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Case 16-42529 Doc 53 Filed 04/13/16 Entered 04/13/16 12:50:57 Main Document <br />Pg8of31 <br />The State Workers' Compensation Program and Federal Black Lung Claims <br />16. The Debtors provide workers' compensation coverage (the "Workers' <br />Compensation Program") for their employees at the level required by statute for each state in <br />which the Debtors have employees, including coverage for occupational pneumoconiosis (also <br />known as "black lung") claims under applicable state law and the Federal Mine Safety and <br />Health Act of 1977, 30 U.S.C. §§ 901-45 (the "Black Lung Benefits Act"). The Debtors satisfy <br />their statutory workers' compensation obligations either in accordance with Wyoming's state <br />programs or pursuant to workers' compensation insurance policies, as set forth below. The <br />Debtors satisfy their statutory Black Lung Benefits Act obligations on a self-insured basis. <br />17. Operations in Wyoming. In Wyoming, the Debtors satisfy their workers' <br />compensation obligations through participation in Wyoming's state-run workers' compensation <br />program. Under the Wyoming program, the state administers and pays workers' compensation <br />claims for a particular employee directly. Although there is no retention or deductible, the <br />Debtors do pay a "premium" to the state, which is calculated as a percentage of payroll at a <br />percentage determined annually by the state (the "Wyoming Workers' Compensation <br />Payments").12 The Debtors make these Wyoming Workers' Compensation Payments twice <br />monthly to their payroll tax administrator Ceridian HCM, Inc. ("Ceridian"). Ceridian remits <br />these payments to the state of Wyoming on a quarterly basis. In 2015, the Debtors made <br />approximately $1.3 million in total Wyoming Workers' Compensation Payments. As of the <br />Petition Date, the Debtors estimate that they owe $50,000 in Wyoming Workers' Compensation <br />Payments. <br />12 The rate applied to payoll in connection with the Wyoming Workers' Compensation Payments was .0067 <br />and .0056, in 2015 and 2016, respectively. <br />