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3. On July 10, 2018, the Division issued a Surety Increase Notice (SI -1) <br />informing Operator that the financial warranty had been increased from $32,500 to <br />$38,132.10 to cover the cost of removing structures from the BLM-managed land, a <br />total increase of $5,632.10. SIA also informed Operator that the increase in <br />financial warranty was due on or before September 10, 2018, 60 days after the date <br />of SI -1. <br />4. Operator failed to pay the $5,632.10 increase in financial warranty by <br />September 10, 2018 or at any time thereafter. <br />5. On October 18, 2018, the Division mailed a Reason to Believe a <br />Violation Exists letter ("RTB") by certified mail, return receipt requested, to the <br />Operator for failure to post the additional financial warranty within sixty days. The <br />RTB also informed the Operator that the issue had been scheduled for a hearing <br />before the Board at its December 12, 2018 meeting. <br />6. At the hearing, the Division presented testimony of Dustin Czapla <br />regarding the Division's inspection and reasons for the increase in financial <br />warranty. The increase in financial warranty was necessary to cover the cost of <br />removing existing structures from the Hopemore Shaft area. Because the <br />Hopemore Shaft is located on federal land, BLM regulations require the complete <br />removal of buildings from the land rather than simply burying them in the mine <br />shaft, as originally intended by Operator's reclamation plan. <br />7. Operator also presented testimony at the December 12, 2018 Board <br />meeting. Operator stated that financial difficulties over the past year had prevented <br />him from paying the increase financial warranty. Operator also stated that he was <br />working with Lake County regarding the possibility of relocating the structures from <br />the Hopemore Shaft to the Hunter Shaft site, where they could be retained as part of <br />the county's historical preservation efforts. <br />CONCLUSIONS OF LAW <br />8. The Board has jurisdiction over this matter pursuant to the Mined <br />Land Reclamation Act, Article 32 of Title 34, C.R.S. (2018) ("Act"). <br />9. Section 34-32-117(4)(c)(II), C.R.S. and Rule 4.2.1(2) require <br />operators to post additional financial warranty within sixty days from the date of <br />written notice of adjustment from the Division. The Operator failed to submit <br />additional financial warranty within sixty days from the date of written notice of <br />adjustment from the Division. <br />Lockland, LLC <br />M-2013-026 <br />MV -2018-047 <br />