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5. The Division holds a financial warranty for the site in the amount of <br /> $8,225. The financial warranty is adequate for reclamation of the site. <br /> 6. Prospector failed to submit the annual report, fee, and map for 2015, <br /> as required by sections 34-32-116(4) and -127(2)(a), C.R.S. and Rule 5.6(1) of the <br /> Mineral Rules and Regulations of the Colorado Mined Land Reclamation Board for <br /> Hard Rock, Metal, and Designated Mining Operations ("Rules"). <br /> 7. Section V, Provision number 6 of the NOI requires that prospecting <br /> operations shall be conducted in such a manner as to comply with all applicable <br /> local, state and federal laws and regulations, including applicable state and federal <br /> air and water quality laws and regulations, and requires Prospector to comply with <br /> all provisions of the Colorado Mined Land Reclamation Act, Article 32 of Title 34, <br /> C.R.S. ("Act") and Rules. <br /> 8. At its March 23, 2016 meeting, the Board convened a hearing and <br /> found that Prospector failed to pay annual fees and failed to submit annual reports <br /> and maps, in violation of the Act and Rules. The Board issued a written order, <br /> effective April 4, 2016 ("April 2016 Order"). <br /> 9. The April 2016 Order required Prospector to correct the violations <br /> cited therein within ten (10) days of the effective date of the order. The April 2016 <br /> Order ordered that, if Prospector failed to correct the violations within ten (10) days <br /> of the effective date of the April 2016 Order, then a hearing may be scheduled to <br /> consider revocation of the NOI at the next Board meeting after the Division issued <br /> required notifications. The April 2016 Order also ordered Prospector to cease and <br /> desist activities at the site and pay a civil penalty. <br /> 10. Prospector failed to comply with the April 2016 Order by failing to <br /> correct the violations cited therein within ten (10) days of the effective date of that <br /> order or at any time since. <br /> 11. On May 25, 2016, the Division sent Prospector a Reason to Believe a <br /> Violation Exists letter. The Division's letter provided notice regarding the alleged <br /> violations pursuant to section 34-32-124(1), C.R.S., and information about the July <br /> 27, 2016 Board hearing. <br /> CONCLUSIONS OF LAW <br /> 12. The Board has jurisdiction over this matter and Prospector pursuant to <br /> the Act. <br /> 13. Prospectors are required to submit annual reports and maps, and pay <br /> annual fees for each year of operation. C.R.S. §§ 34-32-116(4), -127(2)(a) (2015); Rule <br /> Seaglass Holding Corp. d/b/a US Rare Earths <br /> P-2011-024/Powderhorn Project Exploration Drilling Program <br /> PV-2016-001 2 <br />