U.S. Gypsum Company has filed for bankruptcy protection. However, it has agreed to continue all workers compensation proceedings and pay all ongoing workers' compensation claims within the state of Michigan.
Following is my Declaration regarding this employer.

* * * * *

STATE OF MICHIGAN
DEPARTMENT OF CONSUMER & INDUSTRY SERVICES
BUREAU OF WORKERS' DISABILITY COMPENSATION

__________________________

BUREAU OF WORKERS' DISABILITY COMPENSATION

and

UNITED STATES GYPSUM COMPANY
L & W SUPPLY CORPORATION

__________________________

DECLARATION

WHEREAS, U.S. Gypsum Company and L & W Supply Corporation are self insured employers from April 1, 1983 to the present; and

WHEREAS, U.S. Gypsum Company and L & W Supply Corporation filed for bankruptcy on June 25, 2001; and

WHEREAS, it has been established that the administration of workers' compensation proceedings is a valid exercise of police or regulatory powers of a state agency, pursuant to In re Mansfield Tire and Rubber Company, 660 F.2d 1108 (CA 6 Ohio) (1981); and

WHEREAS, the Bureau of Workers' Disability Compensation and the Board of Magistrates have the exclusive jurisdiction pursuant to §841 of the Workers' Disability Compensation Act to determine all questions and matters concerning compensation or benefits under the Act; and

WHEREAS, U.S. Gypsum Company and L & W Supply Corporation, debtors, have advised the Bureau of Workers' Disability Compensation that all workers' compensation proceedings and payments shall be continued during the pendency of the Bankruptcy proceedings; and

WHEREAS, the Bankruptcy Court has entered an order approving the continued payment and processing of all pre-petition workers' disability compensation claims against these employers; now therefore,

IT IS HEREBY DECLARED THAT:

The administration of all matters within the Workers' Disability Compensation Bureau is a valid exercise of police or regulatory powers of the State of Michigan, Bureau of Workers' Disability Compensation;

The Bureau of Workers' Disability Compensation and the Board of Magistrates have the exclusive jurisdiction, pursuant to §841 of the Workers' Disability Compensation Act, to determine all questions and matters concerning compensation or benefits under the Act;

The automatic stay provisions of the Bankruptcy Code, 11 USC §362 are NOT applicable to any proceedings currently pending, or pre-petition claims which may be filed, in the Bureau of Workers' Disability Compensation in which U.S. Gypsum Company and L & W Supply Corporation are named as employers;

All matters currently pending before the Bureau of Workers' Disability Compensation or a Magistrate, or which may be filed in the Bureau, may continue to conclusion to establish the liability of the employer under the Workers' Disability Compensation Act. Any final order that grants benefits against either L & W Supply Corporation or U.S. Gypsum Company shall be directed to U.S. Gypsum Company for payment in accordance with the Act.

Dated and entered at Lansing, Michigan this 2nd day of July 2001.

BUREAU OF WORKERS' DISABILITY COMPENSATION

Craig R. Petersen, Director