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6. Prospector failed to pay the annual fees or submit the annual reports <br />and maps by the anniversary date or at any time since. <br />7. On June 22, 2017, the Division mailed a Reason to Believe a Violation <br />Exists letter to the Prospector, informing Prospector of the possible violation and <br />providing details regarding a hearing on this matter scheduled for July 26, 2017. <br />8. Prospector failed to submit annual reports, fees, and maps, as required <br />by sections 34-32-116(4) and -127(2)(a), C.R.S. and Rule 5.6(1) of the Mineral Rules <br />and Regulations of the Colorado Mined Land Reclamation Board for Hard Rock, <br />Metal, and Designated Mining Operations ("Rules"). <br />9. The NOI includes a performance warranty in which Prospector agreed <br />that all prospecting operations shall be in compliance with the Act and all rules and <br />regulations promulgated pursuant to the Colorado Mined Land Reclamation Act, <br />Article 32 of Title 34, C.R.S. ("Act"). Prospector's violations of section 34-32-116(4), <br />C.R.S. and Rule 5.6(1) constitute Prospector's default under the performance <br />warranty and violation of the NOI. <br />CONCLUSIONS OF LAW <br />10. The Board has jurisdiction over this matter and Prospector pursuant to <br />the Act. <br />11. Prospectors are required to submit annual reports and maps, and pay <br />annual fees for each year of operation. C.R.S. §§ 34-32-116(4), -127(2)(a) (2016); <br />Rule 5.6(1). Prospector failed, by the anniversary date of the NOI, to submit annual <br />reports, submit annual maps, and pay annual fees, in violation of section 34-32- <br />116(4), C.R.S. and Rule 5.6(1). <br />12. The Board may issue a cease and desist order if it determines that a <br />violation of any provision of the Act or any regulation has occurred. C.R.S. § 34-32- <br />124(2) (2016). Prospector violated section 34-32-116(4), C.R.S. and Rule 5.6(1) by <br />failing to file annual reports and maps, and failing to pay annual fees. <br />13. Under section 34-32-124(6)(a), C.R.S., if the Board finds that an <br />operator violated a permit provision, the Board may suspend, modify, or revoke <br />such permit. By violating provisions of the Act and Rules, Prospector is in violation <br />of provisions of the NOI, specifically the performance warranty. Suspension, <br />modification, or revocation of the NOI is appropriate. <br />14. Pursuant to section 34-32-124(7), C.R.S. the Board may impose a civil <br />penalty of not less than $100 per day nor more than $1,000 per day for each day <br />during which a permit violation occurs. The Board may impose a civil penalty <br />Eustice Zacher <br />P-2014-0211 EZ Ranch — EZ 6 Claim <br />PV -2017-005 <br />2 <br />