The pictures tell the story.
Well… at least PART of the story… 
Gee I did not know there were Farmers in Ca I see that kind of wiring on a regular bases;-)
don’t lick that !
Impressive.
Never would have happened with an AFCI clip.
So, what is the issue? :mrgreen:
I have no doubt Charlie 
Seeing these things on site really makes it hard not to laugh out loud, or shake your head in front of the client.
Wow!
Hey Jeff, did you notice the burn mark right away before you opened the panel and what precautions did you take to open it?
I did notice it, yes. I’ve seen burns like this before so I wasn’t too concerned. The only thing I do differently is make sure I’m not touching any of the metal on my screwdriver when I start removing the cover.
I’m also very careful to pull the cover straight off and not tip it into the panel if at all possible.
But once you have removed the screws you have to take hold of the panel front.
Sometimes I think about getting those insulated magnetic grips for these situations.
True, but think about it - the existence of the burn mark indicates to me that the panel box is properly bonded, meaning the box is connected to the grounded service conductor (service neutral). This means if there was still contact with an ungrounded conductor, there would be arcing or a tripped breaker.
Insulated magnets are a good tool, but rarely have I encountered a panel where I felt I might need that type of protection.
Well put!