Jersey Boys

After launching a new travel center in New Jersey, New York’s Bolla Oil is now eyeing a dozen new-to-industry sites in the Garden State.

By John Lofstock, Editor

Bolla_Market_Exterior

Bolla Oil has never been afraid to take a gamble on a unique opportunity, so when the chance to enter the New Jersey market presented itself, the company went all in.

Bolla Oil, based in Garden City, N.Y., has traditionally focused on adding company-operated and dealer sites around New York City, one of the most complex and expensive markets in the country. But just across the Hudson River lies New Jersey. The focal point of timeless mafia jokes and the search for Jimmy Hoffa, the Garden State is also a rapidly emerging market for upscale convenience stores. Prime retail real estate, however, is very hard to find, and when it does become available, it comes with a hefty price point.

Still, this is the perfect scenario for Harry Singh. When a two-acre truckstop along the border of New York and New Jersey hit the market in 2015, the president and CEO of Bolla Oil jumped at the opportunity.

“The property was is in distress,” Singh said. “There was quite a bit of contamination that scared off a lot of potential investors, but I saw this as a one-shot opportunity to get into New Jersey in a location that offered endless possibilities.”

The site is located on Route 17 in a corridor just off the New York State Thruway, which serves as one of the two main conduits off the thruway into New Jersey. It’s a destination for both truckers and local commuters. Additionally, the travel center is situated in such a way that it is accessible from Route 17 and the interstate connecting New York and New Jersey.

“These sites don’t become available very often,” Singh said. “Going into the bidding process early on we knew the cost of the clean up would be extensive, we knew the state Department of Environmental Protection (DEP) would be heavily involved and we knew it wouldn’t be cheap. But we also knew it wasn’t an opportunity we were going to let get by us.”

What Singh had in his corner was vertical integration. Bolla Oil is not your tradition oil company. In addition to owning a real estate company, a transportation business and operating convenience stores, the company owns a construction company, which is licensed to do site cleanups in New York and New Jersey.

After purchasing the property, Bolla spent $18,000-$20,000 per month on the site just to keep it going as it prepared plans for the cleanup with the state and for a full raze and rebuild of the existing building. The state and the Bergen County DEP had been running the clean up under the previous owner.

“From the state’s standpoint, I think they were a little relieved to have us purchase the property and show them a plan to clean up the site and develop a property we all could be proud of,” Singh said.

But that came with a cost. Singh estimated the cleanup cost alone totaled a whopping $1.4 million to dig up the property, remove the contaminated soil and dispose of it properly. Combined with the cost to raze the existing structure and fill in the site with clean soil, Bolla Oil was facing a hefty investment.

“For us, the big question was about efficiency and ensuring we could get the most out of the money we were investing,” Singh said. “When it comes to investing millions, you have to ask the question, ‘Can this business generate a return and be profitable?’ If the answer is no, you have to have the discipline to walk away, no matter the location.”

But when the answer is yes, the possibilities seem endless. The site opened its doors in July, and within one month it began averaging about 70,000 gallons per day and more than two million gallons per month, with virtually no promotions. Business has been so good that the store is getting about nine fuel deliveries per day.

“Our fuel volume is three times more than our busiest New York stores,” Singh said.

Growing Store Sales
But while Bolla Oil is shrewd when it comes to the fuel business, thanks to owning its own tankers and having drivers on the payroll, it’s even better when it comes to growing convenience store sales.

Still, New Jersey presented new challenges to Bolla Oil. For starters, most c-stores in the Garden State cannot obtain a license to sell alcohol, which limits customer trips. Plus, the convenience market for years was dominated by unbranded sites and single-store owners, thanks in large part to New Jersey’s stubborn full-service fuel laws, which increase labor costs. Customers were not conditioned to get out of the car to shop the convenience store.

But the need for quick, upscale meals and snacks has had a transformative impact on the marketplace. Over the past decade, major players have made tremendous inroads with upscale convenience store models, beginning with New Jersey-based QuickChek, who is building full-service c-stores with upscale features like self-checkout to enhance speed of service.

Wawa began making a push into the market about four years ago and Speedway’s acquisition—and subsequent rebranding—of Hess has elevated the Ohio marketer’s presence significantly.

Enter Bolla Oil.
Bolla_Interior
“New Jersey customers are used to QuickChek and Wawa, so they understand that convenience stores can be a destination for high-quality foods,” Singh said. “So when we introduced our upscale food program, we didn’t have to convince them to come in and try something new. Our challenge was showing them how good we could be and getting them to come back.”

To put his best foot forward, Singh opened the 10,000-square-foot store, which includes an expansive 1,500-square-feet of seating, with Brooklyn-trained chefs who prepared everything made to order. This included sandwiches, wraps, panini and entrees. In the first month, the store grossed about $350,000, including about $105,000 alone in foodservice sales.

“Our strategy is pretty simple. It is to be consistent in everything we do. To offer great food, great service and great prices every single day. To offer consistent high standards and never overlook the little things,” Singh said. “That means having employees in clean uniforms, greeting everyone that comes through the door and going the extra mile to exceed customers’ expectations. Our standards are high and we want customers to expect this from us every day.”

Bolla_TruckExercising Control
Singh has been precisely charting Bolla Oil’s growth for 27 years. He began as an auto mechanic with one Mobil station on Houston St. in New York City. Today, he has grown the company into a network of 105 retail sites, which includes 65 company-operated stores. The company has 20 new stores in the pipeline, including a dozen in New Jersey.

In 2012, Bolla expanded its core business with the development of its fuel trucking fleet, Bolla Transport LLC. The company invested nearly $2 million in equipment including a fleet of 11 tankers, each of which holds 8,200 gallons to 12,000 gallons of fuel. It hired more than 30 drivers, plus a crew of mechanics to maintain the vehicles out of its warehouse in Brooklyn.

Among the keys to Bolla Oil’s success has been its ability to control key points of the business that have traditionally tripped up other operators. Bolla is the parent of six distinct affiliate companies: Bolla Realty, Bolla Market, Bolla Wholesale, Bolla Retail, Bolla Transport and Bolla Construction. By doing so, Bolla has driven down costs associated with building sites and procuring products/services to well below industry averages.

“Tomorrow’s success begins today. Whether it’s finding a piece of real estate you want or visiting some other stores to learn where you can improve, you have to prepare and set goals for yourself and the business,” Singh said. “The quickest way to fail is by not planning effectively.”

For example, where many operators have to lease properties, Bolla is a landlord on dozens of lots throughout New York City—a market where real estate and property taxes are among the highest in the world. This helps to insulate the company from fluctuating costs.

“To make your mark you are either growing the business, or waiting for the industry to pass you by,” Singh said. “Our strategy is relatively simple. We are looking for top quality stores that will help us expand in our markets of operation and present opportunities in new markets that will enhance our scalability.”

Long History
To get to this point, Singh had to endure some tough lean years. While he is enjoying success, he rarely takes a day off, let alone a vacation, and he’s always ready to talk business.

Singh founded Bolla in 1989, just five years after he emigrated to the U.S. from India. Newly married, he soon began building his network of stations and stores. The company is a family affair that extends beyond Singh’s wife and two children. Several of Singh’s first employees still work at Bolla.

It is the memory of those early days that continues to drive Singh. He took classes to become an auto mechanic to ensure that he had a discernable skill so he could provide for his growing family. Then he worked the overnight shift in the convenience store to drive additional revenues.

“I remember back to a lot of nights when I first started this business with just a couple of stores in terrible neighborhoods. I used to keep a baseball bat next to me at all times because the locations were just that bad,” Singh recalled. “On the one hand, you’re trying to provide great service to the customers that appreciated you being there, but on the other hand you had to worry about some bad people.”

After all of his hard work, Singh takes pride in providing an income for more than 500 employees and their families. To that end, Bolla also gives back to the community in many ways, such as making regular contributions to local community groups, churches and temples, and giving educational grants to local schools each year.

“Success and profits are not bad words,” Singh said. “It took years of hard work to get to this point. I’m so pleased to be able to have great employees that believe in what we are doing and that are sharing in our success.”

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Jersey Boys

After launching a new travel center in New Jersey, New York’s Bolla Oil is now eyeing a dozen new-to-industry sites in the Garden State.

By John Lofstock, Editor

Bolla_Market_Exterior

Bolla Oil has never been afraid to take a gamble on a unique opportunity, so when the chance to enter the New Jersey market presented itself, the company went all in.

Bolla Oil, based in Garden City, N.Y., has traditionally focused on adding company-operated and dealer sites around New York City, one of the most complex and expensive markets in the country. But just across the Hudson River lies New Jersey. The focal point of timeless mafia jokes and the search for Jimmy Hoffa, the Garden State is also a rapidly emerging market for upscale convenience stores. Prime retail real estate, however, is very hard to find, and when it does become available, it comes with a hefty price point.

Still, this is the perfect scenario for Harry Singh. When a two-acre truckstop along the border of New York and New Jersey hit the market in 2015, the president and CEO of Bolla Oil jumped at the opportunity.

“The property was is in distress,” Singh said. “There was quite a bit of contamination that scared off a lot of potential investors, but I saw this as a one-shot opportunity to get into New Jersey in a location that offered endless possibilities.”

The site is located on Route 17 in a corridor just off the New York State Thruway, which serves as one of the two main conduits off the thruway into New Jersey. It’s a destination for both truckers and local commuters. Additionally, the travel center is situated in such a way that it is accessible from Route 17 and the interstate connecting New York and New Jersey.

“These sites don’t become available very often,” Singh said. “Going into the bidding process early on we knew the cost of the clean up would be extensive, we knew the state Department of Environmental Protection (DEP) would be heavily involved and we knew it wouldn’t be cheap. But we also knew it wasn’t an opportunity we were going to let get by us.”

What Singh had in his corner was vertical integration. Bolla Oil is not your tradition oil company. In addition to owning a real estate company, a transportation business and operating convenience stores, the company owns a construction company, which is licensed to do site cleanups in New York and New Jersey.

After purchasing the property, Bolla spent $18,000-$20,000 per month on the site just to keep it going as it prepared plans for the cleanup with the state and for a full raze and rebuild of the existing building. The state and the Bergen County DEP had been running the clean up under the previous owner.

“From the state’s standpoint, I think they were a little relieved to have us purchase the property and show them a plan to clean up the site and develop a property we all could be proud of,” Singh said.

But that came with a cost. Singh estimated the cleanup cost alone totaled a whopping $1.4 million to dig up the property, remove the contaminated soil and dispose of it properly. Combined with the cost to raze the existing structure and fill in the site with clean soil, Bolla Oil was facing a hefty investment.

“For us, the big question was about efficiency and ensuring we could get the most out of the money we were investing,” Singh said. “When it comes to investing millions, you have to ask the question, ‘Can this business generate a return and be profitable?’ If the answer is no, you have to have the discipline to walk away, no matter the location.”

But when the answer is yes, the possibilities seem endless. The site opened its doors in July, and within one month it began averaging about 70,000 gallons per day and more than two million gallons per month, with virtually no promotions. Business has been so good that the store is getting about nine fuel deliveries per day.

“Our fuel volume is three times more than our busiest New York stores,” Singh said.

Growing Store Sales
But while Bolla Oil is shrewd when it comes to the fuel business, thanks to owning its own tankers and having drivers on the payroll, it’s even better when it comes to growing convenience store sales.

Still, New Jersey presented new challenges to Bolla Oil. For starters, most c-stores in the Garden State cannot obtain a license to sell alcohol, which limits customer trips. Plus, the convenience market for years was dominated by unbranded sites and single-store owners, thanks in large part to New Jersey’s stubborn full-service fuel laws, which increase labor costs. Customers were not conditioned to get out of the car to shop the convenience store.

But the need for quick, upscale meals and snacks has had a transformative impact on the marketplace. Over the past decade, major players have made tremendous inroads with upscale convenience store models, beginning with New Jersey-based QuickChek, who is building full-service c-stores with upscale features like self-checkout to enhance speed of service.

Wawa began making a push into the market about four years ago and Speedway’s acquisition—and subsequent rebranding—of Hess has elevated the Ohio marketer’s presence significantly.

Enter Bolla Oil.
Bolla_Interior
“New Jersey customers are used to QuickChek and Wawa, so they understand that convenience stores can be a destination for high-quality foods,” Singh said. “So when we introduced our upscale food program, we didn’t have to convince them to come in and try something new. Our challenge was showing them how good we could be and getting them to come back.”

To put his best foot forward, Singh opened the 10,000-square-foot store, which includes an expansive 1,500-square-feet of seating, with Brooklyn-trained chefs who prepared everything made to order. This included sandwiches, wraps, panini and entrees. In the first month, the store grossed about $350,000, including about $105,000 alone in foodservice sales.

“Our strategy is pretty simple. It is to be consistent in everything we do. To offer great food, great service and great prices every single day. To offer consistent high standards and never overlook the little things,” Singh said. “That means having employees in clean uniforms, greeting everyone that comes through the door and going the extra mile to exceed customers’ expectations. Our standards are high and we want customers to expect this from us every day.”

Bolla_TruckExercising Control
Singh has been precisely charting Bolla Oil’s growth for 27 years. He began as an auto mechanic with one Mobil station on Houston St. in New York City. Today, he has grown the company into a network of 105 retail sites, which includes 65 company-operated stores. The company has 20 new stores in the pipeline, including a dozen in New Jersey.

In 2012, Bolla expanded its core business with the development of its fuel trucking fleet, Bolla Transport LLC. The company invested nearly $2 million in equipment including a fleet of 11 tankers, each of which holds 8,200 gallons to 12,000 gallons of fuel. It hired more than 30 drivers, plus a crew of mechanics to maintain the vehicles out of its warehouse in Brooklyn.

Among the keys to Bolla Oil’s success has been its ability to control key points of the business that have traditionally tripped up other operators. Bolla is the parent of six distinct affiliate companies: Bolla Realty, Bolla Market, Bolla Wholesale, Bolla Retail, Bolla Transport and Bolla Construction. By doing so, Bolla has driven down costs associated with building sites and procuring products/services to well below industry averages.

“Tomorrow’s success begins today. Whether it’s finding a piece of real estate you want or visiting some other stores to learn where you can improve, you have to prepare and set goals for yourself and the business,” Singh said. “The quickest way to fail is by not planning effectively.”

For example, where many operators have to lease properties, Bolla is a landlord on dozens of lots throughout New York City—a market where real estate and property taxes are among the highest in the world. This helps to insulate the company from fluctuating costs.

“To make your mark you are either growing the business, or waiting for the industry to pass you by,” Singh said. “Our strategy is relatively simple. We are looking for top quality stores that will help us expand in our markets of operation and present opportunities in new markets that will enhance our scalability.”

Long History
To get to this point, Singh had to endure some tough lean years. While he is enjoying success, he rarely takes a day off, let alone a vacation, and he’s always ready to talk business.

Singh founded Bolla in 1989, just five years after he emigrated to the U.S. from India. Newly married, he soon began building his network of stations and stores. The company is a family affair that extends beyond Singh’s wife and two children. Several of Singh’s first employees still work at Bolla.

It is the memory of those early days that continues to drive Singh. He took classes to become an auto mechanic to ensure that he had a discernable skill so he could provide for his growing family. Then he worked the overnight shift in the convenience store to drive additional revenues.

“I remember back to a lot of nights when I first started this business with just a couple of stores in terrible neighborhoods. I used to keep a baseball bat next to me at all times because the locations were just that bad,” Singh recalled. “On the one hand, you’re trying to provide great service to the customers that appreciated you being there, but on the other hand you had to worry about some bad people.”

After all of his hard work, Singh takes pride in providing an income for more than 500 employees and their families. To that end, Bolla also gives back to the community in many ways, such as making regular contributions to local community groups, churches and temples, and giving educational grants to local schools each year.

“Success and profits are not bad words,” Singh said. “It took years of hard work to get to this point. I’m so pleased to be able to have great employees that believe in what we are doing and that are sharing in our success.”

Save

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Love’s Plans to Open its First Montana Location

loveslogoA new Love’s Travel Stop in a new state is in the works for early 2017.

Love’s Travel Stops is on track to open its first store in Montana in early 2017.

According to a report from Billings Gazette, a new 10,000-square foot Love’s store will be opening at Exit 495 along Interstate 90 in Hardin, Mont. in the early months of 2017. The report also indicates that the new Love’s location will also feature an adjoining Hardee’s restaurant

The store will be constructed on an 11 acre lot, and it is estimated that it will cost approximately $11 million to complete, Billings Gazette reported.

According to Billings Gazette, the new store will create 40 jobs, provide parking for 68 trucks and it will feature 12 fuel pumps for traditional motorists and five for professional drivers. The Travel Stop will also offer food, drinks and other items for travel, including certain electronic items.

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Chevron to Supply LNG to China

ENNChevron continues to expand its customer base through a 10 year Sales and Purchase Agreement agreement with ENN LNG Trading Co.

Chevron U.S.A. Inc., a wholly owned subsidiary of Chevron Corp., will now be delivering liquefied natural gas (LNG) to China as a part of a newly signed LNG Sales and Purchase Agreement (SPA) between Chevron U.S.A and ENN LNG Trading Co. Ltd. The LNG will be supplied by Chevron’s global supply portfolio.

Under the terms of the SPA, ENN will receive up to 0.65 million metric tons per annum (MTPA) of LNG over 10 years, with the first delivery expected to start in 2018 or the first half of 2019.

“Chevron’s commitment to gas is clear. We’ve been in the natural gas business for more than 100 years, and we’re positioned to become one of the top LNG suppliers in the world,” said Mike Wirth, executive vice president, Chevron Midstream and Development. “This SPA further demonstrates our work to expand our customer base, our strong customer relationships and our commitment to partnerships around the world.”

ENN LNG Trading Co. Ltd. is one of the subsidiaries of ENN Energy Holdings Ltd., which is one of the largest natural gas distribution companies in China. ENN Energy Holdings Ltd. operates in 150 cities across 17 provinces and autonomous regions, with over 12 million residential and 56 thousand industrial/commercial customers. ENN’s Zhoushan LNG receiving terminal is being constructed and expected to be in operation by 2018.

The SPA delivery requirements are expected to be fulfilled by Chevron’s growing LNG portfolio, including the company’s Australian LNG interests at Gorgon, Wheatstone and the North West Shelf.

Chevron Corp. is one of the world’s leading integrated energy companies. Through its subsidiaries that conduct business worldwide, the company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemical products and additives; generates power and produces geothermal energy; and develops and deploys technologies that enhance business value in every aspect of the company’s operations. Chevron is based in San Ramon, Calif.

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7-Eleven Stores Founder has Passed Away

williamcbrown300Bill Brown is remembered as a grateful and humble man.

On Thursday, Aug. 25, 2016, William C. “Bill” Brown passed away in his home at the age of 89.

Brown, who was born July 27, 1927, in Brooklyn, N.Y., was the founder of Oklahoma City-based 7-Eleven Stores. Brown’s son, Jim Brown, is now the current CEO of 7-Eleven Stores, NewsOK reported.

In his life, Bill Brown served in the U.S. Navy during World War II, and he also attended the University of Notre Dame, where he met his wife, Carol. NewsOK reported that Brown and later became a member of the Notre Dame’s business council.

Three years after their marriage, the Brown’s moved to Oklahoma City, where Brown later began 7-Eleven Stores and helped his wife to raise their eight children. NewsOK noted that 7-Eleven Stores is a separate entity, not affiliated with the Dallas-based 7-Eleven Inc.

Brown has been quoted saying that it was his employees that made 7-Eleven stores successful, NewsOK reported.

Bill’s son, Jim, noted that Bill’s family and faith always came first. NewsOK reported that Bill Brown attended Christ the King Catholic Church. In 2014 Brown was awarded the Cross of Honor by Pope Francis, the highest medal that can be awarded by the Pope.

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Wage Increases Rise in Lower-Paying Industries

MoneyMany of the nation’s lower-paying jobs are increasing wages in an attempt to retain employees.

Industries which typically offer lower pay rates, such as gas stations and food and beverage stores, are currently raising their wages at a faster rate than higher paying professions.

According to a recent report from Bloomberg Markets, research conducted by economists Emanuella Enenajor and Lisa Berlin has revealed that there has been some substantial upward pressure on wages in 2016, especially in industries that rank in the bottom 20% by pay. An analysis conducted by the two economists suggested that minimum wage increases only accounts for about half of this increased rate of wage growth, while the shortening supply of labor accounts for the rest.

Bloomberg Markets reported that labor supply for low-paying jobs is on the decline, and this is forcing employers to increase wages in order to retain a staff of workers.

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VP Racing Fuels Victor Cagnazzi for the NHRA Nationals

vp_fuels_color_rgb_2x1.5VP Racing will fuel multiple cars for Gray Motorsports at this year’s NHRA National events.

VP Racing Fuels has entered into a new partnership with Victor Cagnazzi and Gray Motorsports’ COPO Camaro Sportsman racing team.

Under the new agreement, each of the team’s cars will be powered exclusively by VP’s C25 racing fuel at the upcoming NHRA U.S. Nationals in Indianapolis as well as other NHRA National events. The GM Parts Now Chevy COPO team campaigns four cars — in Stock, Super Stock and the Factory Stock Showdown.

“We are excited to continue our seven-year relationship with VP Racing Fuels, which has been a great partner, with a great product that is not only extremely consistent, but also makes more power than any other brands we have tested,” said Cagnazzi, of Gray Motorsports. “Our GM Parts Now Chevy COPO team runs and wins with VP fuel in the tank.”

“To have a racer of Victor’s stature place his trust and confidence in our products is extremely gratifying,” said Mark Ticen, VP’s director of Race Fuel sales. “His input will be invaluable to our R&D efforts and we look forward to supporting his team this year and well into the future.”

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Dunkin’ Donuts Offers Discounted Coffee when the Patriots Win

DD_PatriotsDunkin’ Donuts is offering 87 cent medium coffees after every regular season win for the Patriots.

Beginning September 12, and continuing throughout this year’s regular football season, DD Perks members will receive a medium hot or iced coffee for 87 cents the day after a New England Patriots’ win. This offer, which marks the return of the “Pats Win, You Win” promotion to Dunkin’ Donuts, will be valid at participating Dunkin’ Donuts locations in Massachusetts, Maine, Connecticut, Vermont, New Hampshire, Rhode Island and Essex and Clinton counties in New York.

“This year’s ‘Pats Win, You Win’ promotion pays tribute to one of Dunkin’ Donuts’ biggest fans, number 87 Rob Gronkowski,” said Patty Healy, field marketing director for the New England Region at Dunkin’ Brands. “We’re excited to keep our loyal Dunkin’ Donuts guests and Gronk fans cheering loudly throughout the regular season with 87 cent medium hot or iced coffee the day after a Patriots win in honor of Gronk’s jersey number.”

With DD Perks, guests earn five points for every dollar they spend on qualifying purchases at Dunkin’ Donuts when they pay using an enrolled Dunkin’ Donuts card, either plastic or via the Dunkin’ Donuts Mobile App. Once a member accrues 200 points, he or she receives a coupon for a free any-size beverage of their choice, redeemable at participating Dunkin’ Donuts restaurants. DD Perks members also receive a coupon for a free, any-size beverage upon enrollment and on their birthday.

DD Perks members can also order and pay in advance with a swipe of a finger on a smartphone, and then speed past the line in store to pick up their favorite menu items with Dunkin’ Donuts’ On-the-Go Ordering. With On-the-Go Ordering, DD Perks members can place a mobile order up to 24 hours in advance, select their desired location, and then simply confirm via the new Dunkin’ Donuts Mobile App when they are ready to pick up their order inside the restaurant, or at the drive-thru. The order is automatically paid for using their Dunkin’ Donuts Card within the App. In the restaurant, DD Perks Members have no need to wait, as they can skip the line in store and go straight to pick up their items at a designated area. They also have the ability to save their recent orders as a favorite to speed up their next Dunkin’ run. To enjoy On-the-Go Ordering, DD Perks members nationwide must download the newest version of the popular Dunkin’ Donuts Mobile App, called “New Dunkin’ Donuts” in the App Store or Google Play Store.

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