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17. Specifically, CLL informed the Division it lacked funds to restart operation <br /> of the water treatment facility for the 2024 season. <br /> 18. Furthermore, and despite good faith efforts by both Parties, including specific <br /> proposals put forward by CLL, as of the date of this Agreement, the Parties have <br /> not succeeded in finding a mutually-acceptable funding source and structure to <br /> complete remaining surface reclamation and to perform long-term water treatment <br /> and monitoring in accordance with the Permit. <br /> 19. If operation of the water treatment facility does not resume in time for the <br /> 2024 season, the inability to pump-down the mine pool eventually will result in <br /> exceedances of applicable surface and groundwater quality standards, in violation of <br /> the permit. <br /> 20. Accordingly, and at the Division's request, and in light of Division concerns <br /> regarding the time required for the Division to contract for continued operation of <br /> the water treatment facility, CLL has agreed to enter into this Agreement in <br /> advance of the deadline for pursuing funding sources and structures under the <br /> MOU. <br /> 21. Pursuant to Section 34-32-116(7)(g), C.R.S., disturbances to the prevailing <br /> hydrologic balance of the affected land and of the surrounding area and to the <br /> quality and quantity of water in surface and groundwater systems both during and <br /> after the mining operation shall be minimized. Additionally, Rule 3.1.6(1)(b) <br /> requires Operators to comply with applicable federal and Colorado water quality <br /> laws and regulations, including statewide water quality standards. <br /> 22. On March 17, 2023, the Division sent via certified mail to CLL and Hanover <br /> Insurance a Reason to Believe a Violation Exists letter("RTB"). As outlined in the <br /> RTB, the Division commenced an enforcement action pursuant to its authority <br /> under Rule 4.20, C.R.S. 34-32-117, and C.R.S. 34-32-124 of the Act for failure to <br /> maintain its financial warranty in good standing, default under the performance <br /> warranty, and failure to comply with the conditions of an order, permit or <br /> regulation. <br /> 23. The RTB provided notice under the Act and Rules to both the Operator and <br /> Financial Warrantor of possible: permit revocation, a finding the financial warranty <br /> has been materially impaired, a finding that the financial warranty is subject to <br /> forfeiture and forfeiture of the financial warranty. <br /> 24. CLL committed to be bound by all applicable requirements of the Act and all <br /> applicable rules and regulations of the Board through its Performance Warranty <br /> executed with the Division and the Board in October 2017. Conditions of the <br /> Performance Warranty include: <br /> Schwartzwalder Mine/M-1977-300 4 <br />