UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 3
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
1. Name and Address of Reporting Person
   Ashland Inc.
   
   1000 Ashland Drive
   Russell, KY  41169
2. Date of Event Requiring Statement (Month/Day/Year)
   July 1, 1997
3. IRS or Social Security Number of Reporting Person (Voluntary)
   61-0122250
4. Issuer Name and Ticker or Trading Symbol
   Arch Coal, Inc.
   ACI
5. Relationship of Reporting Person(s) to Issuer (Check all applicable)
   ( ) Director  (X) 10% Owner  ( ) Officer (give title below) ( ) Other
   (specify below)
   
6. If Amendment, Date of Original (Month/Day/Year)
   June 30,1997
7. Individual or Joint/Group Filing (Check Applicable Line)
   (X) Form filed by One Reporting Person
   ( ) Form filed by More than One Reporting Person
___________________________________________________________________________________________________________________________________ Table I -- Non-Derivative Securities Beneficially Owned | ___________________________________________________________________________________________________________________________________| 1. Title of Security |2. Amount of |3. Ownership |4. Nature of Indirect | | Securities | Form: | Beneficial Ownership | | Beneficially | Direct(D) or | | | Owned | Indirect(I) | | ___________________________________________________________________________________________________________________________________| Common Stock |20,734,080 |D | | - -----------------------------------------------------------------------------------------------------------------------------------| Common Stock |648,307 (1) |D | | - -----------------------------------------------------------------------------------------------------------------------------------| ___________________________________________________________________________________________________________________________________| ___________________________________________________________________________________________________________________________________ Table II -- Derivative Securitites Beneficially Owned | ___________________________________________________________________________________________________________________________________| 1.Title of Derivative |2.Date Exer- |3.Title and Amount | |4. Conver-|5. Owner- |6. Nature of Indirect | Security | cisable and | of Underlying | |sion or |ship | Beneficial Ownership | | Expiration | Securities | |exercise |Form of | | | Date(Month/ |-----------------------|---------|price of |Deriv- | | | Day/Year) | |Amount |deri- |ative | | | Date | Expira- | |or |vative |Security: | | | Exer- | tion | Title |Number of|Security |Direct(D) or | | | cisable | Date | |Shares | |Indirect(I) | | ___________________________________________________________________________________________________________________________________| ___________________________________________________________________________________________________________________________________|
Explanation of Responses: 1. Total shares held by the bank administrator of the Arch Coal, Inc. Dividend Reinvestment Plan. SIGNATURE OF REPORTING PERSON Thomas L. Feazell, Senior VP, General Counsel and Secretary DATE July 9, 1997