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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. SI-1 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 2 <br />