Base metal smelters (Vale): environmental agreement

Official title: Performance Agreements Concerning Air Pollutants from Base Metals Facilities

(herein “Agreement”)

Between

Her Majesty the Queen in Right of Canada, 

as represented by the Minister of the Environment who is responsible for the Department of the Environment

(herein “EC”)

And

Vale Canada Limited

(herein “Vale”)

Each of the above is individually referred to as “Party” and collectively as “Parties”.

Preamble

Whereas the production by base metals facilities results in atmospheric emissions of sulphur dioxide (SO2), particulate matter (PM) and other air pollutants;

Whereas the Notice Requiring the Preparation and Implementation of Pollution Prevention Plans in Respect of Specified Toxic Substances Released from Base Metals Smelters and Refineries and Zinc Plants published in 2006 has resulted in significant reductions of emissions of SO2 and PM;

Whereas, in October 2012, federal, provincial and territorial environment ministers took action to better protect human health and the environment by endorsing and implementing the new Air Quality Management System (AQMS). The AQMS includes Canadian Ambient Air Quality Standards for fine particulate matter and ground-level ozone, Base Level Industrial Emissions Requirements (BLIERs) and local Air Zone Management by the provincial/territorial jurisdictions. For the Base Metals sector, BLIERs were developed for SO2 and PM;

Whereas the Minister of the Environment recognizes voluntary action of industry as an efficient means to achieve environmental objectives; 

Whereas EC will encourage a new company which opens a new Base Metals Facility to sign a similar Agreement;

And whereas the Parties share a common interest in continuing efforts to reduce atmospheric emissions of SO2 and PM.

Therefore, the Parties hereby agree as follows:

1.0 Purpose

The purpose of this Agreement is for Vale, at each of its facilities, to:

2.0 Definitions

“Base Metals Facility”

means a pyrometallurgical or hydrometallurgical facility that produces one or more of the following metals from feed material that comes primarily from ore:

  1. nickel
  2. copper
  3. zinc
  4. lead
  5. cobalt
  6. chromium
“Code of Practice”

means the Environmental Code of Practice for Base Metals Smelters and Refineries, Environment Canada Report EPS, 1/MM/11, announced in Canada Gazette Part I, April 29, 2006.

“Existing Facility”

means a Base Metal Facility listed under Section 9.1, herein referred to as a “facility” or “facilities” throughout the Agreement, except when proceeded by the word “New”.

“Fugitive PM”

means particulate matter containing metals released from sources other than Process Sources.

“New Facility”

means a Base Metal Facility that comes into operation after the date of signature of this agreement.

“Particulate Matter” or “PM”

means filterable particulate matter containing metals released from Process Sources.

“Particulate Matter Emission Intensity”

means the ratio of the total particulate matter emissions from Process Sources to the sum of any of the metals listed in the definition of Base Metals Facility under Section 2.0 produced annually at the facility.

“Process Source”

refers to the targeted sources listed in Table 1 of Annex 1 for each Vale facility.

“Sulphur Mass Balance”

means an accounting of the quantity of sulphur going into the process, the quantity of sulphur captured in products, by-products and wastes, and the quantity of sulphur released into the atmosphere.

“Sulphur Capture Rate”

means the percentage of the total sulphur captured with respect to the total sulphur entering the facility on an annual basis, except when alternative methods outlined under Section 10.1.2 are used.

“Year” and “Annual”

refer to the calendar year.

3.0 Legal status

This Agreement does not and is not intended to create legally binding obligations between the Parties, nor does it constitute any admission of liability by either of the Parties. 

This Agreement and all the annexes listed throughout constitute the entire agreement between the Parties. There are no undertakings, representations, promises or warranties, expressed or implied, other than those contained in the Agreement and its annexes.

By signing this Agreement, each Party agrees to fully conform to its commitment for as long as it is a Party to the Agreement.  

Nothing in this Agreement precludes a Party from implementing any other environmental or human health initiatives as it sees fit. 

Adherence to this Agreement does not in any way exempt Vale from complying with any and all applicable laws and regulations.

4.0 Duration

The Agreement shall be effective as of the date that the Minister’s signature is affixed to the Agreement and shall expire on December 31, 2025, unless terminated earlier in accordance with Section 5.0.

5.0 Termination

The Parties may on mutual consent and in writing terminate this Agreement at any time. 

Either Party may terminate this Agreement at any time, without cause and for its sole convenience, by giving at least one year’s written notice of its intention to terminate to the other Party.

6.0 Amendments

This Agreement may be amended at any time by mutual consent of the Parties. In order to be valid, any amendment to this Agreement shall be in writing and signed by the Parties.

7.0 Assignment and successors

This Agreement will apply to the successors and assignees of Vale.  

8.0 Understandings

In the event of the definitive closure of one of its facilities, Vale will be relieved of its responsibilities under this Agreement for that facility.

This Agreement is not intended to prevent the Government of Canada from recommending or taking any legislative, regulatory, or other measures necessary for the protection of human health or the environment or any measure that it deems appropriate, and nothing in the Agreement may be construed as having such an effect. 

If the objectives and requirements of this Agreement are not being achieved, the Minister will determine whether other measures, including regulations, are needed to further prevent or reduce adverse impacts on human health or the environment.

9.0 Risk management objectives

9.1 SO2 and PM BLIERs for existing facilities

Vale agrees to achieve and maintain the following BLIERs for each of its facilities:

Facility SO2: Annual Mass Emission Limit (tonnes/year) SO2: Annual Sulphur Capture Rate PM: Annual PM Emission Intensity (kg/tonne) Implementation Date
Copper Cliff N/A
90% 4 January 1, 2019
Thompson 110,000i N/A N/A January 1, 2016, to December 31, 2018
Thompson N/A 90% 4 January 1, 2019
Port Colborne N/A N/A 2 Date of Signature
Long Harbour N/A N/A 2 Date of Signature

Table notes

i Annual average over the period 2016 to 2018

9.2 SO2 and PM BLIERs for new facilities

Vale agrees to achieve and maintain the following BLIERs for its New Facilities:

SO2 BLIERs for New Facilities

Facility Type Sulphur Capture Rate1
Lead and zinc smelters
99%
Nickel and copper smelters
97%
Table notes

1 Note that the sulphur capture rates do not apply to facilities which only have hydrometallurgical operations

PM BLIERs for New Facilities

9.3 Working group on quantification and reporting of metals and fugitive PM

Vale agrees to participate in a working group, with representatives from EC, provincial governments, other companies in the base metal sector, and the Mining Association of Canada, to assess the consistency and robustness of the data reported to the National Pollutant Release Inventory. This would include developing sector-wide recommendations with respect to:

It is recognized that some differences in quantification and reporting among facilities are a result of different provincial requirements. Consideration will be given to account for these differences, where possible.

The working group will be chaired by representatives from the industry and is to be created within six months of the effective date of the Agreement.

9.4 Facility-level analysis

Vale agrees to work bilaterally with EC to better understand its facilities' metal emissions and identify possible technologies and/or actions which could reduce the emissions of metals identified in Table 2 of Annex 1 for each Vale facility.

9.5 Code of Practice

Vale agrees to continual improvement towards the implementation of applicable recommendations of the Code of Practice at each of its facilities. 

10.0 Testing, quantification and reporting

For each of its facilities, Vale agrees to follow the testing and quantification specifications for SO2, PM and PM emission intensity outlined in Annex 2 of this Agreement. Additional details specific to each facility are outlined in Table 1 of Annex 1.

10.1 Calculation of sulphur capture rate

10.1.1 Sulphur mass balance method

The sulphur capture rate specified in Section 9.1 is to be determined on the basis of a mass balance, as defined in Section 2.0, and calculated on a monthly basis using the following steps:

10.1.2 Alternative quantification method

A facility may use the alternative quantification method if it can verifiably demonstrate that it was consistently achieving >98% annual sulphur capture rate, using sulphur mass balance, or other provincially accepted methodology for three consecutive years preceding the year the Agreement comes into force.

The alternative option would also be available for any facility that is able to achieve >98% sulphur capture rate for three consecutive years at any time during the lifetime of the Agreement using the sulphur mass balance method outlined in Section 10.1.1.

For quantification, reporting and verification requirements under the Agreement, a facility that meets the above requirements has the option of using:

  1. the following alternative quantification method:
    1. calculate the total amount of sulphur entering the process
    2. calculate the total sulphur inventory change during the month (list sources and add the individual monthly changes)
    3. add or subtract, as appropriate, the total sulphur inventory change to the total amount of sulphur entering the process
    4. determine the sulphur released into the atmosphere using a Continuous Emissions Monitoring System
    5. calculate the total amount of sulphur captured in products, by-products and wastes by subtracting the total sulphur released from the total sulphur entering the process
    6. calculate the sulphur capture rate expressed as a percentage
  2. another method accepted by provincial regulatory authorities upon review and concurrence by EC

10.2 Reference manual

For each of its facilities, Vale agrees to document in detail (e.g. in a reference manual), the methodologies used to determine the PM emission intensity and sulphur capture rate or sulphur dioxide mass emission limit as required by Section 9.1.

10.3 Annual reports

Vale agrees to prepare and submit annual reports for each of its facilities and ensure that data included in each annual report is complete, accurate, and verifiable. The annual report will include data and information related to the following:

  1. the SO2 BLIERs, where applicable
  2. the PM BLIERs
  3. the status update for BLIERs Implementation, where applicable
  4. the implementation of the Code of Practice, where applicable

10.4 Reporting on the SO2 BLIERs

Unless identified otherwise in Table 3 of Annex 1, Vale, for each of its facilities, agrees to use EC’s template (referenced in Annex 3) to quantify and report, annually, the monthly sulphur capture rates and the annual average sulphur capture rates.

With respect to the SO2 BLIERs, the annual report will include, as a minimum, the following:

10.5 Exemption for reporting on SO2 BLIER

A Vale facility does not need to provide the required information related to meeting the SO2 BLIER in the annual report if there is no target identified in Section 9.1 for that facility.

10.6 Reporting on PM BLIERs

Unless identified otherwise in Table 4 of Annex 1, Vale, for each of its facilities, agrees to use EC’s template (referenced in Annex 3) to quantify and report particulate matter releases and emission intensity.

With respect to the PM BLIERs, the annual report will include, as a minimum, the following:

10.7 Exemption for reporting on PM BLIER

A Vale facility is not required to report PM emissions under this Agreement if that facility achieves an annual PM emission intensity < 1 kg/tonne for three consecutive years at any time during the lifetime of the Agreement.

The verification in accordance with Section 12.0 may take place up to two years before the effective date of this Agreement. In this case, any years subsequent to the verification may count towards the three consecutive years, if Vale attests that the quantification methodology used in those years is consistent with the year of verification. Alternatively, up to two years preceding the verification may count towards the three consecutive years, if the auditor attests in the verification report that the quantification methodology used in those years is consistent with the year of verification. To obtain an exemption, the facility must submit an annual report with the verification report for the corresponding year.

Notwithstanding this exemption, the facility is required to continue its annual emissions reporting obligation to the NPRI.

10.8 Revocation of exemption

An exemption granted under condition 10.7 could be revoked, if in subsequent years or at any time during the life of the Agreement, the annual PM threshold < 1 kg/tonne is exceeded. In this case, the facility could be required to begin or resume reporting, unless and until a reasonable explanation of the circumstances, under which the exceedance occurred, is provided to the satisfaction of EC.

10.9 Status update for BLIERs implementation 

For the Thompson and Copper Cliff facilities, Vale agrees to include in each of its first annual reports:

In subsequent annual reports, Vale will include an update on the work plans to achieve the BLIERs at these facilities, including details of the work that has been completed by the end of the reporting year and an estimate of the percentage of completion of the full BLIERs implementation.

10.10 Reporting on the Code of Practice

As part of the annual report for each facility, Vale agrees to report on the implementation of the Code of Practice as set out in Annex 4. 

10.11 Submission of reports

Vale will submit its first report, for the 2017 calendar year, by June 30, 2018. All subsequent reports covering each calendar year of the Agreement will be due no later than June 30 of the following year. Reports will be sent to the following address:

Subject title: BMS PA
Regulatory Innovation and Management Systems
351 St. Joseph Blvd, 20th floor
Gatineau, Quebec
K1A 0H3
Canada
Phone: 1-844-580-3637

Or electronically to ec.epa-epe.ec@canada.ca

10.12 Retention of records

Vale will retain all records related to the Agreement, including data and worksheets used for emissions quantification, for seven years from when the data was created, and make them available to EC upon request.

10.13 Reporting to the National Pollutant Release Inventory

Vale agrees, where possible, to use the same quantification methodology prescribed for the PA (see Annex 2), when reporting process emissions to the National Pollutant Release Inventory for SO2 and PM.

Vale agrees to work toward implementation of the recommendations of the working group, where applicable, for quantification and reporting of Fugitive PM and metals at each of its facilities.

11.0 Public progress summary by EC

EC will publish public progress summaries describing results, performance and activities that have taken place within the base metal sector under this Agreement and other Performance Agreements related to air pollutants from this sector. In preparation of this report, EC will consult with Vale and other base metal companies which have signed similar Performance Agreements with EC.

EC will publish the public progress summary in electronic format on the Government of Canada’s website.

12.0 Independent verification of PM and SO2 emissions

Vale agrees to retain, at its own cost, the services of an independent auditor to verify the results in each facility’s reports, as outlined in Annexes 2 and 3, once within two years of the effective date of the Agreement. Vale will ensure that the auditor follows the verification protocol as outlined in Annex 5.

If the verification occurs after the effective date of the Agreement, then the verification by the auditor must cover the same period as an annual report prepared in accordance with Section 10.0. If the verification occurs prior to the effective date of the Agreement, then the verification by the auditor must cover a calendar year as if an annual report were being prepared in accordance with Section 10.0.

 As outlined in Annex 5, the verification will include, but may not be limited to, verifying: 

Upon the completion of the verification, Vale will:

13.0 EC verification of the facilities’ annual reports

EC will verify the data submitted annually by Vale under Section 10.0. As part of the verification, EC may also review NPRI reported data for consistency and notable changes to metals and Fugitive PM emissions. This could be followed by interviews and submission of additional supporting information by Vale. EC may also perform additional verification by means of one or more site visits to the facility, following an appropriate notice.   

14.0 Roles and responsibilities

For each of its facilities, Vale agrees to: 

EC agrees to:

15.0 Availability of the agreement and confidential information

A copy of this Agreement and Environment Canada’s progress reports will be made available on the Government of Canada’s web site.

Confidential information

Environment Canada agrees to keep confidential and not disclose any confidential information obtained from the Parties under this Agreement that has been identified as being confidential provided that a written request for confidentiality is made at the same time as the information is submitted. The request must specify the information that is considered to be confidential and the reason why it should be treated as such.

Nothing in this Agreement shall be interpreted so as to preclude Environment Canada from disclosing information that Environment Canada may be required or ordered to disclose pursuant to any applicable federal laws or court orders, including, the Access to Information Act, R.S. 1985.

16.0 Signatures

The Parties acknowledge that they have read and accepted all of the provisions of the Agreement.

Her Majesty he Queen in Right of Canada, as represented by the Minister of the Environment

By: ___________________________________ (print name)

Title:__________________________________ (print title)

Signature: _____________________________

[If there is no delegation instrument in place, add:] For and on behalf of the Minister of the Environment

Signed this _____day of ______________, 2017

[if desired/required:]

In the presence of:_______________________ (signature)

Vale

By: ___________________________________ (print name)

Title:__________________________________ (print title) 

I represent and warrant that I am duly authorized to bind Vale Canada Limited

Signature:______________________________

Signed this _____day of ______________, 2017

[if desired/required:]

In the presence of:_______________________ (signature)

Annex 1: Facility specific information

Table 1: Targeted Sources for PM Emissions by Facility
Facility Process Source Measurement Methodology and Frequency
Copper Cliff 1. Main Stack (Superstack) Annual source testing
Copper Cliff 2. Fluid bed Drier Baghouse Annual source testing
Copper Cliff 3. Acid Plant Tailgas Exhaust Stack Triennial source testing with engineering estimates used in other years
Copper Cliff 4. Copper Stack Biennial source testing with engineering estimates used in other years
Copper Cliff 5. Nickel Refinery Converter Stack Annual source testing
Copper Cliff 6. Granulator Wet ESP Vent 2 Annual source testing
Thompson 1. Smelter Main Stack Continuous Opacity Monitor Correlated with Annual Source Testing
Thompson 2. Refinery Ball Mill Baghouse Source testing at a minimum of every 5 years with engineering estimates used in other years
Thompson 3. Refinery CoCl2 scrubber Source testing at a minimum of every 5 years with engineering estimates used in other years
Thompson 4. Refinery Ni Scrubber Source testing at a minimum of every 5 years with engineering estimates used in other years
Thompson 5. Refinery Aerosol Scrubber Source testing at a minimum of every 5 years with engineering estimates used in other years
Thompson 6. Refinery Leach Matte Vent Source testing at a minimum of every 5 years with engineering estimates used in other years
Port Colborne 1. Cobalt Hydrate Plant Chlorine scrubber Source testing at a minimum of every 5 years with engineering estimates used in other years
Port Colborne 2. Cobalt Hydrate Plant Process Scrubber Source testing at a minimum of every 5 years with engineering estimates used in other years
Port Colborne 3. Electro Cobalt Refinery Process Vent Source testing at a minimum of every 5 years with engineering estimates used in other years
Port Colborne 4. Precious Metals Refinery East Process Vent Source testing at a minimum of every 5 years with engineering estimates used in other years
Port Colborne 5. Precious Metals Refinery West Process Vent Source testing at a minimum of every 5 years with engineering estimates used in other years
Port Colborne 6. Precious Metals Refinery TUS Scrubber Source testing at a minimum of every 5 years with engineering estimates used in other years
Long Harbour 1. Boiler Stack #1 Source testing at a minimum of every 4 years with engineering estimates used in other years
Long Harbour 2. Boiler Stack #2 Source testing at a minimum of every 4 years with engineering estimates used in other years
Long Harbour 3. Crushing Baghouse Source testing at a minimum of every 4 years with engineering estimates used in other years
Long Harbour 4. Concentrate Storage Baghouse Source testing at a minimum of every 4 years with engineering estimates used in other years
Long Harbour 5. Limestone Baghouse Source testing at a minimum of every 4 years with engineering estimates used in other years
Long Harbour 6. Lime Kiln Baghouse Source testing at a minimum of every 4 years with engineering estimates used in other years
Long Harbour 7. Ni EW Stack Source testing at a minimum of every 4 years with engineering estimates used in other years
Long Harbour 8. Cu EW Stack Source testing at a minimum of every 4 years with engineering estimates used in other years
Long Harbour 9. Neutralization Stack Source testing at a minimum of every 4 years with engineering estimates used in other years
Long Harbour 10. Cd Removal Stack Source testing at a minimum of every 4 years with engineering estimates used in other years
Table 2: Metals Emissions by Facility
Substance Copper Cliff Thompson Port Colborne Long harbour
Antimony        
Arsenic
x x x  
Cadmium
x x x y
Cobalt
x x x y
Chromium x x    
Copper
x x x y
Lead
x x x y
Manganese x      
Mercury
  x    
Nickel x x x y
Selenium
x x x  
Thallium        
Vanadium        
Zinc
x x    

x: indicates metals that were reported to the NPRI in 2012

y: indicates anticipated metal emissions based on feed composition 

Table 3: Quantification and Reporting Methods for the SO2 BLIERs by Facility
Facility Name Quantification and Reporting Method
Copper Cliff EC Template
Thompson EC Template
Port Colborne N/A
Long Harbour N/A
Table 4: Reporting Methods for the PM BLIERs by Facility
Facility Name Reporting Method
Copper Cliff EC Template
Thompson EC Template
Port Colborne EC Template
Long Harbour EC Template

Annex 2: Testing and quantification procedures

Sulphur Dioxide

Materiality of Sources: For the sulphur mass balance, if it is determined that some sources are too small to have any significant impact on the sulphur balance, these may be excluded from the calculations.

Weighing: All mass inputs and outputs into and out of the process should be determined using weighing scales (or machines) that conform to the Canadian Weights and Measures Act (1985), or calculated by other suitable means (e.g. density, flow meter, metallurgical balance).  All equipment is to be regularly inspected and calibrated.

Sampling and Sample Preparation: Facilities should have documented sampling procedures that conform to provincial, national or international methodologies, or standards that are routinely practiced in the industry, and are equivalent to internationally known methodologies (e.g. ASTM, ISO).

Analytical Testing: All analytical testing should conform to provincially, federally or internationally accepted analytical methods (e.g. ASTM (LECO)) or where applicable, methods that are routinely practiced by industry.

Sampling and Testing Frequency: Each facility may use its own schedule and strategy for sampling and analytical testing, or a schedule and strategy in accordance with the requirements, if any, of the jurisdiction where they are located. Schedules and procedures should be documented and made available upon request.

Continuous Emissions Monitoring: For measurement by a Continuous Emissions Monitoring System (CEMS), it is expected that the CEMS would be operated in accordance with Environment Canada’s EPS 1/PG/7 (Protocols and Performance Specifications for Continuous Monitoring of Gaseous Emissions from Thermal Power Generation) or any other method that complies with requirements under applicable legislation, permits or agreements with provincial regulatory authorities.

Mass Balance: Sulphur mass balance calculations should be conducted, at a minimum, on a monthly basis, and records of the results kept.

Particulate Matter

Measurement: Particulate matter emissions measurement could be done by source testing, Continuous Emissions Monitoring (CEM) or a combination of the two. Where source testing and CEM is not operationally feasible, other methodologies, as identified in Annex 1, may be used.

Methodology: Any of the following standard methods should be used for source testing:

For measurement by a Continuous Emissions Monitoring System (CEMS), it is expected that the CEMS would have, at a minimum:

Frequency: Source testing should be performed, at a minimum, according to the frequency specified in Table 1 of Annex 1.

Particulate Matter emission intensity

Materiality of Products: For calculating PM emission intensity, a facility may exclude a product or products from the denominator without adjusting the numerator, only if this exclusion does not alter the emission intensity value by greater than 1%.

Annex 3: Quantification and annual reporting of SO2 and PM

EC will provide a template for:

The template may be updated from time to time. Vale will be given sufficient time to review and provide comments on the updated version.

Annex 4: Implementation of Code of Practice

As part of the annual report for each facility, Vale will provide information regarding the implementation of the Code of Practice.

In the first year, Vale will provide a summary of the recommendations that have been implemented at each of its facilities, and a summary of recommendations that are not applicable, according to the following table.

Recommendations that have been Implemented
Recommendation
Description of what was done
When
Estimated change in emissions1, where appropriate
       
       

Table notes

1 A qualitative description is acceptable, if a quantitative estimate is not possible.

Recommendations that are Not Applicable
Recommendation
Rationale for Not Applicable
   
   

In the first year and each year thereafter, Vale will report on the recommendations that have yet to be implemented at each facility using Appendix B of the Code of Practice. 

Vale should provide, if needed, any additional information on each recommendation.

After the first annual report, for a facility which has fully implemented all of the applicable recommendations in the Code of Practice, Vale will only be required to submit a summary every 3 years (e.g. highlight any improvements which have further reduced emissions) for that facility.

Annex 5: Verification protocol for the BMS performance agreements

1.0  Verification objectives and scope

This Protocol establishes verification procedures for the third party verification of the requirements of the Performance Agreement between Environment Canada and individual companies in the Base Metals Sector for the implementation of the Base Level Industrial Emissions Requirements (BLIERs). It also outlines the roles of the verifier and the signatories of the agreement. The objective of the verification is to confirm that the emissions data reported by Vale for each of its facilities reasonably reflect actual circumstances and that the requirements outlined under Section 10 of this Agreement have been followed in computing and reporting the results.

The scope of the verification is limited to:

2.0 Roles and responsibilities

The verifier or verification team will visit each facility, review and evaluate data/documents related to emissions measurement and quantification to prepare a verification report for that facility.

Vale will make every possible effort to make available, for each of its facilities, all pertinent documents, and information needed to conduct the verification, including, but not limited to:

Vale will provide access to employees and individuals within the company to seek further information, if needed.

Environment Canada will:    

3.0  Qualifications of the third party verifier or verification team

The verifier or verification team (if more than one) is an entity that verifies and provides assurance of the quality of emission testing and quantification of data.

The verifier or a member of the team must have:

4.0  Verification process

The verification activities will consist of the following main parts:

4.1  Information gathering

Before, after and during the on-site visit, the verification team will gather documents pertinent to the verification process.

4.2  On-site visit and document review:

The verification team will visit the site to conduct the verification. The verification team will review all relevant documents, including but not limited to the following:

The verification team will also:

4.3  Verification report:

The verification report summarizes the findings of the verification process and should, at a minimum, contain:

The report should be submitted as outlined in Section 12.0 of the Agreement.  

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