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38. CLL confirms it is unable to comply with permit requirements related to <br /> pumping of the mine pool, maintaining the mine pool at an elevation of 150' below <br /> the Steve Level portal, and operation of the water treatment facility. CLL also <br /> confirms it lacks sufficient funds to bring the water treatment facility back on-line <br /> by the end of May 2024, as required by the permit. Failure to pump-down the mine <br /> pool and operate the water treatment facility during the 2024 season eventually will <br /> result in exceedances of applicable surface and groundwater quality standards, in <br /> violation of the permit. <br /> 39. CLL does not contest the finding that it is in violation pursuant to C.R.S. 34- <br /> 32-124 for failure to comply with the terms of the permit as outlined in paragraphs <br /> 9, 10, 11, 13, 17, 18 and 31. CLL confirms, due to its financial circumstances and <br /> lack of sufficient funds, it will not be able to cure or remedy these permit violations. <br /> 40. CLL does not contest the revocation of Permit No. M-1977-300. Therefore, <br /> the Permit is REVOKED pursuant to C.R.S. 34-32-124(6). <br /> 41. Pursuant to C.R.S. 34-32-118(3)(b) and the terms of the Financial Warranty, <br /> the Board may make a demand upon the Financial Warrantor for immediate <br /> payment of the bond. Here, Hanover Insurance Company is not electing its option <br /> under C.R.S 34-32-118(7) to reclaim the affected lands in lieu of forfeiture of the <br /> bond. <br /> 42. Pursuant to C.R.S. 34-32-118(3)(b) and Exhibit D of the MOU, Hanover <br /> Insurance Company will operate in good faith and, upon Order and demand for <br /> payment by the Board, immediately deliver to the Board the full amount warranted <br /> to the Board under Bond number 1067218, $7,274,022.00. As agreed upon in the <br /> MOU, delivery of the bond funds to the Board shall not exceed three (3) business <br /> days from the date of the demand. <br /> 43. Although authorized under C.R.S. 34-32-124(2) and (7), the Parties agree the <br /> assessment of civil penalties is not necessary. <br /> 44. Pursuant to C.R.S. 34-32-124, a cease and desist order shall be issued by the <br /> Board precluding the Operator from conducting any further mining and reclamation <br /> related activity at the location. <br /> 45. This Stipulated Agreement does not supplant, alter, impair or negate the <br /> applicable requirements in the Colorado Mined Land Reclamation Act or the Rules <br /> and Regulations of the Colorado Mined Land Reclamation Board, nor any other <br /> Federal, State or Local law or regulation. <br /> Schwartzwalder Mine/M-1977-300 7 <br />