Westmoreland Completes Sale of Coal Supply Agreement;
Receives Favorable Ruling on Independent Power Litigation

Philadelphia, PA - August 25, 1995 - Westmoreland Coal
Company (NYSE:WCX) announced today that it has completed
the sale of the remaining term of its coal supply agreement
with Duke Power Company for approximately $23 million in
cash.  The transaction involved a buy-out by Duke Power of
the coal supply agreement which was originally entered into
on January 1, 1986 and had escalated to a price 
substantially above market in recent years.  Westmoreland
supplied approximately 3 million tons of coal per year 
under the agreement.

Duke Power Company had become the sole customer of 
Westmoreland's Virginia Division, located in Wise and Lee
counties, Virginia, and, as previously announced, the
Division was idled earlier this month after the Company
reached agreement with Duke.  The Division had struggled
for several years with losses unexpectedly continuing and
increasing over the last three quarters.  The Division
lost $8.4 million in the second quarter of 1995. 
Westmoreland continues to pursue potential purchasers
for the remaining Virginia Division assets, and negotiations
are ongoing.  Additional details related to the sale of 
the remaining Virginia Division assets will be announced
at the completion of these negotiations.

The sale of the Duke contract represents the completion
of a significant piece of the Company's plan to dispose
of underperforming assets and raise cash to meet ongoing
requirements through 1996 and beyond.

On August 9, 1995 The Roanoke Valley I Partnership received
a favorable decision from the Circuit Court of the City of
Richmond, Virginia when it denied Virginia Power's motion
to dismiss the Partnership's amended complaint in the
dispute between the Partnership and Virginia Power over
the interpretation of the Forced Outage Day provisions in
the power sales agreement between the parties.  This case
will now proceed with pre-trial preparations.  At stake 
are capacity payments the Partnership believes are due
from Virginia Power.  Through July 31, 1995 the Company
has reserved $3.5 million for its share of payments the
utility has held back.

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For information contact Diane Jones (804-980-5214)