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Rules and Regulations of the Colorado Mined Land Reclamation Board for Hard Rock, <br /> 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 local, state <br /> and federal laws and regulations, including applicable state and federal air and water <br /> quality laws and regulations, and requires Prospector to comply with all provisions of the <br /> Colorado Mined Land Reclamation Act, Article 32 of Title 34, C.R.S. ("Act") and Rules. <br /> 8. At its March 23, 2016 meeting,the Board convened a hearing and found that <br /> Prospector failed to pay annual fees and failed to submit annual reports and maps, in <br /> violation of the Act and Rules. The Board issued a written of-der, effective April 4, 2016 <br /> ("April 2016 Order"). <br /> 9. The April 2016 Order required Prospector to correct the violations cited <br /> therein within ten (10) days of the effective date of the order. The April 2016 Order <br /> ordered that, if Prospector failed to correct the violations within ten (10) days of the <br /> effective date of the April 2016 Order, then a hearing may be scheduled to consider <br /> revocation of the NOI at the next Board meeting after the Division issued required <br /> notifications. The April 2016 Order also ordered Prospector to cease and desist activities <br /> at the site and pay a civil penalty. <br /> 10. Prospector failed to comply with the April 2016 Order by failing to correct <br /> the violations cited therein within ten (10) days of the effective date of that order or at any <br /> time since. <br /> 11. On May 25, 2016,the Division sent Prospector a Reason to Believe a Violation <br /> Exists letter. The Division's letter provided notice regarding the alleged violations <br /> pursuant to section 34-32-124(1),C.R.S.,and information about the July 27, 2016 Board <br /> hearing. <br /> 12. At its July 27, 2016 meeting,the Board convened a hearing and found that <br /> Prospector failed to pay annual fees and failed to submit annual reports and maps, in <br /> violation of the Colorado Mined Land Reclamation Act,Article 32 of Title 34,C.R.S. (2016) <br /> ("Act") and Rules. The Board issued a written order, effective August 18, 2016 ("August <br /> 2016 Order"). <br /> 13. The August 2016 Order required Prospector to correct the violations cited <br /> therein within ten (10) days of the effective date of the order. The August 2016 Order <br /> ordered that,if Prospector failed to correct the violations within ten(10) days of the <br /> effective date of the August 2016 Order, then the financial warranty for the NOI may be <br /> found subject to forfeiture at the next Board meeting after the Division issued required <br /> notifications. The January 2016 Order also ordered Prospector to cease and desist <br /> activities at the site. <br /> Seaglass Holding Corp.d/b/a US Rare Earths <br /> P-2011-024/Powderliorti Project Exploration Drilling Prugrani <br /> PV-2016-001 2 <br />