit for $138
million in cash. The operations  produced  approximately 20 million tons of coal
in 1999.  Closing is  expected  to occur by  year-end  and is subject to various
contingencies, including regulatory approvals.

"The  Montana  Power coal  business  unit meets the criteria we set forth in the
strategic  plan  announced  to  shareholders  in April.  These  are  outstanding
businesses  which match  attractive  coal assets with long term sales  contracts
that we believe will result in  sustainable,  long-term  profitability  and cash
flow at those operations.  Western Energy and Northwestern Resources supply coal
to  adjacent,  low-cost  electrical  generating  units  that have the  necessary
pollution control technologies in place to meet today's stringent  environmental
standards," said Christopher K. Seglem,  Westmoreland  Coal Company's  Chairman,
President and CEO. "We believe these  operations  give us a solid  foundation in
the  coal  segment  of  our  business  and  represent  the  accomplishment  of a
significant step in the  implementation  of the strategic plan we announced last
spring. That plan focuses on the delivery of clean, low-cost electricity through
the production of coal, gas and independent  power in attractive  niche markets.
Likewise,  because they are  profitable,  the addition of these  businesses will
help us capture the value of Westmoreland's  advantageous net operating tax loss
carryforwards which we preserved in our restructuring," added Seglem.

Seglem emphasized that  Westmoreland  also greatly values the skill,  dedication
and experience of the current  management and employees  within these businesses
and looks forward to their joining the Westmoreland family.

Robert P. Gannon,  Montana Power's Chairman and Chief Executive  commented,  "As
with the sale of our oil and gas businesses,  Westmoreland  was selected after a
robust process, and we are just as delighted by this result. The sale reflects a
strong value for our coal  companies,  and a promising  future for our employees
who will move to  Westmoreland,  which has a long history in the coal  business.
This is a good outcome for us and, we believe, for Westmoreland. Western Energy,
Northwestern  Resources,  Western SynCoal and their employees should thrive into
the  future," he added.  "We wish them the very best."  Gannon said the proceeds
from the  sale of the  coal  unit,  like  the oil and gas  businesses,  would be
invested in growing Touch America,  Montana  Power's  national  fiber-optic  and
wireless broadband telecommunications subsidiary.

Montana  Power  offered the coal unit for sale as a package  comprised  of three
operating  companies.  The largest  operation in the coal unit,  Western  Energy
Company, owns and operates the Rosebud Mine located in the northern Powder River
Basin  near  the town of  Colstrip,  Montana  and  approximately  25 miles  from
Westmoreland's Absaloka Mine.  Approximately 90% of the production from the mine
is sold under long-term contracts to the owners of the four, mine-mouth Colstrip
power plant units. In 1999, the Rosebud Mine produced and sold 10.6 million tons
of coal.

The transaction  also includes the purchase of Northwestern  Resources Co. which
owns and operates the Jewett Mine in Central Texas, and Western  SynCoal,  which
owns and operates a patented  coal-enhancement  process at a demonstration plant
located  at  the   Rosebud   Mine  in  Montana.   The  Jewett  Mine   represents
Westmoreland's  initial entry into the Texas market.  Production from the Jewett
Mine is sold  under a  long-term  contract  to  Reliant  Energy,  the owner of a
two-unit power production facility adjacent to the mine. In 1999 the Jewett Mine
produced and sold 8.9 million tons of lignite,  and Western SynCoal sold 269,000
tons of enhanced coal.

Westmoreland  Coal Company,  headquartered  in Colorado  Springs,  Colorado,  is
implementing a strategic  plan for expansion and growth through the  acquisition
and development of opportunities in the changing energy marketplace. The Company
was assisted in this transaction by NorWest Mine Services, Inc., the law firm of
Hale & Dorr, and financial  advisor,  Rothschild Inc. The Company's current core
operations are Powder River Basin coal mining  through its 80%-owned  subsidiary
Westmoreland Resources, Inc. and independent power production through its wholly
owned subsidiary Westmoreland Energy, Inc. The Company also holds a 20% interest
in Dominion  Terminal  Associates,  a coal  shipping  and  terminal  facility in
Newport News, Virginia.

The Montana Power Company is a diversified  investor-owned  electric and natural
gas utility  with  nonregulated  businesses  in coal,  oil and natural  gas, and
independent power production and telecommunications. The company announced March
28, 2000 it would divest all of its energy businesses, including its utility, to
focus on  telecommunications  under Touch  America.  Montana  Power on August 28
announced  that  PanCanadian  Petroleum  Limited  is  buying  its  oil  and  gas
properties.  Touch  America is a  wholly-owned  fiber-optic  and  wireless  data
transport  telecommunications  subsidiary of Montana Power,  providing  national
long distance, private line, Internet, and business telephone equipment products
and services. The company's digital fiber optic network, which will reach 26,000
route  miles   nationally   by  year-end   2001,   employs  the  most   advanced
telecommunications  technology  available  today.  Touch America and The Montana
Power  Company are based in Butte,  Montana.  The  Company was  assisted in this
transaction by its financial advisors,  Goldman, Sachs & Co. and the law firm of
Milbank,  Tweed,  Hadley & McCloy,  both of New York.  Information about Montana
Power can be found at http://www.mtpower.com.

     As to  Westmoreland  Coal  Company:  Certain  statements in this press
     release   which  are  not   historical   facts  or   information   are
     "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.  Any statements  contained  herein that are not statements of
     historical fact may be deemed to be  forward-looking  statements.  For
     example,   words  such  as  "may,"  "will,"   "should,"   "estimates,"
     "predicts,"    "potential,"    "continue,"   "strategy,"   "believes,"
     "anticipates,"  "plans," "expects," "intends," and similar expressions
     are   intended   to   identify   forward-looking    statements.   Such
     forward-looking   statements   involve   known  and   unknown   risks,
     uncertainties  and other factors  which may cause the actual  results,
     levels of activity,  performance or achievements  of the  Westmoreland
     Coal Company, or industry results, to be materially different from any
     future  results,  levels  of  activity,  performance  or  achievements
     expressed or implied by such forward-looking  statements. Such factors
     include,  among others,  the following:  general economic and business
     conditions;  the  ability of the  Company to  implement  its  business
     strategy; the Company's access to financing;  the Company's ability to
     successfully  identify  new  business  opportunities;   the  Company's
     ability to achieve anticipated cost savings and profitability targets;
     changes in the industry; competition; the Company's ability to utilize
     its tax net operating  losses;  the ability to reinvest excess cash at
     an acceptable rate of return; weather conditions;  the availability of
     transportation;  price of alternative fuels; costs of coal produced by
     other countries; demand for electricity;  the effect of regulatory and
     legal   proceedings   and  other  factors   discussed  in  Item  1  of
     Westmoreland  Coal Company's Form 10-K for the year ended December 31,
     1999. As a result of the foregoing and other factors, no assurance can
     be given as to the future  results  and  achievement  of the  Company.
     Neither the Company nor any other person  assumes  responsibility  for
     the accuracy and completeness of these statements.

                                    ###

Contacts:

     Westmoreland Coal Company                Montana Power Company
     Diane Jones                              Cort Freeman, Media Relations
     (719) 442-2600                           (406) 497-2368
                                              Linda McGillen, Investor Relations
                                              (406) 496-5211