U.S. EPA Issues Long-Awaited Petroleum Refinery Rule Package

On September 29, 2015, U.S. EPA issued the long-awaited Petroleum Refinery Rule Package.  After considering more than 200,000 comments on the June 2014 proposed rule package, U.S. EPA issued the final revisions to the Maximum Achievable Control Technology (MACT) and New Source Performance Standards (NSPS) Refinery Air Rules (i.e., 40 CFR Part 63, Subparts CC and UUU, Refinery MACT 1 and Refinery MACT 2; and, 40 CFR Part 60, Subparts J and Ja, respectively).  The final package encompasses the risk and technology review (RTR) of Refinery MACT 1 and MACT 2.  Additionally, it provides technical corrections and clarifications for the 2008 NSPS.   

Today’s blog focuses on the major changes from the proposed rules.  For more information on the proposed rules, please refer to my previous blog: U.S. EPA Proposes Overdue Refinery Air Rules, as well as ALL4’s May 2014 and June 2014 4 The Record articles for more in-depth looks at flare requirements, benzene fenceline monitoring, and related requirements.  In addition, please refer to John Slade‘s blog post about Refinery MACT risk assessment. 

So, what changed and what stayed the same from the proposal? 

Let’s get started with benzene fenceline monitoring, jump into flare combustion efficiency requirements, discuss delayed coking units (DCU), and wrap things up with everyone’s favorite, Startup, Shutdown and Malfunction (SSM). 

Benzene Fenceline Monitoring

For the most part, the benzene fenceline monitoring requirements remain the same as the proposal.  The key differences include imposing a tighter implementation schedule [reduced from three (3) years to two (2) years after promulgation].  U.S. EPA specifies alternative monitoring technologies as part of the final rule and clarifies monitor siting and analytical procedures.  U.S EPA now requires reporting on a quarterly basis rather than semiannual.  Additionally, U.S. EPA provides an incentive for reducing fugitive emissions by providing an option to decrease sampling locations for remaining consistently 10% below the benzene fenceline concentration trigger.

Flare Combustion Efficiency

U.S. EPA’s flare operating requirements maintain the emissions reductions projected in the proposal; however, the compliance approach is streamlined.  U.S. EPA is allowing refineries to use a higher adjusted heating value as long as the refinery has a hydrogen monitoring system.  Refineries can choose between a 15-minute feed forward or a 15-minute block average for compliance demonstration purposes.  The requirements are also simplified to a single net heating value operating limit in the flare combustion zone of greater than or equal to 270 British Thermal Units per standard cubic foot (BTU/SCF).   Refineries also are allowed to use limited sampling to demonstrate compliance for non-variable flare gas compositions. 

DCU

The majority of the DCU requirements remain the same as the proposal with some additional flexibility.  The final rule allows for averaging across all DCU at a facility to meet the 2 pounds per square inch gauge (psig) requirement.  For new sources, a 2.0 psig (on a per-coking cycle basis) MACT floor is established and does not allow for facility-wide coke drum averaging.  Additionally, U.S. EPA took into account cost data provided by commenters, as well as revised DCU emissions (resulting from revised emission factors) in the final rule. 

SSM

In the proposed rule, refineries were required to comply at all times, as the SSM exemptions were removed.  In the final rule, U.S. EPA establishes work practice standards for pressure relief devices (PRDs) and emergency flaring that include proactive requirements (e.g., instrumentation, operator training, improved process control) and root cause analysis along with corrective action.  Additionally, U.S. EPA’s final rule will require refineries to make operational changes to prevent PRD releases and emergency flaring.  This approach is in lieu of building additional flares to control releases. 

Promulgation of the rule can be expected in the Federal Register in the coming weeks or month.  Upon promulgation, refineries have three (3) years to demonstrate compliance with the rule, with a few exceptions, including the 2-year requirement for benzene fenceline monitoring implementation.

Stay tuned to future ALL4 4 The Record articles where we’ll provide an in-depth analysis of some of the key requirements of the final rule and the impacts on refineries.

U.S. EPA Proposes Control Techniques Guidelines (CTGs) for the Oil and Natural Gas Industry

On August 18, 2015, the U.S. Environmental Protection Agency (U.S. EPA) posted draft Control Techniques Guidelines (CTGs) for the oil and gas industry in order to reduce volatile organic compound (VOC) emissions from existing oil and gas sources in ozone nonattainment areas, including the Ozone Transport Region (OTR).  

The CTGs were developed to provide support to regulatory agencies that are required to determine reasonably available control technology (RACT) for specific VOC emissions from the oil and gas industry.  U.S. EPA defines RACT as “the lowest emission limitation that a particular source is capable of meeting by the application of control technology that is reasonably available considering technological and economic feasibility.”  The idea behind these guidelines is that regulatory agencies can rely on U.S. EPA evaluations of VOC sources and corresponding control technologies to make informed decisions with respect to determining RACT under their jurisdiction.  The CTG documents often form the basis for state-specific RACT regulations which then apply to existing affected sources located in non-attainment areas.  The proposal of CTGs for the oil and gas industry by U.S. EPA could have substantial impacts on operators in Pennsylvania because Pennsylvania is in the OTR and the entire state is currently managed as an ozone nonattainment area for air permitting purposes (even though most of Pennsylvania is attaining the 2008 ozone standard). So when the Pennsylvania Department of Environmental Protection (PADEP) adds RACT rules for oil and gas operations (in 3 years or so), the rules could impact all existing sources covered by the CTGs.   

The proposed CTGs generally align with the proposed Subpart OOOOa (except the requirements for completions) covering VOC sources across the oil and gas industry, including the following with their proposed RACT recommendations:

  • Storage Vessels – Recommended 95% reduction of VOC emissions from vessels with a potential to emit (PTE) greater than or equal to 6 tons per year (tpy);
  • Pneumatic Controllers – Proposed natural gas bleed rate restrictions based on the type of continuous bleed, natural gas-driven pneumatic controller;
  • Pneumatic Pumps – Proposed zero natural gas emissions from pumps located at natural gas processing plants and 95% reduction of VOC emissions from other pumps that have a control device;
  • Compressors (Centrifugal and Reciprocating) – Recommended that RACT, for individual reciprocating compressors located before transmission of natural gas to transmission and storage, VOC emissions would be reduced by periodically replacing the compressor rod packing or through the use of a closed vent system.  Recommended that RACT, for individual centrifugal compressors using wet seals located before transmission of natural gas to transmission and storage, VOC emissions from each compressor wet seal fluid gassing system be reduced by 95% or greater.
  • Equipment Leaks – Proposed that a leak detection and repair (LDAR) program be implemented on equipment components.
  • Fugitive Emissions – Recommended that a periodic optical gas imaging (OGI) monitoring and repair program be implemented. 

How is this going to affect your facility?  Within two (2) years of the final issuance of the CTGs, U.S. EPA will require revisions to the appropriate State Implementation Plans (SIPs) (i.e., the States that include ozone nonattainment areas, including the OTR) to incorporate the changes in RACT regulations for the oil and gas industry, which will most likely be based on the information presented in these CTGs.   There will be a 60-day public comment period beginning on the date that the proposed rule is published in the Federal Register.    Existing oil and gas operators that will be impacted when Pennsylvania adopts RACT requirements for existing sources are encouraged to review the CTG proposal and provide comments for the public record.  

U.S. EPA Proposes to Define “Adjacent” for the Oil and Gas Industry

Previous ALL4 blogs and at least one 4 The Record article have discussed the extremely complex issue of single source aggregation for air permitting.  This issue has been particularly difficult for the oil and gas industry resulting in some seemingly contradictory U.S. EPA decisions, some of which were successfully challenged in court.  Further complicating the issue is that some states have developed state-specific guidance regarding single source aggregation.  For example, Texas, Oklahoma, Pennsylvania, and Louisiana have issued guidance that presumes that operations with one quarter mile should be considered a single source. 

You may recall that U.S. EPA’s New Source Review (NSR) regulations use three (3) criteria to determine which pollutant-emitting activities make up a building, structure, facility or installation.  The three (3) criteria that are currently evaluated on a case-by-case basis are: 1) same industrial grouping, 2) under common control of the same person or persons, and 3) located on contiguous or adjacent properties.  For the oil and gas industry, the notion of “adjacent” has been particularly troublesome, especially given the fact that that the term is not defined by U.S. EPA. 

On August 18, 2015 U.S. EPA Administrator Gina McCarthy signed a prepublication version of a rulemaking that would define the term “adjacent” for the oil and gas industry.  U.S. EPA is proposing two (2) options for determining whether two (2) or more properties are “adjacent”.  U.S. EPA’s preferred option is to define “adjacent” based on proximity.  The initial proposal is to use one quarter mile, however U.S. EPA is accepting comments to suggest other distances such as one half mile.  U.S. EPA is also accepting comments regarding the issue of “daisy-chaining.” This is where a series of sites are within the specified distance of the next site in a chain, but the last site is separated from the first site by more than the specified distance. 

U.S. EPA’s second proposed option for defining “adjacent” is to consider a source under common control if it is proximate, or it is “exclusively functionally interrelated.”  The proposed rulemaking specifically cites equipment connected by a pipeline as an example of functional interrelatedness.  Under this proposed definition, operations would be considered a single source if the activities are separated by more than one quarter mile AND there is functional interrelatedness, or if the activities are separated by a distance of less than one quarter mile.  Obviously, the introduction of the notion of functional relatedness makes the definition of “adjacent” significantly more encompassing. 

This proposed rulemaking is critical to the oil and gas industry.  The path that U.S. EPA chooses for the definition of “adjacent” could cause many oil and gas operations to aggregate multiple sites as a single source, thereby potentially causing small operations that are currently minor sources to be considered an aggregated source that may meet the definition of a major source.  The result would likely contribute to a significant additional air permitting burden on the industry. 

This proposed rulemaking has not yet been published in the Federal Register.  Once published, comments will be accepted for 60 days after the publication date.  ALL4 strongly encourages potentially affected oil and gas organizations to submit comments to U.S. EPA on this very important rulemaking.  As always, ALL4 stands ready to assist the oil and gas industry with preparing and submitting comments. 

Electronic Reporting: Great in Theory

As Sean described in his August blog, U.S. EPA has promulgated several regulations which require electronic reporting (“E-Reporting”) through its Compliance and Emissions Data Reporting Interface (CEDRI).  E-Reporting is applicable to various rules that fall within 40 CFR Part 60 [New Source Performance Standards (NSPS)] and 40 CFR Part 63 [National Emission Standards for Hazardous Air Pollutants (NESHAPs)] and is used for reporting test results, monitoring data, compliance reports, and/or emissions reports.  Below are a few examples of regulations with pressing upcoming deadlines for E-Reporting; however, there is a litany of other deadlines that aren’t far behind.

  • 40 CFR Part 63, Subpart S (NESHAPs from the Pulp and Paper Industry)
  • 40 CFR Part 63, Subpart LLL (NESHAPs from the Portland Cement Manufacturing Industry)
  • 40 CFR Part 63, Subpart DDDDD (NESHAPs for Major Sources: Industrial, Commercial, and Institutional Boilers and Process Heaters)
  • 40 CFR Part 63, Subpart HHHHHHH (NESHAPs for Polyvinyl Chloride and Copolymers Production)

You might be thinking that the notion of E-Reporting and submitting data through an electronic interface seems pretty similar to other U.S. EPA programs and, if you’ve realized the day and age we’re in, it is likely something you couldn’t help but expect to come down the pike at some point or another.   However, “some point or another” is upon us, and for many facilities subject to NSPS and/or NESHAPs, the time to come up with a game plan for E-Reporting is now.

So, where do you start?

In order to access CEDRI, you first have to create an account through U.S. EPA’s Central Data Exchange (CDX).  If you need to submit a performance test report, you will need to download and complete the Electronic Reporting Tool (ERT).  Hint: the whole “three acronyms per one submittal” thing does not usually indicate a straightforward task.

The ERT is a Microsoft Access based program that, like most new applications, has a few (or more) quirks and caveats that you need to know in order to make the program function properly.  Luckily for you, ALL4 has been working with several of our clients, U.S. EPA, and the National Council for Air and Stream Improvement (NCASI) to hone our ERT expertise and learn how to handle these issues.  We have also registered multiple accounts within CDX so we are at the ready if you find you need help navigating the process.  Feel free to reach out to me at mgreene@all4inc.com or 678-460-0324 x213 or any of the other members of the CDX team (Hailey, Kayla, and Sean) with any questions!

It’s a Cluster#$%&…Top Challenges Facing Facilities Subject to SO2 Data Requirements Rule

For a while now ALL4 has been writing about the Sulfur Dioxide (SO2) Data Requirements Rule (DRR), including our most recent update on the final SO2 DRR. For those who are new to the process, the SO2 DRR is the U.S. EPA rule that outlines how State agencies should assess attainment or nonattainment with respect to the 1-hour SO2 National Ambient Air Quality Standard (NAAQS) (for areas that don’t currently have existing State run SO2 ambient monitors) and which facilities need to be directly evaluated as part of the process through either air dispersion modeling or through the installation of new ambient SO2 monitors.  Facilities which emit more than 2,000 tons per year of actual SO2 emissions have three (3) options to demonstrate attainment with the NAAQS:

  1. Conduct air dispersion modeling to show modeled attainment with the 1-hour SO2 NAAQS based on three (3) calendar years of actual emissions; or
  2. Install an ambient monitor or monitors to measure ambient SO2 concentrations for a period of three (3) years.  Often times dispersion modeling will still be used to identify areas of maximum modeled concentrations and therefore where an ambient monitor would be installed.
  3. Take a federally enforceable permit limit to limit facility-wide SO2 emissions to less than 2,000 TPY of SO2.

Facilities should be taking the following actions to evaluate the attainment status and corresponding attainment option for the SO2 DRR:

  1. Begin preliminary discussions with State agencies about their overall approach to the DRR including what role the agency will play in the DRR evaluation process and what information they will expect from your facility.
  2. Gather hour by hour fuel usage, production data, emissions information, and flow rates for the three (3) most recent calendar years of operation for use in air dispersion modeling.
  3. Conduct preliminary air dispersion modeling as outlined in U.S. EPA’s Air Dispersion Modeling Technical Assistance Document (TAD) referenced in the final DRR.

Evaluate SO2 compliance options (i.e., dispersion modeling versus ambient monitoring) from a capital/logistical standpoint.  Note: The sooner facilities start to evaluate their compliance options and engage State agencies, the better.  Decisions about the compliance options need to be made by July 1, 2016 with many State agencies require specific plans for monitoring or modeling in advance of that date.

The reality is that even with a final rule having been issued, there are still a cluster of unknowns related to the rule which can make it increasingly challenging for facilities to navigate a compliance approach.  To complicate the matter, State agencies are in the same position in trying to interpret what will be acceptable to U.S. EPA when NAAQS designation recommendations are submitted.  At ALL4, we have been assisting a number of clients with the SO2 DRR over the last few months and have identified the top challenges facing facilities subject to the SO2 DRR.

1. State agencies are approaching the SO2 DRR differently.

Not all State agencies are taking the same approach in evaluating applicable facilities with respect to SO2 DRR requirements.  Some State agencies are taking a hands on approach with facilities reaching out to facility contacts, scheduling meetings, establishing deadlines, and requesting the results of each step of the process.  Other State agencies are taking the opposite approach, putting the onus on the facilities to figure out for themselves the best approach to take and serving in a review capacity only.  The bottom line is facilities need to be in contact with State agencies to know how they plan to address the SO2 DRR because the approach of an individual State agency will likely impact the way that dispersion modeling is conducted, the decisions on location and number of ambient monitors to be installed, and the information that needs to be presented in the final analysis.

2. Clusters of SO2 emitting facilities could be drug into the SO2 DRR as well.

So you emit less than 2,000 tons per year (tpy) of SO2?  Perfect, the SO2 DRR doesn’t apply to you, right?  Not so fast.  In U.S. EPA’s final SO2 DRR preamble, clusters of SO2 emitting facilities are specifically addressed.  U.S. EPA states that clusters of SO2 sources that as a whole may have impacts similar to singles sources that emit greater than 2,000 tpy, will be evaluated on a case-by-case basis.  Many commenters suggested that U.S. EPA outline specific criteria for evaluating the scenario of clustered sources, but in the final rule U.S. EPA stated only that no specific criteria would be outlined due to the complex number of variables that could impact the significance of these smaller sources.  Sources that emit less than 2,000 tpy should take a hard look at surrounding facilities to determine if they are potentially impacted and start having some preliminary discussions with their State agency.  The last thing you want is to be blindsided that you will be impacted by the SO2 DRR.

3. Going down the monitoring route?  Cost may not be good enough justification for siting an ambient monitor.

If you are planning to install an ambient monitor, chances are you are taking a hard look at the cost associated with procuring the ambient monitoring equipment, accessing the potential monitor site, providing the potential monitor site with electricity, and clearing trees and vegetation to meet monitoring siting requirements and for the access road and potential monitor site itself.  In an ideal world, the location for a monitor is one that requires little capital expense and effort to access.  Of course, this is the real world and the chances are slim that the modeling you are conducting to site your ambient monitor actually works out that way.  In fact, you probably have numerous locations with similarly elevated modeled concentrations relative to other locations.  But be warned, if the model results show that one location clearly has the most significant impact, you may have a hard time arguing that accessing that location is reason enough to exclude that location.  ALL4 has received direct feedback from State agencies that cost is not a sufficient justification to exclude a potential ambient monitor site, especially if it is clearly the location of maximum modeled concentrations.  It is important to identify these possible issues early in the process and evaluate options for other possible monitoring locations.

4. Is one (1) ambient monitor good enough?

This is really “the” question if you choose to go down the ambient monitoring route.  U.S. EPA has made it very clear that at least one (1) ambient monitor must be installed for those facilities electing to utilize ambient monitoring to demonstrate attainment.  U.S. EPA’s example siting an ambient monitoring in the U.S. EPA Monitoring TAD shows one location that is far and away the best location to install an ambient monitor.  The reality is that the modeling results do not always work out cleanly.  Many times, one (1) location isn’t clearly the best choice; there is a large gray area.  In fact, we have seen instances where the worst case impacts are similar and occur on opposite sides of the facility property.  While there are certain arguments to be made justifying the installation of one (1) ambient monitor, facilities need to prepare for the reality that U.S. EPA and State agencies could require multiple ambient monitors and be prepared to counter those requests.  The primary question to ask: ”If I’m installing one (1) ambient monitor, is it protective of the possible concentrations in other locations?”  The answer could be yes and you should be prepared to present that justification for your specific situation.

5. On-site meteorological data is great for Prevention of Significant Deterioration (PSD) modeling, but maybe not for SO2 DRR modeling.

The U.S. EPA Modeling TAD outlines a specific approach for modeling to show compliance with the SO2 NAAQS.  It states that the meteorological data used for modeling should align with the hourly emissions data.  The Modeling TAD also allows for the use of on-site meteorological data if it is available.  But if the on-site meteorological data is historical and does note align with the most recent three (3) years of hourly actual emissions data, ALL4 has recently received feedback that in this scenario the allowable emissions rate should be used in the modeling as opposed to the actual emissions rates.  This certainly hinders the abilities of facilities to model and show compliance with the NAAQS.  Another potential option might be the use of U.S. EPA’s recently proposed (as a part of proposed revisions to 40 CFR Part 51 Appendix W, Guideline on Air Quality Models) Mesoscale Model Interface (MMIF) Program which could be utilized to develop a site specific meteorological dataset for the three (3) most recent years.  Again, this highlights the importance of engaging your State agency early in this process.

6. Hourly fuel usage and production data can be painful to reconcile.

The Modeling TAD states that actual hourly emissions data should be used to conduct modeling which means it’s time to roll up your sleeves and get into the weeds of your data.  Three (3) years of hourly data is a lot of data and now let’s assume you need that information for several SO2 emissions sources.  The amount of data that you need to sort through adds up quickly.  Trying to reconcile hourly fuel usage and production data with process downtime and other process codes is tedious work.  I cannot emphasis enough how this task, specifically, seems to be where much of our effort has focused on with our recent SO2 DRR projects.

All of this heightens the importance of working through issues early.  If you haven’t started evaluating the SO2 DRR and you emit 2,000 tpy of SO2, now is the time to get started.  There are numerous issues to work through before the July 1, 2016 deadlines for submitting dispersion modeling protocols or ambient monitoring plans.  It’s important to start opening the lines of communication with State agencies and U.S. EPA early in the process.  If you can get State agency and U.S. EPA involvement well before the deadlines next year, you can help to minimize the impacts of any surprises.  The last thing anyone wants is to find out two (2) ambient monitors will be required at the 11th hour.

ALL4 is available to assist with any and all aspects of the SO2 DRR.  Contact Colin McCall (cmccall@all4inc.com) at (678) 460-0324 ext. 206 or Chuck Doyno (cdoyno@all4inc.com) at (678) 460-0324 ext. 204 for more information about the ways that we can assist with the SO2 DRR and the SO2 NAAQS implementation process.

Top 5 Complaints of Consultants (Outside of ALL4)

Warning: This blog is for entertainment purposes only. This is not a technical blog; I’m not going to tell you about a specific regulation that you may be worried about and all the things you need to do to prepare. Hopefully, you’ll appreciate the humor…

Part of my responsibility at ALL4 is finding awesome air quality professionals (easier said than done).  I’ve had several conversations with recruiting prospects over the past few years and have compiled a substantial amount of data (yes, data…I knew that would catch your attention).  I created an algebraic equation, utilizing the multiplicative inverse property, averaging the sum and dividing by 189, which led me to the successful identification of the top five (5) complaints of consultants; perhaps, as you know by now, we roll differently here at ALL4, so I’ve also included a brief description of how the unique culture of ALL4 provides a refreshing perspective to the world of consulting. 

5.  Annual Performance Reviews – Ah, yes the antiquated approach of “dealing with” employees once a year.  Rather than continually inspiring professional growth and engagement, this often broken, ineffective process feels one-sided and simply serves to check-off a box.  It can lead to resentment or, even worse, leave you feeling deflated.  Employees don’t know which is worse – having reviews impact compensation or going through the process knowing salary adjustments have already been determined.  No doubt, feedback is always appreciated, but once a year is just not enough.  Let us tell you about our Create the Year meetings, quarterly planning, monthly check-ins, and continuous coaching process…

4.  Just a Number – You don’t feel like your contribution is valued – you’re just one (1) of many.  You work hard on projects but are disconnected from the company and its success; you don’t feel like a stakeholder.  Where’s the appreciation and recognition?  Here at ALL4, we value our employees and that’s clearly demonstrated by our competitive salaries and ongoing pursuit of best-in-class programs and benefits, such as 100% employer-paid health insurance, various meal programs, gym memberships, beer club, and a snack closet that’s filled to the gills with yummy goodies.  In addition, our appreciation is communicated to our team through a monthly accolade program, creative spot bonuses, gift cards, tickets to sporting events and amazing cornerstone events like our annual holiday party and summer Crabfest.  We know a simple “thank you” matters too…attend our company-wide weekly meeting and you’ll hear plenty of high five shout-outs to teammates for their tremendous support and accountability.

3.  To Share or Not to Share – You have great ideas but you have learned to keep them to yourself.  You tried to share those ideas to no avail, met only with resistance and attitude.  Maybe someone tried to pass them off as their own to get the credit.  You are now apathetic about the state of things and no longer bother.  (Refer to #5 because you probably shared those ideas in the annual performance review meeting.)  We are empowered and fearless at ALL4; we make it a point to share what we know and capitalize on our efficiencies, reaping the benefits of collective thought and synergy.  Have a great idea?  Stop by a principal’s office; their door is always open.

2.  Managing Billable Hour Targets – Your billable hour targets are monitored weekly, maybe even daily.  Therefore, investing in your professional growth, like speaking at a conference or attending a trade association meeting, is discouraged because you may not hit your weekly target…unless you want to make that time up over the weekend.  We don’t play that way. Yes…billable time is important; however, we recognize that our team should be treated like the professionals they are.  Billable targets are reviewed each quarter so that our staff has flexibility when managing their own hours and schedule. A big part of our culture is our dedication to continuous improvement, which means investing in our employees and supporting opportunities that expand their technical abilities.

And finally…drum roll please…the #1 complaint from consultants is that they need more Support – You are tired of training staff who just end up leaving.  Turnover is high, so instead of getting frustrated fixing others’ mistakes you just do the work yourself in the first place…which equates to long hours and lost weekends.  First and foremost, we are a best-in-class place to work, and our employees come first.  That’s why our turnover is so low.  Along with our extensive internal and external training programs, mentoring others is part of who we are and everyone benefits.  In addition, our Reg Tech Operations group provides an organizational structure that pools the collective knowledge of our staff, fostering an environment where learning is shared.

Interested in learning more about ALL4?  We are hiring at our Philadelphia, Houston, Atlanta, and Washington D.C. offices. 

-Annalise

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