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):  June 1, 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 June 1, 1998, Arch Coal, Inc. (Arch Coal) announced that it had
    completed  the  acquisition  of  Atlantic  Richfield  Company's  (ARCO)
    domestic  coal  operations  for   approximately   $1.14  billion.   The
    transaction  will be  financed  entirely  with debt  using  new  credit
    facilities.
         Completion of the  transaction  creates a new joint venture called
    Arch Western Resources, LLC (Arch Western Resources), owned 99% by Arch
    Coal and 1% by ARCO.  Arch  Western  Resources  will account for all of
    Arch Coal's  operating  activity  west of the  Mississippi  River.  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 June 1, 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)



    Date:  June 1, 1998
                                      Name:     Thomas L. Feazell
                                      Title:    Senior Vice President,
                                                 General Counsel and Secretary




                               Exhibit Index

            Exhibit No.

         99.1     Press Release dated June 1, 1998.