Off-Grid living in Montana

The migration of homeowners toward off-grid living in the United States has transitioned from a fringe movement driven by ideological survivalism to a sophisticated segment of the real estate market fueled by energy resilience concerns, rising utility costs, and the maturation of distributed energy resource (DER) technologies. Montana, with its vast unpopulated expanses and distinct regulatory environment, has emerged as a primary destination for this demographic. However, the popular narrative of Montana as a deregulation haven is functionally incorrect and financially dangerous for the uninitiated developer. The reality is a complex matrix of hydrogeological constraints, rigid water rights adjudication, and high-stakes climatic engineering requirements.
This report provides an exhaustive technical analysis of the off-grid development landscape in Montana. It synthesizes regulatory statutes from the Montana Department of Natural Resources and Conservation (DNRC), hydrogeological data from the Montana Bureau of Mines and Geology (MBMG), and climatological datasets from the National Renewable Energy Laboratory (NREL). The objective is to provide US homeowners and developers with the granular data required to assess the feasibility, legality, and capital requirements of severing ties with municipal infrastructure in the Northern Rockies.
The analysis reveals that while Montana offers significant latitude regarding structural building codes in unincorporated areas, the management of water resources remains the primary bottleneck for legal settlement. Furthermore, the extreme seasonality of solar irradiance at latitudes 44°N to 49°N necessitates a fundamental rethinking of photovoltaic system design, prioritizing winter resiliency over annualized production.

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2. The Hydro-Legal Framework: Water Rights and Appropriation

In the arid West, land ownership does not convey water ownership. This distinction is the single most critical legal concept for the off-grid developer in Montana. Water is the property of the state, held in trust for the people.1 Individuals do not own water; they own a "water right"—a usufructuary right to use a specific quantity of water for a specific beneficial purpose.

2.1 The Doctrine of Prior Appropriation

Montana operates under the Doctrine of Prior Appropriation, summarized as "first in time, is first in right".1 This legal hierarchy dictates that in times of scarcity, senior water rights holders (those with older priority dates) receive their full allocation before junior rights holders receive any. A senior user can place a "call" on the river, forcing junior users to cease diversion.
For the modern off-grid developer, this presents a severe barrier to entry. Most surface water in Montana (streams, rivers, creeks) was fully appropriated by agricultural interests in the late 19th and early 20th centuries. Consequently, obtaining a new surface water permit is frequently impossible, particularly in "closed basins" where new appropriations are statutorily prohibited to protect existing users.2 Therefore, the primary legal mechanism for securing a water supply for a new home is groundwater.

2.2 The "Exempt Well" Provision (MCA 85-2-306)

The "exempt well" is the legal bedrock of rural residential development in Montana. Under Montana Code Annotated (MCA) 85-2-306, specific small-scale groundwater appropriations are exempt from the rigorous and costly permitting process required for larger water uses.4 Understanding the precise limits of this exemption is mandatory to avoid illegal water use.

2.2.1 Quantitative Limits

To qualify as an exempt well, a groundwater development must meet two strict criteria:

Maximum Flow Rate: The system cannot exceed 35 gallons per minute (gpm).1
Maximum Volume: The total volume extracted cannot exceed 10 acre-feet (AF) per year.1

While 35 gpm is a generous flow rate for a single-family home (typical domestic demand peaks at 10–12 gpm), the 10 AF volume limit is the binding constraint for properties with extensive landscaping, large gardens, or livestock. One acre-foot equals 325,851 gallons. Thus, 10 AF allows for roughly 3.25 million gallons annually, which is sufficient for domestic use and moderate irrigation (approx. 2-4 acres depending on crop and climate).1

2.2.2 The "Combined Appropriation" Pitfall

A critical nuance in the law is the concept of "combined appropriation." This prevents developers from circumventing permitting requirements by drilling multiple exempt wells for a single large project. If two or more wells are physically manifolded together, or if they serve a single "project" (such as a subdivision created after 2014), their usage is aggregated. If the total usage exceeds 10 AF, the exemption is void, and a full beneficial water use permit is required.3
This legal interpretation was solidified following the Clark Fork Coalition v. DNRC (2014) and subsequent 2016 Montana Supreme Court rulings, which struck down a 1993 rule that had loosened the definition of combined appropriation.5 More recently, the 2024 ruling in Upper Missouri Waterkeeper v. DNRC further scrutinized the DNRC's application of the law, ruling that granting 10 AF for each phase of a subdivision was an incorrect application of the statute.6
Implication for Homeowners: If an off-grid homeowner intends to build a main house and a guest house (Accessory Dwelling Unit) and supply both from the same well, they generally remain within the single exemption provided the total volume stays under 10 AF. However, if a landowner subdivides a 20-acre parcel into four 5-acre lots, the DNRC and county regulators may view the water supply for these lots as a combined appropriation, potentially triggering a requirement for a public water system or a full water permit, which is significantly more expensive and complex to obtain.3

2.3 Basin Closures and Controlled Groundwater Areas

The assumption that an exempt well can be drilled anywhere in the state is false. The DNRC manages specific zones where water availability is so critical that even exempt wells are restricted or heavily monitored.

Regulatory Zone	Geographic Examples	Restrictions on Off-Grid Water
Statutory Closed Basins	Upper Missouri, Teton, Jefferson, Madison, Gallatin, Bitterroot	New surface water permits are generally prohibited. Exempt wells are usually allowed but are under increasing scrutiny for their connectivity to surface water depletion.3
Horse Creek CGWA	Stillwater County	The exemption is reduced to 35 gpm and 1 AF/year (down from 10 AF). This strictly limits water to in-house domestic use and minor stock watering; extensive irrigation is effectively banned without a permit.7
South Pine CGWA	Eastern Montana	Similar restrictions apply to protect specific aquifer pressures or water quality.
Yellowstone CGWA	Near Yellowstone National Park	Created to protect geothermal features. New wells often require meters and specific permits (Form 600-YCGWA) regardless of size.8

Developers must consult the DNRC's Water Rights Query System and specific basin closure maps before purchasing land. Buying land in a closure area without an existing water right can render the property undevelopable for residential use.1

2.4 The Administrative Process: Form 602

The "exemption" refers to the permitting process, not the filing process. You do not ask for permission to drill an exempt well, but you must report it to perfect the right.

Drilling: The landowner hires a licensed water well contractor to drill the well.
Beneficial Use: The water must be put to "beneficial use" (e.g., pumped into the house for drinking).
Filing Form 602: Within 60 days of putting the water to use, the owner must file a Notice of Completion of Groundwater Development (Form 602) with the DNRC along with a filing fee (currently $125).7

Priority Date: The priority date of the water right is the date the DNRC receives the correct and complete Form 602. Delaying this filing is catastrophic. In a drought year, if a senior user calls for water, the administration of rights is based strictly on priority date. A well filed in 2025 is junior to a well filed in 2024. Failure to file means the user has no legal standing to object to future developments that might deplete their aquifer.1

2.5 Rainwater Harvesting: The Regulatory Gray Zone

Many off-grid enthusiasts assume rainwater harvesting is the solution to water scarcity. In Montana, this is a legally precarious assumption.

State Ownership: Because all water in the state belongs to the people, precipitation that falls on a roof is theoretically part of the state's hydrologic cycle. Diverting it before it reaches the ground prevents it from recharging aquifers or feeding streams, potentially impacting senior water rights holders.10
No Explicit Exemption: Unlike groundwater, there is no statutory "exempt rainwater" provision. While the DNRC generally does not police small-scale rain barrels for garden use, large-scale cisterns (e.g., 10,000+ gallons) intended for whole-house potable supply constitute a diversion that technically requires a water right permit.10
Permitting Difficulty: Obtaining a permit for rainwater harvesting is extremely difficult, as the applicant must prove the water is legally available—a near impossibility in closed basins where every drop is theoretically accounted for.2
Practical Reality: Consequently, rainwater harvesting is rarely the primary legal water source for a permitted residence. Banks will rarely finance a home, and insurance companies may not insure a home, that relies solely on rainwater due to the lack of a secure, defensible water right.1 It serves best as a supplemental, non-potable resource for irrigation, reducing the draw on the exempt well.

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3. Hydrogeology and Infrastructure Economics

Once the legal capability to appropriate water is established, the physical reality of accessing it varies dramatically across the state's geology.

3.1 Geological Dichotomy: Mountains vs. Plains

Montana's geology splits roughly along the continental divide and the transition to the Great Plains, creating two distinct drilling environments.

3.1.1 Western Montana (Intermountain Basins)

In counties like Flathead, Missoula, Ravalli, and Lake, aquifers are typically found in basin-fill sediments—layers of gravel, sand, and clay deposited by ancient glaciers and rivers.12

Depth: Wells are often moderate in depth, ranging from 60 to 300 feet.12 Shallow aquifers (<80 ft) are common but susceptible to surface contamination and seasonal fluctuation.
Drilling Conditions: The presence of "glacial till"—dense clay mixed with cobbles and boulders—presents drilling challenges. Air-rotary rigs with casing hammers are standard. The risk of encountering large boulders can slow drilling and increase costs.
Cost Metrics: Drilling and casing costs in these regions typically range from $30 to $65 per foot.14 A completed 200-foot well (drilling, 6" steel casing, drive shoe, grout) without the pump system often costs between $6,000 and $13,000.
Yield: Generally high. Glacial outwash gravels can yield 20–50+ gpm, easily satisfying the 35 gpm exempt limit.16

3.1.2 Eastern Montana (Sedimentary Plains)

In counties like Garfield, Custer, Rosebud, and Valley, the geology shifts to vast sedimentary stacks. Shallow aquifers are often alkaline or ephemeral. Reliable potable water is found in deep bedrock formations like the Fox Hills-Hell Creek aquifer or the Fort Union Formation.17

Depth: Potable water often requires drilling to depths of 800 to 1,200+ feet.18 Shallow wells (100-300 ft) may exist but often yield water high in dissolved solids (sodium sulfate), making it palatable for livestock but requiring extensive treatment (Reverse Osmosis) for human consumption.17
Cost Metrics: Deep drilling requires larger rigs and significantly more steel casing. Costs for a deep residential well can easily exceed $40,000 to $60,000.20
Yield: Often lower and slower. Yields of 3–8 gpm are common, necessitating the installation of large underground cisterns (1,500–3,000 gallons) to buffer peak household demand.18

3.2 Sanitation in Subdivisions Act and Septic Permitting

The disposal of wastewater is as regulated as the acquisition of fresh water. The Sanitation in Subdivisions Act (Title 76, Chapter 4, MCA) governs how parcels are reviewed for sanitation.

3.2.1 The "20-Acre Exemption" Misconception

A widespread misunderstanding in Montana real estate is that parcels larger than 20 acres are unregulated.

Parcels < 20 Acres: These fall under the jurisdiction of the Montana Department of Environmental Quality (DEQ). Before a parcel can be sold, it must undergo DEQ review to obtain a Certificate of Subdivision Approval (COSA).21 This certificate designates the specific location for the well and drainfield and the number of allowed bedrooms.
- Constraint: An off-grid buyer purchasing a <20-acre parcel is legally bound to the COSA. If the COSA specifies a 3-bedroom house and the buyer wants to build a 4-bedroom house or move the building site to a better view, they must apply for a "rewrite" with the DEQ—a process involving engineering fees ($2k-$5k) and months of review.23
Parcels > 20 Acres: These are exempt from state DEQ review but are not exempt from local county health department regulations.25
- Process: The buyer applies directly to the county (e.g., Flathead City-County Health Department). The county sanitarian or a licensed site evaluator performs a "perc test" (soil percolation) and digs an 8-foot test pit to check for groundwater or bedrock.
- Freedom: This route is generally faster and more flexible than DEQ review, but the physical constraints of the soil remain.

3.2.2 Septic System Economics

The soil profile dictates the cost of the septic system.

Standard Gravity System: If the soil percolates well and the water table is deep (>6-8 ft), a standard septic tank and gravity drainfield is permitted. Cost: $6,000 – $9,000.1
Pressure-Dosed System: Required if percolation is fast (sand/gravel) to ensure even effluent distribution. Cost: $10,000 – $14,000.
Sand Mound/Elevated System: Required if the water table is high or bedrock is shallow. A large mound of imported sand is constructed above grade. Cost: $15,000 – $25,000.1
Advanced Treatment (Level 2): In areas with high nutrient loading (e.g., near lakes in Flathead County), an aerobic treatment unit (ATU) may be mandated to reduce nitrates before discharge. These units require electricity (a load burden for off-grid systems) and annual maintenance contracts. Cost: $15,000 – $30,000.1

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4. Solar Energy Engineering in High Latitudes

Designing a photovoltaic (PV) system for Montana (latitudes 44°N to 49°N) requires confronting the "solar winter." Standard design rules-of-thumb used in Arizona or California lead to catastrophic system failure in a Montana December.

4.1 The Insolation Cliff: NREL Data Analysis

The National Solar Radiation Database (NSRDB) illustrates the extreme seasonality of the solar resource.

Location	Month	Global Horizontal Irradiance (GHI) (kWh/m²/day)	Production Factor (relative to June)
Kalispell (West)	June	~6.5 - 7.0	100%
Kalispell (West)	December	~1.3 - 1.6	~20%
Miles City (East)	June	~6.8 - 7.2	100%
Miles City (East)	December	~1.8 - 2.2	~28%

Source: NREL NSRDB28
Implication: An off-grid system must be sized for the December constraint. A system sized to meet loads in July will be woefully undersized for winter. To maintain autonomy in December, the PV array must be roughly 4 to 5 times larger than what would be required for summer loads alone. This "oversizing" results in massive surplus energy in summer, which should be diverted to non-critical loads (e.g., heating water, pumping cisterns) to maximize ROI.

4.2 Snow Load and Mounting Engineering

Snow accumulation is a dual threat: it imposes structural loads and blocks generation.

Ground Snow Load (Pg): Western Montana counties enforce strict snow load requirements. Flathead and Gallatin counties often require design loads of 40 to 60 lbs per square foot (psf).30 Standard residential solar racking is often rated for 30-50 psf; off-grid arrays in snow belts may require reinforced racking or iron-ridge upgrades.
Tilt Angle Strategy: To facilitate snow shedding, arrays should be mounted at a steep angle. While latitude-tilt (45°-48°) is optimal for annual production, a steeper tilt of 55° to 60° is superior for off-grid systems.32 This steep angle:
1. Promotes gravitational snow shedding.
2. Maximizes perpendicularity to the low winter sun (which sits at ~18-20° above the horizon at noon in winter).
Ground Clearance: Ground-mounted arrays must be elevated. The bottom edge of the panels should be at least 3 to 4 feet above grade. If placed lower, the snow sliding off the array piles up at the bottom, eventually shading the lower cells and bypassing the diodes, killing string production.32

4.3 Bifacial Technology

Bifacial PV modules, which harvest light from both the front and rear, are particularly effective in Montana winters. Snow has a high albedo (reflectivity) of 0.80–0.90. A bifacial array mounted over snow can see energy gains of 10–20% from rear-side irradiance, providing critical "bonus" amps during the darkest months.32

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5. Energy Storage and Thermal Thermodynamics

The choice of energy storage chemistry is dictated not by cost per kWh, but by thermal limitations.

5.1 The Lithium-Iron-Phosphate (LiFePO4) Cold Constraint

LiFePO4 (LFP) has replaced lead-acid as the standard for off-grid storage due to high cycle life (3000-5000 cycles) and stable voltage. However, LFP has a fatal flaw in Montana: It cannot be charged below 32°F (0°C).

The Chemistry: Attempting to force current into an LFP cell at freezing temperatures causes lithium metal plating on the anode. This is irreversible and can permanently degrade capacity or cause cell failure.33
Lead Acid Comparison: Lead acid batteries (AGM/FLA) can accept charge below freezing, though efficiency drops significantly (approx. 50% capacity at 0°F).34 However, their low cycle life (300-500 cycles at 50% DOD) makes them significantly more expensive over a 10-year horizon.35

5.2 Thermal Engineering Solutions

To use LFP batteries in Montana, active thermal management is mandatory.

Conditioned Space: The ideal location for the battery bank is inside the conditioned envelope of the home (e.g., a utility room kept at 60°F).
Self-Heating Batteries: Manufacturers like Renogy, Battle Born, and Redodo have introduced "low-temp" series batteries. These units contain an internal BMS-controlled heating film. When the BMS detects a charge source (solar/generator) and sub-freezing temps, it diverts the current to the heating element first. Once the internal temp rises above 41°F, it allows charge to flow to the cells.36
Insulated Enclosures: For batteries located in unheated outbuildings, an insulated "cool box" (built of 2-inch XPS foam, R-10+) with a DC-powered heating pad or 25W incandescent bulb controlled by a thermostat is a standard DIY solution.36

5.3 Backup Generation Strategy

Given the likelihood of multi-day inversion events (heavy cloud cover trapping valley fog) in Montana winters, a backup generator is not optional; it is life-support equipment.

Fuel Selection: Propane (LPG) is the preferred fuel. Diesel fuel begins to "gel" (paraffin wax crystallization) at roughly 15°F unless treated with anti-gel additives. In extreme cold snaps (-20°F to -40°F), diesel reliability is compromised. Propane remains liquid down to -44°F and has an indefinite shelf life.42
Sizing: The generator should be sized to handle the charging load of the inverter, not just household loads. A 500-gallon on-site propane tank is the standard recommendation for winter resilience.

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6. Construction, Codes, and Zoning: The "No Code" Reality

Montana presents a unique regulatory environment often described as "no code," but this terminology is dangerously misleading. The state has a bifurcated jurisdictional map.

6.1 State vs. Local Jurisdiction

Certified Jurisdictions: Major cities (Billings, Bozeman, Missoula, Helena, Kalispell) and certain counties (e.g., Anaconda-Deer Lodge, Butte-Silver Bow) have state-certified building code programs. In these areas, the International Residential Code (IRC) and International Building Code (IBC) are strictly enforced.43 A building permit, plan review, and inspections for footing, framing, and insulation are mandatory.
Unincorporated Areas: In many rural counties (e.g., Sanders, Garfield, Mineral, Granite, and rural parts of Flathead), there is no county building department and no requirement for a structural building permit for single-family residences.45 This is the origin of the "no code" reputation. In these zones, a builder is not required to submit structural plans or pass framing inspections.

6.2 The Trade Permit Reality

Crucially, the absence of a building permit does not exempt the builder from trade permits.

State Electrical Permit: The State of Montana enforces the National Electrical Code (NEC) statewide. Even in a "no code" county, an Electrical Permit from the Montana Department of Labor and Industry (DLI) is required for any electrical work.47
- Homeowner Exemption: An owner may wire their own primary residence without a license, but they must still obtain the permit and pass rough-in and final inspections by a state electrical inspector.47
- Grid Connection: Electrical co-ops (e.g., Flathead Electric, Missoula Electric) will absolutely refuse to energize a new service without a "green tag" (passed inspection) from the state inspector.48
State Plumbing Permit: Similarly, the Uniform Plumbing Code (UPC) is enforced statewide. A plumbing permit is required, with a similar homeowner exemption for personal residences.49

6.3 The Owner-Builder Exemption (MCA 50-60-102)

Montana Code Annotated 50-60-102 specifically allows counties to exempt residential buildings (fewer than five units) and private garages from state building codes.51 This statute is the legal mechanism that permits alternative construction methods—straw bale, cordwood, earthship, or un-graded lumber—that would otherwise fail strict IRC prescriptions. However, builders utilizing this exemption assume full liability for the structural integrity of the dwelling.

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7. Financial Analysis and Real Estate Dynamics

The financial barrier to entry for off-grid living in Montana has shifted post-2020 due to a surge in land demand.

7.1 Land Market Valuation

Western Montana (Amenity Markets): In the Flathead, Mission, and Bitterroot Valleys, land prices are driven by recreational value and proximity to cities (Kalispell, Missoula).
- Price: Listings for rural acreage often range from $15,000 to $50,000+ per acre, heavily dependent on views and water access.53
- Inventory: High-quality parcels with surface water or easy well access are scarce.
Eastern Montana (Agricultural Markets): In the plains (Garfield, McCone, Custer), values are tied to agricultural productivity.
- Price: Pasture land averages $920 to $1,000 per acre.55
- Trade-off: While land is cheaper, infrastructure costs (deep wells, power line extension) are often significantly higher, and access to services (hospitals, hardware stores) is lower.

7.2 CapEx Modeling: Site Development

The following pro-forma estimates the "breaking ground" costs for a standard off-grid site in 2025 (excluding the house structure itself).

Infrastructure Item	Western MT (Mountain)	Eastern MT (Plains)	Notes
Land Acquisition (20 acres)	$300,000 - $600,000+	$20,000 - $40,000	Variable by amenity value.
Water Well (Complete)	$12,000 - $20,000	$35,000 - $60,000	West: 200' depth / East: 800'+ depth.
Septic System	$8,000 - $15,000	$8,000 - $12,000	Higher cost in West due to complex soils/slopes.
Solar Power (10kW/30kWh)	$35,000 - $45,000	$35,000 - $45,000	Includes backup generator integration.
Excavation/Driveway (500')	$10,000 - $25,000	$5,000 - $15,000	West requires blasting/rock work; East requires gravel hauling.
Permits/Survey/COSA	$2,000 - $5,000	$1,000 - $3,000	DEQ rewrites can add $5k+.
TOTAL Site Prep	$367,000 - $710,000	$104,000 - $175,000	Includes land cost.

Insight: In Eastern Montana, the infrastructure cost often exceeds the value of the land itself. In Western Montana, the land cost is the dominant factor.

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8. Operational Logistics and Resilience

8.1 Winter Access and Isolation

The romanticism of a snow-covered cabin often clashes with the reality of plowing.

Equipment: A pickup truck with a plow blade is the bare minimum. For driveways longer than 0.25 miles, a tractor with a snowblower is superior. Plows create berms that eventually narrow the road to an impassable single track; blowers displace snow far enough to maintain road width.56
Mud Season: The spring thaw (March-May) can render dirt roads impassable to heavy vehicles (including propane delivery trucks and ambulances) due to "gumbo" mud. Stocking up on fuel and food prior to the thaw is a standard logistical requirement.42

8.2 Medical Security: Air Ambulance

Rural isolation imposes a "time penalty" on medical emergencies. Response times for ground ambulances can exceed 1 hour. For cardiac events, strokes, or trauma, air medical transport is the standard of care.

Financial Risk: A single rotary-wing (helicopter) transport can cost $12,000 to $50,000.57 Insurance often covers only a fraction of this "out-of-network" cost, leading to massive balance billing.
Mitigation: Membership programs like Life Flight Network or AirMedCare Network are essential risk management tools. For an annual fee (approx. $85-$125), these programs treat the membership fee as payment in full for any transport performed by their fleet, eliminating out-of-pocket costs for the member.59

8.3 Mental Resilience

Long-term residents cite "cabin fever" and isolation as significant challenges. The "dark doldrums" of January, combined with difficult travel conditions, require a psychological preparedness as robust as the physical infrastructure. Successful off-gridders often cite maintaining a schedule, designated "town days," and reliable internet (Starlink has revolutionized this) as key survival tactics.61

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9. Conclusion

Living off the grid in Montana in 2025 is a venture that demands high technical competency, significant capital, and rigorous legal due diligence. The era of the "wild west" squatter is over; the modern off-gridder must be part hydrologist, part electrical engineer, and part paralegal.
Strategic Recommendations:

Water is the Deal-Breaker: Never purchase land without a verified water right or a hydrogeologist's confirmation of exempt well viability. Check basin closure maps religiously.
Design for December: Ignore annual average solar data. Size power systems for the winter solstice and prioritize thermal management for batteries.
Respect the Code: Even in "no code" counties, adhere to IBC standards for snow loads and obtain state trade permits. This ensures insurability and resale value.
Budget for Infrastructure: Recognize that in many cases, the cost to make raw land habitable will equal or exceed the purchase price of the acreage.

By adhering to this hydro-legal and technical roadmap, US homeowners can navigate the complexities of the Treasure State and achieve a resilient, autonomous lifestyle that endures the rigors of the Northern Rockies.

Works cited

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