The Energy Question Episode 27 – Yemi Akinkugbe, Chief Excellence Officer at CNX Resources.
In Episode 27 of The Energy Question, David Blackmon interviews Yemi Akinkugbe, the Chief Excellence Officer at big Appalachia Basin natural gas producer CNX Resources.
Please watch as David and Yemi go into detail on CNX’s innovative Appalachia First plan, which focuses on using the natural gas produced in the region locally to improve the economy, environment, and education.
It’s a real one-of-a-kind program that could serve as a model for an industry-wide effort.
Enjoy.
The Energy Question Episode 24 – Yemi CMX
David Blackman [00:00:10] Hello, welcome to the Energy question with David Blackman. I’m your host, David Blackman here in Texas. And my special guest today is Yemi I can could be who is the chief? Excellent officer, excellent officer for CNX Resources in Pittsburgh. Gary, how are you doing today?
Yemi Akinkugbe [00:00:26] Very well. Thank you very much, David. Thanks for having me.
David Blackman [00:00:29] Well, I hope it’s a beautiful day in Pittsburgh it’s a stormy day here in Texas, so I hope you’re doing better than we are.
Yemi Akinkugbe [00:00:35] Well, we’re not complaining. It’s sunny outside and the temperature is really great, at least for we’re going out to go have fun. We we were hoping for it to be a little colder, but. Okay.
David Blackman [00:00:47] Well, let’s start before we get into Q&A about the things you’re working on. I think it’s important to start with just talking about of course, CNX is a long time producer in the Utica, the Appalachian Basin, the Marcellus Shale with a long history in the region and one of the leading companies up there. But talk about what your portfolio is as the chief excellence officer at the company.
Yemi Akinkugbe [00:01:13] Yeah, well, as a chief science officer, one of my you know, initially I my my first focus was kind of supporting and getting everything going. I had a portfolio of i.t land permitting, part of the operations, you name it. I mean, I had a huge portfolio supporting the execution of our of our vision. And now that those are starting to go on, I mean, one of the key things I’m focusing right now is making sure people understand our vision.
Yemi Akinkugbe [00:01:42] I’m making sure people understand what that vision means for the region. You know, that we have come to call home for almost 160 years, you know, iconic deals. I always said, you know, when we were incorporated, Abe Lincoln was the president of United ago. And so, I mean, making sure that people truly understand the potential of the resources that we have in the Appalachian region in order to revitalize the economy, in order to bring back manufacturing into a region and make, you know, as a matter of fact,.
Yemi Akinkugbe [00:02:15] The Appalachian region being the manufacturing hub of the United States, while, you know, creating, you know, like your life and family, sustaining wages for everyone, everyone in the region, especially the underserved and the underrepresented communities. So that is you know, that’s our focus. That’s our mission. That’s what we’re executing going forward. You know, we’re quite excited about it for our company and also for for the for the for the region.
David Blackman [00:02:41] Yeah. And, you know, to that end, you recently published this this comprehensive vision plan called Appalachia First, which really incorporates the concepts you’re talking about. And and, you know, it occurs to me that natural gas has such a central role to play. And all that talk about the the main elements of the plan, the Appalachian first plan, first of all.
Yemi Akinkugbe [00:03:06] Yeah, the simple way to understand the Appalachia first plan, which we launched it in December of last year, but it has been, quite frankly, I say it has been pretty much the DNA of our county all along. And the way to think about it is, you know, produce it here, use it here first as a simple way of how to summarize that, that entire vision that we laid out.
Yemi Akinkugbe [00:03:32] And, you know, the vision, you know, is based on the fact that we have this natural resource, you know, in the Appalachia, in the Appalachian, we in the United States, a clean, efficient, reliable resource called natural gas. And it is time for us to embrace it and use it as the potential for natural gas. I mean, we’re still discovering that potential going forward because one of the things we’re starting to see is when it comes to emission, you know, when it comes to power generation, when it comes to, you know, other or other sources of manufacturing, natural gas is the bedrock of it.
Yemi Akinkugbe [00:04:08] It is primarily the DNA of, you know, English and manufacturing in the region. And, you know, our focus there is let’s start to produce it here, our resource. You know, two countries out there, some of them hostile country, some of their strategic competitors to the United States, shipping our low cost efficient means there to support the economy and then where then they are actually shipping manufactured products for us at higher cost.
Yemi Akinkugbe [00:04:34] So probably, you know, some level of market where, you know, with not so what I call not so great emissions profile or emissions structure or regulatory structure, or you can even say, you know, human capital management processes that happen there and we’re taking all of those products. No, we can we can create those products, right. Of the people in the Appalachian region ride with in our region and actually do it in a very efficient job creating a manner. Factoring all this?
David Blackman [00:05:09] Yeah you know, my history with Nick goes back to 2020. I actually interviewed him for a profile I did of the company at that time, and he was already talking about these concepts in that interview. So this vision is something he’s kind of had rolling around in his mind, at least elements of it, for quite some time now. It hasn’t. Yeah.
Yemi Akinkugbe [00:05:29] I mean, if you you know, if you look at and that has been, you know, how we’ve always offering our view has always been our products are made in America, they’ll always be made in America. And the focus for it is to continue to improve the American economy, the American strategic opportunities.
Yemi Akinkugbe [00:05:46] And also when you’re looking at the region, the Appalachian region, to continue to bolster the region and improve manufacturing within the region. So that’s that has been what I would call, you know, the foundation of a company, making sure people understand it, making sure people appreciate the opportunities that we have in the Appalachian region has been, quite frankly, for Nick as well, has been almost all through his career, how he’s talking to people, getting people to understand that this this is this is an opportunity potentially of of generation, and it is time for us to hold to it and run with it.
David Blackman [00:06:22] And it’s not it doesn’t involve natural gas serving as a bridge fuel. Right. The way the opposition likes to always characterize natural gas. I, I know I hear Nick say a lot. Natural gas is a catalyst, not a bridge for all of this. I mean, these are long term endeavors, elements of this plan you’re talking about, not something for the next five years while everything’s phased out and changed.
Yemi Akinkugbe [00:06:45] Absolutely not. You are absolutely right. I mean, we look at it. It is a catalyst. You you know, any economy, any any you know, any growing economy this low, you know, low cost efficient energy is always the lifeblood of it. And in essence, in order for you to catalyze anything, if you look at history, you need efficient energy, stable, efficient, reliable energy.
Yemi Akinkugbe [00:07:09] And in essence, we look at this natural gas is clean natural gas is the catalyst to, you know, is a catalyst to manufacture. It is a catalyst for innovation. It is a catalyst that creates this new development that everybody talks about. Well, from our standpoint, that development has started right now.
Yemi Akinkugbe [00:07:27] You know, we have things we’ve started again to show people that this is not something like you said, this is not, you know, a vision for for four, four or five or six years or ten years. Here is a vision for now. That’s our view of the vision for now. And, you know, we’ve been partnering with like minded companies out that have that have the same mindset as in innovation, bringing innovation, bringing manufacturing, beaming technology to low cost efficient energy, which is natural gas here is purely a catalyst for for for for, for the economy, catalyst for for the region.
Yemi Akinkugbe [00:08:05] And you’ll see it it affects every aspect of the economy. It’s not just you know, you’re not just looking at just manufacturing. You see parts of it in healthcare, you see parts of it in your, you know, general product of manufacturing all across. So we look at it as a broad spectrum. Our natural gas will be not should be, but will be the catalyst for development going.
David Blackman [00:08:26] Yeah. And what are the what are the elements you talk about And I reviewed your your slide deck and all the materials in preparation for this is the fact that the infrastructure is already there or in the region to to execute this right and and and furthermore even to further emphasize that I think is the fact that the lack of infrastructure in terms of pipeline take away capacity to move this natural gas to New England as as an example, you know, makes it even more compelling case to make better use of the Marcellus and Utica gas there in the Apple Appalachian region because it’s there, it’s inexpensive and it doesn’t make sense to to to do anything else with it. Right.
Yemi Akinkugbe [00:09:11] You know, you surprise a lot of people to know that 50% of the United States population is within a day’s drive. You know.
David Blackman [00:09:20] That. That’s an amazing statistic.
Yemi Akinkugbe [00:09:23] A day’s drive from this region. And in essence, this is the right, the best mark or, you know, the opportunity that this new natural gas will create. Yes. I mean, the pipelines, the infrastructures are in place. The infrastructures are all in production for delivery and for use. The key thing is for us to embrace it because of the opportunities for the use.
Yemi Akinkugbe [00:09:47] When you’re looking at transportation, I mean, when I when you know, we’re talking about manufacturing, but when you when you start looking at daily life use, which is significantly on the transportation side, the opportunities are are are significant when you’re looking at it from a cost savings standpoint, when you’re looking at it from the emissions standpoint. So we have all the infrastructure here to be able to. Achieve the vision today by Frank.
David Blackman [00:10:10] A minute ago you talked about partnering with with other companies in these projects. And one thing I read about recently in the Wall Street Journal is this project that you’re involved with, with two companies called Origin Materials Inc and New Light Technologies, that involves [00:10:27]CNX recovering natural gas from a coal mine, [2.4s] coal seam natural gas, providing it for this this project that is going to manufacture drinking straws and other products that are normally made from plastics, they’re going to make these products from from the carbon emissions, from the natural gas. Talk about your involvement in that and how that’s all going to work.
Yemi Akinkugbe [00:10:51] It is fascinating. And, you know, here here is a California based company that is seeing the opportunities, the significant opportunities that natural gas brings brings to the table here. New like, you know, they’re based in and in California,.
Yemi Akinkugbe [00:11:10] But they’re moving their plan to you know, the plan is to move move to build a plant in Hannibal in Ohio. And, you know, these are very, very, very smart people. I would I wouldn’t do justice to the technicalities of what they’re doing.
David Blackman [00:11:27] Yeah.
Yemi Akinkugbe [00:11:28] I have to say, in simplistic manner, you know, they’ve found micro-organisms that that will consume a captured methane from coal mines. It will consume captured methane and or just methane. And they while it’s capturing methane, they will produce pellets that can be formed into, you know, plastic products, you know, straws, plates, cups, potentially in some of our everyday wear wearables like, you know, probably glasses some day and choose somebody. And these are biodegradable you know where it is when this gets into the ocean, they biodegrade. When they’re on the ground, they they degrade.
Yemi Akinkugbe [00:12:07] So this is an opportunity to to achieve probably say three things. One, address emissions. They are these they’re consuming methane. They’re consuming greenhouse gas so consuming greenhouse gas, they’re producing a biodegradable plastic salting. And the third part of it is now they’re creating manufacturing.
Yemi Akinkugbe [00:12:29] This planet itself is a manufacturing process that will create jobs and at the same time continue to bolster the economy of that region. And you can imagine based off of this, what I’ll call the second, third or fourth tier of support to this entire manufacturing process.
Yemi Akinkugbe [00:12:47] That is innovation. And in practice, that is actually economic growth in practice by actually solving what I call practical problems and at the same time doing it in a very, very efficient using a resource because they found that, you know, the low cost resource are using the resource within our region.
David Blackman [00:13:07] Yeah, and that’s this is one of the areas of innovation and energy that so many people are just not aware of is the potential to do all these kinds of innovative creative things with, with carbon. I mean carbon and all sorts of products can be manufactured from carbon itself by capturing emissions at tailgates of plants.
David Blackman [00:13:28] I’ve, I told you before we started the recording that there’s a company in Houston I interviewed last year that’s doing a similar kind of thing down there. They’re they’re working with with Oxy on that down on Corpus Christi. But it’s just that’s one of the areas of our economy that I think has just amazing growth potential as more and more people become aware of the possibilities. So it’s it’s great to see, CNX engage in a product like a project like that.
Yemi Akinkugbe [00:13:54] Yeah. I mean, it’s so you you hit a chord you know saying that carbon we we need carbon free existence.
David Blackman [00:14:02] Yes.
Yemi Akinkugbe [00:14:04] Sometimes when when the discussion made mention of carbon you know people we need carbon human beings need carbon to exist. And you know when we’re looking at the energy portfolio of the United States as a whole, our carbon is going to, you know, especially when it comes to natural gas, will be a very critical part of that portfolio. Inevitably, again, because of some of the things we’ve talked about, is catalysts that nature and continuing to build and, you know, advance our economy as we know it today.
David Blackman [00:14:32] Another another aspect of this and part of what CNX has been working on is, is alternative fuels. You guys have had a partnership now in place with with the Pittsburgh International Airport, I guess, for a decade now, in which you’re providing the natural gas to to convert at least part of their fleet, maybe their whole fleet of vehicles to run on compressed natural gas and then also create liquefied natural gas as alternative jet fuel ride, a lower carbon kind of jet fuel there for the airport.
Yemi Akinkugbe [00:15:05] Yeah. So so our partnership with. Like I said, with the airport is about a decade now. And, you know, the first phase of it was the signing of the lease for us to produce natural gas on the resource that they had on there. And, you know, one of the benefits for them to have royalties and new new new revenue stream from that,.
Yemi Akinkugbe [00:15:26] It’s morphed now to a second phase of the use of that natural gas that you those produces amazing. I mean, looking at how, you know, one aspect of it was just produce and revenue from that. The other aspect is now let’s let’s use, you know, this resource that that that we’re producing within the the airport.
Yemi Akinkugbe [00:15:47] So the first part of it was for power generation for the airport. Right now they are completely off the grid, you know, they’re using to produce natural gas, which is kind of like a funnel into a microgrid. I think, you know, in addition to two solar panels and they are absolutely off the grid. They are self sustaining when it comes to energy generation.
Yemi Akinkugbe [00:16:06] And in essence, you know, it saves them, you know, almost $1,000,000 in energy costs a year. But even on the emissions standpoint, they’re seeing significant benefit with that microgrid using natural gas. I think they said they’ve seen a reduction in about 8.2 million tons of CO2 on the emissions profile. Now, we’re now moving that even further, that partnership even further.
Yemi Akinkugbe [00:16:30] Where, you know, we are bringing, you know, something unique we see and actually even again, into the picture when we are creating new technology to create what we are calling natural gas derivative on site where we’re creating on site. And the goal for that is to displace the heavier fuels. You have your hydrocarbons.
Yemi Akinkugbe [00:16:52] You know, when you’re talking about jet fuels, when you’re talking about diesel, in essence, you know, converting the airline industry to LNG and converting, you know, like the transportation systems that they have there from diesel to CNG.
Yemi Akinkugbe [00:17:04] By doing that, you know, they have there’s a massive opportunity of reducing, first of all, cost, you know, significantly. You’re looking at potentially, you know, 30 to 60% in cost reduction, but at the same time also reducing emissions profile. The airport has emission goal.
Yemi Akinkugbe [00:17:20] We see this, you know, this partnership as an opportunity to achieve two things economic benefits, a job creation, but at the same time improving their emissions profile going forward.
Yemi Akinkugbe [00:17:33] So we’re very, very excited about that. I said uniquely connects because the technology connects is actually creating, but at the same time is also unique to, you know, part of our our well profile that we have, they’re leveraging again, this is the cost benefit of it when we’re leveraging the, the properties of it well, especially Utica well to create this LNG gas derivatives on like we were really excited about it that it’s.
Yemi Akinkugbe [00:18:00] Going through the process. You know the innovation is going through a testing process right now. You know, one of our what we’re looking forward is my statements. This start, there’s going to be significant opportunity both for the airport, both for the ports and also it’s.
David Blackman [00:18:13] Fantastic. So, you know, that’s the kind of private ESG is on everyone’s mind right now. Right. And so I look at a project like that’s going to help both CNX and Pittsburgh International Airport with their ESG scores and ESG ratings. Right. And lower the emissions growth profile there at the airport, which is just a win win all around for everybody.
Yemi Akinkugbe [00:18:36] And that’s you know, that’s that’s precisely what the Appalachia first vision is. You know, this is a local airport. This is, you know, a local resource. I know this is local innovation that could revolutionize the transportation industry as we know it today, that that is Appalachia first, you know, for you.
Yemi Akinkugbe [00:18:56] And it’s now it’s not this is not something we’re saying, hey, you look, we’re going to we’re thinking about this in five, six, seven, eight years in the future. No, this is a no, not now opportunity for us to start executing.
David Blackman [00:19:07] Yeah. And, you know, in interviews like this, I always tend to focus almost exclusively on environmental concerns and energy concerns. It’s also about jobs and economic stimulus there for the region, and not just any jobs, pretty well-paying jobs involved in these kinds of manufacturing processes you’re talking about, correct?
Yemi Akinkugbe [00:19:28] Yeah. I mean, look at our company and this is maybe this is maybe the best way to. But if you look at our company, CNX, I think we’re about 401 and 64 and 70 people in the company. But when you look at the the added job, you know, from service providers, from support enterprises all around, now we’re starting to look at multiple thousands.
Yemi Akinkugbe [00:19:53] Now, when you’re looking at the airport, I mean, we could look at airport employees as well. You could see the ripple effect the second, third or fourth. The fact of that particular land. Now, when we’re talking about, you know, there’s even the beat, and that’s what I was I meant when I. Talking about the new light manufacturing plan that they’re going to bring in to to to Hannibal, their multiple support teams that are going to actually support that business, that additional job that’s, you know, family sustaining well and good technology paint jobs associated with when we’re talking about the airport exactly the same thing.
Yemi Akinkugbe [00:20:29] When we’re looking at this new approach to natural gas derivatives, to transportation as we know it today when we’re looking at, you know, systems and processes of generating LNG on site and CNG on size, the plan, the processes associated with that, the support staff, the support teams associated with that to support staff, support team of delivering of that. I can go, I can keep going and going and going. There is significant opportunity for job creation and economic development when we start talking about using this resource.
David Blackman [00:21:02] You mentioned the grid a little bit ago and I’d be remiss and not talking about that aspect of this too, because one of the one of the key drivers of all of this that your plan talks about is the fact that [00:21:13]Appalachia as a region doesn’t have any distinct advantage where wind and solar energy are concerned. [5.7s] Talk about why why that’s a significant driver in the creation of this plan.
Yemi Akinkugbe [00:21:25] Yeah. So, you know, when we’re talking about the Folio and we always make sure people understand that we aren’t you know, we’re not we’re not anti solar went on line and type wind. Our view of it is let’s be transparent when it comes to the you know, all the all the aspects you know all the constituents within the United States energy portfolio.
Yemi Akinkugbe [00:21:45] So when you’re looking at solar. Okay. So again, when you look at the irradiance that’s in the sun exposure in our region versus say, for example, you know, in California, maybe SOL in California or in Arizona, in those other areas is a lot more it’s much more efficient. You know, it’s it’s a lot more efficient. And especially when you’re talking about the cost associated with kind of like building those infrastructures is significant.
Yemi Akinkugbe [00:22:07] So if you want to if you’re going to invest in something like that, you want to invest in the way it is most efficient. So I think it works, you know, very well, especially, again, our take on it is let’s just make sure when it comes to the emissions profile of the are our constituents in the in the energy portfolio that is transparent because a lot of people, if they tend to gloss over or tend to not ignore the aspect or the emissions associated with making solar panels and sometimes the the the the labor practices in some places when it comes to making,
David Blackman [00:22:42] Yeah.
Yemi Akinkugbe [00:22:42] Know, people tend to just ignore that those are significant ESG issues that we need to always be, you know, be be cognizant of. And when we’re talking about emissions, are talking about ESG, when it comes to energy portfolio, we got to be very transparent on when you’re talking about when when is it on the one with all the hills even driving from from work here to to home, the all kinds of mountains and hills. I see that. So make sure that we we have you can’t put you can’t put you can’t put a windmill kind of like in what some folks call hollow around here, you know, things.
Yemi Akinkugbe [00:23:16] So when you’re looking at the real estate for when there is not so many here, but if you’re looking at Central America, kind of like you’re looking at like some of the wind tunnels around, they’re great. But when you come to Appalachia, the energy that is well fitted within Appalachia is natural gas is, of course, clean, is efficient, and may I say is very reliable when it comes to, you know, what it’s used for.
Yemi Akinkugbe [00:23:38] And that’s that is the essence of, you know, what we discuss in the Appalachia first, that it is uniquely Appalachia. It is uniquely suited for Apple Watch out for the development and the economic growth of Appalachia.
David Blackman [00:23:50] Well, I know and I know that Nick and I, when I interviewed him, he was keenly concerned about it. You know, I was also concerned about the just the reliability of the grid. Right. Right. And the fact that we were seeing increasing interruptions during severe weather events. Same kind of considerations we have here in Texas.
David Blackman [00:24:11] And when you when you have this amazing, abundant resource there that makes so much sense to teach used for power generation, it just is just seems kind of crazy not to take advantage of that, doesn’t it?
Yemi Akinkugbe [00:24:24] Yeah, I mean, it’s it’s you know, sometimes it boggles your mind because when you look at it from the standpoint of, hey, let’s just let’s look at the practice, okay? Let’s take away sentiments out of let’s just look at it practically. Let’s look at the physics associated. Let’s look at the map of chemistry, every the science aspect of it.
Yemi Akinkugbe [00:24:42] Because the most important thing there’s one thing, you know, just having power is being having reliable power. I’m I grew up, you know, in the country where I got there is power but has almost zero reliability, you know, And once the reliability is zero, there’s no power, there is no development, there’s no opportunity for, you know, for economic growth associated with that.
Yemi Akinkugbe [00:25:02] And, you know, and that’s one of the things we try to convey is look at the. Practicality of this. And it’s not just us and even when you look at some of this are grid operators, you know, I and they’ve mentioned it, they’ve been talking about it, that we have to be very careful. We don’t want to find ourselves as some pockets of the country, you know, or some, you know, some countries, you know, probably, for example, in Europe where you’re all of a sudden you run into an issue regarding energy reliability or energy disappearance.
Yemi Akinkugbe [00:25:32] You know, as we know it today, we’ve developed and we’ve built a system that is cost-efficient. I always say you always hear me say it is cost-efficient, it is abundant, is secures our energy security and it is very reliable, you know, tried and tested reliability.
Yemi Akinkugbe [00:25:49] Now, [00:25:50]are there areas innovations will continue to come up when we make it cleaner? [4.0s] That’s the view of that’s our view with regard to the, you know, diving into these very, very, very expensive systems that we have out there regarding, again, solar and that they’re not as reliable. They’re not reliable in some situations because of changing weather, because of, you know, issues that we’ve seen, you know, that have developed based off of some of their operational capabilities in some situations,.
Yemi Akinkugbe [00:26:20] We we we don’t want to regress as a country, as a country. We don’t want to regress and that’s why it is very important that everybody understands the limitations, the limitations of this, you know, all the constituents within the energy portfolio. And again, we play to our strength, We play to our strength to make sure we continue to assure reliability while at the same time building our economy going forward.
David Blackman [00:26:42] And this is why, in a nutshell, I always enjoy writing and talking about CNX Resources folks, because here’s a company that’s working on the full cycle of the energy picture here. They’re not just producing the natural gas and selling it.
David Blackman [00:26:57] They’re producing the gas. They’re delivering the gas. They’re replacing dirtier fuels with the gas. And they’re working on using the emissions from the gas to to create other products. Okay. They’re working on the full cycle of the the energy system. And and it’s really one of the most creative companies in the whole industry. And you, me, I really appreciate you taking the time to do this interview with me today.
Yemi Akinkugbe [00:27:22] Thank you very much. David. It’s been a pleasure talking to you. You you you are you’re well in tune up our company. And I appreciate you following us and speaking about the opportunities and the benefit of this product that we have come to because of the benefit it brings, quite frankly, to humanity.
David Blackman [00:27:40] Yeah, well, for folks who would like to to find out more about your plan, just where can they go to find it? I know at your home page there is where I found all the materials related to it in. And that is I can’t remember the what the web address.
Yemi Akinkugbe [00:27:56] Yeah. Just go to WW about CNN AECOM In there you will find a positive energy hub or you can go to WW dot positive energy hop dot com and you will find all I mean we all our goal is also to educate people you’ll find out where we are putting out editorials to educate people on the benefits and also you know give them a monopoly of information when it comes to the for energy portfolio that is and that is out there today.
Yemi Akinkugbe [00:28:21] But that’s where to find the Appalachia first vision. If you want to read up on it. It is it is in there. And also all of the resources, all other information. And I also encourage folks to you know, we have we have a Twitter hub, Tokyo, Twitter handle, CNN grand. Do you use CEO? He also has one. He always puts out information out there. I and also and within LinkedIn. I’m on LinkedIn.
David Blackman [00:28:46] LinkedIn.
Yemi Akinkugbe [00:28:46] Yeah. So you know, our goal is to you know, I use all of this outlets to make sure people are well informed regarding energy and energy policy as a whole.
David Blackman [00:28:55] Well, fantastic. This is a company that knows how to communicate folksy me. I can’t thank you enough. That’s all we got for today. And we will talk to you next time.
Yemi Akinkugbe [00:29:03] Thank you very much, David. Appreciate it.
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