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):
                                March 26, 2001


                            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 completion of the sale of three Virginia power
project entities that are 30%-owned by its wholly owned subsidiary, Westmoreland
Energy, Inc., to Dominion Virginia Power, a subsidiary of Dominion (NYSE: D).
The projects include three 70 MW stoker-coal cogeneration power projects located
in Altavista, Hopewell and Southampton, Virginia. Proceeds to Westmoreland are
approximately $25 million.

Item 7.  Financial Statements, Pro Forma Financial Information and Exhibits.

          (c) Exhibits

          Exhibit 99.3 - Press release dated March 26, 2001


                                    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: March 26, 2001                /s/ Robert J. Jaeger
                                    --------------------------
                                    By: Robert J. Jaeger
                                    Senior Vice President-Finance
                                    and Treasurer


EXHIBIT 99.3
                   -------------------------------------------
                   Westmoreland Completes Sale Of Interests In
                      Three Virginia Cogeneration Projects
                   -------------------------------------------


Colorado Springs, CO - March 26, 2001 - Westmoreland Coal Company (AMEX: WLB)
today announced completion of the sale of three Virginia power project entities
that are 30%-owned by its wholly owned subsidiary, Westmoreland Energy, Inc., to
Dominion Virginia Power, a subsidiary of Dominion (NYSE: D). The projects
include three 70 MW stoker-coal cogeneration power projects located in
Altavista, Hopewell and Southampton, Virginia. Proceeds to Westmoreland are
approximately $25 million. Dominion Virginia Power has assumed the projects'
contracts and debts. The price received for the sale was significantly greater
than Westmoreland's share of the projected discounted cash flows under the
existing power supply contracts for the facilities. Due to the long service
lives originally adopted for depreciation purposes at these projects, the
remaining carrying values of the Virginia Projects exceeded the sales prices,
which necessitated a writedown of approximately $4.6 million in their carrying
value in 2000.

"We are very pleased that the sale of the projects was completed on a timely
basis. The proceeds will directly support implementation of our tax advantaged
plan for expansion and growth through the acquisition and development of
environmentally attractive, low-cost fuel and power projects, such as our
purchase of the Montana Power Company and Knife River Corporation coal
businesses which we expect to close in the near future," commented Christopher
K. Seglem, Westmoreland Coal Company Chairman, President and CEO.

Westmoreland Coal Company, headquartered in Colorado Springs, is the oldest
independent coal company in the United States. Currently, Westmoreland is in the
process of acquiring Montana Power Company's coal business including operations
in Montana and Texas, and the coal operations of Knife River Corporation,
including active coal mines in North Dakota and Montana and certain rights to
the Gascoyne Mine reserves in North Dakota. The company also recently announced
that it is pursuing the development of a 500MW lignite-fired power project in
North Dakota. The Company's existing operations include Powder River Basin coal
mining through its 80%-owned subsidiary, Westmoreland Resources, Inc., and
interests in four independent power projects held by 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.

     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/A
     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.

                                     # # #

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