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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 REVOCATION OF NOTICE OF INTENT TO CONDUCT <br /> PROSPECTING OPERATIONS AND FINDING FINANCIAL WARRANTY <br /> SUBJECT TO FORFEITURE OF SEAGLASS HOLDING CORP. D/B/A US RARE <br /> EARTHS, File No. P-2011-024 <br /> THIS MATTER came before the Mined Land Reclamation Board ("Board") in <br /> executive session on July 27, 2016 in Denver, Colorado for a hearing to consider <br /> revocation of Notice of Intent to Conduct Prospecting Operations number P-2011-024 <br /> ("NOI"), held by Seaglass Holding Corp. d/b/a US Rare Earths ("Prospector"), and <br /> finding the financial warranty subject to forfeiture for Prospector's failure to comply <br /> with a Board order and violating provisions of the NOI. Scottie Tate appeared on <br /> behalf of the Division of Reclamation, Mining and Safety ("Division"). There was no <br /> appearance on behalf of Prospector. <br /> The Board, having considered the presentation and being otherwise fully <br /> informed of the facts, hereby enters the following findings of fact, conclusions of law, <br /> and order. <br /> FINDINGS OF FACT <br /> 1. The Prospector holds Notice of Intent to Conduct Prospecting Operations <br /> P-2011-024 ("NOI"). Located in Section 24, Township 46 North, Range 2 Nest, 6th <br /> Principal Meridian in Gunnison County, Colorado, the site is a 0.02-acre yttrium <br /> prospecting site known as the Powderhorn Project Exploration Drilling 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 /> annual fee for 2015 by the anniversary of the NOI (November 4, 2015), and <br /> providing details regarding a hearing on this matter scheduled for March 23, 2016. <br />