2023-11-15_ENFORCEMENT - M1977300 (4)

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® COLORADO Division of Reclamation, ® Mining and Safety Department of Natural Resources November 15, 2023 Jim Harrington Colorado Legacy Land, LLC 333 W. Hampden Ave„ Suite 935 Englewood CO 80110 Tom Moses The Hanover Insurance Company 440 Lincoln Street Worcester, MA 01653-0002 RE: Reason to Believe a Violation Exists and Notice of Board Hearing Schwartzwalder Mine; File No. M-1977-300 Mr. Harrington and Mr. Moses, On March 17, 2023, the Division of Reclamation, Mining and Safety(Division) sent via certified mail to Colorado Legacy Land, LLC (CLL) and The Hanover Insurance Company(Hanover) a Reason to Believe a Violation Exists letter(RTB). As outlined in the RTB,the Division commenced an enforcement action pursuant to its authority under Hard Rock Rule 4.20, C.R.S. 34-32-117, and C.R.S. 34-32-124 of the Colorado Mined Land Reclamation Act(Act) for failure to maintain its financial warranty in good standing, default under the performance warranty, and failure to comply with the conditions of an order,permit or regulation. The RTB provided notice under the Act and Rules to both the CLL and Hanover of possible: permit revocation, a finding the financial warranty has been materially impaired, a finding that the financial warranty is subject to forfeiture and forfeiture of the financial warranty. In May 2023, the Division, CLL and Hanover signed a Memorandum of Understanding Regarding Interim Funding for Compliance with Schwartzwalder Permit No. M-1977-300 (MOU). The MOU outlined a series of undertakings by which funding was made available to CLL for the continued operation of the water treatment plant, surface reclamation, and certain monitoring related Permit requirements during 2023 while the parties pursue funding sources and a financial structure that will allow the completion of surface reclamation and long-term or perpetual operation of the water treatment plant. On October 25, 2023, the Division met with CLL and was informed that the funding made available for the operation of the water treatment plant was exhausted and that CLL had not Physical Address: 1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 �� o Mailing Address: DRMS Room 215, 1001 E 62nd Ave, Denver, CO 80216 httos://drms.colorado.aov Jared S. Polis, Governor I Dan Gibbs, Executive Director I Michael A. Cunningham,Acting Director w --*1876