1. For Discussion Purposes Only Digital 395 SE C RBC– Board Presentation Discussion Guide February 28, 2013

2. Project Status

3. For Discussion Purposes Only 3 Rights-of-Way & Permits  ROW Remaining  All in place (Recent Washoe BIA Approval this week)  NTIA Route Changes for 5 Route Changes (2 NV, 3 CA)  Encroachment Permits  City of Reno Permits for M101( Approval 3/4/13)  Caltrans (Big Pine to China Lake)  Distribution  County Licenses for Kern County approval 3/3/13  County and City licenses include Anchor Access Agreements  NTIA Route Changes for 25 anchors and POIs

4. Construction Status - Nevada  Installed Plant  Reno / Carson Nodes  28 miles fiber (Reno- Carson)  Conduit: 2 Segments  Present Operations  Curtis & Sons, Apex  Focused on 395 thru Carson  Issues  BIA Approval to Proceed in N111-N113  2 Route Changes (2,000 ft)

5. Construction Status – Mono County  Installed Plant  Antelope, Bridgeport, Lee Vining, Mammoth Nodes  39 miles fiber (Coleville-VL)  Conduit: 8 Segments  Present Operations  Kleven, Westech, Apex, ASI  Focused State Line to June, and South of Mammoth to Crowley  Issues  Inyo National Forest  1 Route Changes (Mammoth)

6. Construction Status – Inyo County  Installed Plant  Bishop, Independence, and Nodes (Olancha is in GS10)  2 miles fiber (Reno-Carson)  Conduit: 3 Segments  Present Operations  Westech – Heavily Plowing  Focused on southward from Bishop  Issues  BLM Trespass (Resolved)  Caltrans Permits  1 Route Change (Round Valley)

7. Caltrans Permit Progress

8. Construction Status – Kern & South End  Installed Plant  Reno / Carson Nodes  104 miles fiber (Barstow- Pearsonville)  Conduit: 15 Segments  Cable: 14 Segments  Present Operations  Westech, McCullin Pipeline  Ridgecrest Distribution  Focus  K121 (Inyokern Lateral)  County of Kern Distribution

9. Environmental Issues / Responses For Discussion Purposes Only 9  BLM  Claim: Trespassing into WSA: Outcome 200’ conduit re-installationt  $15K Study Cost; $20K for project monitoring  Section 106 Violations  N103 alleged disturbing of sacred artifacts - NTIA validated our practices  ESA Breach: Contractor drove over ESA; Invalidated by NTIA Study  INF archeological concerns: NTIA working with USFS  Long Bores (over 2,000 ft): negotiating for pit excavations, break up  Biological  Construction crews would be locked out of bird nesting areas: accelerated work in sensitive areas and obtained relief on timeframes  DFG 1602 Violations: Audit found unsatisfactory training with Sub- Contractors. Proactive Ride-Alongs, Training Sessions

10. Node Construction

11. For Discussion Purposes Only 11 NodeLandPermitSiteBldgPowered RenoOwnedYesCompletedPlacedYes CarsonOwnedYesCompletedPlacedYes AntelopeFire DistYesCompletedPlacedYes BridgeportCountyYesCompletedPlacedNo Lee ViningSchoolYesCompletedPlacedNo MammothSchoolYesCompletedPlacedNo BishopLADWPYes2/26/13ReadyN/A IndependenceCountyYes3/1/13ReadyN/A OlanchaCountyYes/PA3/15/13ReadyN/A RidgecrestOwnedYesIn ConstPlacedN/A BarstowOwnedYes3/7/13ReadyN/A

12. Distribution Construction For Discussion Purposes Only 12  Key Service Areas (Ridgecrest, Mammoth, Bishop)  Contract Awarded to Kleven  Construction underway in Ridgecrest  Mammoth construction starts post April. To be challenged in March  Other Areas: Benton, Walker, Coleville, Bridgeport, Lee Vining, Big Pine, Independence, and Lone Pine  Praxis Focus (Aerial and Smaller Areas)  Boron  InyoKern  Round Valley (Aerial)  Benton Tribe(Aerial)  Bridgeport Indian Colony  China Lake Distribution (Aerial)  June Lake (Aerial)  Randsburg / Johannesberg (Aerial)  Cerro Community College (Aerial)

13. Inyokern Distribution and Anchors

14. Ridgecrest Distribution and Anchors For Discussion Purposes Only 14

15. Ridgecrest – China Lake Blvd.

16. Bishop Distribution and Anchors

17. Independence Distribution & Anchors For Discussion Purposes Only 17

18. Anchor Status For Discussion Purposes Only 18 AttributeNumberComment Anchors Visited328 Completed Engineering Surveys322 Access Agreements Signed228 Access Agreements Pending14 Kern Co Agreement Access Agreements Rejected0 Not Access Agreements in Place37 Anchors Cancelled39 By Choice of Customer / Site Moved TOTAL ANCHORS328

19. Anchor Service Trench For Discussion Purposes Only 19 Anchor Service Trench Integration With Backbone Conduit Placement. When the backbone work is being done in the street the backbone contractor will place the service trench and conduit to the customer location.  Cost savings over separate service trench. Using the same equipment and work setup as the backbone  Time savings. One crew completes backbone and service trench/conduit placement  Less disruption to anchor locations  Praxis fiber and NID installation follows

20. Anchor Service Trench Ridgecrest Regional Hospital For Discussion Purposes Only 20 This service trench will be completed by boring onto Hospital property using the same work setup and equipment as the backbone work on K104 that places conduit on N China Lake Blvd

21. For Discussion Purposes Only 21 Thank You