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CONCLUSIONS OF LAW <br /> 12. The Board has jurisdiction over this matter pursuant to the Colorado <br /> Mined Land Reclamation Act, Article 32 of Title 34, C.R.S. (2023). <br /> 13. The Schwartzwalder Mine is a "Designated Mining Operation" as that <br /> term is defined by section 34-32-103(3.5), C.R.S. <br /> 14. The Operator is engaged in a "mining operation" as that term is <br /> defined in section 34-32-103(8), C.R.S. <br /> 15. The water treatment facility at the Schwartzwalder Mine is an <br /> "Environmental Protection Facility" pursuant to Rule 1.1(21) of the Mineral Rules <br /> and Regulations of the Colorado Mined Land Reclamation Board for Hard Rock, <br /> Metal, and Designated Mining Operations (the "Rules"). <br /> 16. Section 34-32-121.5, C.R.S., provides that "[a]ny person engaged in a <br /> mining operation shall notify the office of any failure or imminent failure as soon as <br /> reasonably practicable after such person has knowledge of such condition, but for in <br /> situ leach mining operations in no event more than twenty-four hours after the <br /> discovery of such failure or an imminent failure, of... any environmental protection <br /> facility designed to contain or control chemicals or waste that are acid- or toxic- <br /> forming, as identified in the permit." <br /> 17. Pursuant to Rule 8.1(b), the Operator was required to notify the <br /> Division "as soon as reasonably practicable, but no later than twenty-four (24) hours <br /> after the Operator has knowledge of a failure or imminent failure of... any <br /> Environmental Protection Facility designed to contain or control designated <br /> chemicals or process solutions as identified in the permit." <br /> 18. The shut down of the water treatment facility due to failure of its <br /> systems resulted in an imminent failure of an Environmental Protection Facility. <br /> 19. By failing to notify the Division, the Operator violated section 34-32- <br /> 121.5, C.R.S. and Rule 8.1(b). <br /> 20. The Board may impose a civil penalty of not less than $100 per day or <br /> more than $1,000 per day for each day during which a violation of a mining <br /> operation permit. § 34-32-124(7), C.R.S. (2023). Here, the Board may impose a <br /> penalty based on 38 days of violation from the July 17, 2023 failure and shut down <br /> to the August 23, 2023 notification of the Division, at $100 to $1,000 per day for a <br /> civil penalty of$3,800 to $38,000. <br /> Colorado Legacy Land, LLC <br /> Schwartzwalder Mine/M-1977-300 <br /> W-2023-013 3 <br />