August 6, 2004

Energy Secretary Abraham Announces Plan to Help
Compensate Sick Nuclear Workers in Iowa

DOE will Order Current Contractor Not to Contest Valid
Workers' Comp Claims

WASHINGTON, DC U.S. Secretary of Energy Spencer
Abraham today announced a major breakthrough that
should allow expedited payment of workers
compensation claims for the former employees of the
Iowa Army Ammunition plant. Between 1949 and 1975,
under the purview of the Atomic Energy Commission, the
plant was operated by the Mason and Hanger-Silas Mason
Company and was responsible for manufacturing and
assembling high-explosive components for nuclear
weapons.

Since Mason and Hanger-Silas Mason Company no longer
exists, there appeared to be no contractor or willing
payer from which former employees and their families
could seek expedited consideration of their claims. By
conducting an exhaustive analysis of Mason and
Hanger-Silas Masons 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.

A major problem has been solved for these former
employees who worked so hard to keep our nation safe
from the Cold War threat, Secretary Abraham said.
After an extensive investigation into the chain of
responsibility for workers compensation claims, we
have determined that DOE can direct BWXT-Pantex
DOEs 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.

With the identification of a willing payer for Iowa
contractor employees, Secretary Abraham has also
ordered processing to resume on all pending cases from
Iowa. Previously, as DOE had not identified a willing
payer for Iowa applicants, the Iowa claims had been
moved back in the processing queue to allow DOE
contractor employees with a willing payer a chance
to have their applications processed more quickly.

In 1975, work from the Iowa Army Ammunition plant was
transferred to the Department of Energy Pantex Plant
in Amarillo, Texas. Prior to today, no DOE contractor
had been identified that could be directed by DOE not
to contest a workers compensation claims filed by
former Iowa plant workers. Now, those workers who
receive positive determinations from a DOE Physician
Panel should, if they choose to then apply for state
workers compensation benefits, be able to receive
appropriate benefits in a much easier and expedited
fashion. Generally, benefit awards consist of a
portion of lost wages plus reimbursement for
out-of-pocket medical costs.

Under Subtitle D of the Energy Employees Occupational
Illness Compensation Act of 2000, the Department of
Energy works to assist employees and their survivors
by helping to gather records relevant to the workers
illness, and providing access to panels of independent
occupational medicine physicians. More information
about the program is available at
www.eh.doe.gov/advocacy or from a toll-free hotline at
1-877-447-9756.

Media contacts:
Mike Waldron, 202/586-4940
Jeff Sherwood, 202/586-5806