For Additional Information:
John Grasser (202) 463-2651
Karen Batra (202) 463-2651

FOR IMMEDIATE RELEASE
January 10, 2000

TRADE GROUPS CALL BLACK-LUNG RE-PROPOSAL "CRITICALLY FLAWED"

Washington -In comprehensive comments submitted last week to the Department of Labor regarding their re-proposed changes to the Federal Black Lung Benefits Program, seven major industry groups describe the re-proposal as, "arbitrary and capricious."

Groups representing the industries most directly affected by the program -- the National Mining Association, American Insurance Association, National Council on Compensation Insurance, National Workers' Compensation Reinsurance Pool, Alliance of American Insurers, American Iron and Steel Institute, and National Association of Independent Insurers -- submitted collective comments January 6 asking that the proposed regulations be withdrawn. Many other companies and organizations submitted independent, but similar critical comments.

NMA President and CEO Richard L. Lawson said "while touted as streamlining and simplifying the regulations, the re-proposal does neither. It is critically flawed in both concept and substance."

The trade groups said the proposed regulations violate the Administrative Procedure Act and the Black Lung Benefits Act and that the Labor Department's analysis of the economic impact of these proposed changes fails to comply with the Regulatory Flexibility Act and the Small Business Regulatory Enforcement Fairness Act.

Although extensions to the comment periods were requested by over 100 organizations, the groups cited that the Labor Department denied a reasonable time period to assess the full impact of the re-proposal. Furthermore, the groups said "the Department's outright rejection of reasonable Freedom of Information Act requests is contrary to the Act and violates the Justice Department's presumption of disclosure."

"The re-proposed rules represent yet another attempt by the Administration to end-run Congress and undermine the political process. Comparable legislative changes to the Federal Black Lung Benefits Program were fully debated and rejected in the 103rd Congress," Lawson said. "Congress should direct the Labor Department to convene a panel of physicians to conduct a review of current medical evidence relating to coal worker's pneumonoconiosis and make appropriate regulatory recommendations to the Department. "

The proposed regulations, if implemented, could result in the loss of a significant number of coal mining jobs and will only accelerate the decline in coal mining employment throughout the United States. This will adversely affect not-only the mining industry, but American consumers as well who will incur excessive costs in the form of high taxes and higher electric bills.
The groups conclude, "If the Department persists in this unjustified effort, these organizations insist on a reopening of the comment period and a full hearing, including cross-examination of the Department's witnesses on the justification for the Department's proposed regulations."

For updated information on black lung legislation, see Mining Week, June 21, 2002 issue.

The U.S. mining industry produces coal, metals, building materials, and many other essential minerals that define the daily lives of 267 million Americans. The mining industry generates over $500 billion in total economic benefit each year and helps to sustain nearly 5 million U.S. jobs.