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Division of Reclamation, Mining and Safety <br /> 25. The Colorado Legislature has determined that the extraction of minerals and <br /> reclamation of land that such extraction affects are necessary, proper, and compatible activities in <br /> Colorado. The Legislature has expressed an intent to: (i) encourage the development of an <br /> economically sound and stable mining and minerals industry; (ii) encourage persons involved in <br /> mining operations to reclaim land affected by operations so that the affected land may be put to a <br /> use beneficial to the people of Colorado; and(iii)promote environmental values and public health. <br /> 26. DRMS is responsible for mineral and energy development, policy, regulation, and <br /> planning. DRMS' Office of Mined Land Reclamation("OMLR") is responsible for regulation and <br /> permitting of activities at coal, metal, aggregate and other minerals mines. OMLR's primary <br /> objective is to review mining and reclamation permit applications and to inspect mining operations <br /> to ensure that reclamation plans are being followed. <br /> 27. Colorado statutory law requires the development of a mined land reclamation <br /> regulatory program in which the economic costs of reclamation measures utilized bear a reasonable <br /> relationship to the environmental benefits derived from such measures. <br /> 28. Before engaging in any "mining operation," an operator must first obtain a <br /> reclamation permit from the Board or OMLR. The term "mining operation" includes certain <br /> categories of milling and processing when those activities occur on "affected lands." "Affected <br /> land"means the surface of an area within the State of Colorado where a mining operation is being <br /> or will be conducted, which surface is disturbed as a result of such operation. <br /> 29. DRMS has previously inspected sites that conduct the same sorting, milling, and <br /> processing activities that are performed at RFES' Facility—including facilities that Danio operated <br /> — and determined that the agency lacked regulatory jurisdiction over the sites because the <br /> processing at issue did not constitute a mining operation. <br /> The Inspection <br /> 30. On July 1,2022,DRMS conducted an inspection of RFES' Facility,The inspection <br /> was performed pursuant to a search warrant that the Jefferson County District Court issued on June <br /> 27, 2022. DRMS employees Michael Cunningham, Russ Means, Jared Ebert, and Jason Musick <br /> conducted the inspection.DRMS represents that it obtained the warrant after receiving anonymous <br /> citizen complaints alleging unpermitted milling activity and the potential for the Facility to be <br /> "handling acid or toxic producing materials and utilizing designated chemicals."On July 14,2022, <br /> DRMS issued a report documenting the inspection. <br /> 31. Danio and two RFES employees, Lane Nolan and Ted Butterfield, were at the <br /> Facility at the time of inspection. <br /> 32. DRMS' inspection report asserts that the DRMS inspectors observed a stockpile of <br /> ore placed on the ground adjacent to three large, metal tanks. DRMS confirmed that one of the <br /> tanks was empty. DRMS' report concedes that DRMS does not know what, if anything, is stored <br /> - 5 - <br /> 4884-8560-1078.2 <br />