HomeMy WebLinkAbout1985-1610 - Ordinance - 09/12/1985ORDINANCE NO. 1~10
AN ORDINANCE APPROVING THE ISSUANCE OF A PERMIT FOR THE DRILLING
OF AN OIL AND GAS WELL BY INEXCO OIL COMPANY, IN THE CITY OF
COLLEGE STATIONw AND IMPOSING CERTAIN CONDITIONS UPON THE OPER-
ATOR THEREOF AND PERSONS CONNECTED WIT~ OR INVOLVED WITH SUCS
ACTIVITY.
WHEREAS, the City Council did by resolution, on motion and second
duly carried, approve the issuance of a permit for oil and gas
drilling by INEXCO OIL COMPANY; and
WHEREAS, the attached permit sets forth the conditions imposed by
this Council;
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STA-
TION, TEXAS:
That the attached permit issued to INEXCO OIL COMPANY is hereby
approved and issued, conditioned upon compliance with the terms
thereof by the operator.
The operator shall pay the sum of Three Hundred Dollars ($300.00)
as the initial permit fee, and shall absorb all costs of the
City's technical consultants as are from time to time incurred or
expended.
e
Ail ordinances or parts of ordinances in conflict herewith are
repealed to the extent of such conflict.
e
This ordinance shall become effective upon its passage.
PASSED AND APPROVED this 12th day of September, 1985.
ATTEST:
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OIL AND GAS PRODUCTION PERMIT
CITY OF COLLEGE STATION, TEXAS
INEXCO OIL COMPANY, OPERATOR
ISSUED AND EFFECTIVE September 12,
BY ORDINANCE NO. 1610
1985
PURPOSE
The City Council of the City of College Station has deter-
mined that the testing and exploration for and development, pro-
duction and storage of oil, gas, and mineral hydrocarbons (in-
cluding enhanced or secondary recovery thereof) within the City
limits is an activity which necessitates reasonable regulations
in order that such activities will not cause injury or property
damage to the citizens of the City, and that such activities
should conform to the comprehensive plan and zoning ordinances of
the City as far as practicable in order to preserve the integrity
of said ordinances and regulations. The City recognizes that
conflicting property rights exist in the carrying out of such
activities, and further recognizes the rights of all property
owners, mineral and otherwise, to the peaceable enjoyment of
their property and the benefits and revenues therefrom.
ACCORDINGLY, this permit is issued pursuant to the provi-
sions of Chapter 4, Section 10 of the Code of Ordinances of the
City of College Station, Texas, to implement appropriate regula-
tions for present and future activities on the part of the above
operator, its agents, employees, and contractors, as defined
herein, in order to protect the health, safety, and general wel-
fare of the public, and accomplish the orderly, safe, and practi-
cal production and enjoyment of available mineral resources when
such activity is consistent with those objectives.
IT SHALL BE UNLAWFUL TO:
1. Engage in any activity not permitted by
the terms of this permit.
2. Fail to comply with any condition set
forth in this permit.
Upon approval of this permit by ordinance, any violation of
the provisions and conditions herein, or the provisions of Chap-
ter 4, Section 10, of the College Station Code of Ordinances, as
amended, may be prosecuted as a Class C misdemeanor in the Muni-
cipal Court of the City of College Station, Texas. The range of
punishment for Class C misdemeanor prosecution in Municipal Court
shall be a fine of ONE DOLLAR ($1.00) to ONE THOUSAND DOLLARS
($1,000.00). Such violations may be enjoined by any action in
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the appropriate Court without the necessity of any prior prosecu-
tion in Municipal Court.
In the event of continued violation of the provisions and
conditions of this permit or the above referenced provisions of
the Code of Ordinances, or in the event of a single violation
which creates or created a significant threat to the health or
safety of the public, this permit may be cancelled by the City
Council after a hearing called for such purpose, and upon not
less than twenty-four (24) hours notice to the operator, deliver-
ed to the address set forth herein, and to the operations site.
PERMIT PERIOD
This permit renews automatically each year while drilling
or production operations are conducted. At the end of such time,
it shall be updated by the filing of an application for renewal
as provided for herein.
PERMITTED OPERATIONS
The operator shall be entitled to explore, drill, complete
for production and produce an oil and gas well at the location
specified on the plat attached hereto as Exhibit A. All activi-
ties incident to such activity, including, without limitation,
the building of roads, erection and use of facilities, installa-
tion of equipment, connection of utilities, and other such opera-
tions on site, including operations in connection with or pursu-
ant to enhanced or secondary recovery of oil, gas, and associated
hydrocarbons, shall be permitted and shall be lawful to the ex-
tent that same are conducted in compliance with the terms of this
permit.
RENEWAL AND INSPECTION
1. An official designated by the City Manager shall in-
spect the operations site prior to the expiration of the permit,
and shall report to the City Manager prior to the renewal of said
permit as to compliance with this ordinance.
2. The operator shall apply for a renewal permit thirty
(30) days prior to the expiration of a permit. An inspection and
renewal fee of ONE HUNDRED DOLLARS ($100.00) shall be paid at the
time of reapplication. If such inspection reveals compliance
with this ordinance during the preceding permit period, the City
Manager shall issue a renewal permit. In all other events, the
application for renewal shall be processed as an original appli-
cation.
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3. The operator shall make available for review informa-
tion requested by the City and acquired through the direct ef-
forts of the operator, and in the possession of the operator,
relating to the regulation of the activities on the operations
site, including access to specifications and manufacturers'
information concerning products or equipment, and with respect to
information compiled incident to the well drilling operation,
such as logs, cores, and samples of materials or hydrocarbons
produced in the process upon the earlier to occur of the filing
of such information with the Commission or one hundred eighty
(180) days after completion of the well. The operator shall
allow testing and accumulation of data on site pursuant to
Section "Permit Conditions", subparagraph 19 thereof, and shall
cooperate in furnishing or obtaining any relevant information and
providing suitable opportunities and locations for the conducting
of such activities by the City or its representatives or
consultants.
THIS PERMIT IS SUBJECT TO THE FOLLOWING CONDITIONS:
1. Ail operations shall comply with the best available
health, safety, and environmental protection technology available
at the time of operations, subject to continuing on site review
of compliance by periodic inspection, and the imposition of addi-
tional conditions or regulations to this permit from time to time
by the City's oil and gas consultant. All such additional condi-
tions and regulations shall be discussed with the operator before
being imposed, and the operator shall be notified in writing of
their imposition. The operator shall have twenty-four (24) hours
to file with the City Secretary a notice of protest and request
for a hearing before the City Council with respect to the imposi-
tion of such conditions. If no such protest is filed, such con-
ditions shall become part of this permit, and may be enforced by
injunctive process.
2. The operator shall furnish to the City Secretary prior
to validation of this permit, proof of the following minimum in-
surance coverage:
(a) Standard Comprehensive general liability including
premises, operations, blow-out or explosion, products
and completed operations, blanket contractual liabil-
ity, underground property damage, independent contrac-
tors and personal injury:
Bodily injury FIVE HUNDRED THOUSAND
DOLLARS ($500,000.00) per occurrence,
FIVE HUNDRED THOUSAND DOLLARS
($500,000.00) aggregate.
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Property damage, TWO HUNDRED THOUSAND
DOLLARS ($200,000.00) each occurrence, TWO
HUNDRED THOUSAND DOLLARS ($200,000.00) aggregate.
(b) Comprehensive Automobile Liability, covering
owned, non-owned, and hired vehicles:
1. Bodily injury, each person, TWO HUNDRED FIFTY
THOUSAND DOLLARS ($250,000.00).
2. Bodily injury, each accident, FIVE HUNDRED
THOUSAND DOLLARS ($500,000.00).
3. Property damage, ONE HUNDRED THOUSAND DOLLARS
($100,000.00) each occurrence.
(c)
Excess liability umbrella FIVE MILLION DOLLARS
($5,000,000.00) in excess of primary insurance as
provided above.
The City Council may require, as a permit condition, addi-
tional coverage or extended limits or excess umbrella policies
where a need for same is present. In the event that such a need
is perceived subsequent to the granting of this permit, the Coun-
cil shall hold a special hearing prior to the imposition of such
requirement.
Any insurance policy or binder provided in compliance with
this requirement, or any extended coverage set by the Council
shall provide for fifteen (15) days notice of cancellation to the
City. Termination of insurance shall pro-tanto terminate any
permit granted hereunder.
3. The applicant shall provide the City Secretary with an
irrevocable letter of credit in the principal sum of the amount
of FIFTY THOUSAND DOLLARS ($50,000.00) and the letter of credit
shall be executed by a reliable banking institution authorized to
do business in the State of Texas, with the operator as
Principal, running to the City for the benefit of the City and
all persons concerned, conditioned that the operator will comply
with the terms and conditions of this Article. Such letter of
credit shall become effective on or before the date it is filed
with the City Secretary and remain in force and effect for at
least a six month period subsequent to the expiration of the term
of the permit. In addition it will be conditioned that the
operator will promptly pay all legally imposed fines, penalties,
and other assessments imposed upon the operator by reason of his
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breach of any of the terms, provisions and conditions of this
Article, the operator will promptly restore the streets, side-
walks and other public property of the City which may be dis-
turbed or damaged in the operations to their former condition,
and trash, waste, and other substances used, allowed, or
occurring in the operations, and will after abandonment, grade,
level, and restore such property to the same surface conditions,
as nearly as possible, as existed when operations were first
commenced; and that the operator will defend, indemnify, and hold
the City, its officers, agents and employees, harmless from any
and all liability growing out of or attributable to the granting
of such permit regardless of whether the liability is caused in
part by the City, its officers, agents, or employees, or any of
them. If at any time the City Council shall deem any operator's
letter of credit to be insufficient for any reason, it may
require the operator to increase the amount of such letter of
credit. Whenever the City finds that a default has occurred in
the performance of any requirement or condition imposed by this
Article, a written notice thereof shall be given to the opera-
tor. Such notice shall specify the work to be done, the esti-
mated cost thereof and the period of time deemed by the City to
be reasonably necessary for the completion of such work. After
receipt of such notice, the operator shall, within the time
therein specified, either cause or require the work to be per-
formed or failing thereupon shall pay over to the City one
hundred twenty-five percent (]25%) of the estimated cost of doing
the work as set forth in the notice. The City shall be autho-
rized to draw any irrevocable letter of credit which covers the
oil operation site. Upon receipt of such monies, the City shall
proceed by such mode as being convenient to cause the required
work to be performed and completed, but no liability shall be
incurred therein other than for the expenditure of said sum in
hand. In the event that the well has not been properly abandoned
under the regulations of the Commission, such additional money
may be demanded from the operator as is necessary to restore the
drill site in conformity with the regulations of this Article.
In the event the operator does not cause the work to be
performed and fails or refuses to pay over to the City the esti-
mated cost of the work to be done as set forth in the notice or
the bank refuses to honor any draft by the City against the ap-
plicable irrevocable letter of credit, the City may proceed to
obtain compliance and abate the default by way of civil action
against the operator, or by criminal action against the operator,
or by both such methods. When the well covered by said irrevo-
cable letter of credit has been properly abandoned in conformity
with our regulation of this permit and in conformity with all
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regulation of the Commission and notice to that affect has been
received by the City or upon receipt of a satisfactory substi-
tute, the irrevocable letter of credit issued in compliance with
this permit shall be terminated and cancelled.
4. In the event of proposed abandonment of a well site,
the person abandoning shall notify the City Manager of same.
Within ten (10) days of the approval of the abandonment by the
Railroad Commission, the person abandoning same shall furnish a
copy of such approval to the City Manager. Abandonment shall be
approved by the City Engineer or his delegate, including any
technical consultant retained by the City, after restoration of
the drill site and the subsurface thereof has been accomplished
in conformity with the following requirements:
(a) The derrick and all appurtenant equipment
thereto shall be removed from drill site.
(b)
Ail tanks, towers and other surface in-
stallations shall be removed from the
drill site.
(c)
All concrete, piping, wood and other
foreign materials regardless of depth,
except surface casing, shall be removed
from the drill site, unless otherwise
directed by the Commission.
(d)
All holes and depressions shall be
filled with clean compactible soil.
All oil, waste oil, refuse or waste
material shall be removed from the
drill site.
5. Failure to: (a) produce a well as defined herein, or
(b) to conduct operations for drilling or reworking a well for a
period of ninety (90) consecutive days shall terminate any permit
issued therefor. In the event of the proposed resumption of any
activities for drilling, reworking, or producing a well, the
operator of same shall re-apply for a permit in accordance
herewith. If the proposed activity is the same as that orig-
inally permitted, the City Manager may, after satisfactory
inspection, grant a renewal permit. If the proposed activity is
a change in operations, if the inspection is unsatisfactory, or
if more than one year has elapsed since the discontinuance of
operations or production, the application shall be processed in
accordance with the procedure for original permits.
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6. No street shall be blocked or closed without the writ-
ten consent of the City, acting through the City Manager, and any
other required state agency.
7. Ail derricks and portable masts used for drilling, re-
drilling, deepening, or reworking shall meet the standards and
specifications of the American Petroleum Institute as they
presently exist or may be amended hereafter.
8. All drilling, redrilling, deepening, or reworking
equipment shall be removed from the oil operation site within
thirty (30) days following the completion of drilling, redrill-
lng, deepening, or reworking.
9. No person shall permit or allow any lights located on
any oil operation site to be directed in such a manner so that
they shine directly on adjacent residential property or residen-
tial property in the general vicinity of the oil operation site.
Flaring will be permitted in compliance with the Railroad
Commission's orders.
10. "No smoking" signs of a durable material shall be
posted and maintained in all locations approved or designated by
the Chief of the Fire Department. Sign lettering shall be four
(4) inches in height and shall be red on a white background or
white on a red background.
11. Rotary mud, drill cutting, oil or liquid hydrocarbons,
and all other oil field wastes derived or resulting from or con-
nected with the drilling, redrilling, deepening, or reworking of
any well shall be discharged into a portable steel tank or tanks,
or other system approved by the City's oil and gas consultant.
Unless otherwise directed by the Commission, waste materials
shall be removed from the operation site on a basis that will
protect against inadvertent runoff.
12. In all cases, protection shall be provided to prevent
blowout during oil operations as required by and in conformance
with the requirements of the Commission.
13. The operation site shall be completely enclosed by a
masonry wall or other approved fencing material and acceptable
gates. A plan for fencing shall be submitted to the Building Of-
ficial showing types of fencing materials and manner of construc-
tion. Any requirements imposed by the Council as to screening or
type of fence or wall shall be set forth and complied within the
proposal. The Building Official shall approve or disapprove the
proposal based upon the durability of the materials and construc-
tion proposed, and their sufficiency to prevent entry by animals
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or unauthorized persons. The proposal must be submitted within
fifteen (15) days of the issuance of a permit hereunder. The
final construction of the fence or wall shall be completed:
(a)
Before commencement of operations if
there will not be twenty-four (24) hour
supervision on site; or in any event.
(b) Before actual drilling commences.
14. It shall be unlawful for any person, owner, or operator
to discharge into the open air the exhaust from any internal
combustion engine stationary or mounted on wheels, used in con-
nection with the drilling of any well, or for use on any produc-
tion equipment unless it is equipped with an exhaust muffler or
mufflers, or an exhaust muffler box constructed of noncombustible
materials sufficient to suppress noise and prevent the escape of
obnoxious gases, fumes, or ignited carbon or soot. The Council
may prohibit the use of internal combustion engines and require
the use of all electric power.
15. Public nuisance declared. The foregoing sections not-
withstanding, no person shall conduct any oil operation in a man-
ner that would create a noise, odor, or vibration detrimental to
the health, safety, or welfare of the public. Such operation is
hereby declared to constitute a public nuisance, and any viola-
tion shall be punished as provided for herein.
16. Unless otherwise directed by the Commission, all tanks
used for the storage, production of oil, or the disposal of
wastewater shall conform to the following:
(a)
A.P.I. Specifications. Ail tanks shall
conform to American Petroleum Institute
(A.P.I.) specifications unless other
specifications are approved by the
Chief of the Fire Department.
(b)
Dikes and Capacity Requirements. Ail
persons owning, operating, or having
control of storage tanks, clarifying
tanks, or tanks used in connection with
the production of oil shall construct
and maintain dikes around said tanks.
Drainage dikes and walls shall be con-
structed and maintained to meet the
standards of the Commission and the
National Fire Protection Association as
they presently exist or may hereafter
be amended.
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17. All tanks, including replacement tanks, and permanent
structures shall be set back pursuant to the standards of the
Commission and the National Fire Protection Association as they
presently exist or may hereafter be amended, but in all cases
shall be at least a minimum of fifty feet (50') from any public
right-of-way to allow off street access to such facilities. All
petroleum product tanks shall have lightning rods and be ground-
ed.
18. Ail well servicing equipment, including portable pull-
ing masts and gin poles, shall be removed from the oil operation
site or drill site within seven (7) days after completion of a
well servicing operation.
19. Storage of equipment.
(a)
No drilling, redrilling, reworking, or
other portable equipment shall be
stored on the oil operation site of the
oil well located thereon. This in-
cludes the removal of idle equipment
unnecessary for the operation of such
wells.
{b)
Lumber, pipes, tubing, and casing shall
not be left on the oil operation site
except when drilling or well servicing
operations are being conducted on the
site.
(c)
It shall be illegal for any person,
owner, or operator to park or store any
vehicle or item of machinery on any
street, right-of-way, or in any drive-
way, alley, or upon any oil operation
site which constitutes a fire hazard or
an obstruction to or interference with
fighting or controlling fires except
that equipment which is necessary
for the maintenance of the oil well
site or for gathering or transporting
hydrocarbon substances from the site.
20. Cleanup and Maintenance.
(a)
Cleanup after well servicing. After
completion of well servicing or aban-
donment operations, the drill site area
shall be cleaned and all damage to pub-
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00453&
lic or private property caused by such
servicing or abandonment operations
shall be repaired.
(b)
Cleanup after spills, leaks, and mai-
functions. After any spill, leak, or
malfunction, operator shall remove or
cause to be removed to the satisfaction
of the Chief of the Fire Department all
oil and waste materials from any public
or private property affected by such
spill, leak, or malfunction.
(c)
Releasing of fluids. Excluding enhan-
ced or secondary recovery operations,
no person shall deposit, place, dis-
charge, or cause or permit to be
placed, deposited, or discharged any
oil, naphtha, petroleum, asphaltum,
tar, hydrocarbon substances, or any
refuse, inluding wastewater and brine,
from any oil operation or the contents
of any container used in connection
with an oil operation in, into, or upon
a public right-of-way, a storm drain,
ditch or sewer; a sanitary drain or
sewer; any body of water or natural
stream; or any private property in the
City.
(d)
Freedom from debris. All property on
which an oil well site is located shall
at all times be kept free of (a) de-
bris; (b) pools of oil, water, or other
liquids; (c) weeds; (d) brush; (e)
trash, or other waste material.
PERMIT CONDITIONS
]. Any liquids, water, hydrocarbons, products, or by-
products produced from the well shall be contained in a closed
system, which shall at no time be released upon the ground or
into adjacent drainage systems. All containment systems shall be
protected against rainfall and flooding. No leakage or release
of hydocarbons or by-products shall be permitted on the site.
2. The City or its consultant shall be entitled to moni-
toring access to the facility at all times.
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3. The operator shall comply with all Railroad Commission
rules.
4. The operator shall notify the City Fire Marshall prior
to the flaring of any gas, or the burning of any hydrocarbons on
site.
5. When flaring is permitted and lawful, products may only
be flared from a standing pipe with a flame no less than twelve
feet (12') above the ground burning in such a manner as to
produce a clean smoke.
6. The site shall be screened with a fence acceptable to
the City Planner, as previously specified in Section 13 on Page
7. A proposal shall be submitted within five (5) days to the
City Planner who shall approve or reject same. An acceptable
fence to screen the site shall be completed within thirty (30)
days from the date of this permit. The operator shall also use
earth berms and shrubbery to accomplish the screening affect.
7. The operator shall use a screen to restrict the light
from any flare.
8. Ail tanks and equipment shall be painted in earthtones.
9. Ail operations, including flaring, shall be conducted
within a completely enclosed and fenced site, which shall be
locked at all times, or if not locked during periods of use or
operation, shall be guarded to prevent the entry of unauthorized
persons. Signs shall be erected prohibiting the entry of un-
authorized persons. The City shall be provided with a key or
separate lock to permit monitoring access.
10. The operator shall keep the City informed of the iden-
tity and phone number of a person available twenty-four (24)
hours a day in the event of an emergency on the site. This num-
ber shall be furnished to the Fire Department, the Police Depart-
ment, and the City Secretary.
11. The operator shall notify the City through the Police
Department within one (1) hour of any accidental release, fire,
or casualty to persons or property on the site.
12. Noise produced on the site may not exceed eighty (80)
decibels at the fence during daylight hours or sixty (60) deci-
bels at the fence during nighttime hours, measured in calm air
conditions.
13. In the event of any spill or accidental release, the
operator shall completely clean up within eight (8) hours.
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14. The operator shall pay the sum of THREE HUNDRED DOLLARS
($300.00) as the initial permit fee. The operator shall pay all
reasonable costs and expenses of the the City's technical
consultant and inspector upon receipt of invoices for such costs
within ten (10) days. Such costs are estimated to be in the
amount of FIVE THOUSAND DOLLARS ($5,000.00), but in any event
shall not exceed SEVEN THOUSAND FIVE HUNDRED DOLLARS ($7,500.00),
total, except in the event any unforeseen failure of the drilling
rig or other equipment, containment devices or vehicles, major
spills or hydrocarbon releases, or other such significant en-
forcement or clean up activities.
15. Cut slopes shall be constructed and sloped in a design
approved by the City consultant. Cut slopes shall be covered
with vegetation to prevent erosion.
16. Cut and fill work shall be carried out during the con-
struction of the drilling pad.
17. Traffic to and from the drill site shall be only on the
East By-Pass, East By-Pass feeder roads, and Krenek Tap Road.
Note: Use of State Highways is regulated by the State Highway
Department.
18. The following monitoring program shall be imposed upon
permitee:
(a)
Air quality - Carry out spot sampling
of air quality conditions on and around
the drilling site. The first samples
collected shall be made before drilling
starts to establish a background
characterization. Sampling is proposed
for a weekly schedule;
(b)
Water quality - Water quality sampling
of the stream runoff and mud pit water
shall be carried on on a schedule
dictated by drilling activity and
rainfall conditions.
(c)
Noise - A noise survey shall be carried
out to determine noise levels as a
function of distance from the rig.
Light - A night light level survey
should be made to determine possible
light pollution impacts.
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(e) Traffic - A traffic counter shall be
installed to collect traffic data.
(f) General environmental review - A gener-
al environmental review shall be done
to assess potential problems as public
safety fencing access for emergency
equipment, trash, erosion from on and
off site sources, and other environmen-
tal impacts may be identified.
EFFECT OF SUSPENSION
OR REVOCATION OF PERMIT
NO person shall carry on any operations performed under
the terms of any permit during any period of permit suspension
or revocation, or pending a judgment of the court upon any ap-
plication for writ taken to review the decision or order of the
City in suspending or revoking such permit; provided, however,
that nothing therein contained shall be construed to prevent the
performance of such operation as may be necessary in connection
with a diligent and bona fide effort to cure and remedy the de-
fault or violation for which the suspension or revocation of the
permit was ordered, or such operation as necessary for the safety
of persons, or as required by the Commission.
ISSUED THIS 12th day of September , 1985.
ATTEST:
CITY SE~
APPROVED:
*Subject to compliance with the terms and conditions set forth
herein.
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