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HomeMy WebLinkAbout6.h. Vesterra, LLC and Stonex, LLC. A Report Reviewing and Amendment to the 2009 Vesterra and Stonec Mineral Extraction Permit, 09-02-MEAGENDA ITEM: 09 -02 -ME Vesterra, LLC and Stonex, LLC. A Report Reviewing an Amendment to the 2009 Vesterra and Stonex Mineral Extraction Permit AGENDA SECTION: Consent PREPARED BY: Jason Lindahl, AICP Planner AGENDA NO. ATTACHMENTS: PC Excerpt Minutes from 5/26/09 2/24/09, Amended 2009 Conditions for Mineral Extraction, Applicant's Narrative, Engineering Memo Dated May 21, 2009, Location Map, Present Conditions and 2009 Mine Plan, 2009 Amended Present Conditions and 2009 Mine Plan, 2009 Mining Operation Plan, 2009 Amended Mine Operation Plan, 2009 Conceptual End Use Plan, 2009 Amended Concept End Use Plan APPROVED BY: atti RECOMMENDED ACTION: Motion to approve the attached amended 2009 mineral extraction permit for Vesterra and Stonex, subject to the following conditions: 1. Conformance with the amended 2009 Conditions for Mineral Extraction. 9 ROSEMOUNT City Council Meeting: SUMMARY Applicant: Property Owner: Location: Area in acres: Comp Plan Designation: Current zoning: Nature of request: Material removed in 2008: CITY COUNCIL June 16, 2009 EXECUTIVE SUMMARY Jonathan Wilmshurst of Vesterra, LLC and Stonex, LLC Flint Hills Resources South of Bonaire Path (County Road 38) extending 1/2 mile to southern boundary, Y4 mile west of Blaine Ave. Vesterra 75 Acres, the north half along 135 Street East. Stonex 80 Acres, the south half. IM Industrial Mixed Use AG, Agriculture Amendment of the 2009 mineral extraction permit Less than 5,000 tons The applicant, Jonathan Wilmshurst of Vesterra LLC /Stonex LLC, requests an amendment to the 2009 Vesterra and Stonex mineral extraction permit. The amendment would revise the applicant's Phasing and End Use plans to allow mining in 15 acres on the east end of the property not included under the existing mineral extraction permit. Should the City approve the request, the most notable change to the existing permit would be a new 5 acre and twenty feet deep storm water pond in the northeastern corner of the site. After reviewing this proposal, both staff and the Planning Commission recommend approval. PLANNING COMMISSION ACTION The Planning Commission reviewed this item during their regular meeting on May 26, 2009. An excerpt of the minutes from that meeting is attached for your reference. Commissioner Messner asked if the applicant intended to change the haul route from the pit as part of this amendment. Mr. Lindahl replied that the applicant plans to change the haul route at a future time but that change is not part of this application. Mr. Messner also had concerns about the depth of the proposed pond as it relates to the existing water table. Mr. Lindahl responded that the City Engineer had reviewed the revised plans and found no issues with the depth of the proposed pond. The Commission then opened the public hearing inviting any comments on this item. After hearing none, the Commission voted to close the public hearing. The Planning Commission then voted unanimously to recommend the City Council approve the revised Vesterrra and Stonex mineral extraction permit for 2009. BACKGROUND This mineral extraction permit was renewed by the Council in March of 2009 after a public hearing before the Planning Commission on February 24, 2009. That permit remains in place, subject to approval of the requested amendment. The subject properties are located south of Bonaire Path, 1 /4 mile west of Blaine Ave. (County Road 71). The properties are owned by Flint Hills Resources which leases them back to the applicant for mineral extraction. While Flint Hills and Vesterra, LLC /Stonex, LLC are parties to the permit, the responsibility for securities and compliance with the conditions remains with Vesterra and Stonex as the property lessee. According to the applicant, there was minimal activity in the mine during 2008 due to the slow economy. Mr. Wilmshurst reports less than 5,000 tons of material was removed from the pit in 2008. Despite the slow economy, the applicant has begun to field requests for product from contractors. These requests are looking for a mix with higher gravel content than currently available in Phase One. As a result, the applicant conducted trial pits throughout their property and found more suitable product in the eastern 15 acres of the site. For that reason they are requesting to amendment their existing Phasing and End Use plans to include the eastern 15 acres. As noted under the 2009 renewal, the applicant anticipates some recycling of concrete and asphalt material and importation of clean fill for reclamation. In addition, the applicant has a farming tenant operating on a portion of the subject property outside the active mining area. ISSUE ANALYSIS Both Section 11 -10 -4 of the zoning ordinance (Mineral Extraction) and the existing mineral extraction permit require an amendment should the applicant wish to update or alter the plans or conditions for an existing permit. As proposed, the applicant requests an amendment to their existing Phasing and End Use plans to allow mining in the eastern 15 acres of the subject property not included in the 2009 permit. The requested amendment conforms to the standard in both the existing mineral extraction permit and Section 11 -10 -4 of the zoning ordinance. Should the City approve the request, mining activity on the site would shift toward the east rather than toward the west as originally planned. The amended permit would also result in a new 5 acre and twenty feet deep storm water pond in the northeastern corner of the site. 2 Surrounding Land Use and Zoning Information Direction Current Land Use Guided Land Use Zoning North Agriculture Agriculture Agriculture South Agriculture Medium Density Residential (west half) Business Park (east half) Agriculture East Agriculture Mixed Use Industrial Agriculture Agriculture West Agriculture Urban Residential The table below details the zoning, current land use and future land use information for the surrounding properties. The combined sites are zoned AG, Agriculture, guided IM, Industrial /Mixed Use and are located within the current Metropolitan Urban Service Area (MUSA). It should be noted that some of the agriculture use includes associated residential uses. Currently, access to both properties is through a gate at the northeast corner of the Vesterra property along Bonaire Path. As the activity on the Stonex property progresses, the applicant plans to shift access to the pit to County Road 71 across an 80 acre parcel owned by Flint Hills Resources. Mr. Wilmshurst does not anticipate a change in access during 2009. Should conditions warrant a change in access, the applicant will come back to the City to amend the permit. Engineering Review The Engineering Department has reviewed this proposal and their comments are included in the attached memo dated May 21, 2009. Their review found no issues and produced no comments. RECOMMENDATION Both staff and the Planning Commission recommend approval of an amendment to the 2009 Vesterra and Stonex Mineral Extraction Permit to allow mining in the eastern 15 acres of the subject property. This recommendation is based on the information provided by the applicant and the findings made in this report. This request is subject to the conditions outlined in the attached permit as well as the mineral extraction permits standards outlined in Section 11 -10 -4 of the Zoning Ordinance. Upon review of these standards, police records and the information submitted by the applicant, both the Planning Commission and staff recommend approval. 3 EXCERPT FROM MINUTES PLANNING COMMISSION REGULAR MEETING MAY 26, 2009 5.a. A Report Reviewing an Amendment to the 2009 Vesterra and Stonex Mineral Extraction Permit (09- 12 -ME). Planner Lindahl reviewed the staff report. The applicant, Jonathan Wiltnshurst of Vesterra LLC /Stonex LLC, requests an amendment to the 2009 Vesterra and Stonex mineral extraction permit. The amendment would revise the applicant's Phasing and End Use plans to allow mining in 15 acres on the east end of the property not included under the existing mineral extraction permit. Should the City approve the request, the most notable change to the existing permit would be a new 5 acre and twenty feet deep storm water pond in the northeastern corner of the site. Commissioner Messner asked if the haul route going out of the east side of the site is currently there or for the future phase. Mr. Lindahl stated that the applicant has identified this haul route as a future route once the mining process moves down to that location and the parcels to the east are no longer being farmed. City staff is aware of their desire to switch and it is a favored haul route for Flint Hills. Commissioner Messner asked if the permit allows for a greater depth of mining in the proposed stormwater ponding area. Mr. Linchahl stated that the area has been reviewed by the City Engineering Department and they haven't offered any comments that the design is inappropriate. The applicant, John Chadwick, of Vesterra Stonex, approached the Commission and thanked them for the consideration of the amendment. He stated they will make the stormwater ponding area work when the time comes. The public hearing was opened at 6:42p.m. There were no public comments. MOTION by Messner to close the public hearing. Second by Irving. Ayes: 5. Nays: None. Motion approved. Public hearing was closed at 6:43p.m. MOTION by Irving to recommend the City Council approve the attached amended 2009 mineral extraction permit for Vesterra and Stonex, subject to the following conditions: 1. Conformance with the amended 2009 Conditions for Mineral Extraction. Second by Schwartz. Ayes: 5. Nays: 0. Motion approved As follow -up, Mr. Lindahl stated that this item will go before the City Council at their regular meeting on Tuesday, June 16, 2009. EXCERPT OF MINUTES PLANNING COMMISSION REGULAR MEETING FEBRUARY 24, 2009 5.a. Vesterra Stonex Mineral Extraction Permit Review and Renewal (09- 02 -ME). Planner Lindahl reviewed the staff report. The applicant, Jonathan Wilmshurst of Vesterra LLC/Stonex LLC, requests renewal of the Vesterra and Stonex mineral extraction permits for 2009. The subject properties are located south of 135 street, 1/4 mile west of Blaine Ave. (County Road 71). The properties are owned by Flint Hills Resources which leases them back to the applicant for mineral extraction. While Flint Hills and Vesterra, LLC/Stonex, LLC are parties to the permit, the responsibility for securities and compliance with the conditions remains with Vesterra and Stonex as the property lessee. The Applicant was present but added no comments. The public hearing was opened at 6:35p.m. There was no public comment. MOTION by Schultz to close the public hearing. Second by Schwartz. Ayes: 4. Nays: None. Motion approved. Public hearing was closed at 6:36p.m. There was no discussion among the Commissioners. MOTION by Schultz to recommend the City Council approve the renewal of the mineral extraction permit for Vesterra and Stonex, subject to the following conditions: 1. Conformance with the attached 2009 Conditions for Mineral Extraction. Second by Howell. Ayes: 4. Nays: 0. Motion approved. As follow -up, Mr. Linclahl stated this item will go before City Council at their regular meeting on March 18, 2009. Mineral Extraction Permit Amended 2009 Conditions for Mineral Extraction Permit VESTERRA, LLC and STONEX, LLC A. By their signatures below, Vesterra, LLC and Stonex, LLC (hereinafter collectively referred to as the "Property Lessee and Flint Hills Resources (herein after "the Property Owner consent to these conditions, binding themselves and their successors, heirs or assigns to the conditions of this permit. Vesterra LLC and Stonex, LLC are jointly and severally liable and responsible for compliance with all conditions of this permit and all requirements of law relating to the licensed activities. Mineral Extraction is an Interim Use in the Agriculture District of which the permit area is a part according to Ordinance B, the City of Rosemount Zoning Ordinance Regulations. Property Owner consents to entry onto the Subject Property by the City, the City's employees, agents, and contractors, as needed to inspect the work of the permit, enforce the conditions of the permit and undertake any work needed to comply with permit conditions including mine closing and reclamation. B. This permit is granted for the area designated as Phase 1 on Exhibit 2 which is attached hereto as one of the exhibits. C. The completion date of the overall mineral extraction process including site reclamation shall be no later than December 31, 2014 for the northern 75 acres, the Vesterra site. The completion date of the overall mineral extraction process including site restoration shall be no later than December 31, 2018 for the southern 80 acres, the Stonex site. The term of this permit shall extend from June 16, 2009 until December 31, 2009 unless revoked prior to that for failure to comply with the permit requirements. A mining permit fee of $370.00 shall be paid to the City of Rosemount. D. All required permits from the State of Minnesota, County of Dakota and City of Rosemount (hereinafter "City or any of their agencies shall be obtained and submitted to the City prior to the issuance of the permit. Failure by the Property Lessee to comply with the terms and conditions of any of the permits required under this paragraph shall be grounds for the City to terminate said mining permit. E. The fmal grading for the permit area shall be completed in accordance with the grading plan labeled Exhibit 3, which is attached hereto, or as approved by the City Engineer, and any other conditions that may be imposed by the City from time to time. F. All gravel trucks and other mining related traffic shall enter and exit the mining area from Bonaire Path (County Road 38). It shall be the Property Lessee's responsibility to obtain any access permits or easements necessary for ingress and egress. The location of the accesses and/or easements for ingress and egress shall be subject to approval by the City, as well as the Dakota County Highway Department or the Minnesota Department of Transportation if applicable or if any changes occur 2009 Mining Permit Amended 06 -26 -09 Vesterra, LLC Stonex, LLC 2 of 6 relative to the mining process. The current location of the access driveway is indicated on the Location Map, Exhibit 1. Warning signs including "Trucks Hauling" shall be installed at the Property Owner's expense as needed in accordance with Dakota County requirements. Any street improvements to County road 38, 71 or CSAH 42 necessary to accommodate the generated traffic shall be the sole responsibility of the Property Lessee. G. A plan for dust control shall be submitted to and subject to approval by the City. The Property Lessee shall clean dirt and debris from extraction or hauling operations related to the Mineral Extraction Permit from streets. After the Property Lessee has received 24 -hour verbal notice, the City may complete or contract to complete the clean-up at the Property Lessee's expense. In the event of a traffic hazard as determined by the City Administrator (or his designee) or Rosemount Police Department, the City may proceed immediately to complete or contract cleanup at Property Lessee's expense without prior notification. H. The surface water drainage of the mining area shall not be altered so as to interfere, contaminate or otherwise impact the natural drainage of adjacent property. I. No topsoil shall be removed from the site and the Property Lessee shall take necessary measures to prevent erosion of the stockpiled topsoil. The location of the stockpiled topsoil shall be indicated on Exhibit 2, the Phasing Plan. J. Any costs incurred now or in the future in changing the location of existing public or private utilities including but not limited to pipelines, transmission structures and sewer infrastructure located within the permit area shall be the sole obligation and expense of the Property Lessee. K. All costs of processing the permit, including but not limited to planning fees, engineering fees and legal fees, shall be paid by the Property Lessee prior to the issuance of the permit. The Property Lessee shall reimburse the City for the cost of periodic inspections by the City Administrator or any other City employee for the purpose of insuring that conditions of the permit are being satisfied. The Property Lessee agrees to reimburse the City for any other costs incurred as a result of the granting or enforcing of the permit. L. The daily hours of operation for the mining area shall be limited to 7:00 a.m. to 7:00 p.m., subject, however, to being changed by the City Council. M. The Property Lessee shall deposit with the Planning Department a surety bond or cash deposit in the amount of Seven Thousand, Five Hundred Dollars per acre ($7,500.00 /acre) for any active phase in favor of the City for the cost of restoration, regrading and/or revegetating land disturbed by mining activities and to ensure performance of all requirements of this agreement and City ordinances by Property Lessee. The required surety bonds must be: 2009 Mining Permit Amended 06 -26 -09 Vesterra, LLC Stonex, LLC 3 of 6 (1) With good and sufficient surety by a surety company authorized to do business in the State of Minnesota. (2) Satisfactory to the City Attorney in form and substance. (3) (4) Conditioned that the Property Lessee will secure the City and its officers harmless against any and all claims, or for which the City, the Council or any City officer may be made liable by reason of any accident or injury to persons or property through the fault of the Property Lessee. The surety bond or cash deposit shall remain in effect from January 1, 2009 until July 31, 2010. (5) Conditioned that the Property Lessee will faithfully comply with all the terms, conditions and requirements of the permit; all rules, regulations and requirements pursuant to the permit and as required by the City and all reasonable requirements of the City Administrator (or his designee) or any other City officials. Upon thirty (30) days notice to the Property Lessee and surety company, the City may reduce or increase the amount of the bond or cash deposit during the term of this permit in order to insure that the City is adequately protected. N. The Property Lessee shall furnish a certificate of comprehensive general liability insurance issued by insurers duly licensed within the State of Minnesota in an amount of at least Five Hundred Thousand and no /100 ($500,000.00) Dollars for injury or death of any one person in any one occurrence, and at least One Million and no /100 ($1,000,000.00) Dollars for injury or death of more than one person arising out of one occurrence and property damage liability in an amount of at least Two Hundred Fifty Thousand and no /100 ($250,000.00) Dollars arising out of any one occurrence. The policy of insurance shall name the City as an additional insured and shall remain in effect from January 1, 2009 until December 31, 2009. O. No processing or mixing of materials shall occur on the site, except as approved by the Dakota County Environmental Health Department as incidental to a sand and gravel mining operation. Any such activities will be enclosed with snow or cyclone fencing or as approved by City staff. Construction of any ponding areas, wash plants or other processing or equipment brought to the site shall require additional site and grading plan information subject to review and approval of the City Engineer. P. The Property Lessee and the Property Owner shall hold the City harmless from all claims or causes of action that may result from the granting of the permit. The Property Lessee shall indemnify the City for all costs, damages or expenses, including but not limited to attorney's fees that the City may pay or incur in consequence of such claims. 2009 Mining Permit Amended 06 -26 -09 Vesterra, LLC Stonex, LLC 4 of 6 The Property Lessee and the Property Owner shall comply with such other requirements of the City Council as it shall from time to time deem proper and necessary for the protection of the citizens and general welfare of the community. R. Complete mining and reclamation is required in all phases before any additional mining is authorized. Modifications or expansion of the mining areas must be approved in writing to the City. Property Lessee shall submit to the City semi- annually a written report indicating the amount of material extracted from the site for the prior six -month period. S. The Property Lessee shall incorporate best management practices for controlling erosion and storm water runoff as specified by the Minnesota Pollution Control Agency and the United States Environmental Protection Agency. T. The Property Lessee must have a copy of the Dakota County Soil and Water Conservation District mining application completed and on file with the City of Rosemount Planning Department prior to the issuance of the Mineral Extraction Permit. Q. U. Reclamation shall include the replacement of the entire stockpile of topsoil on the mined area, reseeding and mulching necessary to re- establish vegetative cover for permanent slope stabilization and erosion control. The minimum depth of topsoil shall not be less than two inches after reclamation. Topsoil for reclamation shall conform to specifications on file with the City. No restored slopes may exceed a gradient of 25% or four to 1 (4:1). V. The Property Lessee must show how materials stockpiled for recycling will be processed and inform the City of all stockpiled materials. W. The Property Lessee may not assign this permit without written approval of the City. The Property Lessee will be responsible for all requirements of this permit and all City ordinances on the licensed premises for the permit period unless the Property Lessee gives sixty (60) days prior written notice to the City of termination and surrenders the permit to the City. The Property Lessee shall identify all Operators prior to their commencement of mineral extraction- related activities in the pit area. The City shall have the authority to cause all mineral extraction activities to cease at any time there is an apparent breach of the terms of this Permit. X. The Property Lessee shall install and maintain a "stock" gate (or equivalent) at the entrance to the property where the mining operation is located. The gate must be secured at 7:00 p.m. and at any time the pit is not in use. Y. There shall be no "haul- back" of materials from any other property or job site that would be imported to the property for fill or other purposes other than incidental concrete recycling as referred to in paragraphs 0 and V; and topsoil imported for the purpose of re- establishing turf as accepted by the City. 2009 Mining Permit Amended 06 -26 -09 Vesterra, LLC Stonex, LLC 5 of 6 Z. Truck operators within the pit area shall not engage in practices involving slamming tailgates, vibrating boxes, using of "joke" or engine brakes (except in emergency situations) or other such activities that result in excessive noise. AA. The Property Lessee shall comply with directions from the City Engineer. BB. A landscaping plan shall be prepared subject to approval by City Staff, for the purpose of providing vegetative screening within the setback areas of the various phases of the mining area. Said landscaping shall be installed according to City standards, prior to commencement of operations within an adjacent phase area. CC. No retail activity is permitted on the site. Materials imported to the site are limited to materials to be recycled and mixed with aggregate extracted from the site and topsoil for reestablishing ground cover or turf. DD. Off -site mining connected with the reconstruction of County Road 38 or construction of Connemara Trail shall require separate project approval by the City Council. The site reclamation plan with proposed grades and future street alignments is subject to approval by the City Engineer. EE. The storage of equipment (unrelated to the sand and gravel mining and processing), manure, construction debris, or hazardous materials of any kind shall not be permitted on site. The placement of construction debris, manure, asphalt or hazardous materials in any form within the pit as fill shall be strictly prohibited. IN WITNESS WHEREOF, Vesterra, LLC and Stonex, LLC hereby consents and agrees to the foregoing conditions of said mining permit this day of 20 STATE OF MINNESOTA ss COUNTY OF DAKOTA Stonex, LLC Vesterra, LLC and Stonex, LLC By: Jonathan J. Wilmshurst, Owner The foregoing instrument was acknowledged before me this day of 20 by Jonathan J. Wilmshurst, the Owner of Vesterra, LLC and Notary Public 2009 Mining Permit Amended 06 -26 -09 Vesterra, LLC Stonex, LLC 6 of 6 IN WITNESS WHEREOF, Flint Hills Resources, hereby consents and agrees to the foregoing conditions of said mining permit this day of 20 STATE OF MINNESOTA COUNTY OF DAKOTA )ss Flint Hills Resources Its The forgoing instrument was acknowledged before me this day of 20 by Flint Hills Resources, Its the Property Owner, on behalf of the company. Notary Public 1 1 I 1 1 3 V 1 fl p. i�� /J 1 /111 1 1 1 1 I� 1111 SANDERS WACKER BERGLY INC. 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HAUL ROUTES JANUARY 13, 2O3 O Of 0 0 co co 0 O o 0 o •I co W r _1 Z -D Z D n 0 -0 m r 9 z Z Z o O co f w J 1 OD ,1 W LF W Cr 0 co TI co 03 a 8 O c C. a 0 CA CD 7 y r r 2 w il m m W CO CD CD CO 0• M °1 c' 9 o N E iat o v co 0 m 1 0 a 1 property line setback u1 Phase 6 Phase 7 Phase 8 Phase 9 H o5 b 100 -foot property line setback Phase 4 Phase 3 i i Phase 2 rot w C Processing Plant —1111 and Stockpiles 4 S 1 1 R' orb Ia' fp m 1 it a O ro e-om 30 -foot properly line setback a 1 N CTI 0 O W O O c m o Z co o n I m 0, -0 r 0 m m Z v Z C z C1) m v r z a o 0 actft '711 /f Ie J Syr i,�e ter rm �r �iaiif��ifrr�� viri t �i� j q Futu Ill�� 0 5 a cres 20 feet deep) q41 f A rib` 3dOlSL•ti OgU'`II r I� Vesterra, LLC and Stonex, LLC Mining Permit Amendment Request May, 2009 Less than five thousand tons was removed from the Vesterra/Stonex operation during calendar 2008. Many companies in the construction materials sector are reporting volume declines of 50% compared with three years ago. One of the problems is that the Vesterra/Stonex deposit is very sandy, whereas contractors are looking for the best possible gravel content. Trial pits dug in the flat eastern 15 acres of the property showed a higher gravel content than the bank that has been opened up. We plan to continue to offer the existing pit face to operate as a source of fill material. At the same time, we plan to open up the 15 acre eastern end to allow mining of the more gravel -rich material that will be useful as a blacktop or base aggregate ingredient. Topsoil would be used to create a berm around the perimeter of the property, using silt fence and grass -seed to control erosion. This material would then be used to reclaim the property once mining is complete. We are aware that no more than fifteen acres in total can be actively mined at any one time. We propose to mine the eastern fifteen acres in stages over two to three years. The approximately five acres for the existing pit area will also continue during this time, but if the expansion is more than a few acres then we will start to reclaim the pit floor. Volumes are very difficult to project, but will likely be in the 100 150,000 tons for the bituminous/base operation and 100 150,000 tons for the fill operation. Truck traffic from the operation will continue to exit the property onto Bonaire Path, but as mining progresses to the south end of the 15 acres this could switch to the farm road that exits to the east. Dust control measures will be employed as follows: regular reclamation and planting/seeding of berms and pit floor will keep exposed soils to a minimum, and roads will be regularly sprayed with water. In addition, the much lower elevation of the mine floor will tend to protect it from westerly winds that may pick up dust. Vesterra/Stonex thanks the Rosemount Planning Commission and City Council for its consideration of this application for renewal. DATE: May 21, 2009 TO: Jason Lindahl, Planner MEMORANDUM CC: Dwight Johnson, City Administrator Kim Lindquist, Community Development Director Andrew Brotzler, City Engineer Eric Zweber, Senior Planner Dan Schultz, Park Recreation Director 4R05EMOUNT PUBLIC WORKS FROM: Morgan Dawley, Assistant City Engineer RE: Vesterra Stonex Mineral Extraction Permit Amendment Application Upon review of the Vesterra Stonex Mineral Extraction Permit Amendment Application Plans dated April 28, 2009, the Engineering Department has no comments or concerns regarding the changes included in the operations plan or end use plan. 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