By Steve Large

TAHOE CITY, Calif. (CBS13) ― A dispute over high levels of a toxic chemical in the water in a Sierra community may end with the government seizing the supply through eminent domain.

Tests from well water used in Tahoe City shows arsenic levels at twice the maximum containment level mandated by the state of California, which were just put into effect in 2008.

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The chemical, which is known to cause cancer, has driver Logan Carnell out of her home and is such a hot issue she can’t even sell her home.

“It’s absurd in this modern time that we’re living with this situation,” Carnell said.

Carnell has joined with other residents in launching a telephone and e-mail crusade against Forest Lake Water Company, which services about 120 Tahoe City Homes.

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The owner of the company calls Carnell’s claims politically driver and says water quality meets all standards.

The Tahoe City Public Utilities District is taking up the rare move of trying to seize control of water service to the affected homes using eminent domain.

A hearing on that tactic is set for December 2. The owner of Lake Forest Water Company says he plans to fight the issue.

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