2023-05-25_ENFORCEMENT - M1977300

• Permit No: M1977300
• IBM Index Class Name: Enforcement
• Doc Date: 5/25/2023
• Doc Name: Memorandum of Understanding Regarding Interim Funding For Compliance with Schwartz Mine Site
• Media Type: D
• Archive: No

executed with the Division and the Board in October 2017. Conditions of the
Performance Warranty include:
• The Operator hereby promises the Board that it will comply with all
applicable requirements of the Hard Rock Act and applicable rules and
regulations of the Board;
• The Operator hereby promises the Board that it will comply with all of the
terms of the permit, as amended and supplemented, as well as any conditions
attached by the Board;
• The Operator promises to be responsible for the cost of reclamation...and
agrees that it will maintain a financial warranty covering the Board's
estimated cost of reclamation in good standing for the entire life of the
permit.
• If the Board determines that the Operator is in default under this
performance warranty and has failed to cure such default—the Operator's
financial warranty shall be subject to forfeiture.
20. Pursuant to C.R.S. 34-32-118(1)(b) and Rule 4.20(1)(b), a financial warranty
shall be subject to forfeiture whenever the Board shall determine that the Operator
is in default of the performance warranty and has failed to cure such default.
21. In addition to the requirements agreed to in the Performance Warranty,
C.R.S. 34-32-117(6)(a) requires that "Financial Warranties shall be maintained in
good standing for the entire life of any permit issued under this article. Financial
warrantors shall immediately notify the board of any event which may impair the
warranties".
22. CLL's notification of its financial circumstances and inability to maintain the
financial warranty constitutes a notification of"impairment" of the warranty, and
the Division has reason to believe the financial warranty is "materially impaired"
pursuant to C.R.S. 34-32-117(6)(d).
23. CLL's verbal notification of its inability to bring the water treatment facility
back on-line by the end of May 2023, as required by the permit, constitutes a
violation of C.R.S. 34-32-124.
24. In order to resolve the outstanding defaults and possible violations, the
Division and CLL hereby agree and stipulate to terms outlined below related to
findings of violation and revocation of the permit. Additionally, upon receiving
notice of CLL's stated financial condition and possible financial warranty
impairment, the Division and Hanover Insurance Company have been in
communications regarding the financial warranty, and the Division and Hanover
Schwartzwalder Mine/M-1977-300 4