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i was under the impression that some clubs have this policy so they can gather the lead and sell it, or use it to reload.
It all depends on the backstop metal. Our club had regular steel plate, and hot jacketed stuff would leave a crater. The danger is when another round hits the crater just right, it boomerangs back to the firing line. We upgraded to a more high-tensile steel, and we can shoot jacketed stuff, but no CF rifle and no S&W 500, 460, Ruger 480, etc.