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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 />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, <br />state and federal laws and regulations, including applicable state and federal air and <br />water quality laws and regulations, and requires Prospector to comply with all provisions <br />of the Colorado Mined Land Reclamation Act, Article 32 of Title 34, C.R.S. ("Act") and <br />Rules. <br />8. At its March 23, 2016 meeting, the Board convened a hearing and found <br />that Prospector failed to pay annual fees and failed to submit annual reports and maps, <br />in violation of the Act and Rules. The Board issued a written order, effective April 4, <br />2016 ("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 <br />activities 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 <br />any time since. <br />11. On May 25, 2016, the Division sent Prospector a Reason to Believe a <br />Violation Exists letter. The Division's letter provided notice regarding the alleged <br />violations pursuant to section 34-32-124(1), C.R.S., and information about the July 27, <br />2016 Board 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. <br />(2016) ("Act") and Rules. The Board issued a written order, effective August 18, 2016 <br />("August 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-2011-0241Powderhorn Project Exploration Drilling Program <br />PV -2016-001 2 <br />