New Page 14

LMUD began moving hazardous waste from their 1605 Chestnut Street property in 2004 to APN 119-200-10 in Wendel, CA. According to LMUD Director Fred Nagel's 700 Form Fred Nagel owned this property in Wendel. Why did LMUD publicly state that their contaminated dirt was being moved to an Assessor's parcel number that in 2004 did not exist? Assessor records show that , in 1997, Fred Nagel divided his parcel (APN 119-200-10) into two parcels, APN 119-200-23 and APN-119-200-24

The EPA, Department of Toxic Substances Control stated that the PCB's from LMUD's 1605 Chestnut Street property were moved to LMUD's Richmond Road substation and then moved to Fred Nagels property (APN 119-200-10). No record of where the contamination was stored prior to 1605 Chestnut Street (This property is contiguous to 1545 & 1555 Chestnut Street).

LMUD was fined $9,000 for moving PCB hazardous waste with forged Federal transport documents in October 2004. Paul Glau was LMUD's HazMat Manager.

Coincidentally, Fred Nagel sold this parcel (APN 119-200-23; aka APN 119-200-10) on October 13, 2004 to Michael Dinkfeld.

On December 12, 2005, General Manager/General Counsel Frank Cady secretly orders an appraisal (John Bentley, $4,500) for two Susanville properties, 1545 & 1555 Chestnut Street. Kan We Help requested a copy of this appraisal and Frank Cady refused to release it.

On February 1, 2006, Jack and Nancy Beterbide own 1555 Chestnut Street (APN 101-150-02) but do not own the contaminated parcel 1545 Chestnut Street (APN 101-150-23). On February 1, 2006 Robert and Gail Prosise's owned APN 101-150-23.

Left: Jack Beterbide, Fred Nagel and Frank Cady's friend. Upper right, Frank Cady

Jack and Nancy Beterbide were instructed to purchase the Prosise's contaminated property (APN 1545 Chestnut) on February 1, 2006 for approximately $121,000. It has already been pre-arranged for LMUD to buy the contaminated property (1545 Chestnut) and the Beterbide's property (1555 Chestnut) on the same day, February 1, 2006. LMUD paid Jack and Nancy Beterbide $381,232 for both parcels.

Fred Nagel and Frank Cady knew this property was contaminated and set up a secret purchase with Nagels friend Jack Beterbide, who at the time did not even own this worthless piece of property.

In a world of connected brain cells, one can safely surmise that LMUD was clearly aware of the contamination on these parcels prior to moving forward with this "unapproved" manipulated "quick" sale and paying $381,232 for the privilege.

Make no mistake, Fred Nagel and Frank Cady were intricately knowledgeable of this worthless property on February 1, 2006.

LMUD,now, has to move this contaminated hydrocarbon dirt from 1545 Chestnut to Fred Nagels property in Wendel

Fred Nagel sold his second parcel in Wendel (APN 119-200-24) on March 15, 2007 to a Cupertino, CA family (The Fantozzi's, 10915 Linda Vista Drive, Cupertino, CA 95014)

The "property" in Wendel is being monitored for contamination. The Chestnut property is near wells and must be tested for years. LMUD ratepayers will be liable for any future lawsuits concerning this contamination.

On December 17, 2007LMUD purchases another contaminated parcel. This time they purchase a worthless 13 mile 69 kv transmission line from Kinross/Hayden Hill.

LMUD threatened to take this property through eminent domain and this forced Kinross to sell this property to LMUD for $65,000.

Now, LMUD wants to give it back. LMUD filed a lawsuit, in 2011, against Kinross stating that Frank Cady had no authority to purchase this property.

B. LMUD Director Fred Nagel signed the check, on December 13, 2007, to Kinross before the Purchase Agreement was even signed

In September 2011, LMUD claims that they have completed the purchase of ATT's "buildings" on BLM property for $2500. (APN 109-010-04)

The purpose for purchasing these buildings: the Dead 239 kv Transmission project.

Now, let's look at LMUD's contradictory history

of the Viewland Substation

Viewland first appeared at the June 23, 2009 LMUD meeting. Closed session Agenda Item 14 (B) referenced the ATT Equipment Site at Viewland . Real Estate discussions must be first placed on the open Agenda prior to being placed in closed session.

LMUD knew to comply with the Brown Act they must allow open discussion but intentionally did not do this.

LMUD January 26, 2010 Minutes, Agenda Item 8, states that staff was internally studying the transmission tariffs for a 230kv transmission line in Viewland and it is 3/4 done. Like the phony Arrowrock project, LMUD makes innocuous references and hopes no one will ask any questions. No study has ever been released by LMUD.

LMUD November 23, 2010 Minutes, Agenda Item 7, states that Director Vial and Director Bowden visited the ATT building at Viewland and said that they were very impressed.

LMUD January 25, 2011 Minutes, Agenda Item 13 state the first discussions on the purchase of ATT's Viewland buildings. LMUD attorney Eugene Chittock supports this site for a DEAD 230kv transmission line project.

LMUD knew the site was contaminated. Director Dow asked about this contamination and Chittock stated that "Phase I" would be completed on the property prior to the sale. An amended Phase I Environmental Site Assessment was completed on August 2011, by Chico Environmental. This assessment defined the contamination.

First indication, in LMUD Agenda Item 14,that the LMUD Directors would move towards planning a "financial obligation" to the DEAD 230kv Transmission Line.

LMUD April 5, 2011 Minutes, Agenda Item 11, states that LMUD Director Fred Nagel said "regardless of the outcome on the 230 kv transmission line project, the District needs to focus on the Viewland Substation".

Nagel also told the LMUD Board at this meeting: "Let the big developers do the appraisal and then show LMUD the worth of the project"

At the same meeting LMUD Director Dow states "the District needs to be looking toward the future. If the 230 kv line moves forward, the District will need help. It cannot be accomplished in-house"

LMUD April 25, 2011 Minutes, Agenda Item 5, LMUD Board Members spending thousands of dollars attending meetings all over the country, only to be told that the 230 kv transmission line is DEAD.

LMUD is not going to need to "set aside" any funds for this DEAD project

Agenda Item 13, LMUD's General Manager/Accountant Bill Stewart now wants to the LMUD Board to hire the consulting firm Navigant, for a mere $17,000 to "develop" the DEAD 230 kv transmission line to the industry. All 4 Board members approved this contract. Direct Jay Dow was not present.

Instead of lowering the LMUD RATES by one cent, the LMUD Board considered and then approved a one cent dedication toward the DEAD 230kv transmission line project at the ATT/Viewland site (that LMUD does not even own) and even moved $1.5 million dollars from the Rate Stabilization fund to a special fund for the DEAD 230 kv transmission line project.

Bill Stewart, a Frank Cady protégé, tells the LMUD Board members that the one cent will produce $8.5 million dollars in 5 years.

Bill Stewart committed the ratepayers to tie up 10 million for a project that does not exist.

Fred Nagel went on to say, at this very same meeting:

"LMUD's involvement in the financing aspect would be very minimal

The LMUD May 24, 2011 Minutes, states that LMUD Director Fred Nagel (a PSREC customer) told the LMUD Board that the Memorandum of Understanding 230 kv partners (LMUD, WAPA? and TANC ?) believe the market is stalled on renewable energy and none of the big power entities are interested in putting further time or money into this project.

This group decided not to continue meeting, but Stewart tells the Board they should still spend the money to "travel" on behalf of this now DEAD project.

Somehow, now PSREC is in the picture for the 230 kv line. In the past, PSREC customer Fred Nagel has made sure that LMUD money is used for PSREC studies and other asundery crap.

The LMUD June 28, 2011 Minutes, states that Fred Nagel and Bill Stewart traveled to Reno to attend a meeting with NEAC (Nevada Energy Assistance Corporation). Nagel claims that the ATT/Viewland site will be a good location for the RAT line (Reno/ALTURAS transmission line).

The LMUD July 6, 2011 Minutes, Agenda Item 4, on the LMUD Site bus tour, David Folce told the group that LMUD was interested in the ATT communication site known as Viewland because of its close proximately to the RAT line. ABSOLUTELY NO MENTION OF THE 230 kv line or the $10 million dollars LMUD plans to spend on it. The site now has a 60 kv transmission line.

This bus tour also mentioned the proposed "MAPES SUBSTATION". If you are not following the dotted line, LMUD plans to have 4 substations in the Standish/Wendel area. Lambert Lane, Mapes, Viewland, Standish. Did we miss any?

The LMUD September 27, 2011 Minutes, Agenda Item 8, state that Bill Stewart and David Folce met with NV Energy to discuss the interconnection possibilities at the proposed Viewland station.

Agenda Item 12 states that the existing 60 kv lines at Viewland will work.

Can anyone imagine the collective outrage by the ratepayers if they knew that the 1 cent LMUD put aside for the DEAD 230 kv line was a fraud.

David Folce told the LMUD Board that the 60 kv will work but LMUD would have to install "phase shifting transformers" ....$10 million worth?

Closed Session Agenda Item 15 dealt with the LMUD Board voting unanimously to purchase the ATT buildings at their Viewland site for $2,500. The LMUD Board also approved the Right-of-Way Lease for the BLM 40 acres surrounding ATT's buildings.

LMUD October 25, 2011 Minutes, state that Steve Metague, from PGE said that he had not received sufficient interest from developers about renewable energy (wind, solar). Bill Stewart told Mr. Metague that LMUD will not participate in the 230 kv transmission line project until further notice. Even though PGE was not a part of the 230 kv MOU, they were suddenly an integral part.

Bill Stewart announced, to the LMUD Board, that he intends to travel to Tempe, Arizona on November for a meeting on the 230 kv transmission line.