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the Operator is authorized to dispose of the mill and related equipment on the site's property. <br />The Division may consider this letter, along with other materials, when it reviews the site's <br />new permit application. If the new permit application includes a plan for on-site disposal of <br />the mill facility, the Division may reevaluate the site's complete reclamation cost. <br />10. The mill facility is not included in the site's current permit and its disposal is <br />not accounted for in the site's reclamation plan, mine plan, or financial warranty. The site's <br />current financial warranty, $38,209, is not enough to pay for the site's estimated reclamation <br />cost. <br />CONCLUSIONS OF LAW <br />11. The Board has jurisdiction over this matter pursuant to §§ 34-32-104 through <br />107, and 124 of the Colorado Mined Land Reclamation Act, § 34-32-101 et seq. C.R.S. <br />(2009) ("Act"). <br />12. Pursuant to § 34-32-117(4)(a), C.R.S., the Division sets the amount and <br />duration of financial warranties "taking into account the nature, extent, and duration of the <br />proposed mining operation and the magnitude, type and estimated cost of planned <br />reclamation."' The amount of the financial warranty must "be sufficient to assure the <br />completion of reclamation of affected lands if the office has to complete such reclamation <br />due to forfeiture...." § 34-32-117(4)(b)(I), C.R.S. The Division "and the Board shall take <br />reasonable measures to assure the continued adequacy of any financial warranty." § 34-32- <br />117(4)(b)(II), C.R.S. <br />13. Pursuant to § 34-32-117(4)(c)(I)(A), C.R.S., the Board, or the Division acting <br />on behalf of the Board, for good cause shown, may increase or decrease the amount of the <br />required financial warranty. A financial warrantor has 60 days after the "date of notice of <br />any such adjustment to fulfill all new requirements." § 34-32-117(4)(c)(II), C.R.S. <br />14. Pursuant to Rule 4.2.1(2) of the Mineral Rules and Regulations of the <br />Colorado Mined Land Reclamation Board for Hard Rock, Metal and Designated Mining <br />Operations ("Hard Rock Rules") "the Office or Board may ... review any financial warranty <br />for adequacy at any time." If it is determined that the financial warranty "is insufficient to <br />perform reclamation" the Operator has up to sixty (60) days to post additional financial <br />warranty from the date of the written notice of insufficiency. If the Operator disagrees with <br />the Division's notice to increase the financial warranty then "the Office shall schedule the <br />matter for a hearing before the Board." Hard Rock Rule 4.2.1(2). <br />15. Here, the financial warranty for the May Day Mine site, permit number M- <br />1981-185, is currently $38,209. The Operator opened an unpermitted portal and constructed <br />an unpermitted mill facility at the unpermitted portal at Level 1. The preponderance of the <br />evidence shows that the financial warranty for the site, permit number M-1981-185, is <br />insufficient to cover the actual costs of fully reclaiming the site. The site has changed <br />1 Section 34-32-117(4)(a), C.R.S., states "[t]he board shall prescribe ...." However, the Division acts on behalf of <br />the Board when determining financial warranties pursuant to the general delegation of authority described in § 34- <br />32-107(2), C.R.S. <br />Wildcat Mining Corp., May Day Mine <br />Approval of Division's Notice of Financial Warranty Increase 3 <br />M-1981-185