Westmoreland Settles Assignment
Dispute with TECO; Court 
Approves Westmoreland's Plan 
Of Reorganization

Philadelphia, PA - December 16, 1994 - Westmoreland Coal 
Company (NYSE:WCX) announced today that it had reached 
agreement with TECO Coal Corporation whereby TECO will 
consent to the assignment of two coal supply subcontracts by 
Kentucky Criterion Coal Company to CONSOL of Kentucky, Inc. 
as a part of Westmoreland's sale of the assets of Kentucky 
Criterion to CONSOL.

The resolution of this dispute was approved by the United 
States Bankruptcy Court for the District of Delaware today 
as a part of that Court's approval of Westmoreland's Plan of 
Reorganization in its "prepackaged" Chapter 11 proceeding.  
The approval of the Plan will permit Westmoreland and CONSOL 
to proceed as soon as possible with the closing of the sale 
of the Kentucky Criterion Assets.  Westmoreland will emerge 
from Bankruptcy upon the completion of the Criterion sale.

The proceeds from the sale will be used by Westmoreland to 
pay in full its outstanding indebtedness to its principal 
creditors of approximately $39 million, fund equity 
contributions through 1995 of approximately $28 million for 
a current power plant projects of Westmoreland's wholly-
owned subsidiary, Westmoreland Energy, Inc., and to meet 
other needs related to Westmoreland's strategic 
repositioning.

Christopher K. Seglem, Westmoreland's President and Chief 
Executive Officer said, "The resolution of our dispute with 
TECO and the approval of our Plan of Reorganization to 
enable Westmoreland to proceed with the closing of the 
Kentucky Criterion asset sale are major milestones for 
Westmoreland.  The way is cleared for us to retire our 
burdensome debt obligations which have threatened our short 
term viability and hampered our ability to stabilize the 
Company.  Having the cash to make full equity contributions 
in our independent power projects maximizes our opportunity 
for strong operating profits from that sector of our 
Company."


For information contact R. Page Henley (215) 545-2500