ATC Atlantic Coal

RNS No 7205v
ATLANTIC RICHFIELD COMPANY
27th February 1998


ARCO, Alliance Coal Corporation Begin Exclusive Discussions for Sale of ARCO's
U.S. Coal Assets

Los Angeles, Feb. 27 ARCO (NYSE:ARC) announced today it has entered into
exclusive discussions with Alliance Coal Corporation, an affiliate of The Beacon
Group, for the sale of ARCO's coal assets in the United States.

As a result of this acquisition, Alliance will become the second largest coal
producer in the United States.  In addition to The Beacon Group, an affiliate of
Texas Pacific Group will become an investor in the combined entity as a result
of the transaction.

All principal terms and conditions have been agreed upon, but a binding
agreement has not been executed.  Terms and conditions were not disclosed.  

No final decision related to ARCO's coal assets in Australia has been made.
ARCO's Australian holdings include joint venture interests in three mines in
Queensland, Australia - Curragh, Gordonstone and Blair Athol.

In the U.S., ARCO owns the Black Thunder and Coal Creek mines in Wyoming, in the
West Elk mine in Colorado, and, through Canyon Fuel Company L.L.C. with ITOCHU
Corp. of Japan, three mines in Utah.

ARCO's coal interests are operated by ARCO Coal company, its Denver-based
division.

Alliance, through its subsidiary MAPCO Coal Inc., owns and operates eight mining
complexes in Illinois, Kentucky, Maryland and Virginia.  The Beacon Group is a
private investment and advisory firm headquartered in New York City.  Texas
Pacific Group is a private investment firm based in Forth Worth, Texas, and San
Franciso.

For information contact:  Albert Greenstein 213-486-3384.  For a menu of ARCO's
news releases or to retrieve a specific release, visit our Web site at
http://www.arco.com on the Internet.

END

MSCAFLSIFAITFAT

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