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BEFORE THE MINED LAND RECLAMATION BOARD <br />STATE OF COLORADO <br />FINDINGS OF FACT, CONCLUSIONS OF LAW, AND ORDER <br />HEARING ON REMAND FROM THE DENVER DISTRICT COURT, CASE <br />NUMBER 2017 CV 30268 <br />PERMIT NO. M-1984-049, PRIDE OF THE WEST MILL <br />THIS MATTER came before the Mined Land Reclamation Board ("Board") on <br />June 27, 2018, in Denver, Colorado for a limited hearing on remand to determine <br />whether Pride of the West, LLC and Todd Henni ("POTW") may be entitled to assert <br />a claim to any contingent reversionary interest in the surplus financial warranty, if <br />any exists after the Division completes reclamation related to permit number 1984- <br />049, previously ordered forfeited by the Board's order dated December 20, 2016. First <br />Assistant Attorney General Jeff Fugate appeared on behalf of the Division of <br />Reclamation Mining and Safety ("Division"). John Henderson and Todd Hennis <br />appeared on behalf of the POTW. Phil Perlman, Esq., appeared on behalf of David <br />Lewis, Chapter 7 bankruptcy trustee for Colorado Goldfields, Inc. ("Trustee"). <br />The Board, having considered the parties' presentations and being otherwise <br />fully informed of the facts in the matter, herby orders the following: <br />FINDINGS OF FACT <br />1. By Order of the Board dated December 20, 2016, and effective December <br />22, 2016 (December Order) Permit No. M-1984-049 was revoked and the associated <br />financial warranties were forfeited. The financial warranty held by the Board was a <br />combination of cash bonds totaling $515,130.00. Colorado Goldfields Inc. ("CGI") <br />posted the financial warranty. <br />2. At the time of the December 2016 hearing CGI was the Operator and <br />permittee of the Permit, known as the Pride of the West Mill, located in San Juan <br />County, Colorado. <br />3. The December 2016 hearing was an administrative enforcement action <br />taken by the Division against Operator CGI. The enforcement hearing related to <br />CGI's failure to abate hydrologic impacts associated with Cell 1A, a tailings <br />impoundment pond that had lost containment and was leaking metals -laden storm <br />water though holes in the liner. CGI was ordered to, among other things, commence <br />and complete necessary dewatering and reclamation work of Cell 1A by October 1, <br />2016. CGI failed to take any action to reclaim Cell 1A and abate the discharge of <br />