Gustafson's Dairy, Inc. - Page 14

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          holding lagoon.  The environmental system could accommodate 5,500           
          cows.  SCS designed the environmental system to accommodate as              
          many cows as possible.                                                      
               Petitioner applied for a construction permit around December           
          21, 1990.  The Florida DER issued the permit on April 18, 1991.             
          Due to delays in construction, the permit was extended to                   
          November 4, 1994, and then to April 18, 1996.                               
               Petitioner spent $21,616 for pollution control in fiscal               
          year 1989, and $139,868 in fiscal year 1990.  Petitioner spent              
          $5,210,970 on the environmental system from April 1, 1988, to               
          March 31, 1995.                                                             
          C.   Petitioner's Finances                                                  
               1.   Petitioner's Capital Expenditures Program                         
               In March 1985, petitioner's board of directors told its                
          controller to prepare detailed 5-year capital expenditure                   
          projections for its annual meetings.  Petitioner's board of                 
          directors made this request after petitioner had received                   
          $2,052,061.30 from the Milk Diversion Program.  John Fisher,                
          petitioner's controller for the years in issue, prepared the                
          capital expenditures program (CEP) report with the help of E.S.             
          Gustafson, Sherwood Gustafson, and petitioner's attorney, James             
          Sheehan.                                                                    









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