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LMUD           SVEC            DEC 2007           PRA 2012

LMUD V KINROSS GOLD/HAYDEN HILL

 

STATUS REPORT

 

July 13, 2016: At LMUD's request the Court dismisses the LMUD case w/prejudice

Federal Case 11 cv 0255

filed on 1/27/11

LMUD Attorney:  Eugene Chittock & Downey Brand LLP

 

Kinross locates Ray Luhring  letter that states the LMUD Board not only approved the Hayden Hill purchase but then went on to lie to the public and the Court.  LMUD filed a Notice of Exemption on December 23, 2009 to avoid any responsibility for reclamation so the January 27, 2011 lawsuit was frivolous and deceitful. LMUD knew they could not win this lawsuit after documents were produced that not only proved the Board approved the Hayden Hill purchase but promoted it for four years.

Kinross Opposition

 

LMUD

LMUD lawsuitLMUD Purchase

 

 

August 5, 2016

 

Eugene Chittock lied to the public about

the Hayden Hill History... for profit $$$$$

 

Public Records disclose that LMUD Filed An Exemption On December 23, 2009

NOT 2014

as stated by Eugene Chittock

 

This alleged December 23, 2009 "Notice of Exemption"  states that LMUD is not liable for the removal  of transmission lines

at the Hayden Hill Gold Mine or the reclamation required by Lassen County.

 

Lassen County Planning Department is the Lead Agency & was never informed about this alleged "Exemption".

 

 LMUD posted a Bond & applied for a Use Permit with Lassen County to comply with the

 

Reclamation Plan after purchasing the 13 miles of 69 kv transmission lines on December 17, 2007

 

So.... how did Eugene Chittock or the LMUD Board  justify  filing a lawsuit against the previous owners, Kinross Gold, on January 27, 2011. 

The reason:   Frank Cady did not have authority to purchase this property that was allegedly going to cost LMUD hundreds of thousands of dollars to clean-up

 

 

LMUD Director Fred Nagel was collecting thousands of dollars from Willow Creek landowners in 2006 promising them LMUD would provide power to them through the Hayden Hill lines.....that LMUD did not own & were in Surprise Valley Electric's jurisdiction

LMUD does not plan to return any of the deposits

 

 

If LMUD filed a "Notice of Exemption", there was no reason for LMUD to allow Chittock to file this lawsuit on January 27, 2011 since LMUD's  liability ceased to exist on July 20, 2010

 

  Ratepayers paid $341,000 for Chittock's folly

....and he is still employed by LMUD?

 

 

 

FRED NAGEL & FRANK CADY SIGNED THE $65,000 CHECK TO PURCHASE THE HAYDEN HILL 69 KV TRANSMISSION LINES ON DECEMBER 13, 2007 BUT THE PURCHASE AGREEMENT WAS NOT SIGNED UNTIL DECEMBER 17, 2007.

 

 

 

 

 

 

 

July 13, 2016

Court Dismisses LMUD Hayden Hill Lawsuit w/Prejudice

LMUD CONTINUES TO OWN THE contaminated HAYDEN HILL GOLD MINE PROPERTY & THE CLEAN-UP?

 

 

 

 

 

 

 

 

December 1, 2015

LMUD General Manager/Accountant Bill Stewart to Retire

Stewart will retire on the eave of the Hayden Hill trial where he, as LMUD's bookkeeper, issued a check to purchase the Kinross Gold land that was signed by Fred Nagel and Frank Cady. 

LMUD could not buy their way out of the obligation to clean-up the site so they sued Kinross Gold stating that Frank Cady did not have authority to sign the Purchase Agreement.

Hundreds of thousands of dollars have been spent for a $65,000 land purchase

 

 

March 21, 2013

LMUD's Summary Judgment, SLAPPED DOWN

The Twenty page denial says it all............

The Hayden Hill debacle should see the end of Fred Nagel, Chip Chittock and the bookkeeper and POOF man, Bill Stewart

Chittock's cash cow lawsuit may well be the end of his career in Lassen County as it was his idea to file this totally absurd lawsuit.

Summary Judgment Denied

LMUD Ratepayers are paying for two high profile law firms and hundreds of thousands of dollars in legal fees for this LMUD debacle

 

October 30, 2012

Federal Judge Moves

LMUD's Hayden Hill Trial Date

from April 22, 2013 to February 18, 2014

so that the new evidence LMUD lied

can be submitted

 

 

 

October 8, 2012

Kan We Help Calls

for

LMUD Resignations

Eugene Chittock should be fired before he is disbarred

Directors of Deceit
 

LMUD

Fred Nagel should resign today

Bill Stewart should be fired today

David Folce should be fired today

Then and only then is Lassen Municipal Utility District fixable

UNFORTUNATELY THE HUNDREDS OF THOUSANDS OF LEGAL FEES THESE PEOPLE HAVE WASTED ON FILING THE HAYDEN HILL LAWSUIT IS JUST THE TIP OF THE ICEBERG.

BANKRUPTCY IS A REAL POSSIBILITY

On April 18, 2006, the LMUD Board hired Dennis DeCuir  to represent the public utility for the Hayden Hill transmission line negotiations. Mr. DeCuir quickly distanced himself from the project when it started to go bad.

In 2007, LMUD Directors Nancy Cardenas, George Sargent and Darrell Woods were 100% involved with the Hayden Hill scam. Their hurried resignations, in 2007, did not exclude them from the liabilities and shame that was inevitable.

Present and Past LMUD Boards have lacked any honesty.

The public's apathy is only partially to blame. LMUD Boards have failed to disclose the truth about their actions.

Bill Stewart will pull a typical LMUD  ROPE-A-DOPE: distracting from the Hayden Hill disaster by announcing that LMUD residents won't get a rate reduction but the ranchers will.

When LMUD mis-placed $8.7 million dollars in 2000 they created the Arrowrock Scam.

When they wanted to bypass the laws that govern rate increases they created the $25.00 service charge diversion and then passed the infamous and phony PDCA policy (POWER DELIVERY COST ADJUSTMENT; a policy that gave the General Manager the right to change rates at will)

 

 

 

 

October 5, 2012

LMUD BOARD LIED ABOUT HAYDEN HILL TRANSMISSION LINE PURCHASE

PURCHASE

Perjury by:

Bill Stewart

Eugene Chittock   ? Disbarment offense ?

Fred Nagel

Jay Dow

Wayne Langston

Bud Bowden

Richard Vial

Karen Rollings

David Folce

All gave testimony, under oath, that the Board knew nothing about the purchase of the Hayden Hill transmission line purchase. Cady did it......

Eugene Chittock withheld evidence and witnesses to protect the names above.

Chittock filed the LMUD lawsuit to void their contract with Kinross Gold on 2/15/10.

LMUD never applied for the Use Permits to Amend the Reclamation.

LMUD knew before they took the Willow Creek money that they could never provide power to Willow Creek

 

Fred Nagel signed the check to purchase Hayden Hill

Leonard Gibson gave Bill Stewart this check

Bill Stewart posted the $30,000 check to LMUD's account as a REFUNDABLE DEPOSIT

 

 

October 2, 2012

Former LMUD General Manager Ray Luhring Found ?

Turns out he wasn't missing at all

Just safely tucked away

 

September 28, 2012

LMUD lost

or is hiding

former General Manager Ray Luhring

LMUD hired Ray Luhring to be their General Manager  ,on May 23, 2008. Luhring acted as temporary General Manager after the new LMUD Board fired Frank Cady

2008 was the beginning of a very bad year for LMUD and it continues to decline for this small rural public utility. The LMUD Board  was embroiled in several lawsuits. A Sexual Harrassment lawsuit which LMUD was set to go to trial in November of 2011. LMUD's General Manager Ray Luhring was suddenly terminated on March 25, 2011Ray Luhring was not an employee of LMUD after March 25, 2011.  Ray Luhring

Ray Luhring is a witness for the Amedee lawsuit and the Hayden Hill lawsuit and is now nowhere to be found.

 

LMUD's attorney, Eugene Chittock lied about Ray Luhring being an employee of LMUD on July 15, 2011 and claimed that Luhring could only be contacted through him.

RAY LUHRING WAS FIRED BY LMUD ON MARCH 25, 2011 AND LMUD quickly drew up a consultant contract for LUHRING.

THE CONSULTANT CONTRACT SPECIFICALLY STATED THAT LUHRING WAS NOT A

 LMUD EMPLOYEELuhring contract

 

Chittock made false statements

to the Kinross attorneys

and a Federal Court Judge

in order to prevent Luhring from

being deposed.

 

 

September 26, 2012

Willow Creek Landowner, Van Raymond Thein, Comes Forward About the LMUD Hayden Hill Lawsuit

LMUD:   SCAMS, SCOUNDRELS AND SUCKERS

Mr. Thein, a Redwood City, CA resident,  contacted Kan We Help two weeks ago complaining about our Hayden Hill transmission line story. Thein owns property just up the road from the Hayden Hill Gold Mine. Thein stated that they were not purchasing the transmission lines but  the $30,000 was for power to their properties in the Willow Creek area (Kan We Help will respect four other property owners decision to remain anonymous).

LMUD required other "power seekers" to sign contracts. The Willow Creek landowners received a cash register receipt for the $30,000 from LMUD with absolutely no possible chance of receiving electricity from Lassen Municipal Utility District.

 

This area is not served by LMUD, yet LMUD Board members lied to these trusting landowners. Thein confirms this in his statement to the Lassen County Times in the article published on September 25, 2012, page 7a

Thein claims that he and the late Leonard Gibson met with LMUD board members several times and LMUD promised that if they gave LMUD $30,000 that LMUD would provide power to their ranches.

 

One huge problem: LMUD LIED

Nagel lied, Langston lied, Stewart lied

CHECK THIS OUT

LMUD'S Lemon Tree does not make lemonaide 

 

LMUD:   SCAMS, SCOUNDRELS AND SUCKERS

Lassen County Times, 9/25/12

The Hayden Hill transmission line was temporarily connected to Surprise Valley Electric to provide power to Kinross's Hayden Hill Gold Mine. Once the mine closed, the transmission line had to be removed.  Kan We Help had been talking with former SVE General Manager Silveria for months and he stated that they were not going to have anything to do with Hayden Hill despite the claims of Frank Cady. New General Manager Hays stated:

 

Statement made recently by new SVE General Manager Hays (LCT article 9/25/12)

 

LMUD just lies and lies and lies and the LMUD ratepayers stay silent

LMUD even acknowledged that the Lassen County USE PERMIT required that the transmission line be removed in the Purchase Agreement and still lied to the Willow Creek landowners.

Can all of the Willow Creek landowners sue LMUD. YOU BETCHA THEY CAN

  

The Hayden Hill Deal may just have been a ruse to dump the Chestnut Avenue hazardous waste. Could it have been that simple?

 

Kan We Help has been following the Hayden Hill discussions since 2006.

The Lassen County Times has suddenly decided that it is NEWS WORTHY.  

However, the Lassen County Times September 25, 2012 article omitted the fact Fred Nagel signed the $65,000 check to Kinross Gold. Take the time to read LMUD's Purchase Agreement. It was approved by LMUD's attorney Dennis DeCuir.

Hayden Hill Purchase Agreement

2007 Dec Board

Page 2: "the district desires to purchase and acquire ownership of the improvements and is willing to assume such obligations and liabilities as provided in this Agreement"

Chittock declined to comment...

 

A Federal Subpoena was issued on 8/3/2012 for Eugene Chittock

 

 

 

 

 

 

 

 

 

 

 

September 12, 2012

Kinross Subpoenas

Surprise Valley Electric

General Managers, Old and New

September 19, 2012 starting at 11:00 AM  SVE

The Kinross Gold lawsuitloss could bankrupt LMUD

The Amedee Geothermal loss could bankrupt LMUD (11cv02483. Chittock intentionally puts wrong case number)

 

August 16, 2012

LMUD v Kinross Gold Hayden Hill

Lassen Municipal Utility District Board filed a lawsuit against Kinross Gold to void a Purchase Agreement for worthless transmission lines that LMUD knew to be worthless prior to buying them.

Kinross Gold Will Depose

Former LMUD GM Ray Luhring and Wayne Langston

With newly acquired public documents it will be difficult for Ray Luhring or   Wayne Langston to lie under oath.

......difficult but not impossible

Ray Luhring was fired March 25, 2011, by LMUD,  so that "Mr. Poof" Bill Stewart could control the LMUD "secrets" [Hayden Hill, Lambert Lane, Beterbide, ATT, Mapes]

Depositions scheduled for Langston on 9/19/12 @11:00 AM

 

 

 

August 2, 2012

 

Federal Subpoenas were issued on 8/3/2012 for Eugene Chittock, Lassen County Board of Supervisors, Surprise Valley Electric, Big Valley Ranger District

 

 

LMUD's Lemon Tree

 

Lemons that could not make lemonade

 

Lassen Municipal Utility District has never experienced an honest Board of Directors since its inception. This little utility district has been used and abused. The $20,000,000 revenue stream may have a lot to do with its corruption. This has certainly been true for utilities that are in LMUD's vicinity.

It is a fact that ratepayers have thrown LMUD Board members out for attempting to raise rates 162% after an uninvestigated $8.7 million disappearance of public funds.

It is a fact that LMUD has had 11 General Managers in almost the same amount of years.

It is a fact that LMUD Board members and General Managers have been forced to quit to avoid further investigations into their behavior.

The little utility still remains just as corrupt today as it was 20 years ago.

In 2000, the Arrowrock hydroelectric scam was created as a diversion to the disappearance of $8.7 million dollars of public money. Hundreds of thousands of dollars went down the toilet for this phony project. Huge lies were told to the public. The LMUD Board was recalled by the ratepayers. That should show these Board members that they have to be honest........

In 2005, after the Arrowrock scam was debunked by Kan We Help, LMUD made a critical error in hiring Frank Cady who was the co-inventor of Arrowrock. Too many secrets now for Fred Nagel, Wayne Langston, Nancy Cardenas, George Sargent, Darrell Wood and Bill Stewart to keep so they hired Frank Cady as their General Manager and Attorney. This would be devastating for LMUD ratepayers.

Frank Cady and Fred Nagel started buying worthless property. Contaminated property from friends. The Jack Beterbide Sale probably sits at the top of LMUD's sleaziest acts. The contaminated dirt needed to be removed and hidden. Where could they hide so much hazardous waste?

ATT/Viewland, Lambert Lane,Hayden Hill

1. COST: $2,500.00     The ATT/Viewland property was a perfect dumping ground for hazardous waste or a *substation for importing NV Energy/Sierra Pacific's renewable energy to California.

2. COST:  $20,000      Kan We Help is watching the Lambert Lane property pretty close, so it will be hard for LMUD to dump hazardous waste there. Unless, of course, it is done under the guise of "filler" for the flood plain issue. Kan We Help is still trying to locate the $400,000 worth of transformers LMUD purchased for Lambert Lane...years before Lambert Lane was a twinkle in Bill Stewarts's eye.  MIA

3. COST:  $65,000    Hayden Hill was a perfect spot since it was under a Lassen County Reclamation Plan. No one would notice a few tons of contaminated dirt with the cyanide saturated dirt at Hayden Hill.

The LMUD Board purchased the Hayden Hill transmission lines on December 17, 2007.

Purchase Agreement

 Public records show that Frank Cady and Fred Nagel signed Hayden Hill check on December 13, 2007 and the contract was subsequently signed on December 17, 2007. Frank Cady then drove to Reno and handed over the $65,000 check to Kinross. Someone from Sierra Pacific/NV Energy was at this meeting also. Were there LMUD Board members present? Probably Langston and/or Nagel.

LMUD, to this day, claims they needed the Hayden Hill transmission lines for the "phantom" 230 kv line that Bonneville Power Administration is building to connect with LMUD. The Hayden Hill transmission line only connected to the Surprise Valley Electric Cooperative at County Road A2/Hwy 139. This was always just a service line to bring electricity to the Kinross gold mine.  Nothing more. When the gold mine closed, the lines were disconnected and had to be removed. NOTE: Hayden Hill has always existed in PGE territory not Lassen Municipal Utility District.

Kinross Gold, owner of the Hayden Hill transmission lines, was required to obtain a Use Permit in order to surface mine and with that came a Reclamation Plan. After the mining was complete, Kinross had to return the land to as close to the way it was, under strict guidelines. Lassen County required Kinross Gold to purchase a $5,000,000 bond.

Once LMUD purchased Kinross's transmission lines at Hayden Hill they were required to obtain a Use Permit and post a Bond. LMUD DID NEITHER.

Cady and Fred Nagel attempted to use THEIR INFLUENCE to bypass the permits and bonding, but failed.

By the end of 2010, LMUD could not get Lassen County to budge on waiving the permits and bond requirements. Kinross insisted that Lassen County reduce their Bond, excluding the transmission lines since LMUD now owned them. Kinross produced the LMUD Purchase Agreement stating that LMUD would assume all liability for the removal of the transmission lines.

 

LMUD continued to place Hayden Hill on their 2010 Closed Session agendas.

However,LMUD was NOT NEGOTIATING THE PURCHASE OF HAYDEN HILL, THEY WERE NEGOTIATING GETTING WAIVERS TO NOT REMOVE THE HAYDEN HILL TRANSMISSION LINES

WHAT DID LMUD DO ON THE ADVICE OF EUGENE CHITTOCK?

On December 15, 2010, LMUD filed a Federal lawsuit against Kinross (11cv0255) to try and give the transmission line back. This case was never about whether Frank Cady had permission to buy this property.

Too much documentation exists that proves that LMUD knew about and accepted the purchase. Public records show that LMUD tirelessly attempted to get the transmission line "exempt" from being removed.

LMUD's options were limited after failing to get the County to waive the mandatory removal of the lines.

1. Keep the worthless transmission lines and pay the huge cost to remove them (LMUD stated in the Purchase Agreement that they would assume all "liabilities")

2. File a lawsuit and spend twice what it would have cost to remove the lines and show the world how stupid and irresponsible you are

On December 15, 2010, LMUD filed a Federal lawsuit against Kinross (11cv0255) to try and give the transmission line back. This case was never about whether Frank Cady had permission to buy this property.

Too much documentation exists that proves that LMUD knew about and accepted the purchase. Public records show that LMUD tirelessly attempted to get the transmission line "exempt" from being removed.

LMUD's options were limited after failing to get the County to waive the mandatory removal of the lines.

1. Keep the worthless transmission lines and pay the huge cost to remove them (LMUD stated in the Purchase Agreement that they would assume all "liabilities")

2. File a lawsuit and spend twice what it would have cost to remove the lines and show the world how stupid and irresponsible you are

 

LMUD DID WHAT LMUD DOES BEST.....

they did No.2

 

LMUD's Lemon Tree

 

Lemons that could not make lemonade

 

 

 

 

 

July 27, 2012

Surprise Valley Electric Manager Fired, Resigned, Retired?

Poof...........

Frank Cady stated that General Manager Dan Silveria of Surprise Valley Electric wanted to keep the Hayden Hill transmission line until the phantom Bonneville 230 kv line was brought down to connect with LMUD. Dan Silveria not only denied that he told Frank Cady that but said that the Hayden Hill lines have to come down. Mr. Silveria said that they were useless for any 230 kv line. Mr. Silveria said that the Kinross gold mine at Hayden Hill connected to SVEC lines at County Road A2 and Hwy 139 solely to bring power to the mine. Mr. Silveria told KWH that the lines are worthless and thought that Lassen County would require LMUD to remove them. He also added he never understood why Frank Cady was interested in them since they weren't even in Lassen Municipal Utility District.

Is Dan Silveria no longer an employee after 25 years?

SVEC

Bill Stewart, Frank Cady's protege, keeps the myth of the 230 kv line alive. Check out his travel expenses.

 

 

July 24, 2012

Lassen Municipal Utility District

Derelict in their Fiduciary Duties

Hayden Hill Transmission Line Purchase was a Fraud from Day One

Lassen County issued a Hayden Hill Resource Plan in September of 1991.  This plan included very specific mandates for the Hayden Hill Mine owners, the transmission lines must be removed.

 

HAYDEN HILL RESOURCE PLAN, SEPTEMBER 1991, PAGE 5-3

 

The Hayden Hill transmission line was 13 miles long. Eight (8) miles of this line ran along the 139 Highway corridor and Five (5) miles ran to the Hayden Hill mine. Kinross, Hayden Hill owner, was required to post a bond to ensure that the reclamation process would be completed. This $5,894,711 original Bond has been renewed each year until the reclamation is complete. If LMUD does not comply with the reclamation, Lassen County is the beneficiary of the Bond.   LMUD RATEPAYERS LOSE BIG TIME.

\

Hayden Hill Gold Mine, March 5, 2005

 

When LMUD signed the Purchase Agreement in December of 2007, and became the "Operator of Record" and assumed the removal cost of the transmission linesFrank Cady and Fred Nagel wrote this obligation into the Purchase Agreement  and acknowledged they knew about the Reclamation Plans and Conditional Use Permits.  Purchase Agreement

Purchase Agreement, page 1  : Company (Kinross) has ceased operation of the Hayden Hill Mine and is closing and reclaiming the site in accordance with approved reclamation plans. One condition of the reclamation plan, as well as the Conditional Use Permit, is that the s be "improvements" (transmission lines) be removed after cessation of operations unless the County determines that the "improvements" can remain in place.

IRRESPONSIBLE ACT

One huge problem, five miles of transmission line was on private land. It had to come down. The eight miles of TRANSMISSION LINE on the Highway 139 corridor could not be used for residential use OR DISTRIBUTION

Lines NOT EVEN IN LASSEN MUNICIPAL UTILITY DISTRICT  

Surprise Valley Electric was servicing the Hayden Hill Mine

 

One would logically think that under these circumstances, Frank Cady and Fred Nagel would have at least secured that the "improvements" (transmission line) could remain before jumping head first into one of the top ten dumbest things they have done.  They tried unsuccessfully to convince the County Supervisors to change the Reclamation Plan.

So Frank Cady and Fred Nagel included in the Purchase Agreement: page 2, F- "District (LMUD) desires to purchase and acquire ownership of the "improvements" (transmission lines) and is willing to assume such obligations and liabilities as provided in the Agreement. "

Purchase Agreement, page 5, paragraph 3

Agreement

THIS OBLIGATION  PROVIDED for the financial assurance sufficient to satisfy all federal, state and county regulatory requirements for District's ownership and use of the Improvements (transmission line) as to fully eliminate the Company's (Kinross) obligation to maintain  reclamation financial assurance for the Improvements, but only for the improvements.

 

QUESTION:  Has LMUD been paying Kinross's annual bond renewal payment?

If they have, how much?

 

 

 

July 20, 2012

Hayden Hill Investor Dead

Gunshot Wound to the Head

 

On September 6, 2006, Adin resident & Hayden Hill investor, Leonard Gibson, drove to Chico's Tri County Bank and purchased a $30,000 Cashiers check made payable to Lassen Municipal Utility District. Frank Cady claimed that LMUD took Mr. Gibsons money to buy the Hayden Hill transmission line. Fred Nagel and Frank Cady were soliciting land owners in the Hayden Hill area. Most landowners were not interested.

. Bill Stewart issued a receipt to Mr. Gibson Wednesday at 6:02 PM  on September 6, 2006. LMUD was closed and there was no public meeting.  

 

[According to public records, Nancy Cardenas and Darrell Wood met with Frank Cady on 9/6/06]

 

Willow Creek Homeowners Association does not exist

 

LMUD purchased the Hayden Hill transmission line on December 17, 2007 for $65,000 Purchase. Bill Stewart received approval to issue the $65,000 check for Hayden Hill. Fred Nagel and Frank Cady signed the $65,000 check on December 13, 2007.

Did Mr. Gibson have a 46% interest in the Hayden Hill transmission line?

On December 15, 2010, LMUD's attorney, Eugene Chittock, filed a lawsuit to void the Hayden Hill sale.

Mr. Gibson was found on May 25, 2011, dead from a gunshot wound to the head.

                            Frank Cady    Fred Nagel          Bill Stewart                                                            

These men took Mr. Gibson's money, and there may be others, under the pretence that he was buying a transmission line.

 

 Does Mr. Gibson own 46% of the Hayden Hill transmission line purchase? 

Mr. Gibson's property's have electricity, so the statement that LMUD has released that Mr. Gibson, aka Willow Creek Homeowners Association, was doing this so he could get electricity to his property was simply false.

LMUD's accountant, Bill Stewart posted Mr. Gibson's $30,000 under "Refundable Deposit" (GL#235.015).

 

 Will Fred Nagel now refund Mr. Gibsons $30,000 to his heir?

MORE to come..................Was this just a "windmill ponzi scam"?

Are you curious about other DEALS that Stewart and Nagel are cooking up?

 

 

 

July 11, 2012

Just How Stupid is LMUD?

LMUD is attempting to exempt ITS OWN RECORDS from being used at trial.

LMUD's Eugene Chittock has asked a Federal Court Judge to not allow Kinross Gold [LMUD v Kinross Gold 11cv0255] the ability to introduce evidence obtained through a Public Records Request ( LMUD's Minutes, Agendas, Depositions, Purchase Agreements, copies of receipts and correspondence).

RATS AND RINGLEADERS

When LMUD loses this lawsuit, ALL BOARD MEMBERS AND ALL MANAGEMENT WILL BE RESPONSIBLE FOR IMPROPER FISCAL MANAGEMENT AND A FAILURE TO OVERSEE AND PROTECT PUBLIC FUNDS. That will be just a start.

General Manager/Accountant Bill Stewart

Office Manager Keri Richards

Electric Operations Manager David Folce

Public Benefits Manager Theresa Boucher

Lassen Municipal Utility District filed this lawsuit and opened up a pandoras box for themselves. Hundreds of thousands of ratepayers dollars spent on this self inflicted boondoggle.

Kinross Gold

 

 

June 19, 2012

As always, the Lassen County Times Attempts to Sanitize LMUD's lies and scams and is the NUMBER ONE ENABLER OF LMUDLMUD

Nagel/Stewart/ Cady: Shocking, Shocking facts.

Read entire document

Nagel/Stewart/ Cady: Shocking, Shocking facts.

Read entire document

Nagel/Stewart/ Cady: Shocking, Shocking facts.

Read entire document

Public records  and Court documents confirm that Frank Cady, Fred Nagel, Bill Stewart, Nancy Cardenas, Wayne Langston, George Sargent and Darrell Wood had full knowledge of the Purchase Agreement signed by Frank Cady for the Hayden Hill  transmission line. This has been a project that the entire board worked on for years prior to purchasing the transmission line It is a shame that the local newspaper is obligated to protect them the best way they can, just change or omit a few facts.

The Hayden Hill transmission line has been discussed at LMUD meetings for over six years and LMUD's lawsuit against Kinross is now almost 2 years old (Editor Sam Williams attends these LMUD meetings or he allows LMUD to phone in a story about their meeting). 

LMUD rates stay high as LMUD continues to spend hundreds of thousands of dollars on trying to fix another huge poor management decision.

Now.....why do you think that the Lassen County Times has decided suddenly to publish their 6/19/12 frontpage article "Utility seeks to overturn Cady's worthless purchase" ?  They have to protect their friends, the Nagels, and all of the LMUD participants.  Did Sam Williams write this? Sounds more like he let Fred Nagel write this slightly slanted prejudice rendition of the.......real story, the real facts?

Read entire document

 

 

June 14, 2012

NAGELS

10 YEARS OF HISTORIC  ABUSE 

Fred Nagel was elected, to the LMUD Board, in 2002 after the voters recalled LMUD Director Marino Giannotti. Gianntti was ousted by 67.7% of the LMUD ratepayers that voted as well as three others, Darrell Wood, Louis Templeton and Richard Parker.

These Board Members had catastrophically managed this public utility and were thrown out of office. All except Wayne Langston, Fred and Theresa Nagel's son-in-law. Theresa Nagel was the County Election Officer.

Langston was involved in an illegal action by the LMUD Board to replace Michael Deal.

In 2001, these LMUD Board Members lost $8 million dollars in an energy speculation (?) debacle and tried to recover this loss by increasing LMUD rates 162%. These Board members threw up a smoke screen with an elaborate phony hydroelectric project. Kan We Help exposed and curtailed the Arrowrock scam and as a result, FERC cancelled the license due to "no sufficient activity in 12 years from the issuance of the license".

HAYDEN HILL TRANSMISSION LINE

(not even in the LMUD service area but within the Surprise Valley Electric district)

However, the public was not aware that LMUD Director Fred Nagel Nagel testimony and LMUD's former attorney and now General Manager (6/17/05-1/8/08)   Frank Cady had already spotted a new con. Nagel placed a discussion of the Hayden Hill line, on the October 12, 2005 LMUD agenda (Item 4B).

 

The Hayden Hill transmission line had been serviced by the Surprise Valley Electric district. Once Kinross Gold closed the mine down, the transmission lines were worthless. This transmission line had to be removed and Cady and Nagel knew it.  Nagel and Cady told the LMUD Board that LMUD should spend the money to remove the "transmission" lines and then build a new line to carry power to connect to Bonneville Power FOR WIND POWER. This was not only STUPID AND IRRESPONSIBLE MANAGEMENT but possibly criminal activity. . Was Invenergy involved? If so how much?

 

The October 12, 2005 meeting was the same meeting that caused public outragewhen LMUD attempted to pass an excessive Facility Charge fee. The Hayden Hill issue went under the radar.

 LMUD President Nancy Cardenas officially appointed Fred Nagel and Frank Cady to begin talks with Lassen County about the Hayden Hill transmission line. Nagel found that Lassen County Supervisor Jack Hansen was very motivated. [ Hayden Hill area: District 5 is Jack Hansen's District. Ward 5 is Jay Dow's District ]

LMUD purchased the Hayden Hill transmission line on December 17, 2007. Fred Nagel and Cady signed a $65,000 check on 12/13/07

LMUD filed a lawsuit against Kinross to void the Purchase Agreement on December 15, 2010

In  March of 2006, according to a Cady e-mail, to the LMUD Board and a few questionable persons, Cady informed the LMUD Board that he was attempting to purchase the Hayden Hill Transmission Line.

 

 

 

In April of 2006, LMUD's new General Manager Frank Cady contacted Kinross about purchasing the Hayden Hill transmission line and told Kinross that this line fit into LMUD's business plan. Kinross told Frank Cady initially that LMUD would have to accept all liabilities that came with Hayden Hill. Then....Fred Nagel came up with a scheme to threaten Kinross with Eminent Domain and Nagel suggested that Kinross just "give" the transmission line to LMUD, according to Frank Cady's testimony. Kinross then agreed to sell LMUD the Hayden Hill line for $65,000 and LMUD would agree to assume all liability. This language (which Cady claims the LMUD Board gave him a consensus to go ahead) was in fact included in the Purchase Agreement.

The Lassen Gold mining corporation owned by Kinross Gold was closing its operation at Hayden Hill (near Alturas) and began the process to dismantle the transmission lines.

In September of 2006, the Willowcreek Landowners Association (    Acting Agent according to Frank Cady: Gary Woolverton, former Modoc County District Attorney 2006-2010 and Frank Cady's "good friend) in Surprise Valley approached Fred Nagel with an offer of giving LMUD $30,000 to help LMUD buy the Hayden Hill transmission line.

According to Frank Cady's testimony, Bill Stewart TOOK THIS $30,000 AND DEPOSITED IT IN GL ACCOUNT 143.30 ("Other Accounts Receivable") and gave the Willowcreek Landowners Association a receipt. The $30,000 was never refunded to the Willowcreek Landowners Association. 

How many bribes have been taken?

 

 Are you interested in WHO the members  are in the Willowcreek Landowners Association ? So are we. It appears that the "Willowcreek Landowners Association" may well be a phony shell name.

 

 

It is extremely important to note that in the May 27,2008 LMUD Minutes (Agenda Item 11), the LMUD Board acknowledged that LMUD has taken possession of the Hayden Hill transmission line.

According to public documents, LMUD continued to keep the Willowcreek Landowners Association and Surprise Valley Electric (Dan Silveria) in the loop. Nagel testified that LMUD's plan was to allow Surprise Valley Electric the use of the Hayden Hill Transmission line until LMUD was ready to tie into the low cost power lines.

According to Dan Silveria, Manager at Surprise Valley Electric, this statement was untrue. Mr. Silveria stated that he distanced himself from the LMUD and the Hayden Hill transmission line because he felt it was not a good idea.

THE WORST NEWS IS THAT LMUD MANUFACTURED A FAKE RESOLUTION

LMUD manufactured a fake Resolution 2009-17 in order to make it appear that the LMUD Board suddenly "had no knowledge" of Frank Cady purchasing the Hayden Hill Line. The LMUD Board and Eugene Chittock came up with this idea to fake a Resolution in order to file a lawsuit. It isn't well thought out given the history on this issue.

 

MINOR DETAIL:  The LMUD 12/22/09 Agenda does not include a RESOLUTION 2009-17

The LMUD December 22, 2009 Agenda does not include a Resolution 2009-17 nor do the LMUD Minutes, for this Agenda, mention Resolution 2009-17 being discussed or approved in open session or any action reported in closed sess. The LMUD Board is required to include a copy of this Resolution to the public prior to any action.

It is not known WHEN LMUD decided to create a fake resolution for the purpose of filing a lawsuit against Kinross but this action was known and supported and signed off by Euge

 

 

Coincidentally......Fred Nagel did not attend the December 22, 2009 meeting. This phony resolution was signed by Bud Bowden, Jay Dow, Wayne Langston, Richard Vial and Eugene Chittock.

2010 LMUD Board

Chittock filed this lawsuit against Kinross on 12/15/10

Chittock has billed LMUD thousands and thousands of dollars for this lawsuit. LMUD has also paid hundreds of thousands to an outside law firm for the same case.

Nagel/Stewart/ Cady: Shocking, Shocking facts.

Read entire document

 

 

LMUD has never shown any respect for the law let alone the Brown Act. LMUD, in the past, has altered their Minutes and Agendas.

Because of this it has been necessary for Kan We Help to acquire LMUD Agendas and Minutes

LMUD has shown no reason to be trusted

Read entire document

June 7, 2012

Kinross Files Opposition to LMUD's Summary Judgment

Shocking, Shocking facts.

Nagel and Stewart remain from the original participants

Read entire document

NAGEL AND STEWART CANNOT BE TRUSTED

 

May 8, 2012

Judge Denies LMUD Motion

LMUD has spent hundreds of thousands of dollars on this ridiculous lawsuit.  LMUD lawsuit

LMUD's attorney, Monica Hahn, was notified that Kinross's attorney was leaving his firm and was going to file a substitution of attorney. Ms. Han then proceeds to file a Summary Judgment knowing that the Defendant, Kinross would file for an extension until their new attorney had time to review the case.  THE PROBLEM:  She forgot about the e-mails sent to Kinross which made her plea for Summary Judgment a TOTAL LIE.

    SLEAZY ACT BY LMUD ATTORNEYS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

April 6, 2011