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CONFIDENTIAL - NOT FOR INCLUSION IN THE DIVISION OR BOARD'S PUBLIC FILES <br /> BEFORE THE MINED LAND RECLAMATION BOARD <br /> STATE OF COLORADO <br /> Notice of Violation No. PV-2016-001 <br /> FINDINGS OF FACT, CONCLUSIONS OF LAW, AND ORDER <br /> IN THE MATTER OF A POSSIBLE VIOLATION BY SEAGLASS HOLDING CORP. <br /> D/B/A US RARE EARTHS, CEASE AND DESIST ORDER, CORRECTIVE ACTION, <br /> AND CIVIL PENALTIES FOR FAILING TO PAY ANNUAL FEES AND FILE <br /> ANNUAL REPORTS, File No. P-2011-024 <br /> THIS MATTER came before the Mined Land Reclamation Board ("Board") in <br /> executive session on March 23, 2016 in Denver, Colorado for a hearing to consider a <br /> possible violation by Seaglass Holding Corp. d/b/a US Rare Earths ("Prospector"), <br /> cease and desist order, corrective actions, and civil penalties for failing to pay <br /> annual fees and file annual report and a map, file P-2011-024. Scottie Tate, Wally <br /> Erickson, and Tony Waldron appeared on behalf of the Division of Reclamation, <br /> Mining and Safety ("Division"). There was no appearance on behalf of Prospector. <br /> The Board, having considered the presentation and having been otherwise <br /> fully informed of the facts, hereby enters the following findings of fact, conclusions <br /> of law and order. <br /> FINDINGS OF FACT <br /> 1. The Prospector holds Notice of Intent to Conduct Prospecting <br /> Operations P-2011-024 ("NOI"). Located in Section 24, Township 46 North, Range 2 <br /> West, 6th Principal Meridian in Gunnison County, Colorado, the site is a 0.02-acre <br /> Yttrium prospecting site known as the Powderhorn Project Exploration Drilling <br /> Program. <br /> 2. On October 1, 2015, the Division sent Prospector an Annual Fee Invoice <br /> and Report Request for payment of the 2015 annual fee in the amount of$86, <br /> completed annual report, and map, all due by November 4, 2015. <br /> 3. Prospector failed to pay the annual fee or submit the annual report and <br /> map by November 4, 2015. <br /> 4. On February 12, 2016, the Division mailed a Notice of a Reason to <br /> Believe a Violation Exists letter to Prospector, informing Prospector of the possible <br /> violations for failing to file an annual report and map for 2015 and failing to pay the <br /> CONFIDENTIAL - NOT FOR INCLUSION IN THE DIVISION OR BOARD'S PUBLIC FILES <br />