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4. Imported ICS <br />A Contractor may create Imported ICS by introducing non-Colorado River <br />System water in that Contractor's state into the Mainstream. Contractors <br />proposing to create Imported ICS shall make arrangements with the Secretary, <br />contractual or otherwise, to ensure no interference with the Secretary's <br />management of Colorado River system reservoirs and regulatory structures. <br />Any arrangement shall provide that the Contractor must obtain appropriate <br />permits or other authorizations required by state law and that the actual amount <br />of water introduced to the Mainstream shall be reported to the Secretary on an <br />annual basis. Any Imported ICS not released pursuant to Section S.D.6 or <br />deducted pursuant to Section S.D.S.c in the Year it was created will be <br />converted, at the beginning of the following Year, to Extraordinary <br />Conservation ICS at the request of the Contractor and thereafter will be subject <br />to all provisions applicable to Extraordinary Conser~~ation ICS. <br />Creation of ICS <br />A Contractor may create ICS subject to the following conditions: <br />a. A Contractor shall submit a plan for the creation of ICS to the Secretary <br />and the Basin States demonstrating how all requirements of these <br />Guidelines will be met in the Contractor's creation of ICS. Until such <br />plan is reviewed and approved by the Secretary in consultation with the <br />other Basin States, such plan, or any ICS purportedly created through it, <br />shall not be a basis for an ICS Declaration. A Contractor may modify <br />its plan for creation of ICS during any Year, subject to approval by the <br />Secretary in consultation with the Basin States. System Efficiency ICS <br />with an approved multi-Year plan shall not require annual approval by <br />the Secretary or consultation with the Basin States. <br />b. A Contractor that creates ICS shall submit a Certification Report to the <br />Secretary demonstrating the amount of ICS created and that its creation <br />was consistent with the Forbearance Agreement, these Guidelines, and <br />a Delivery Agreement executed by the Secretary. The Secretary shall <br />verify the infoi7nation in the Certification Report in consultation with <br />the Basin States, and provide a final written decision to the Contractor, <br />the Parties and the Basin States. The Contractor or any Party or Basin <br />State may appeal the Secretary's verification of the Certification Report <br />through administrative and judicial processes. <br />c. There shall be a one-time deduction of five percent (5%) from the <br />amount of ICS in the Year of its creation. This deduction results in <br />additional water in storage in Lake Mead for future use in accordance <br />with the Consolidated Decree and these Guidelines. This provision <br />shall not apply to: <br />13 <br />