SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

 Current Report Pursuant to Section 13 or 15(d) of the Securities and Exchange
                                   Act of 1934

         Date of Report (Date of Earliest Event Reported): July 1, 1997

                                 ARCH COAL, INC.
             (Exact Name of Registrant as Specified in its Charter)

                                    DELAWARE
                 (State or Other Jurisdiction of Incorporation)

                  1-13105                             43-0921172
            (Commission File No.)                 (I.R.S. Employer
                                                  Identification No.)

                                  CityPlace One
                                    Suite 300
                            St. Louis, Missouri 63141
          (Address of Principal Executive Offices, including Zip Code)

                                (314) 994-2700
             (Registrant's telephone number, including area code)








ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT.

      On July 1, 1997, the Board of Directors of the Registrant  engaged Ernst &
Young LLP, to act as the Registrant's  independent  certified public accountant.
Ernst & Young LLP  replaces  Arthur  Andersen  LLP who was  dismissed on July 1,
1997.  Ernst & Young acts as the  independent  accountant  for Ashland Inc., the
majority  stockholder of the Registrant who will be consolidating  the financial
statements  of the  Registrant  as a  consequence  of the July 1, 1997  business
combination of the Registrant and Ashland Coal, Inc. Arthur Andersen's report on
the  Registrant's  financial  statements  for the fiscal year ended December 31,
1996 and 1995 did not contain an adverse  opinion or disclaimer of opinion,  nor
was it  qualified  or modified  as to  uncertainty,  audit  scope or  accounting
principles.  There  were no  disagreements  between  the  Registrant  and Arthur
Andersen on any matter of accounting principles or articles, financial statement
disclosure or auditing scope or procedures during such fiscal years.

ITEM 7.  FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.

      (c)   Letter  of  Arthur  Andersen & Co. LLP filed  pursuant to Regulation
S-K, item 304(a)(3).







                                   SIGNATURES

Pursuant to the requirements of Securities  Exchange Act of 1934, the Registrant
has duly  caused  this  report to be signed  on its  behalf by the  undersigned,
thereunto duly authorized, in St. Louis, State of Missouri, on July 3, 1997.

                                          ARCH COAL, INC.

                                          By:  /s/ Jeffry N. Quinn
                                                -------------------
                                                Jeffry N. Quinn
                                                Senior Vice President

                                                                   Exhibit 16.1


To the Securities and Exchange Commission:

We have read Item 4 included in the attached Form 8-K dated July 3, 1997 of Arch
Coal,  Inc. to be filed with the Securities and Exchange  Commission  and are in
agreement with the statements contained therein.

/s/ Arthur Andersen LLP

Arthur Andersen LLP

St. Louis, Missouri
July 7, 1997