Grassley Works to Validate Willing Payor for Iowa Army Ammunition Plant

"By conducting an exhaustive analysis of Mason and Hanger-Silas Mason’s contractual relationships in the years following the closing of the Iowa plant, the Department of Energy (DOE) recently determined that BWXT-Pantex should serve as the "willing payer" for the validated Iowa Army Ammunition Plant applications. Now that a "willing payer" has been identified, Secretary Abraham will direct BWXT-Pantex not to oppose any cases deemed valid by the independent medical panel.

After an extensive investigation into the chain of responsibility for workers’ compensation claims, we have determined that DOE can direct BWXT-Pantex –– DOE’s current contractor at its Amarillo, Texas facility –– not to contest claims filed by former Iowa plant contractor employees who receive a positive determination from an independent medical panel. The Department of Energy will do all it can to make sure those who deserve compensation receive it as quickly as possible."

(a) How many IAAP claims have been filed and how many have been decided by DOE Physicians Panels as of September 20, 2004. Please provide a list of all cases, including positive and negative findings.

(b) How many of these have filed claims for state workers’ compensation based on the DOE Physician Panel findings under Subtitle D?

(c) How many of these claims filed under Subtitle D have been paid since the enactment of EEOICPA? What is the value of each claim paid? What is the total value of such claims paid?

Will BWXT-Pantex serve as a willing payor at IAAP for:

(a) all AEC/ERDA prime contractor employees between 1947-75?

(b) all AEC/ERDA employees of subcontractors between 1947-75?

all AEC/ERDA security force workers at IAAP between 1947-75?

If any groups listed in subparts a-c are not covered, how will DOE assure payments for validated claims for those employees or their survivors?

What directives have been provided to BWXT-Pantex to serve as a willing payor? Please provide all communications between DOE and BWXT-Pantex regarding its willing payor responsibilities at IAAP, or elsewhere.

According to the DOE press release of August 6, DOE has conducted an exhaustive analysis of the "chain of responsibility." Please provide copies of DOE’s research, including legal memos, contractual documents, communications, e-mails and supporting data, which allows DOE to conclude that BWXT-Pantex has the legal responsibility for Subtitle D claims at IAAP.

What kind of insurance policies did Mason Hanger-Silas Mason have for workers’ compensation insurance at IAAP between 1947-1975? With which carriers? Do the Mason Hanger-Silas Mason insurance policies include employees of subcontractors and security force workers? Please provide copies of these insurance policies and communications with insurers.

Has the State of Iowa agreed that BWXT-Pantex can be ordered to make payments for state workers’ compensation benefits for all Subtitle D claims at IAAP in lieu of Mason Hanger-Silas Mason? Please provide all documents which indicate that Iowa has agreed it has such authority, and that it will hold BWXT-Pantex liable in lieu of the IAAP contractors and subcontractors.

Have the issuers (and their successors) of workers’ compensation insurance policies for Mason Hanger-Silas Mason assigned their workers’ compensation liability for occupational disease claims to BWXT-Pantex? What about subcontractors? Please provide all documents transferring this liability. Has the State of Iowa agreed to this assignment of liability?

Please provide all communications between DOE (or BWXT-Pantex) and the issuers (and their successors) of workers’ compensation policies for Mason Hanger-Silas Mason at IAAP with respect to assigning BWXT-Pantex as the willing payor.

Under DOE’s most recent path forward, how long will it take for DOE to complete payment of all validated claims at IAAP using BWXT-Pantex? Please provide a definitive date by which all claims decisions will have been rendered and payments issued.

What is the legal significance of an order by Secretary Abraham to BWXT-Pantex not to contest a claim with respect to Iowa state law?

What issues are encompassed by a DOE order to BWXT-Pantex not to contest a claim? Causation? All affirmative defenses? Last injurious employer? Level of Disability? Date of disability? Amount of benefits to be paid? Offsets? Please provide the directions or instructions DOE has given BWXT-Pantex with respect to an order not to contest a claim.

In the event a claimant receives a positive Physicians Panel determination, what role will BWXT-Pantex play in evaluating the amount to be offered as a settlement? What role will the Office of Worker Advocacy or DOE Field Office play in determining the amount of the settlement offer and whether it is appropriate?

Will BWXT-Pantex take an adversarial role in a proceeding in the State of Iowa? Will DOE pay BWXT-Pantex’s legal costs for participating in a proceeding dealing with the level of benefits or other matters?

(a) What is the estimated lifecycle cost of paying workers’ compensation benefits claims under Subtitle D at IAAP? Please provide the basis for these estimates. Please identify the source of funds in the DOE’s FY 05 budget request for these benefits.

What is the DOE’s estimate for total benefit costs under Subtitle D? Please provide the basis for these estimates. Please identify the source of funds for these benefits.