W.Va. legislative session tackles workers' comp, black lung

Washington (Platts)--18Nov2005

Concluding a speedy special session earlier this week, the West Virginia
Legislature approved a change to the state workers' compensation law that
allows Gov. Joe Manchin to appoint a board for the new privatized mutual
insurance company, BrickStreet.

West Virginia coal producers gave near-unanimous support earlier this year for
the governor's planned financial rescue of the state workers' comp system
through a new 56cts/ton severance tax . The measure passed, and this week's
special session dealt with the mechanics of putting together the bureaucracy
that will carry out the governor's plans to rescue the long-beleaguered
system, which provided hundreds of millions of dollars to injured West
Virginia coal miners and ended up requiring increasingly higher premiums from
the state's coal companies so the system could stay afloat.

"This will save the state, and consequently, the workers' comp fund nearly
$100 million in federal taxes over the next three years," West Virginia Coal
Assn. President Bill Raney said. "Legislators also approved a change that will
keep the Coal Workers' Pneumoconiosis Fund in the old fund as opposed to
transferring it to the new mutual company.

"Currently, assets in that fund exceed identified liabilities and any overage
will be used to help pay the workers' comp debt," Raney said. "Because of
changes to the workers' comp laws and programs over the past few years and an
improved, increased cash flow, the administration announced it would not be
necessary to issue bonds to pay the debt, as originally thought."

The special legislative session convened in Charleston, W.Va., on Sunday and
concluded Monday. The next regular legislative session starts Jan 11 and lasts
60 days.

For more information, take a trial to Platts Coal Trader at
http://www.coaltrader.platts.com.

Please visit: www.platts.com

Their coverage of energy matters is extensive!!.