SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, DC 20549

                                SCHEDULE 13D
                               (Rule 13d-101)

                 Under the Securities Exchange Act of 1934

                             (Amendment No. 2)


                          Melamine Chemicals, Inc.
                              (Name of issuer)


                                Common Stock
                       (Title of class of securities)


                                 585332 10 9
                               (CUSIP number)


                             Thomas L. Feazell
                             1000 Ashland Drive
                             Russell, KY 41169
                               (606) 329-3403
               (Name, address and telephone number of person
             authorized to receive notices and communications)


                              August 26, 1997
          (Date of event which requires filing of this statement)

     If the filing person has previously  filed a statement on Schedule 13G
to report the acquisition which is the subject of this Schedule 13D, and is
filing  this  schedule  because  of  Rule  13d-1(b)(3)  or (4),  check  the
following box. X






CUSIP No.  585332 10 9                      13D


1        NAME OF REPORTING PERSONS  Ashland Inc.
         S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
         61-0122250


2        CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP     (a)
                  Not Applicable                              (b)

3        SEC USE ONLY


4        SOURCE OF FUNDS
                  WC

5        CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED 
         PURSUANT TO ITEM 2(d) or 2(e)
                  Not Applicable

6        CITIZENSHIP OR PLACE OF ORGANIZATION
                  Kentucky

       NUMBER OF               7    SOLE VOTING POWER
        SHARES                              1,275,000 shares
     BENEFICIALLY              8    SHARED VOTING POWER
       OWNED BY                             0
         EACH                  9    SOLE DISPOSITIVE POWER
       REPORTING                            1,275,000 shares
      PERSON WITH             10    SHARED DISPOSITIVE POWER
                                            0

11       AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
                  1,275,000 shares

12       CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
                  Not Applicable

13       PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
                  23.4%

14       TYPE OF REPORTING PERSON
                  CO




                     Securities and Exchange Commission
                           Washington, D.C. 20549
                                Schedule 13D


                  Ashland Inc.  ("Ashland")  hereby amends and  supplements
                  its Schedule 13D (the "Schedule  13D")  originally  filed
                  with  the   Securities  and  Exchange   Commission   (the
                  "Commission")   on  June  30,  1997,  as  amended  by  an
                  Amendment No. 1 (the  "Amendment  No. 1"), filed with the
                  Commission  on August 14,  1997,  relating  to  Ashland's
                  ownership of Common Stock,  par value $.01 per share,  of
                  Melamine  Chemicals,  Inc. ("MCI"),  as set forth in this
                  Amendment No 2. Capitalized terms not defined herein have
                  the meanings assigned thereto in the Schedule 13D.

Item 4.  Purpose of Transaction:

                  Item 4 of the  Schedule  13D is hereby  amended to add at
                  the end thereof the following:

                  "On August 26, 1997,  MCI issued a press release  stating
                  that Goldman,  Sachs & Co. was continuing their review of
                  Ashland's   offer  and  other   available   alternatives,
                  including the sale of MCI to buyers other than Ashland.

                  On August 26, 1997,  Mr.  Chellgren  sent a letter to Mr.
                  Crook which  stated that  Ashland was  gratified  to have
                  confirmation  that  Goldman,  Sachs & Co. is conducting a
                  structured process to solicit acquisition  proposals from
                  other potential  buyers.  The August 26, 1997 letter also
                  confirmed that Ashland's offer of August 14, 1997 remains
                  outstanding.  Ashland  stands  ready to purchase  all the
                  issued  and  outstanding  shares  of MCI that it does not
                  already  own at a price  of  $14.75  per  share  in cash,
                  subject to confirmatory  due diligence and the signing of
                  a definitive  merger  agreement with customary  terms and
                  conditions.  The August 26,  1997 letter also stated that
                  because it has been Ashland's  experience  that a process
                  such as the one undertaken by Goldman, Sachs & Co. should
                  take approximately 90 days, and because MCI is now nearly
                  60 days into the process,  Ashland  would hope to see the
                  process  completed  by October  1, 1997 and that  Ashland
                  will  review the status of the  process  and  re-evaluate
                  alternative approaches at that time. A copy of the August
                  26, 1997 letter is attached as an exhibit hereto."

Item 7.  Material to be Filed as Exhibits:

                  Item 7 of the Schedule  13D is hereby  amended to add the
                  following exhibit:

                  (1)      The Acquisition of Issuer Control, Liquidation, 
                           Sale of Assets, Merger, or Change in
                           Business or Corporate Structure:

                           Exhibit 99.1 -   Letter dated August 26, 1997 
                                            from Paul W. Chellgren to 
                                            James W. Crook







                                 SIGNATURE

         After  reasonable  inquiry  and to the  best of my  knowledge  and
belief, I certify that the information set forth in this statement is true,
complete and correct.



                                          August 26, 1997

                                             /s/ Thomas L. Feazell
                                          ------------------------------
                                          Thomas L. Feazell
                                          Senior Vice President, General
                                          Counsel and Secretary





                               EXHIBIT INDEX

Exhibit
No.                   Description

99.1           Letter dated August 26, 1997 from Paul W.Chellgren to
               James W. Crook



                                                              EXHIBIT 99.1

                                [ASHLAND LOGO]

ASHLAND INC.   P.O. Box 391  ASHLAND, KENTUCKY 41114     PHONE (606) 329-3333


PAUL W. CHELLGREN
Chairman of the Board and
Chief Executive Officer
(606) 329-3024
(606) 329-3559 (FAX)






                                             August 26, 1997


Mr. James W. Crook
Chairman of the Board
Melamine Chemicals, Inc.
P.O. Box 748
Donaldsonville, LA 70346

Dear Jimmy,

         We were very pleased to see the  Melamine  Chemicals,  Inc.  press
release this morning in which you  reiterated  your plans to engage Goldman
Sachs to assist you in  reviewing  our offer to  purchase  the  outstanding
shares  of  Melamine  Chemicals,   Inc.  It  is  also  gratifying  to  have
confirmation  that Goldman  Sachs is  conducting  a  structured  process to
solicit  acquisition  proposals from other potential buyers. We continue to
believe  that  such a  process  is in the  best  interest  of the  Melamine
shareholders, including Ashland Inc.

         In light of your board's decision to move forward in this fashion,
we wish to confirm that our offer of August 14, 1997  remains  outstanding.
Ashland stands ready to purchase all of the issued and  outstanding  shares
of  Melamine  that it does not  already own at a price of $14.75 per share.
The offer is subject to  confirmatory  due  diligence  and the signing of a
definitive agreement containing customary terms and conditions.  As I noted
in my August 14 letter,  this is an all cash offer which is not  contingent
upon financing.

         We trust that our offer will receive  full and fair  consideration
from the Melamine Board as it explores  alternatives  to maximize value for
the Melamine shareholders.  It has been our experience that a process, such
as the one undertaken by Goldman Sachs,  should take approximately 90 days.
As you are now  nearly 60 days  into the  process,  we would  hope to see a
conclusion to the process by about  October 1, 1997. At that time,  Ashland
will  review the status of your  process and will  re-evaluate  alternative
approaches.

         We look forward to a continuing dialogue on this important matter.

                                    Sincerely yours,


                                       /s/ Paul W. Chellgren
                                    Paul W. Chellgren