the security footage Mike saw, and sets fire to the store on his way out. Lalo calls resorts until he finds Werner; he then pretends to work for Gus and tricks Werner into revealing details about the construction of the meth lab under Gus' industrial laundry. Mike arrives at Werner's location and ends the call but realizes Lalo now knows some information about the construction. Mike reports to Gus, who realizes Werner will have to be killed to prevent Lalo from learning more; Mike accepts responsibility and kills Werner himself. Gus draws Lalo to a meeting by "stepping on" the Salamancas' share of the cartel's cocaine. With Juan Bolsa present, Gus tells Lalo that Werner was constructing a chiller and fled after stealing cocaine. He claims he then attempted to cover for the loss by replacing the cocaine with local, inferior meth. Since the cover story explains events Lalo knows about, he accepts Gus' explanation and apology. Bolsa tells Lalo that Gus enjoys Eladio's trust, so Lalo should consider the matter closed. Because of Lalo's presence in Albuquerque, Gus stops work on the meth lab. Lalo tells Hector he does not believe Gus' cover story; Hector confirms that the cartel tolerates Gus only because he earns well. When Krazy-8 is arrested outside a Salamanca stash house, Nacho gains Lalo's trust by climbing over rooftops to sneak in and recover the drugs before police enter. Lalo is impressed and takes Nacho into his confidence. Nacho brings Jimmy to Lalo, who knows of Jimmy from Tuco. Lalo asks Jimmy to free Krazy-8 by using him to feed the DEA information on Gus' dead drops. Nacho informs Gus, who accepts the loss of cash from the dead drops to protect Nacho's role as his informant. Jimmy secures Krazy-8's release and makes him a confidential informant for DEA agent Hank Schrader. Lalo congratulates Jimmy, but Nacho warns him that once he begins working for drug dealers, there is no turning back. While posing as a private investigator for Fred's family, Mike persuades a witness to Fred's murder to provide police details about Lalo's car, leading to Lalo's arrest. In jail under an alias, Lalo is initially denied bail and suspicious of how the police came to pursue his car and he instructs Nacho to burn down one of Gus' restaurants. Gus realizes Lalo will continue to be a problem but decides killing him will