Form 8-K/A

                              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):  August 30, 1996


                     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 that it had reached an interim agreement 
with the UMWA Combined Benefit Fund to provide security to the 1992 Plan.


 Item 7.	Financial Statements and Exhibits

	(c)   Exhibits

	No.		Description
	
	99.3	Press release dated August 28, 1996


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:	August 30, 1996 		            	By:______________________________
							                                 Robert J. Jaeger
							                                 Senior Vice President - Finance
							                                 Treasurer, and Controller



Exhibit 99.3


                         Westmoreland Signs Interim
			                     Agreement with Benefit Funds
		


Colorado Springs, CO -- August 28, 1996 -- Westmoreland Coal Company 
(NYSE:WCX) announced today that on August 21, 1996 it reached further 
interim agreements with the trustees of the United Mine Workers of America 
("UMWA") Combined Benefit Fund ("Combined Fund") and the 1992 UMWA 
Benefits Plan ("1992 Plan").  The Company is seeking to defer premiums and 
post non-cash security in order to preserve cash for implementation of its 
acquisition strategy.

Under The Coal Industry Retiree Health Benefit Act of 1992, a Federal law,
the Company is required to provide postretirement medical benefits for UMWA 
miners and includes making premium contributions into these two benefit plans.  
The Combined Fund is a multiemployer plan which benefits miners who retired 
before January 1, 1976, or who retired after that date but whose last
employer did not provide benefits through an individual employer plan
("IEP"), some of the so-called industry "orphans".  Westmoreland's current
annual premium to the Combined Fund is approximately $5 million, due in
monthly installments.

The 1992 Plan benefits miners who were eligible to retire between
January 1, 1976 and February 2, 1993 and did so on or before
September 30, 1994.  The 1992 Plan also covers miners whose former employer
goes out of business and no longer has an IEP, and new qualified
beneficiaries who would have been eligible under the Combined Plan had that
Plan not been closed to new beneficiaries as of July 20, 1992.  The
1992 Plan requires posting of security for future benefits under the Act.
In Westmoreland's case that obligation is approximately $21 million at this 
time.

On July 9, 1996 an interim agreement was reached with Combined Fund whereby 
Westmoreland is making required monthly beneficiary payments into an escrow 
account as a precondition for further negotiations regarding a long term
deferral of premiums.  Escrowed funds will be available to the Company for
acquisitions under certain conditions during the term of the interim
agreement.  The Company hopes to finalize a non-cash long term arrangement
prior to the November 14, 1996 expiration of the interim agreement. 

In a companion agreement signed on August 21, 1996 Westmoreland pledged its 
stock in its affiliates Westmoreland Energy, Inc., Westmoreland Resources,
Inc., and Westmoreland Coal Sales Company, in place of cash security
requirements and certain cash premium payments.  The pledge agreement
secures the Company's future obligations to the 1992 Plan.  The pledge of
stock also secures Combined Fund premiums to be paid into the escrow account
to the extent cash is withdrawn for acquisition and other purposes as well as
retroactive premiums for additional assigned beneficiaries expected to be
assessed this fall. 

Christopher K. Seglem, Westmoreland Coal Company's Chairman, President and 
CEO said, "We have entered into these agreements with the Benefit Funds in the 
hope they will lead to a long term deferral of cash premiums and acceptance of 
non-cash security so that available cash can be invested in profitable new 
businesses.  We are aggressively seeking to acquire such businesses which, in 
combination with our tax loss carryforwards, can generate the cash flows 
necessary to make up deferrals, meet our future benefit premium obligations,
and return value to our shareholders.  In order to accomplish this, we must
conserve and reinvest the cash available, and cooperation of the Benefit
Funds is critical to reaching our goal."

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For further information contact Diane Jones (719) 448-5814.



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