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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 THE FORFEITURE OF THE FINANCIAL WARRANTY OF SEAGLASS <br /> HOLDING CORP. D/B/A US RARE EARTHS, File No. P-2011-024 <br /> THIS MATTER came before the Mined Land Reclamation Board ("Board") on <br /> January 25, 2017 in Denver, Colorado for a hearing to consider forfeiture of the financial <br /> warranty of Seaglass Holding Corp. d/b/a US Rare Earths ("Prospector") for the site known <br /> as Powderhorn Project, file number P-2011-024. Scottie fate appeared on behalf of the <br /> Division of Reclamation, Mining and Safety ("Division"). There was no appearance on <br /> behalf of Prospector. <br /> The Board,having considered the presentation and being otherwise fully informed <br /> of the facts, hereby enters the following findings of fact,conclusions of law, and order. <br /> FINDINGS OF FACT <br /> 1. The Prospector holds Notice of Intent to Conduct Prospecting Operations P- <br /> 2011-024 ("N01"). Located in Section 24,Township 46 North, Range 2 West, 6th Principal <br /> Meridian in Gunnison County,Colorado,the site is a 0.02-acre yttrium prospecting site known <br /> as the Powderhorn Project Exploration Drilling Program. <br /> 2. On October 1, 2015,the Division sent Prospector an Annual Fee Invoice and <br /> Report Request for payment of the 2015 annual fee in the amount of$86,completed annual <br /> report,and map,all due by November 4, 201 S. <br /> 3. Prospector failed to pay the annual fee or submit the annual report and map <br /> by November 4,2015. <br /> 4. On February 12, 2016,the Division mailed a Notice of a Reason to Believe a <br /> Violation Exists letter to Prospector,informing Prospector of the possible violations for <br /> failing to file an annual report and map for 2015 and failing to pay the annual fee for 2015 <br /> by the anniversary of the NOl (November 4, 2015),and providing details regarding a <br /> bearing on this matter scheduled for March 23, 2016. <br /> S. The Division holds a financial warranty for the site in the amount of$8,225 in <br /> cash. The financial warranty is adequate for reclamation of the site. <br /> 6. Prospector failed to submit the annual report, fee, and map for 2015,as <br /> required by sections 34-32-116(4) and-127(2)(a),C.R.S.and Rule 5.6(1) of the Mineral <br />