SECURITIES AND EXCHANGE COMMISSION

                          Washington, D. C. 20549


                                  FORM 8-K

                               CURRENT REPORT


                     Pursuant to Section 13 or 15(d) of
                    the Securities Exchange Act of 1934


    Date of report (Date of earliest event reported):  March 23, 1998


                                ASHLAND INC.
           (Exact name of registrant as specified in its charter)


                                  Kentucky
               (State or other jurisdiction of incorporation)

         1-2918                                              61-0122250
(Commission File Number)                                   (I.R.S. Employer
                                                           Identification No.)


 1000 Ashland Drive, Russell, Kentucky                           41169
 (Address of principal executive offices)                     (Zip Code)


 P.O. Box 391, Ashland, Kentucky                                 41114
          (Mailing Address)                                    (Zip Code)


    Registrant's telephone number, including area code (606) 329-3333







    Item 5.  Other Events

         On March 23, 1998,  Arch Coal,  Inc. (Arch Coal) announced that it
    had executed  definitive  agreements  whereby  Arch Coal would  acquire
    Atlantic  Richfield  Company's (ARCO) Colorado and Utah coal operations
    and  simultaneously  combine the  acquired  operations  and Arch Coal's
    Wyoming  operations  with  ARCO's  Wyoming  operations  in a new  joint
    venture  called  Arch  Western  Resources  LLC (Arch  Resources).  Arch
    Resources will be 99% owned by Arch Coal and 1% owned by ARCO, and will
    be managed by Arch Coal.  The  transaction  is valued at  approximately
    $1.14 billion.
         The  transaction  is  expected  to close  sometime  in the  second
    quarter of 1998.  Consummation of the  transaction is conditioned  upon
    obtaining all necessary  governmental and regulatory consents and other
    customary  conditions.  The boards of  directors  of Arch Coal and ARCO
    have approved the transaction. The Registrant owns approximately 55% of
    Arch Coal's issued and outstanding shares. The foregoing summary of the
    attached  press  release is  qualified  in its entirely by the complete
    text of such document, a copy of which is attached hereto.
Item 7.  Financial Statements and Exhibits

    (c)  Exhibits
         99.1     Press Release dated March 23, 1998.






                                 SIGNATURES


         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.

                                              ASHLAND INC.
                                             (Registrant)


                                                  /s/ Thomas L. Feazell
                                             ---------------------------------
    Date:  March 23, 1998                    Name:     Thomas L. Feazell
                                             Title:    Senior Vice President,
                                                       General Counsel and 
                                                       Secretary





                               Exhibit Index

            Exhibit No.

         99.1     Press Release dated March 23, 1998.