Earthworks receives notice of purported lease termination
Earthworks Industries Inc. (“Company”) and its wholly owned subsidiary, Cortina Integrated Waste Management Inc. (“CIWM”) have for a second time, received a Notice from the U.S. Bureau of Indian Affairs (“BIA”) advising that the Lease held by CIWM from the Kletsel Dehe Band of Wintun Indians (“Band”) at the Cortina Rancheria in Colusa County, California, has been terminated. The Lease covers the site of CIWM’s proposed integrated waste management project.
The allegations that purportedly justify this termination are as unfounded as those which were offered by the BIA and the Band in support of their previous failed attempt to terminate the Lease. Those allegations were rejected by the Interior Board of Indian Appeals in its 2015 decision, which expressly found that “the lease and administrative record do not support the Regional Director’s grounds for cancellation”. The Company believes this latest BIA action similarly lacks merit and will also be reversed.
Earthworks and CIWM do not believe there are grounds for terminating the Lease – and while taking legal advice on all options available at this time, will immediately be preparing and filing an Appeal. This will automatically suspend the purported termination of the Lease, which will then remain in good standing, pending disposition of the Appeal.
The Company will continue to move forward with processing of its SSFR application to the U.S. EPA and all other productive development efforts.