[Federal Register Volume 76, Number 83 (Friday, April 29, 2011)]
[Notices]
[Pages 24007-24011]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-10448]
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DEPARTMENT OF ENERGY
Notice of Intent To Prepare an Environmental Impact Statement for
the Lake Charles Carbon Capture and Sequestration Project, Lake
Charles, LA
AGENCY: Department of Energy.
ACTION: Notice of Intent To Prepare an Environmental Impact Statement
and Notice of Proposed Floodplain and Wetlands Involvement.
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SUMMARY: The U.S. Department of Energy (DOE) announces its intent to
prepare an Environmental Impact Statement (EIS) pursuant to the
National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321 et
seq.), the Council on Environmental Quality's (CEQ) NEPA regulations
(40 CFR parts 1500-1508), and DOE's NEPA implementing procedures (10
CFR Part 1021), to assess the potential environmental impacts of
providing financial assistance for the construction and operation of a
project proposed by Leucadia Energy, LLC (Leucadia). DOE selected this
project for an award of financial assistance through a competitive
process under the Industrial Carbon Capture and Sequestration (ICCS)
Program.
The Lake Charles Carbon Capture and Sequestration Project (Lake
Charles CCS Project) would demonstrate: (1) advanced technologies that
capture carbon dioxide (CO2) emissions at the Lake Charles
Cogeneration Gasification Project (the LCC Gasification Project) to
[[Page 24008]]
be located on the west bank of the Calcasieu River in southern
Calcasieu Parish, Louisiana; and (2) permanent storage of a portion of
the CO2 injected as part of existing enhanced oil recovery
(EOR) operations in the Hastings oil field south of Houston, Texas.
During the DOE demonstration phase of the project, approximately 4
million tons per year of CO2 from two Acid Gas Removal (AGR)
units would be captured, compressed and transported through a new
pipeline connecting to Denbury Onshore, LLC's (Denbury's) existing
Green Pipeline. The Green Pipeline is designed to transport
approximately 800 million standard cubic feet of CO2 per day
(about 17 million tons per year) and currently transports
CO2 from natural sources to existing EOR operations along
the Gulf Coast. A comprehensive research monitoring, verification, and
accounting (MVA) program would be implemented on a portion of the
existing CO2 EOR operations at the Hastings field to confirm
permanent storage of about one million tons per year during the
demonstration period.
The EIS will inform DOE's decision on whether to provide financial
assistance to Leucadia for the Lake Charles CCS Project. DOE proposes
to provide Leucadia with up to $261.4 million of cost-shared financial
assistance. The financial assistance would apply to the planning,
designing, permitting, equipment procurement, construction, startup,
and demonstration of the CCS technology and MVA program. DOE's
contribution of $261.4 million would constitute about 60 percent of the
estimated total development and capital cost of the CCS project, which
is estimated to be $435.6 million (2010 dollars). The project will
further the objective of the ICCS Program by demonstrating advanced
technologies that integrate CO2 capture at industrial
sources and monitor the sequestration of CO2 in underground
formations.
DOE is issuing this Notice of Intent (NOI) to: (1) Inform the
public about DOE's proposed action and Leucadia's proposed project; (2)
announce the public scoping meeting; (3) solicit comments for DOE's
consideration regarding the scope and content of the EIS; (4) provide
notice that the proposed project may involve impacts to floodplains and
wetlands; and (5) invite those agencies with jurisdiction by law or
special expertise to participate as cooperating agencies in the
preparation of this EIS. DOE does not have regulatory jurisdiction over
the Lake Charles CCS Project or its connected action, the LCC
Gasification Project. DOE's decisions are limited to whether and under
what circumstances it would provide financial assistance to the
project. As part of the EIS process, DOE will consult with interested
Native American Tribes and Federal, state, regional and local agencies.
DATES: DOE invites comments on the proposed scope and content of the
EIS from all interested parties. Comments must be received within 30
days after publication of this NOI in the Federal Register to ensure
consideration. In addition to receiving comments in writing, by e-mail,
telephone, or fax [See ADDRESSES below], DOE will conduct two public
scoping meetings in which government agencies, private-sector
organizations, and individuals are invited to present oral and written
comments or suggestions with regard to DOE's proposed action,
alternatives, and potential impacts. DOE will consider these comments
during the development of the EIS. The scoping meetings will be held at
Pearland Junior High, 4719 Bailey Road, Pearland, TX, on May 16, 2011,
and at Westlake City Hall, 1001 Mulberry Street, Westlake, Louisiana,
on May 17, 2011. Oral comments will be heard during the formal portion
of the scoping meeting beginning at 7 p.m. [See Public Scoping Process
below]. The public is also invited to provide comments and learn more
about the project and the proposed action at informal sessions at the
same locations beginning at 5 p.m. Various displays and other
information about DOE's proposed action and the Lake Charles CCS
Project will be available at the scoping meetings. Representatives from
DOE and Leucadia will be present at the informal sessions to discuss
the proposed project and the EIS process.
ADDRESSES: Written comments on the scope of the EIS and requests to
participate in the public scoping meeting should be addressed to: Ms.
Pierina Fayish, U.S. Department of Energy, National Energy Technology
Laboratory, 626 Cochrans Mill Road, P.O. Box 10940, Pittsburgh, PA
15236. Individuals and organizations who would like to provide oral or
electronic comments should contact Ms. Fayish by telephone (412-386-
5428 or toll-free 1-888-322-7436, ext. 5428); fax (412-386-4604);
electronic mail ([email protected]), or formal mail submitted to
the address given above.
FOR FURTHER INFORMATION CONTACT: For further information about this
project, contact Ms. Pierina Fayish, as described above. For general
information on the DOE NEPA process, please contact Ms. Carol M.
Borgstrom, Director, Office of NEPA Policy and Compliance (GC-54), U.S.
Department of Energy, 1000 Independence Avenue, SW., Washington, DC
20585; telephone (202-586-4600); fax (202-586-7031); or leave a toll-
free message (1-800-472-2756).
SUPPLEMENTARY INFORMATION:
Background
In Section 703 of the Energy Independence and Security Act of 2007
(Pub. L. 110-140), Congress directed DOE to ``carry out a program to
demonstrate technologies for the large-scale capture of carbon dioxide
from industrial sources.'' DOE subsequently sought applications in a
funding opportunity announcement (FOA) entitled ``Carbon Capture and
Sequestration from Industrial Sources and Innovative Concepts for
Beneficial CO2 Use'' on June 8, 2009 (Financial Assistance
Funding Opportunity Number DE-FOA-0000015, amended July 17, 2009).
Congress appropriated funding for ICCS in the American Recovery and
Reinvestment Act of 2009, Public Law 111-5 (Recovery Act) in order to
stimulate the economy and reduce unemployment in addition to furthering
DOE's existing carbon capture and sequestration objectives.
Projects funded under this ICCS program are cost-shared
collaborations between the government and industry to increase
investment in clean industrial technologies and carbon capture and
sequestration projects. Under the ICCS funding opportunity, industrial
firms proposed projects to meet their needs and those of their
customers while furthering the national goals and objectives of DOE.
The successful development of advanced technologies and innovative
concepts that reduce emissions of CO2 is a key objective of
the nation's effort to help mitigate the effects of climate change.
The projects are funded, in whole or in part, with funds
appropriated by the Recovery Act. The purposes of the Recovery Act are
to stimulate the economy and to create and retain jobs. Accordingly,
special consideration was given to projects that promote job creation,
preservation, and economic recovery in an expeditious manner.
DOE's two specific objectives identified in the FOA were Technology
Area 1--Large-Scale Industrial CCS Projects from Industrial Sources;
and Technology Area 2--Innovative Concepts for Beneficial
CO2 Use. The Lake Charles CCS Project was one of three
projects DOE selected under Technology Area 1, which focuses on the
demonstration of advanced technologies that capture and sequester
CO2 emissions from industrial sources
[[Page 24009]]
into underground formations or put the CO2 to beneficial use
in a manner that permanently prevents it from entering the atmosphere.
Technology Area 1 includes expanding CO2 use in EOR and
obtaining information on the cost and feasibility of deployment of
sequestration technologies. Therefore, under the FOA, DOE sought
projects with technologies that have progressed beyond the research and
development stage to a point of readiness for operation at a scale
that, if successful, could be readily replicated and deployed into
commercial practice within the industry.
Purpose and Need for Agency Action
The purpose and need for DOE action is to advance the ICCS program
by selecting projects that have the best chance of achieving the
program's objectives as established by Congress: demonstrating the next
generation of technologies that will capture CO2 emissions
from industrial sources and either sequester them or beneficially reuse
them.
Leucadia's Proposed Project
Site of Proposed Project: Lake Charles, Louisiana and Brazoria County,
Texas
The Lake Charles CCS Project would involve the capture and
sequestration of the CO2 from the LCC Gasification Project,
a petroleum coke gasification plant to be constructed by Lake Charles
Cogeneration, LLC, in Calcasieu Parish, adjacent to the Port of Lake
Charles, Louisiana. As part of this project, the CO2 would
be captured, compressed, and transported for use in existing
independent CO2 EOR operations. Approximately 4 million tons
per year of CO2 from two AGR units would be compressed and
delivered via a new connecting pipeline to the existing Green Pipeline
for transport and use in existing EOR operations along the Gulf Coast.
A research MVA program would be conducted over a portion of the
existing EOR operations at the Hastings oil field to confirm permanent
storage of about one million tons per year during the demonstration
period. The MVA activities would supplement on-going monitoring
activities conducted in conjunction with existing EOR operations at the
Hastings field.
Proposed CO2 Capture and Compression Facilities
The CCS project involves the design, procurement, installation, and
testing of the AGR units, CO2 compressors and buildings,
metering station, and specific ancillary equipment. The CO2
capture facility would consist of two Lurgi Rectisol Selective AGR
units in which CO2 is separated from the process gas. The
compression facilities would include two compressors, the buildings in
which the compressors are housed (each approximately 80 feet by 140
feet), and a meter station to monitor the volume of CO2 that
is exported.
Ancillary equipment and systems supporting the CO2
capture and compression facilities would consist of: the electrical
system switchgear supplying the AGR units and CO2
compressors, load commutated inverters for starting the compressors, a
chilled water supply system, two regenerative thermal oxidizers to
allow environmentally compliant venting of CO2 when
required, and a propylene refrigeration system for cooling within the
AGR units. All other ancillary systems such as cooling water, remote
controls, external fire protection system, and instrument air would be
provided through capacity expansion or infrastructure modification
prepared in advance of installation of the CO2 capture and
compression facilities.
Proposed CO2 Pipeline and Associated Ancillary Equipment
As part of the Lake Charles CCS Project, an affiliate of Denbury
would construct, own, and operate approximately 11 miles of
CO2 pipeline and associated ancillary equipment. This
pipeline would connect to Denbury's existing Green Pipeline. The new
pipeline would include a 16-inch outside diameter pipeline and
associated valves and meter stations. The pipeline route would include
a permanent right-of-way approximately 11 miles long and 50 feet wide
that would parallel existing rights-of-way, such as roadways,
pipelines, railroads and transmission lines to the extent practicable.
The CO2 pipeline would cross under the Houston River and
Interstate Highway I-10 and connect with the existing Green Pipeline
near Buhler, Louisiana.
Proposed CO2 Sequestration and Research Monitoring, Verification and
Accounting
MVA activities would be designed and implemented to demonstrate the
permanent storage of approximately 1 million tons per year of the
CO2 injected in existing wells located on a portion of the
Hastings oil field. This oil field is located between Alvin and
Pearland, Texas, near State Highway 35. During the DOE demonstration
phase of the project, the proposed research MVA program would
supplement privately-funded, ongoing MVA activities conducted in
conjunction with Denbury's commercial EOR operations at the Hastings
field. While this oil field covers approximately 25 square miles, the
MVA program would be limited to approximately 2.8 square miles, or
slightly more than 10% of the field. The following MVA activities would
be conducted:
Well Integrity Testing--Logging of existing idle
production wells and testing of plugged and abandoned wells to detect
CO2 migration through non-sealing well bores.
Flood Conformance Testing--Augmentation of measurements to
observe and model movement of CO2 in subsurface formations
during the EOR operations.
Above-zone Monitoring--Monitoring of pressures and
geochemical parameters in the formations above the confining layer to
detect CO2 migration beyond the injection zone.
Proposed Project Schedule
Leucadia proposes to construct the connected LLC Gasification
Project over an approximate 3-year period projected beginning in the
first quarter of 2012. The gasification project is currently undergoing
site preparation, including clearing and grading. The CO2
capture and compression facilities for the Lake Charles CCS project
would be constructed simultaneously with the gasification project.
Leucadia has obtained the environmental permits and approvals for
construction and operation of the gasification project.
The schedule for the CCS Project is contingent on receiving the
necessary environmental permits and regulatory approvals for the new
connecting CO2 pipeline, as well as financial closing on all
the necessary funding sources for the Lake Charles CCS Project as a
whole, including DOE's financial assistance. DOE's decision to provide
financial assistance for detailed design, procurement of equipment,
construction, and operations will be made after completion of the NEPA
process and issuance of the EIS.
Connected and Cumulative Actions
Under the cooperative agreement between DOE and Leucadia, DOE would
share in the cost of the planning, designing, permitting, equipment
procurement, construction, startup, and demonstration of the Lake
Charles CCS Project. As part of the EIS, DOE will also evaluate and
consider the impacts associated with the larger gasification project,
which is considered a connected action.
The LCC Gasification Project will use a state-of-the-art process in
which
[[Page 24010]]
petroleum coke is converted into synthesis gas (syngas) that will then
be converted into methanol. The gasification project would consume 2.6
million tons per year (tpy) of petroleum coke to produce over 2.2
million tpy of methanol. The gasification project would consist of five
General Electric (GE) Quench Gasifiers and two trains of syngas
processing, two Lurgi Rectisol Selective AGR units, a methanol unit,
and Haldor Topsoe wet sulfuric acid production. At design plant
capacity, four GE Quench Gasifiers would operate at their design rate,
which allows one gasifier to be on hot standby or shut down for
maintenance. The syngas processing includes a catalyst to convert
carbon monoxide and water into hydrogen and CO2. Hydrogen
sulfide, carbonyl sulfide and CO2 will be selectively
removed from the syngas in the AGR units.
Steam created by the gasification process will generate electricity
via turbines and would provide a significant portion of the energy
needs of the LCC Gasification Project. Petroleum coke would be
transferred from the Port of Lake Charles to the gasification project
site via a conveyor system. Raw water would be supplied by pipeline
from the Sabine River. The water from the Sabine River Authority (SRA)
would be provided through interconnection to the existing SRA intake
structure on the Sabine River Diversion Canal. LCC Gasification has
received a Louisiana Pollution Discharge Elimination System permit to
discharge non-contact cooling water associated with operation of the
CO2 compression system.
DOE will also analyze the cumulative impacts of both the proposed
project and any other reasonably foreseeable actions. The cumulative
impacts analysis will include analysis of greenhouse gas emissions and
global climate change, other air emissions, and cumulative impacts on
other resources. Cumulative impacts are the impacts on the environment
resulting from the incremental impacts of the proposed action when
added to other past, present, and reasonably foreseeable actions.
Alternatives, Including the Proposed Action
NEPA requires that an EIS evaluate the range of reasonable
alternatives to an agency's proposed action. The range of reasonable
alternatives encompasses those alternatives that would satisfy the
underlying purpose and need for agency action. The technologies
included in the ICCS program are those that best represent advanced CCS
projects that are ready for operation at a demonstration scale. Once
demonstrated, those technologies would be ready for deployment at a
commercial scale.
DOE's NEPA regulations include a process for identifying and
analyzing reasonable alternatives in the context of providing financial
assistance through competitive selection of projects proposed by
entities outside the Federal government. The range of reasonable
alternatives in competitions for grants, loans, loan guarantees and
other financial support is defined initially by the range of responsive
proposals received by DOE. Unlike projects undertaken by DOE itself,
the Department cannot mandate what outside entities propose, where they
propose to locate their project, or how they propose to operate their
project beyond expressing basic requirements in the funding opportunity
announcement; and these express requirements must be limited to those
that further the program's objectives. DOE's decision is then limited
to selecting among the applications that meet the ICCS goals.
Section 216 of DOE's NEPA implementing regulations requires the
Department to prepare an ``environmental critique'' that assesses the
environmental impacts and issues relating to each of the proposals that
the DOE selecting official considers for an award (see 10 CFR
1021.216). This official considers these impacts and issues, along with
other aspects of the proposals (such as technical merit and financial
ability) and the program's objectives, in making awards. DOE prepared a
critique of the proposals that were deemed suitable for selection in
this round of awards for the ICCS program.
After DOE selects a project for an award, the range of reasonable
alternatives becomes the project as proposed by the applicant, any
alternatives still under consideration by the applicant or that are
reasonable within the confines of the project as proposed (e.g., the
particular location of the processing units, pipelines, and injection
sites on land proposed for the project) and a ``no action''
alternative.
DOE currently plans to evaluate the project as proposed by Leucadia
(with and without any mitigating conditions that DOE may identify as
reasonable and appropriate), alternatives still under consideration,
and the no action alternative. The EIS will briefly describe
alternatives previously considered by Leucadia in developing the
proposed project; however, DOE does not plan to analyze these
alternatives in detail because they are no longer under consideration
by Leucadia and because they were not part of the proposal that
Leucadia offered and DOE accepted. DOE also will consider other
reasonable alternatives suggested during the scoping period.
Under the no action alternative, DOE would not provide funding to
Leucadia. In the absence of financial assistance from DOE, Leucadia
could reasonably pursue several options: the LCC Gasification Project
would not go forward; the LCC Gasification Project would go forward
without the use of CO2 for sequestration and EOR; or both
the LCC Gasification Project and Lake Charles CCS Project would proceed
without monitoring of the sequestered CO2. For the purpose
of making a meaningful comparison between the impacts of DOE providing
and withholding financial assistance, DOE will analyze the impacts
under these three options as sub-alternatives of the no-action
alternative. Consequently, in the absence of DOE funding Denbury would
continue to conduct its ongoing EOR operations.
Floodplains and Wetlands
Sections of the connected LCC Gasification Project site are within
100-year or 500-year floodplains. Site development activities include
the addition of fill material that would result in elevations
significantly above the local 100-year and 500-year base flood
elevations. The U.S. Army Corps of Engineers (COE) conducted a
jurisdictional wetland determination, and the Port of Lake Charles
mitigated impacts to 26.2 acres of the wetlands through agreement with
the COE and Stream Wetland Services, LLC. A COE permit to develop the
LCC Gasification Plant site was issued on October 18, 2008.
With respect to the Lake Charles CCS Project, temporary and
localized floodplains and wetlands impacts may occur during the
construction of stream and wetlands crossings associated with pipeline
construction. Wetlands also may be impacted by development of the 50-
foot-wide right-of-way. Several small isolated wetlands have been
identified in the U.S. Fish and Wildlife Service National Wetland
Inventory (USFWS, 2010) within the Hastings MVA project area.
Potential impacts to floodplains and wetlands for all aspects of
the proposed Lake Charles CCS Project and any connected actions would
be evaluated in the EIS. If potential impacts are identified, DOE will
include a floodplain and wetland assessment in the EIS, in accordance
with its
[[Page 24011]]
regulations in 10 CFR part 1022, Compliance with Floodplain and Wetland
Environmental Review Requirements.
Preliminary Identification of Environmental Issues
DOE intends to address the issues listed below when considering the
potential impacts resulting from the construction and operation of the
Lake Charles CCS Project and any connected actions. This list is
neither intended to be all-inclusive, nor to be a predetermined set of
potential impacts. The list is presented to facilitate public comment
on the planned scope of the EIS. Additions to or deletions from the
list may occur as a result of this scoping process. The preliminary
list of potentially affected resources or activities and their related
environmental issues includes:
Air quality resources: potential air quality impacts from
emissions during construction and operation of the proposed project and
connected actions on local sensitive receptors, local environmental
conditions, and special-use areas, including impacts to smog and haze
and impacts from dust and any significant vapor plumes, including
greenhouse gas emissions;
Climate change: potential impacts on climate as a result
of CO2 and other greenhouse gas emissions.
Water resources: potential impacts from water use and
consumption, wastewater discharges, and releases to streams during
construction and operation of the proposed project and connected
actions;
Infrastructure and land use: potential environmental and
socioeconomic impacts associated with the proposed project and
connected actions, including delivery of materials and distribution of
products (e.g., access roads, pipelines);
Solid wastes: pollution prevention and waste management
issues (generation, treatment, transport, storage, disposal or use),
including potential impacts from the proposed project and connected
actions on the generation, treatment, storage and management of
hazardous materials and other solid wastes;
Ecological resources: potential on-site and off-site
impacts to vegetation, wildlife, threatened or endangered species and
ecologically sensitive habitats from the proposed project and connected
actions;
Floodplains and wetlands: potential wetland and floodplain
impacts from construction and operation of the proposed project,
pipelines and connected actions;
Transportation and traffic: potential impacts from the
construction and operation of the proposed project, pipeline and
connected actions, including changes in local traffic patterns, roads
and rail lines, traffic hazards and traffic controls;
Historic and cultural resources: potential impacts related
to development of the site for the proposed project and connected
actions and pipeline construction;
Geology and soils: potential impacts to existing geologic
and soil resources from construction and operation of the proposed
project and connected actions;
Public health and safety issues: potential construction-
related safety, process safety and impacts associated with
CO2 capture and transport to and usage in EOR at the
sequestration site;
Socioeconomics: potential impacts on public services and
infrastructure (e.g. schools, utilities), the creation of jobs, use of
community resources and state and local tax incentives associated with
the proposed project and connected actions;
Environmental justice: potential disproportionate adverse
impacts on minority and low-income populations associated with the
proposed project and connected actions;
Noise: potential impacts from construction, transportation
of materials and facility operations for the proposed project and
connected actions;
Cumulative effects: incremental impacts of the proposed
project and connected actions when added to other past, present and
reasonably foreseeable future projects, including emissions of
greenhouse gases and global climate change;
Compliance with regulatory and environmental permitting
requirements: environmental compliance and monitoring plans associated
with the carbon capture equipment, pipeline construction,
CO2 sequestration activities and connected actions.
Public Scoping Process
This Notice of Intent initiates the scoping process under NEPA,
which will guide the development of the Draft EIS. To ensure
identification of issues related to DOE's Proposed Action and
Leucadia's Proposed Project, DOE seeks public input to define the scope
of the EIS. The public scoping period will end 30 days after
publication of this NOI in the Federal Register. Interested government
agencies, private-sector organizations and individuals are encouraged
to submit comments or suggestions concerning the content of the EIS,
issues and impacts that should be addressed, and alternatives that
should be considered. Scoping comments should clearly describe specific
issues or topics that the EIS should address. Written, e-mailed, or
faxed comments should be received by May 29, 2011 (see ADDRESSES).
DOE will conduct two public scoping meetings, to be held at
Pearland Junior High, 4719 Bailey Road, Pearland, TX, on May 16, 2011,
and at Westlake City Hall, 1001 Mulberry Street, Westlake, LA, on May
17, 2011. Oral comments will be heard during the formal portion of the
scoping meeting beginning at 7 p.m. The public is also invited to
provide comments and learn more about the project at informal sessions
at these locations beginning at 5 p.m. DOE requests that anyone who
wishes to provide oral comments at this public scoping meeting should
contact Ms. Pierina Fayish, either by phone, e-mail, fax, or postal
mail (see ADDRESSES).
Those who do not arrange in advance to speak may register at the
meeting (preferably at the beginning of the meeting) and may be given
an opportunity to speak after previously scheduled speakers. Speakers
will be given approximately 5 minutes to present their comments. Those
speakers who want more than 5 minutes should indicate the length of
time desired in their request. Depending on the number of speakers, DOE
may need to limit all speakers to 5 minutes initially and provide
second opportunities as time permits. Individuals may also provide
written materials in lieu of, or supplemental to, their presentations.
Oral and written comments will be given equal consideration.
DOE will begin the formal meeting with an overview of Leucadia's
project. The meeting will not be conducted as an evidentiary hearing,
and speakers will not be cross-examined. However, speakers may be asked
questions to help ensure that DOE fully understands the comments or
suggestions. A presiding officer will establish the order of speakers
and provide any additional procedures necessary to conduct the meeting.
A stenographer will record the proceedings, including all oral comments
received.
Issued in Washington, DC, this 26th day of April 2011.
Victor K. Der,
Acting Assistant Secretary, Office of Fossil Energy.
[FR Doc. 2011-10448 Filed 4-28-11; 8:45 am]
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