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G. On March 17, 2023, the Division sent via certified mail to CLL and the Financial <br /> Warrantor a Reason to Believe a Violation Exists letter ("RTB"). As outlined in the RTB, the <br /> Division commenced an enforcement action pursuant to its authority under Hard Rock Rule 4.20, <br /> C.R.S. 34-32-117, and C.R.S. 34-32-124 of the Colorado Mined Land Reclamation Act <br /> (Act") for failure to maintain its financial warranty in good standing, default under the <br /> performance warranty, and failure to comply with the conditions of an order,permit or regulation. <br /> H. The RTB provided notice under the Act and Rules to both the CLL and Hanover of <br /> possible: permit revocation, a finding the financial warranty has been materially impaired, a <br /> finding that the financial warranty is subject to forfeiture and forfeiture of the financial warranty. <br /> I. The Parties have agreed in principle on a series of undertakings by which funding <br /> may be made available to CLL for the continued operation of the water treatment plant, surface <br /> reclamation, and certain monitoring related Permit requirements during 2023 while the Parties <br /> pursue funding sources and a financial structure that will allow the completion of surface <br /> reclamation and long-term or perpetual operation of the water treatment plant. <br /> Agreement <br /> NOW THEREFORE, in consideration of the mutual promises contained in this <br /> Memorandum, the Parties agree as follows: <br /> 1. Enforcement Proceedings. The Division will defer any enforcement proceedings <br /> directly related to the undertakings outlined in this Memorandum so long as CLL, <br /> its subcontractor Ensero and Hanover continue to work in good faith to complete <br /> the undertakings set forth in this Memorandum to operate the water treatment <br /> facility and maintain the mine pool at an elevation of 150' below the Steve Level <br /> portal. The enforcement matter currently set for Mined Land Reclamation Board <br /> consideration on April 19, 2023, will be continued to May 17, 2023, and may be <br /> subsequently continued until this Memorandum terminates or the Parties agree a <br /> Board hearing is no longer necessary, at which time the Division will request <br /> vacatur of the hearing. The Division does not defer or waive its ability to proceed <br /> with enforcement actions related to determinations of"impairment"of the <br /> financial warranty pursuant to C.R.S. 34-32-117(d)and(f)to require Hanover to <br /> substitute a cash bond for the Hanover Bond(as it may be amended by the <br /> Hanover Rider, as defined below). <br /> 2. Water Treatment Undertakings. The Parties will work in good faith to complete <br /> the following undertakings ("Water Treatment Undertakings")on or before May <br /> 15, 2023: <br /> (a) CLL will contract with Ensero Solutions to complete the scope of work <br /> attached hereto as Exhibit A ("2023 Work") for the not-to-exceed price of $400,000 ("NTE <br /> Price"). The 2023 Work includes up to six months of water treatment, water treatment plant <br /> discharge monitoring, and Ralston Creek stream monitoring, to draw down the mine pool from <br /> May through October,or when the mine pool is drawn down to a depth where the pump no longer <br /> 2 <br />