New Page 14

Trial date: April 22, 2013

4th Settlement Conference : 2/9/12 no settlement

Judge Brennan has been assigned the Settlement Conference

LMUD Threatens to take this property through eminent domain to force Kinross to sell

Chittock collected over $36,000 from 2009 to 2010 for this frivolous action.That's the only reason Chittock talked the inept LMUD Board to file this action $$$$$$$

Chittock's Phony Lawsuit May Land LMUD Board Members with Federal Perjury Charges

Federal Case 11cv00255*Federal Judge Kendall Newman*Sacramento*Appointed to the Court on 2/8/10 by President Obama

Local attorney Eugene Chittock filed a lawsuit for Lassen Municipal Utility District claiming that Frank Cady (General Manager and former LMUD attorney) illegally signed a contract to purchase transmission lines from Hayden Hill (Kinross/Lassen Gold Mining) and wants the purchase voided.

However LMUD Director Fred Nagel signed the $65,000 check for the purchase before Frank Cady even signed the Purchase Agreement. Bill Stewart, LMUD's Accountant, issued the $65,000 check on Fred Nagel's approval.

LMUD Directors, all inclusive, knew the liability of purchasing this property from Kinross. LMUD entered into illegal negotiations for over two years with Kinross. At no time was this issue placed in OPEN SESSION, NOT ONCE.

Motive:

CHITTOCK'S LEGAL FEES ALONE WILL EXCEED THE $65,000 MANY TIMES OVER FOR THIS PHONY CASE

LMUD v. Kinross (Hayden Hill) lawsuit moved to Federal Court to hide LMUD motive for purchasing Hayden Hill transmission lines in 2007

No mention, in LMUD's lawsuit, of Fred Nagel signing the check for the purchase prior to Frank Cady even signing the Purchase Agreement.

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"

Fred Nagel, Wayne Langston and Darrell Wood ran LMUD alone from October 26, 2007 until Woods resignation on December 3, 2007

LMUD President Wayne Langston, LMUD Vice President Fred Nagel and LMUD Director Darrell Wood met on November 5, 2007 and November 27, 2007. Fred Nagel signed the $65,000 check before the Purchase Agreement for the Lassen Gold Mining (Hayden Hill transmission lines) was even signed

Fred Nagel, Wayne Langston and Darrell Wood ran LMUD alone from October 26, 2007 until Woods resignation on December 3, 2007

LMUD Accountant Bill Stewart printed this check 4 days before the Purchase Agreement was signed by LMUD's General Manager

Chittock filed a lawsuit against Kinross/Hayden Hill on December 15, 2010 in attempt to void the purchase agreement for property that LMUD purchased on December 17, 2007. Chittock states, in the complaint, that Frank Cady did not have any authority to purchase this property therefore the sale must be voided.

Chittock will have huge hurdles to climb to prove this because negotiations for this property started when LMUD hired attorney, Dennis DeCuir on April 18, 2006 to help negotiate the purchase from Kinross. Negotiations continued until November of 2007.

LMUD issued and signed a check on 12/13/07 for $65,000, before the PSA was even signed and approved by LMUD's attorney on 12/17/07.

Chittocks' complaint only claims that Frank Cady illegally signed the purchase agreement. However, the check was issued by Bill Stewart four days before the purchase agreement was even signed by Frank Cady and the purchase agreement had written approval by LMUD's attorney DeCuir.

Keep in mind that LMUD's General Manager Frank Cady's current law partner was LMUD's General Counsel at the time all of this went down. Frank and Jaimee committed fraud to obtain their two public contracts with a conflict of interest scam

Frank was fired in January 2008

Jaimee was fired a year later in January of 2009

Chittock filed this recent lawsuit for the sole reason to relieve LMUD from the hundreds of thousands of dollars it will cost to remove the Hayden Hill lines. However, the purchase agreement, approved by LMUD's attorney DeCuir, states clearly that LMUD was willing and able to assume that liability. Keep in mind that LMUD and Kinross had been in negotiations from April 2006 to January 2008, over a year and a half.

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"

Is this another "Beterbide" transaction?

Help a "friend" out so a public agency can absorb the costs instead of the private owner..........

LMUD HISTORY: ILLEGAL MEETINGS, ACTION W/NO BOARD VOTES, SECRET MEETINGS, VACATION MEETINGS, PHONY ENERGY PROJECTS, WORTHLESS STUDIES, PURCHASE PROPERTY WITHOUT A VOTE, HIDING BOARD EXPENSES

(They will stay out of jail as long as Bob Burns is District Attorney and they have attorneys like Cady and Chittock)

Langston held an illegal meeting when he called a Special Meeting, on 1/30/05, in which he did not notify LMUD Director George Sargent or LMUD Director Nancy Cardenas.

In addition, Langston intended to hold a meeting with two Board members. After a KWH member arrived just minutes before 9:30 Langston sat for 20 minutes before calling Fred Nagel. Nancy Cardenas and Al Vazquez were not notified

January 4, 2011

Langston, Nagel, Stewart, Luhring, Jones, Cady Conspiracy

LMUD has spent over $65,000 to keep their back room deal quiet.

[Illegal meetings not unusual for Cady, Langston and Nagel]

LMUD PURCHASES LAND WITHOUT VOTE 2-1-06

TRANSPORT HAZARDOUS WASTE WITH FORGED FEDERAL DOCUMENTS

The LMUD Board started negotiations for the Kinross property way back in August of 2007.

Guess who their outside attorney was in 2007.......Downey/Brand. Guess who is filing this new lawsuit for LMUD...Downey!

Cocky & Corrupted, left to right: George Sargent, Nancy Cardenas, Wayne Langston, Al Vazquez and Fred Nagel

The entire "old" Board and the entire "new" Board, including LMUD's attorney Jaimee Jones and Controller Bill Stewart and Ray Luhring were involved with purchasing the Kinross property.

Chittock states that Cady purchased this property without the knowledge of the LMUD Board

That will be a little difficult to prove in court or anywhere else, since LMUD's attorney approved the contract.

Cady would have had to secretly cut a check and "sign" the $65,000 check to Kinross. For what purpose? Granted, Frank Cady AND THE LMUD BOARD HAVE SECRETLY PURCHASED LAND BEFORE (Beterbide contaminated property on Chestnut Avenue, Susanville) The check has to be signed, cashed and returned to LMUD. Let's see who would have been involved; Bill Stewart certainly since he "prints" the checks and is accountable to post this expense. Where did Stewart post this expense in the General Ledger?

Chittock (NOTE: Chittock was the only person to apply for the position of LMUD's General Counsel in 2005 when Cady was hired as GM) claims that Frank Cady signed this PSA on or around 12/17/07. At this time three Board Members had resigned. Did Cardenas, Sargent and Wood know what Cady was about to do. Three weeks later, the new LMUD Board fired Frank Cady.

Wayne Langston & Fred Nagel Disregard laws when it comes to illegal LMUD meetingsDysfunctional then and dysfunctional now

LMUD President Langston, Fred Nagel and Jaimee Jones knew about the purchase of the Kinross property.

Who signed the $65,000 check to Kinross?

Eugene Chittock, attempting to cover this purchase up by putting a phony case number on LMUD's December 2010 Agenda.

LMUD needs to add these names to be sued; Frank Cady, Fred Nagel, Wayne Langston, Ray Luhring, Bill Stewart and LMUD's former attorney Jaimee Jones

Attorney Frank Cady is certainly to blame but Fred Nagel and Wayne Langston knew about the transaction and maybe all of them should go to JAIL

If you were born yesterday, you may not want to read this pile of horse sh- - .

LMUD made another in a series of Horrendous, Stupid decisions and they want Kinross to give them back their money for their stupidity????????

Filed on 12/15/10, LMUD Agenda was issued on 12/23/10. The decision to file this lawsuit was made in closed session on 11/23/10

(Nagel and Langston excused themselves from the closed session because they were directly involved)

Fred Nagel illegally signed the Kinross Check w/o any approval from the LMUD Board.

If you were born yesterday, you may not want to read this pile of horsesh- - .

LMUD made another in a series of Horrendous, Stupid decisions and they want Kinross to give them back their money for LMUD's stupidity????????

The LMUD Board started negotiations for the Kinross property way back in August of 2007.

Guess who their outside attorney was in 2007.......Downey/Brand. Guess who is filing this new lawsuit for LMUD...Downey!

The entire old Board and the entire new Board, including LMUD's attorney Jaimee Jones and Controller Bill Stewart and Ray Luhring were involved with purchasing the Kinross property.

Attorney Frank Cady is certainly to blame but Fred Nagel and Wayne Langston knew about the transaction and maybe all of them should go to JAIL

Chittock states that Cady purchased this property without the knowledge of the LMUD Board

Chittock claims that Frank Cady signed this PSA on or around 12/17/07. At this time three Board Members had resigned. Did Cardenas, Sargent and Wood know what Cady was about to do. Three weeks later, the new LMUD Board fired Frank Cady.

LMUD needs to add these names to be sued; Frank Cady, Fred Nagel, Wayne Langston, Ray Luhring, Bill Stewart and LMUD's attorney Jaimee Jones

Wayne Langston & Fred Nagel Disregard laws when it comes to illegal LMUD meetingsDysfunctional then and dysfunctional now

LMUD President Langston, Fred Nagel and Jaimee Jones knew about the purchase of the Kinross property.

Who signed the $65,000 check to Kinross?

Eugene Chittock, attempting to cover this purchase up by putting a phony case number on LMUD's December 2010 Agenda.

Wayne Langston, THE KING OF "SNEAKERY", excuses himself from the November/2010 Closed Session

Langston will not sit on the LMUD Board in 2011

After ten years, as an unelected member of the Board, he states suddenly that he doesn't like CLOSED SESSIONS...........what a freakin bowl of sh_ _!

Fred Nagel and Wayne Langston have been named in the latest Federal Harassment lawsuit against LMUD. LMUD lost the lawsuit that former employee Steve Trevino filed and won....$700,000 later LMUD has learned nothing, absolutely nothing.

NO REPORTABLE ACTION ON HAYDEN HILL, YET CHITTOCK FILED A LAWSUIT THREE WEEKS LATER. (Agenda Item 15 B was not identified as any type of litigation so it had to be discussed in open session. Kan We Help will file another Brown Act Violation against LMUD)

LMUD placed the issue for the 69kv transmission line on their Agenda in May of 2009 (Closed Session Agenda 19 A2) as "Anticipated Litigation".

LMUD did not place this issue on their Agenda again until December of 2009 (Closed Session Agenda 13 B1). This was the only time the LMUD Board and its General Counsel identified the closed session as "Real Property" . LMUD now states that this is "Significant exposure to litigation"

LMUD failed to "properly identify" this closed session item after that. LMUD simply put this item on their agenda as "Update" but failed from January 2010 to November 2010 to disclose the nature and purpose of this closed session item. LMUD has never reported any "reportable action"

The "Kinross Gold Hayden Hill Mine Site" was not identified as pending litigation, anticipated litigation or exposure to litigation or real estate..... just "Update" for a year.

The Brown Act (GC 54956.8) allows for closed session for real estate negotiations, but they must be identified as such and placed in open session prior to adjourning for a closed session for this issue. LMUD did not do this for an entire year.

and hides the fact that LMUD has filed a lawsuit without any previous public discussion by the Board

The actual Case number is 51489, LMUD filed this lawsuit on 12/15/10

LMUD v Lassen Gold Mine, Kinross Gold Mine

(Hayden Hill property negotiations ?)