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6. Operator is currently providing reports as required. <br /> 7. Operator has kept the site clean, orderly, and in good shape. <br /> 8. Operator has already performed some reclamation of the site. <br /> 9. Operator has indicated that a second period of temporary cessation is <br /> necessary because low silver prices have made the project uneconomic. <br /> 10. Operator has demonstrated a continued commitment to conduct <br /> mining operations. <br /> 11. The permit file for the site does not contain any complaints against the <br /> Operator. <br /> 12. The Division did not receive any comments from the manager of the <br /> affected land, the Town of Creede, or Mineral County regarding this request. <br /> 13. The Division supports Operator's request for TC-2. <br /> CONCLUSIONS OF LAW <br /> 14. The Board has jurisdiction over this matter pursuant to the Mined <br /> Land Reclamation Act, Article 32 of Title 34, C.R.S. ("Act"). <br /> 15. Under section 34-32-103(6)(a), C.R.S., an operator may temporarily <br /> cease production upon compliance with the notice requirements therein. Pursuant <br /> to section 34-32-103(6)(a)(III), C.R.S., an operator may be in temporary cessation of <br /> production for up to ten years. <br /> 16. Under Rule 1.13.1 and 1.13.5 of the Mineral Rules and Regulations of <br /> the Colorado Mined Land Reclamation Board ("Rules"), a permit shall continue in <br /> effect as long as the mining operation is resumed within five years of the beginning <br /> of Temporary Cessation or the operator files a request for the extension of the <br /> period of Temporary Cessation and secures Board approval of such request. <br /> 17. Rule 1.13.5(3) requires a notice for a second period of Temporary <br /> Cessation to include, among other things, demonstration of continued commitment <br /> to conduct mining operations at the site by the end of the second five-year period. <br /> Operator indicates its commitment to conduct mining operations at the cite within <br /> the next five-year period. <br /> 18. Operator complied with the notice of the second period of Temporary <br /> Cessation as set forth in the Act and Rules. <br /> Rio Grande Silver, Inc. <br /> M-1977-215 2 <br />