2017-03-01_ENFORCEMENT - P2011024

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14. The August 2016 Order directed the Division to notify Prospector and all financial warrantors of the NOI of their right to appear at a Board hearing to consider whether the financial warranty for the N01 is subject to forfeiture. 15. Prospector failed to comply with the August 2016 Order by failing to correct the violations cited therein within ten (10) days of the effective date of that order or at any time since. 16. On September 12, 2016, the Division sent a Notice of Formal Board Hearing letter to Prospector stating the alleged violations,that a public hearing on the matter would be held during the October 26-27, 2016 Board meeting,and providing information about the hearing. 17. On September 23,2016,the Division received its September 12, 2016 by the U.S. Postal Service, marked "Return to Sender,Not Deliverable as Addressed." 18, On December 7, 2016, the Division sent a Notice of Formal Board Hearing letter to Prospector stating the alleged violations,that a public hearing on the matter would be held during the January 25, 2017 Board meeting,and providing information about the hearing. CONCLUSIONS OF LAW 19. The Board has jurisdiction over this matter and Prospector pursuant to the Act. 20. By failing to pay annual fees and submit annual reports, Prospector violated sections 34-32-116(3), (4) and -127(2)(a), C.R.S.; Rule 5.6(1); and the NOI. 21. By violating sections 34-32-116(3), (4) and -127(2),C.R.S.and Rule 5.6(1), Prospector failed to comply with the Act and Rules, in violation of the performance warranty provisions of the NO[. 22. The Board is required to provide operators and all financial warrantors notice that a financial warranty is subject to forfeiture and afford such operators and financial warrantors the right to appear at such hearing to be held not less than thirty days after such notice. C.R.S.§ 34-32-118(2); Rule 4.20(2). The Board,through delegation to the Division, properly notified Prospector and all financial warrantors of the January 25, 2017 hearing in accordance with section 34-32-118(2), C.R.S. and Rule 4.20(2). 23. At a hearing to consider forfeiture of a financial warranty, the Board may withdraw or modify its determination that such warranty is subject to forfeiture, or settle, compromise,or confirm its determination. C.R.S.§ 34-32-118(3)(a). In accordance with section 34-32-118(3)(a)(III), C.R.S., the Board confirms its determination that the financial warranty for the NOI is subject to forfeiture. The Board issues this Order pursuant to section 34-32-118(3)(b),C.R.S. ORDER Seaglass Holding Corp.d/b/a US Rare Earths P-2011-024/Powderhorn Project Exploration Drilling Program PV-2016-001 3