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Case 16-42529 Doc 53 Filed 04/13/16 Entered 04/13/16 12:50:57 Main Document <br />Pg 10 of 31 <br />20. Obligations in Formerly Self -Insured States. The Debtors were formerly <br />self-insured in states that are now covered by the Workers' Compensation Insurance Policy. The <br />Debtors continue to incur obligations for workers' compensation claims related to the Debtors' <br />operations during the time period when the Debtors were previously self-insured in these states <br />(the "Residual Self -Insured Claims"). 14 <br />21. Black Lung Act Obligations. As noted above, the Debtors satisfy their <br />statutory Black Lung Benefits Act obligations on a self-insured basis. The Debtors incur <br />approximately $1.5 million in annual obligations for claims under the Federal Black Lung Act <br />(the "Federal Black Lung Claims"). 15 <br />22. The Workers' Compensation Claims. As used throughout this Motion, the <br />term "Non -Wyoming Workers' Compensation Claims" shall refer to, collectively: (a) the <br />Insured State Claims, (b) the Residual Self -Insured Claims and (c) the Federal Black Lung <br />Claims. As used throughout this Motion the term "Workers' Compensation Claims" shall refer to, <br />collectively: (a) the Non -Wyoming Workers' Compensation Claims and (b) the Wyoming <br />Workers' Compensation Payments. <br />23. Administration of the Non -Wyoming Workers' Compensation Claims. <br />The Debtors employ two third -party administrators to collect and process the Non -Wyoming <br />Workers' Compensation Claims: (a) Cannon Cochran Management Services, Inc. ("CCMSI") <br />14 Due to the manner in which the Debtors pay the Residual Self -Insured Claims (through CCMSI (as defined <br />below)), it would be administratively burdensome for the Debtors to determine the specific amount they <br />pay on Residual Self -Insured Claims per year. The Debtors estimate, however, that these payments are de <br />minimis in the context of the other payments made related to their Workers' Compensation Program. In <br />any event, the amounts outstanding on the Residual Self -Insured Claims as of the Petition Date are included <br />in the amounts owed to CCMSI on account of claims administered, discussed below. <br />15 This $1.5 million Federal Black Lung Claim amount does not include amounts that may be owed under the <br />Black Lung Benefits Act to former employees of Patriot Coal Corporation ("Patriot"), for which the <br />Debtors may or may not be liable. <br />-10- <br />