2016-08-18_ENFORCEMENT - P2011024

• Permit No: P2011024
• IBM Index Class Name: ENFORCEMENT
• Doc Date: 8/18/2016
• From: DRMS
• To: Seaglass Holding Corp.
• Email Name: DMC
• Email Name: GRM
• Media Type: D
• Archive: No

5.6(1). Prospector failed, by the anniversary date of the NOI, to submit an annual
report, map, and fee for 2015, in violation of section 34-32-116(4), C.R.S. and Rules.
14. Under section 34-32-124(6)(a), C.R.S., if the Board finds that an
operator violated a permit provision, the Board may suspend, modify, or revoke such
permit. By violating provisions of the Act and Rules, Prospector is in violation of
provisions of the NOI, specifically including provision V.6. Suspension, modification,
or revocation of the NOI is appropriate.
15. The Board may find a financial warranty subject to forfeiture where a
prospector failed to cure a default under a performance warranty despite written
notice of the default and ample time to cure such default. C.R.S. § 34-32-118(1)(b)
(2015). Prospector's violation of provisions of the Act and Rules constitutes
Prospector's default under its performance warranty in provision V.6 of the NOI.
Prospector defaulted on its performance warranty for the NOI, received written
notice of the default, and failed to cure such default despite ample time to do so.
ORDER
Prospector did not appear in this matter to present any mitigating factors.
There is no information before the Board indicating that any action other than the
requested action is appropriate. Therefore, based on the foregoing findings of fact
and conclusions of law, the Board enters the following order:
The Board finds Seaglass Holding Corp. d/b/a US Rare Earths in continuing
violation of the Act, under sections 34-32-116(4) and -127(2), C.R.S. and Rules for
failing to submit required annual fees and annual reports and maps.
The Board finds Seaglass Holding Corp. d/b/a US Rare Earths in violation of
the Act pursuant to section 34-32-124(6)(a), C.R.S.
The Board AFFIRMS the cease and desist order issued in the April 2016 Order.
The Board orders that Notice of Intent number P-2011-024 is REVOKED.
The Board finds the financial warranty- for Notice of Intent number P-2011-
024 to be subject to forfeiture under section 34-32-118(1)(b), C.R.S. for Prospector's
failure to cure a default under its performance warranty.
The Board directs the Division to, in accordance with section 34-32-118(2),
C.R.S., notify Prospector that the financial warranty is subject to forfeiture and of
its right to appear at a Board hearing to consider whether the financial warranty
for the NOI should be forfeited, such hearing to be held at least thirty days after
receipt of such notice. Prospector has not posted a financial warranty or identified
Seaglass Holding Corp. d/b/a US Rare Earths
P-2011-024/Powderhorn Project Exploration Drilling Program
PV-2016-001 3