HomeMy WebLinkAboutContract 28307ROAD REPAIR AGREEMENT
SETR'EEN �1�1� �����/��� Q
THE CITY OF �ORT WURTH C���RAC:T �, �U�� ��
AND —
,
CHIEF OII. .AND GAS LLC
�
This Road Repair Agreement, (Agraemeni), is made and entered into on #lzis the 8th day of
November, 2002, by and between the City of Fort Worth, Texas ("City"}, a home rula municipal
corporation of the State of Texas, focated within Tarrant and Denton Coun�ies, Texas {Hereinafter referred
to as the "City") and Chief Oi1 and Gas LLC ("Operator"} for the repair oi certain streets and/or roaciways
wi�in the City of Fort Worth, Texas as more fu11y �3escribed herein.
VV�IE1tEAS, Operator is in the business of drilling gas wells and, ir� connection th�rewith, aha11 be
engaged in drilling and praduciian activifies on property lmown generally as the COIIRTNEY LEASE
(LOCATED NORTH OF THE 400 BLOCK OF BAILEY BOSWELL W ROAD IN SAGINAW,
TEXAS), which abnYs, is-adjacent to, and/or is accessed by roadways within the City of Fort Worth; and
WHEREAS, use of the roadways by the Operatar for the purpose of per£ozming the activities
ciescribed hereinabov� may cause damage to the madways; and
WHEREAS, the City and Operator, for the mutual cansideration hereinafter stated, desire to enter
into an Agreement £or Operator to repair said roadways for the duratian of the term of this Agreement in
cansiderarion of Operator's use of said roadways for the purpose of the activities described hereinabove;
IT IS NOW THEREFORE AGREED THAT:
ARTICLE 1.
RFpAIR OBLIGATION
1. Operator shall repair roadways which abut, are adjacent to, or is aocessed by th� C?perator
for the drilling, completing, reworking, and/or re-fracing of a gas well ar well on tk�e Couriney Lease
during the term of this Agreement and shall, prior to che teimination of this Agreem�nt, as pravided herein,
restore and repair all roadways to the cpndition in whic� the roadways existed prioz to tb.e execution of this
Agreamen� For purposes of this Agreement, "repair" shall, mean that all tt�.e roadways will be repaired in
accardance to the latest editivn of "Standard Specificataons £oz Street and Storm Drai.n Construction, City
of Fort Worth, Texas Tranisportation and Public Works Department." Prior to any activity by the Operator
related in any way to Operator's drilIing and operation of its gas wells, Operator shall make a
representative videotape oz take xepzesentative pictures of the roadovay aud shall provid� a copy of the
videotape and/or pictures to the Gas inspector and the Director of Transportation and Public Works
Department for the City.
2. In connection with its obligation to repair said roadways, Operator shall use materials of
the same or better quality than those utilized to surface and/or repair the roadways prior to execution of ti�is
agreement and in accordance with the standards specifications of the City as described in paragraph one of
this Article. Deviation from the materials described herein shall not he peimitted wit3iout the prior written
consent of the Direckor of Transporkation and Public Works. Repairs shall be completed in accardanc� with
standard engineering practices aceeptable to the City.
Operator shall repair filie damage to the roadways at its sole cost and expense.
4. During the term of this Agreement, Oper$tor shall periodically inspect the roadways
during drilling, fracture stimulation or rewarking of th� gas well to determine whetb.er or not any damage
has aceurred as a result af Oparator's activiti�s, Innmediately upan discovezang �e existence of any such
damage to the roadways, Operator shall umdertake ta regair and/or zemedy same. Upon discovery oi
damag� by the Operator, the Operator will have 48 hours to contact the Director af Transportation amd
Public Works to work out a schedule of rapairs. Repairs shall take placa witbain 30 days ar iucnmediataly if
the damage affects the immadiate health and safety af i�,i.���.:A?�. ,
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AR'ITCLE 2.
TERM OF AGREEMENT
This Agreement sha[1 commence upon the date indicated above and shall continue in full force and
effect until Operator has completed andlor permanently discontinued the activities upon the roadways, as
described hereinabove.
ARTICLE 3.
1N5URANCE AND INDEMNITY
The Operator shall provide or cause ko be provided #he insurance described 6elovv far each well
unless a Gas Well Permit has been issued wharein such insurance has Freen provided for the issuance of the
Gas Well Pennit undei• tl�e terms and conditions described in the Fori Wortlz "Gas Drilling and Productian"
Ord�nance and sucl� insurance to continue untif the well is abandoned and the site restared.
In addition to the Uond or letter of credit required pursuant to this Agreement and the Fort Worth
"Gas Driljing and Praduction" ordinanee, the Operator shall cai7y a po�icy or policies of ins4�rance issued
by an insurance company or companies authorized to do business in Texas, In the event such inst�rance
policy or po[icias are cancelled, the Gas WeII Permit shaIl be suspanded on s�ich date of cancellation and
the Operator's right to operate under such Gas �1VelI Permit shall immediately cease until the Operator iiles
additional insurance as provided herein.
1) General Requirernents applicable to all policies.
a. The City, it ofFicials, employees, agents and officers shall be endorsed as an
"Addi�i�nal Insured" to all polzcies except Employers Liability covei•age under
the Operator's Wnrkers Campensation policy.
b. All policies shall be written an an occurrence 6asis exCept for En�ironmentaf
Follution Liability (Seepage and Polluiian coverage} and Excess or Umbralla
Liability, which may be on a claims-made 6asis.
c. All pol�cies shall be wri�ten by a� insurer witl� an A-: VIII or better rating by the
most curr�nt version af the A. M. Best Key Aatir�g Guide or with such ather
iinancially sound insurance carriers acceptable to the City.
d. Deductibles shall be listed on the Certificate of Insurance and shall be on a"per
occurrence" basis unless otherwise siipulated herein.
e. Certificates of Tnsurance shall be delivered to the City of �'o�•t Wot�th,
Develapment Department, 1D00 Throcicmorton Street, Forth Wo��th, Texas
76102, evidencing all tha required coverages, including endorsemeijts, prior to
the issuance of a Gas Well Pertnit.
f. All palicies shall l�e endorsed with a w�iver of subrogation providing �•ights of
recovery in favar of the City.
g. Any failura on part of the City to request raquirec! ins��rance documentation sl�all
not constitute a waiver of the insurance requirernent specifed harein.
h. Each policy shall be endQrsed to provide the City a minimum thirty-day notice
of cancellation, non-renewal, and/or material change in policy terms or
coverage. A ten days notice shall be acceptable in the event of nQn-payment of
pr�miutn.
i. During the term of the Gas Well Permit, the Operator shall report, in a timely
mannea-, to the Gas IRspectqr any known loss accurrence which could give rise
to a liability claim or lawsuit or which could resulC in a propei�ty loss.
j. Upon request, certi�ed copies of ali insurance policies shall be fu�nished to Yhe
City.
2) Standard Commercial General Liability Policy.
This coverage must include premises, operations, Ulowout �r explosion, products,
coinpleted operations, sudden and accidental pollutivn, 6lanket contractuai liability,
underground resources damage, broad form property damage, independent conkractni•s
protective liability and persanal injury. This caverage shall be a minimum ComE�ined
5ingle Liinit of $1,D�O,OOQ per occurrence for Bodily Injury and Property Damage,
3) Excess or Umbreila Liability
$ S,OQQ,D00 Excess, if tlie Operator has a stand-alane �nviraizmeiital Pollution
L,iability (EPL) policy.
$l0,Op0,000 Excess, if the Operator does not have a stand-alone �PL policy.
Coverage must include an endorsement far suddan or accidental
pollution. If Seepage and Pollution coverage is written on a"claims
uiade" basis, the Operator must maintain cantiuuaus coverage and
purchase Extended Cover�ge Period Insurance vvhe� necessary.
4} Worlcers Compensation and Employers Liability Insurance
a. Workers Compensatian benefits shall be Texas Stakutory Limits.
b. Emp�oyers Liability shall be a minimum of $50Q,QQ0 per accident.
c. Such coverage shali include a waiver pf subrogation in favor of the Ciiy and
provide coverage in acco�•dance wiih applieable 5tate and Federal laws.
5) Autnmobile Liability Insurance
a. Combined Single Limit of $1,000,000 per occurrence for Bodily Injury and
Praperty Damage.
b. Coverage must include all owned, hired and not-owned automobiles.
6) Certificates of Insurance
a. The company must be admitted or approved to do business in the State of Texas,
unless tY�e eaverage is written by a Surplus Linas insurer.
b, The insurance set forth by the insurance compa��y rnust be unde�•writtetl on
fai�ns that have been ap�roved by the Texas State Board of Insurance or ISO, or
an equivalent policy for�n acceptable to the City.
c. Sets forth all endorsements and `uisurance coverage according to i•equirements
and instructions contained herein.
d. Shall specifica]iy set forth the notice af c�ncellation, termination, or change in
caveragc provisions to the City. All policies shall be endorsed to read "T'HIS
POLICY WILL NOT B� GANCELLED OR NON-RENEWED WITHOUT 30
DAY,5 ADVANC� WRITTEN NOTICE TO THE OWNER AND THE CITY
�XCEPT WHEN THIS POLICY IS BE1NG CANCELLED FOR
NONPAYMENT OF PREMIUM, IN WHICH CASE 10 DAYS A�]VANCE
WRITTEN NOTIC� IS REQLIIRED",
e. Qriginal endarsements affecting coverage rec�uired by this section sha11 be
furnished with fihe certificates of insurance.
7) Tl�e cancellatian of any insurance for the sole pu��pose of the repair of roadways will not
�-elease the obligatian of tl�e Opexator to meet all renuirernents af insuranee and bonding
Under t11e Fort Wnrth "Gas Drilling and Pd-oductian" Ordinance.
8} Operator sliall and hereby do�s indemnify, defend and save 1�armless tlie City, its offieers,
agents and emplayees From all suits, aciions or claims of any character, nama and
description hraught for or on account of any injuries or da�nages receiv�d as sustained by
any person, persons ar property on account of the operaiions of the Operator, his age��ts,
emplayees, contractars or subcontractors; or on accouni of any negligent act oF fault of
the Dperator, his agents, employees, contractors or subcontractors in connection with the
obligations under this Road Regazr Agreement; and shall pay any j�adgment, vcfith costs,
which may be obtained against the City growing out of such injury or dainage.
ARTICL� 4.
PERFORMANCE BONDS
1. Operator sl�all provide a performance l�ond, urzless a performance bond IZas been
provided for the issuance of a Gas Well Permit under the terms and conditious describec# in Fa�-t
Woith "Gas Drilling and Production" ordinance, in tl�e atnount not ]ess than the amount necessaz•y
to repair the r�adways, as determined by tl�e City �ngineer.
2. 1'rior to the beginning any activity pursuant to ihe issuai�ce of a Gas Well Perrnit, unless a
perfoi�rnance boild has been provided for the issuance of a Gas Well Penr►it under the tenns and
conditions descril�ed in Fort Worth "Gas Drilling and Production" Ordinance, the Operator shall
provide the Gas Inspector with a security ins�ument in the form of a bond or an irrevocable letter
of credit as foIlows:
a. Bond. A bond shall be executed by a reliable bonding or insuranc� ii�stituti�n
authorized to do business in Texas, acceptable to the City. Tlie �ond shall beca�ne
effective an or before the date the Gas Well Pei�it is issueci and shall reinain in force and
�t�ect for at least a period of si�c (6) manths after the expiratipn of the Gas Well Permit
term or until ihe well is plugged and abandoned and the site is restored, whichever occurs
frst. The Operator shall be listed as principal and the instru�ent shall run to the City, as
obligee, and shall be conditioned that the Operator will coinply with the terrns and
regulations of this Ordinance and the City. 'T'he original bcnd shal] be submitted to the
Director of Transportation and Public Works with a copy of the same pra�vided to the
City Seeretary and the Gas Inspectar.
b. Letter of Credit. A letter af credit shall be issued by a reliable bank authorized
to do Uusiness in Texas and shall become effecti�e on or before tlie date tl�e Gas Well
Perrnit is issued. The letter of credit shall remain in force and effect f.or at least a period
of six (G) months after klie expiratian of the Gas Well Per�nit term. The City shaIl be
authorized to draw upvn such letter of credit to recover any fines or penalties assessed
under tlsis ordinance. Evidence of the execution of a letter of credit shall be submitted to
the D'u•aCtor of TransportatiQn ar�d Pubjic Works submitting an arigin�l signed lettet• of
�redit from ths banking instiYution, with a copy of the same provided to fihe Gity
Secretary anc� ttse Gas Inspector.
c. Whenever the Gas Inspector ar the Director of Transpvrtation and i'wblic works
Depar�ment finds that a default has occurred in the performance af any rec�uirement or
eondiiion imposed by this Agreement, a written notice shall be given to the Q�erator.
Such notice shall specify the worlc ta be done, the estimated cost and the pariod pf time
deerned by the Gas Inspector of t�e Director of Transpor�ation and Pu61ie Wo��ks
DeparEment to 6e reasonably necessary for th� completion of sucl� wnrlc. After receipt af
such notice, the Operator shaif, within the time therein specifed, either cause or require
the work to be pei•fonned, or failing to do so, shall pay over to the City one hundred
trventy-five (125) percent of the estimated cost of doing tl�e work as set for�th in the
notice.
d. The City shall be authorized to draw against any itrevocable letter of credit or
bond to reeover such amaunt due froin the Operator. Upon receipt of sueh monies, the
City shall proceed by such �node as deenaed conveaient to cause the required work to be
performed and compl�ted, but no liability shall be incurred other than for the expenditure
of said sum in hand.
e. In the event the Operator daes nat cause the wnrk to be perfarmed and fails or
refuses to pay ov�r to the City the estimated cast of the warlc ta be done as set forth in the
notice, or the issuer of the security instruine��t refuses to honor any draft by the City
against the appiicable irrevocable letter of credit or hond the City may praceed to obtain
camgliance and abate the default 6y way of civiI actian against tl-�e Operatpr, or by
cruninal action against the Operatar, or by both such methods.
£ When the roadways co�ered by said irrevocable letters of credit ar band h�ve
been recei�+ed by the City, or upon receipt of a satisfacto�y substitute, the irrevoca�le
letter of credit or bond issued in compliance with this Agreement shall be terininated and
cancelled. Any bonti required Uy the Fort Worth "Gas Drilling and Production"
Ordinance shal! stay in fu11 force at�d ei�ect until the tenns and conditians set aut i❑ tl�e
Ordinance are inet. The cancellativn oi any bond ar letter aF credit for tl�e sole purfaose
af the repair af roadways wilJ nat release the obligation af khe Operator ta ineet all
req�airemei�ts qf insurance and bonding under Y11e T'ort Wai�tly "Gas Drillii�g a��d
Production" Ordinance.
ARTICLE 5
MICBLLANEOUS PROVTSIONS
1. Operator understands and agrees that Operator, its einployees, servants, agents and
rapresentatives shall at no time represent themseives to be employees, servants, agents, and/or
representatives of the Gity. The �:ity shall not have any control over ihe rneans or methods by which
Operator shall perform its obligations hareunder. Operator sl�all furnisll all equipment and materials
necessary to perfann hereunder at�d shall at ail tirnes be acting as an independent Operator.
2. By entering into this Ag�•eemei�t, The City does nat waive, nor s��all it be deeined to
waive, any immunity o; defense that would otherwise be available to it against c.laims arising by tl�ird
pa��ties.
3. Tl�is Agreement represents tlie entire agreea�ent between Operator and City far repair of
roadways and s�ipersedes all prior negotiations, representations, and/or agreements, eitller written or oral.
This Agreement may be amended vnly by written instrument signed by the governing body af ti�e City or
those authorized to sign on b�haIf oitlse City's governing body.
ARTICLE 6.
�'OACE MAJEURE
Eva�ts of Force Majeure shall mean any contingency or cause beyoncE the reasonable canirol of a
party including, without limitation, acts of God or the public enemy, war, riot, civil commotion,
ins�irrection, go�ernment or de facto governcnent action (unless caused by acts or omissions of the party},
fires, explosions, rain or other weather delays, floods, strikes, slowdowr�s or work stoppages.
ARTICLE 7.
A S SIGNABLILIY/CONSENT
Except as otherwise pravided herein, or except as may be hereafter determined by d�� parties, no
party to tl�is AgreeinetYt inay sell, assign, or transfer its interest in this Agreeinent, or any of its right, duties,
or o6ligations hereunder, without the prior written cQnsent of the other party. Whenever the consent or the
approvai of a pai�iy is required herein, such party shall not unreasonably withhold, deEay, or deny sucil
consent or approval.
ARTICL� 8.
NOTICE
Any notice given by one party to the other ixi eonnection with this Agreement shall be in writing
and shall be !�y personal de[ivery: sent by registered mail or certified inail: or hy United S#ates Mail, return
receipt requested, postage prepaid; to:
CITY: Office of the City Manager
City ofFort Warth, Texas
1040 'I'hrockmorton Street
Fort Worth, Texas 7'6102
OP�RA.TOR: Chief Oil and Gas LLC
81 I 1 Pc•eston Road
Suite 600
Dallas, Texas 75225
Notice shall 6� deerned ta l�ave baen received on the date of receipt as shown on the return recei�r or other
wt•itien evidence af receipt.
ARTICL� 9.
MODI�'TCATION
No waiver or madification of this Agreement or af any co�eizant, condition, limitation herein
contained shall be valid unless in writing and duly executed by the party to be charged therewi�li. No
e�idence of any waiver or modification shall be offered or received in evidence in any proceeding arising
lzetween the parties hereto out of ox affecting this Agreement , or the rights oz• abligations of the parties
hereunder, unless snch waiver vr raadification is in writing, duly exacuted. Tha parties fi.irther agree that
tl�e pro�isions of this Article will not be waived unless as herein set forth.
ARTICLE 10.
SAVINGS/SEVERABILITY
In t�e event that any one ur more of the pravisions hereof contained in this Agreeinent shall for
any reason be hetd to be invalid, illegal, or Unenforceable in any respect, such in�alidity, illegaiity, or
uue��forceaUitity shali not effect the other provisians, and t�►e Agreement shall be construed as if such
inr�alid, illegal, or unenforceable provision had never been contained in this Agreement.
ARTICLL 1l.
���� ��� i �'
���`�°-"��'s� �����`����
Department of l.aw
DATE: Decemher 30, 20Q2
TO: G�ty J'ackson, Ciry Manager
CC: Glaria Pearson, City Secretary.
FROM: Sarah Fullenwider, Assistant City Attorney�
SUBJECT: Road Repair Agreernent for gas well - GW-03-Ofll
Attached is a road repair agreement submitted by Mr. Cliff Thompsan of Chief Oil and Gas,
LaL.C, pertai�ing to the drilling of a gas we11 located on 40 acres in the H. Robertsan Survey, A-
1798, norkh of Bailey Boswell Road and south af Bonds Ranch Road. The weIl will be permitted
as a rural gas well per City �rdinance 14880.
Chief OiI and Gas, LLC submitted a I.etter of Credit ihat was approved by the Legal Department.
A copy of the Letter of Credit is attiached for your r�view.
Please sign where indicated and have a Notary Public notarize yaur signature. Once completed,
please forward to the City Secretary"s office for her signature. .
The completed document should be returned to Tohn Garfield, Acting Gas In�spector, in the
Development Deparkment. Mr. Garfield's extension is 8043.
,_ � ..�i��',�. ��:, .
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01� i GA;� ���
December 24, 2002
Mr. Joitu A. Crarfield
Developatuent Services Admiaistratar
City of Fart �orth
1000 Throckmorton SL
k'nrt Worth, TX 7fi102
RE: Letter of Credit — Courtney 3
Dear Mr. Garfield:
This sl�all sercre as a Letter Ageem�,at befiween Chief Oil 8c Gas, L.L.C_ and the City o� Fort Woifh
concerniug Let�r of C�redit No. LC342 from Texas Capital Bank, N A. 4n �half uf Chief Oii & Gas
dei�va:red to fhe Ciiy of Fort Worth for t�e drilling of the Couriney #3 weu, a copy of wliich is attached
%ereto. Chief Oil & Gas agrees to either renew the Letter of Credit ar z�place the Letter of Credit wi#h a
bond in the amo�t reqpiredby City of Fort W�zth Ordinance ��4880 an ar before 45 days prior to the
December 23, ZQ03 e�ir�on of the Letter af Credit� if Chief O�1 & Gas fails to deliver #n the City of Fort
Wroth either the re�ewal of the Letter of Credit or the replacement hond in the apprapriate amount on or
before 45 days prior tn D�mber 23, 20Q3, #he City of �o�t Worth may diaw tha entire �ace a�moum of the
attached Letter of Czed�'rt to be he3d by t�e �ty of Fort Wort� as secucity for Chief Oil & Gas' performance
of its obligations under Ordinance #14880.
5incerely,
C1iPford L. Thomson
Vi.ce I'resident-0perations & Engine�rsng
�117 PR�5TON RQAD, SUIYi� 6U0, DA�l�AS, i�XAS 75225
T'���PHON� (�'[�) 265-9590 FAX (�14) 265-9�93
GOVERNING LAW AND VENUE
This agreement shall be construed under and govarned by, and in accordance with the laws of the
State of Texas, and venue for any actions arising ander the terms and conditions of this Agreement shali lie
in the state courts located in Tarrant Caunty, Texas or the United States District Covrt iar the Northern
District of Texas, Fort Worih Di�ision.
ARTICLE I2.
ENTTRE AGREEMENT
This Agreeinent and the exhibits attaehed thereto, constitute the entire agreement among the
par�ies her�to with respeet to the subject matter hereof, and supersede any prior understandings ar written
or oral agreeinents between the parties with respect to th� subject matter oithe Agreement. No
amendment, modification, cancellation or aiteration of the terms of this Agreement shall be binding on any
party heratn unless the same is in writing, dated suhsequent to the date hereof, and is duly authorized and
executed by the parties hereto.
ARTICLE 13.
WA..IVER OF TERMS AND CONDITIONS
T�e failure of aither party to enforce oj� insist upon eompliance with any of the terms or conditians
of'tivs Agreement shalI not constitute a general waiver or relinc�uishment of any such terms or conditions,
6ut tl�e same shall Ue and remain at all tunes in full force and effect.
ARTICLE 14.
CAPTION 5
The captions cnntained in the Agreement are far informational purposes only and shall not in any
way affect the substantive tei�ns or conditions of this Agreement.
ARTICLE I5.
COUNTERPARTS
This Agree�nent may be exac�tted in any number of counte�paits, each of whicll si�all l�e deemed
an original, and constitute one and the same instrument.
IN WITNESS WHEREOF, the parties do herek�y affix t�ieir signatures and enter inta this
Agreement as af the 315t day of October, 24a2,
AT'T��T:
City Secret�ry �
CITY OF FORT WQR'FH
,
B '
� ary Ja o�i, City Manager
APPROVED AS TO FORM
AND LEGALITY:
David Yett, City Attorney
�y�G�- ��U,t 6�
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Cantra�t Authori�a���n
D��G�
By: l �Q���GQ )''+�L��,�
Cliffor ho�nson, Vice Aresident
Chief Oil & Gas I,I�C — Operator
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STATE OF TEXAS §
CQUNTY QF TARRANT §
Before me, the undarsigned notary pu6lic, on this day personally appeared Gary Iacl<son, the City
Manager of the City of Fort Wai�h, Texas, known to me to �e the person whose name is subscribed to the
foregaing inst�•ument, and acknowledged to me thai helshe executed the instrument for the purposes and
consideratiou therein e�cpressed.
�L[� �
Givan under my hand and seal of offce this �-- day of G�r�.j , 200�
V
o���p �; ROS�LLA BARI�E5
�� ��� NOTARY P[�BLIC
����er State oi Texas
�� Comm. Exp. 03��-2005
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Natary Public
STATE OF TEXAS §
COLINTY OF TAARANT §
Before me, the undersigned authority, a Notacy Public in and for the State of Texas, on this day
personally appeared Clifford L. Thomson, known to me to l�e the persan whose name is subscribed to the
faregoing instiument, and acknowledged to me that the same was th�c act oFCliief Oil and Gas I.LC (the
corporatian) and that he executed tl�e same as tk�e act af said Chief Oil and Gas LLG (carpoz�ation} for the
purposes and conside��atian therein expressed and in the capacity therein skated.
Given under my hand alld seal of office this �r � day of r� '�, s��„s r �r , 2002.
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