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6. On March 24, 2017,the Division mailed a Reason to Believe a Violation Exists <br /> letter to Prospector,informing Prospector of the possible violation and providing details <br /> regarding a hearing on this matter scheduled for April 26, 2017. <br /> 7. On April 10,2017,the Division mailed Prospector a letter informing <br /> Prospector that the hearing had been rescheduled to April 27,2017. <br /> 8. Prospector failed to submit annual reports,fees, and maps,as required by <br /> sections 34-32-116(4) and-127(2)(a), C.R.S. and Rule 5.6(1) of the Mineral Rules and <br /> Regulations of the Colorado Mined Land Reclamation Board for Hard Rock,Metal,and <br /> Designated Mining Operations("Rules"). <br /> 9. The NOI includes a performance warranty in which Prospector agreed that all <br /> prospecting operations.shall be in�comphance with the Act and ai-i rules and regulations <br /> promulgated pursuant to the Colorado Mined Land Reclamation Act,Article 32 of Title 34, <br /> C.R.S.("Act"). Prospector's violations of section 34-32-116(4), C.R.S.and Rule 5.6(1) <br /> constitute Prospector's default under the performance warranty and violation of the NOI. <br /> CONCLUSIONS OF LAW <br /> 10. The Board has jurisdiction over this matter and Prospector pursuant to the Act. <br /> 11. Prospectors are required to submit annual reports and maps,and pay annual <br /> fees for each year of operation. C.R.S.§§34-32-116(4),-127(2)(a) (2016); Rule 5.6(1). <br /> Prospector failed,by the anniversary date of'the NOL to submit an annual report,submit an <br /> annual map,and pay annual fees,in violation of section 34-32-116(4), C.R.S.and Rule <br /> 5.6(1). <br /> 12. The Board may issue a cease and desist order if it determines that a violation <br /> of any provision of the Act or any regulation has occurred. C.R.S.§34-32-124(2) (2016). <br /> Prospector violated section 34-32-116(4), C.R.S. and Rule 5.6(1) by failing to file an annual <br /> report and map,and failing to pay annual fees' <br /> 13. Under section 34-32-124(6)(a), C.R.S.,if the Board finds that an operator <br /> violated a permit provision,the Berard may suspend,modify,or revoke such permit. By <br /> violating provisions of the Act and Rules, Prospector is in violation of provisions of the NOI, <br /> specifically the performance warranty. Suspension,modification,or revocation of the NOI <br /> is appropriate. <br /> 14. The Board may find a financial warranty subject to forfeiture where a <br /> prospector failed to cure a default under a performance warranty despite written notice <br /> of the default and ample time to cure such default. C.R.S.§34-32-118(1)'(b)f203E). <br /> Prospector's violation of provisions of the Act and Rules constitutes Prospector's default <br /> under its performance warranty. Prospector defaulted on its performance warranty, <br /> received written notice of the default,and failed to cure such default. <br /> Total E&P USA Oil Shale,LLC <br /> P-2014-a22 <br /> PV-2017-003 2 <br />