The Creation Kit only allows for 1 HD LOD texture per WorldSpace. This allows a LOD object not only have a HD texture but also be tileable for a mesh. Skyrim uses the "MountainSlab02.dds" texture.
But I've had a break through and can get around this restriction after reading this article
I edited a BTO (its just a NIF) file using nifskope and you can manually edit LOD object models.

Now you may be wondering what the hell your looking at!? The important thing to note is that there is a texture (with an alpha even) which is not the "MountainSlab02.dds" and is LOD and over the 0-1 UV range, i.e. its tiled.
So it means that we can get around some of the limitation of the Creation Kit if we allow ourselves to manually edit the models. Each model is exactly a cell worth of LOD.
This will be especially helpful for the many different textures of the Mountains we have like, West Gash brown colours to Molag Amur very dark greys.
I know this will be right up Ormins alley :)






I've edited a BTO mesh file
I've edited a BTO mesh file and put a hi poly model in, so basically we can do anything we want with LOD. Just have to keep a check on our own performance.
WTF is this one!? All you need to know is that its a Hi poly model and its LOD, tileable HD texture and that we can put as many models into a cell as we feel like.
However there is no association with a particular model (CK), its continuously persistent, i.e it doesn't transition into anything else up close. More research might shed light on relationship in NIF and what models (CK) it is associated with. But these LOD models don't have collision, so need to be careful how they are being used.